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University of Arizona Implements Financial Recovery Plan Amid $240 Million Deficit



January 17, 2025

The University of Arizona has announced a comprehensive financial recovery plan to address a significant $240 million budget shortfall. In a virtual meeting with the Arizona Board of Regents, President Robert Robbins outlined several immediate measures to stabilize the university's finances.

Key Measures in the Financial Recovery Plan:

  • Hiring Freeze: An immediate hiring freeze will be implemented to control personnel costs.

  • Travel Restrictions: International travel will be suspended to reduce expenses.

  • Purchasing Limitations: Purchasing will be restricted to essential items only.

  • Deferral of Non-Essential Projects: Non-essential capital projects will be postponed to conserve funds.

  • Pause on Strategic Investments: Strategic investments will be temporarily halted to prioritize financial stability.

These measures aim to save approximately $30 million in the short term.

Leadership Changes:

In conjunction with the financial recovery plan, the university announced the resignation of its Chief Financial Officer, Lisa Rulney, who had held the position since April 2019. John Arnold, the Regents Executive Director, will serve as the interim CFO and Vice President of Business Affairs.

Rationale Behind the Budget Shortfall:

President Robbins attributed the budget deficit to several factors, including a decentralized budgeting process, ineffective administrative structures, overspending, and inadequate budget controls. The university's cash reserves fell short of the required 140 days, indicating that expenditures were outpacing revenues.

Impact on Tuition and Financial Aid:

To address the budget shortfall, the university plans to end its guaranteed tuition program for all new students starting in the fall of 2025. Additionally, financial aid for out-of-state students will be reduced, while need-based aid for Arizona residents and merit-based aid for current or accepted students will remain unaffected.

Athletics Department Reforms:

The university's athletics department will also undergo reforms, including raising ticket prices, maximizing media rights contributions, and reducing costs through centralized administrative functions. These measures aim to bring the athletics budget into balance.

The University of Arizona is committed to implementing these measures to ensure long-term financial stability and continue providing quality education and services to its students.

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