Financial Action Plan Overview

In the fall of 2023, the university began working to address a budget shortfall. The vast majority of the deficit was a result of accelerated spending to enhance and improve the overall experience for students, faculty and staff. This includes millions spent on student merit aid, spending to retain and attract world-class faculty and staff, and critical strategic investments. Learn more about the background of the University of Arizona financial situation, including external and internal factors.

The university is taking action to address and eliminate its structural deficit while providing an outstanding educational experience for our students, research that drives economies and improves lives, and outreach that benefits millions across the state of Arizona and far beyond.

Actions Implemented

• Conducted individual reviews of all budget units and implemented FY 2025 base budget reductions with focus on units spending in deficit, overhead and administrative functions.
• Implemented hiring and compensation freeze from December 2024 through June 2024 and delayed FY 2025 Salary Increase Program.
• Deferred nonessential capital projects and implemented new purchasing policies and guidelines.
• Rebalanced undergraduate non-resident merit aid for new students and eliminated the tuition guarantee in fall 2025 for new students.
• Eliminated Activity Informed Budgeting (AIB) model to implement centralized planning budget model.
• Concluded strategic initiatives funding. 
• Implemented administrative services reorganization.