The College of Arizona has recognized $71 million in finances cuts together with different measures to assist shut a deep chasm between its income and bills.
In a presentation to the state’s board of regents final week, John Arnold, the college’s interim chief monetary officer, outlined progress made thus far in closing a $177 million finances deficit looming over the establishment.
The college’s monetary challenges have sparked harsh criticism of its management and governing board, notably from Arizona Gov. Katie Hobbs. Amid the turmoil, President Robert Robbins mentioned earlier this month that he would depart his submit by June 2026.
Arnold served because the regents’ govt director till taking on the college’s CFO function in December to deal with the College of Arizona’s monetary scenario. He has collaborated on the finances effort with Ronald Marx, the college’s interim senior vp for educational affairs and provost.
Arnold cautioned on the board assembly that “each quantity I’m about to indicate you is incorrect” — which means his presentation was based mostly on projections for fiscal 2025 that he anticipated to alter because the yr unfolds.
Unknowns embrace future income and state appropriations for the 2025 fiscal yr. The finances group stored their projections for these areas conservative, Arnold mentioned.
With that caveat, he defined how the college plans to wipe out $110 million of its deficit, after earlier initiatives diminished the projected hole to $162 million. By fiscal 2026, the remaining $52 million deficit is anticipated to be resolved and the finances balanced, Arnold mentioned.
Nonetheless to return is extra details about the college’s restructuring efforts, proposed reforms to its working insurance policies, a evaluation of school workload and preparation for the fiscal 2026 finances, Arnold mentioned.
Price range cuts took the largest chunk out of the deficit for fiscal 2025. That features a $30.1 million discount — or 6.3% — to administrative models underneath the provost, reminiscent of pupil help providers. It additionally entails a 6.2% discount within the finances for Well being Sciences, an instructional medical heart that homes a number of schools, and three.6% lower out of the collective finances of the college’s schools.
The place College of Arizona is making cuts
| Space | Change in spending |
|---|---|
| Administration/Provost models | -6.3% |
| Well being Sciences | -6.2% |
| Schools | -3.6% |
| Services | +2.5% |
| Security | +9.2% |
Supply: College of Arizona Interim CFO John Arnold
In different administrative cuts, Arnold highlighted a 28.2% discount within the fiscal 2024 finances of the college’s president and secretary’s workplace. That features $3.9 million in unspecified administrative reductions and $1 million from a closed strategic initiative’s workplace.
“They’re taking the largest lower on campus,” Arnold mentioned, referring to the % change within the president’s workplace finances.
College officers additionally count on $18 million in new income alternatives, including by means of program expansions, in addition to improved efficiency in auxiliary providers and within the College of Arizona World Campus.
UAGC was created out of the web for-profit Ashford College, which College the Arizona purchased in late 2020 from the now-defunct firm Zovio. Arnold didn’t elaborate on the anticipated monetary enhancements however famous projected enrollment development each in UAGC and the college’s conventional on-line arm are anticipated to assist the establishment’s total stability sheet.
The College of Arizona can be seeking to save prices by means of centralized data expertise and human sources features, in addition to restructuring facility operations. Moreover, it’s reevaluating the way it makes use of its areas and reviewing its leases on sure properties to save cash.
Every of the college’s schools will begin fiscal 2025 with balanced budgets, with new protocols and administrative check-ins to ensure they keep on finances, in keeping with Arnold.
The finances group shunned across-the-board cuts, and as an alternative requested working models to submit concepts that would result in 5%, 10% and 15% reductions, Arnold mentioned. The college has mentioned it’s particularly not contemplating chopping monetary assist for present college students, chopping retirement advantages or instituting furloughs for employees.
“We don’t wish to lower simply to spite ourselves,” he added.
