The University of Arizona has identified $71 million in budget cuts along with other measures to help close a deep chasm between its revenue and expenses.
In a presentation to the state’s board of regents last week, John Arnold, the university’s interim chief financial officer, outlined progress made to date in closing a $177 million budget deficit looming over the institution.
The university’s financial challenges have sparked harsh criticism of its leadership and governing board, particularly from Arizona Gov. Katie Hobbs. Amid the turmoil, President Robert Robbins said earlier this month that he would leave his post by June 2026.
Arnold served as the regents’ executive director until taking on the university’s CFO role in December to address the University of Arizona's financial situation. He has collaborated on the budget effort with Ronald Marx, the university's interim senior vice president for academic affairs and provost.
Arnold cautioned at the board meeting that “every number I’m about to show you is wrong” — meaning his presentation was based on projections for fiscal 2025 that he expected to change as the year unfolds.
Unknowns include future revenue and state appropriations for the 2025 fiscal year. The budget team kept their projections for those areas conservative, Arnold said.
With that caveat, he explained how the university plans to wipe out $110 million of its deficit, after previous initiatives reduced the projected gap to $162 million. By fiscal 2026, the remaining $52 million deficit is expected to be resolved and the budget balanced, Arnold said.
Still to come is more information about the university’s restructuring efforts, proposed reforms to its operating policies, a review of faculty workload and preparation for the fiscal 2026 budget, Arnold said.
Budget cuts took the biggest bite out of the deficit for fiscal 2025. That includes a $30.1 million reduction — or 6.3% — to administrative units under the provost, such as student support services. It also entails a 6.2% reduction in the budget for Health Sciences, an academic medical center that houses several colleges, and 3.6% cut out of the collective budget of the university’s colleges.
Where University of Arizona is making cuts
| Area | Change in spending |
|---|---|
| Administration/Provost units | -6.3% |
| Health Sciences | -6.2% |
| Colleges | -3.6% |
| Facilities | +2.5% |
| Safety | +9.2% |
Source: University of Arizona Interim CFO John Arnold
In other administrative cuts, Arnold highlighted a 28.2% reduction in the fiscal 2024 budget of the university’s president and secretary’s office. That includes $3.9 million in unspecified administrative reductions and $1 million from a closed strategic initiative’s office.
“They’re taking the biggest cut on campus,” Arnold said, referring to the percent change in the president’s office budget.
University officials also expect $18 million in new revenue opportunities, including through program expansions, as well as improved performance in auxiliary services and in the University of Arizona Global Campus.
UAGC was created out of the online for-profit Ashford University, which University the Arizona bought in late 2020 from the now-defunct company Zovio. Arnold did not elaborate on the expected financial improvements but noted projected enrollment growth both in UAGC and the university’s traditional online arm are expected to help the institution’s overall balance sheet.
The University of Arizona is also looking to save costs through centralized information technology and human resources functions, as well as restructuring facility operations. Additionally, it’s reevaluating how it uses its spaces and reviewing its leases on certain properties to save money.
Each of the university’s colleges will start fiscal 2025 with balanced budgets, with new protocols and administrative check-ins to make sure they stay on budget, according to Arnold.
The budget team shunned across-the-board cuts, and instead asked operating units to submit ideas that could lead to 5%, 10% and 15% reductions, Arnold said. The university has said it is specifically not considering cutting financial aid for current students, cutting retirement benefits or instituting furloughs for staff.
“We don’t want to cut just to spite ourselves,” he added.
