The University of New Orleans announced it is exploring reclassification from Division I to Division III, effective with the 2010-11 academic year. The school cited budgetary concerns as its primary reason for considering the switch and committed to a decision by May 15, 2010.

“We had to reduce funding for athletics in the previous round of budget cuts, and since then the financial picture of the university and the athletics program has not improved,” said Chancellor Tim Ryan.

Students at the 11,724-student school last spring defeated a referendum that would have raised student fees to help pay for the athletics program. At that time, officials indicated the athletics program could not survive without additional funding. The school’s enrollment for 2009 is nearly 32 percent less than its pre-Katrina 2005 enrollment.

New Orleans officials said the school is looking at several options for its athletics program, and views reclassification to Division III as a viable choice.

“The good thing about Division III is the focus on student-athletes. Division III is about students having an NCAA experience that is an enhancement to their academic pursuits and is also much more cost-effective,” Ryan said. “In Division III, universities cannot offer athletics scholarships, and we are taking steps to ensure that we follow all NCAA guidelines and recommendations in this, the initial stage of consideration.”

The school, which received a five-year sport-sponsorship waiver after Katrina devastated its campus, did not participate in athletics from the time of the storm until the fall of 2008. It reinstated athletics teams in stages and now sponsors 10 sports (five for each gender). The waiver is expected to expire after this year.

Division I schools without football (New Orleans does not have a varsity football team) are required to sponsor 14 sports. Beginning in 2010, Division III institutions must sponsor at least 12 sports (six for each gender).

Officials believe a move to Division III will enable it to meet and perhaps exceed the sport-sponsorship requirement under the reduced cost of operating programs in the new division.

The athletics department is also undergoing leadership changes. Interim Athletics Director Mike Bujol, who took over for former AD Jim Miller on August 1, announced his retirement on November 10. Bujol, a former associate athletics director in charge of facilities improvements, headed rebuilding efforts for a new structure to house athletics offices.

Bujol told the New Orleans Times-Picayune that the program has not seen any donations from New Orleans Hornets owner George Shinn, who pledged to help the department financially after the student referendum failed in the spring. Shinn, recently diagnosed with prostate cancer, was expected to lead a fund-raising initiative to save athletics at the school.

The school has no teams facing Academic Performance Program penalties, as was the case with Centenary (Louisiana), which also announced its intention to reclassify from Division I several months ago. However, several teams failed to meet Academic Progress Rate benchmarks and were able to avoid penalties by meeting requirements in the waiver process, including outperforming the general student body.

The reclassification process takes four years, though schools that meet the membership standards can apply for a waiver after two years. The application deadline for reclassification is June 1 before the start of the four-year program. Schools cannot participate as a Division III member (in championships, voting at Convention) until active membership is achieved.

The Privateers belong to the Sun Belt Conference in Division I. If accepted in Division III, it will be one of few state schools in a division dominated by private, liberal arts institutions, especially in the geographic area. The only other Division III school in Louisiana (Louisiana College in Pineville) belongs to the 15-member American Southwest Conference.