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University Financial Updates
University Financial Health and Ongoing Success
The University of Arizona continues to strengthen its financial health in support of the ongoing success of its teaching, research and outreach mission.
Summary of Financial Situation
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.
Financial Action Plan Overview
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.
Based on input and feedback from faculty, student, staff and leaders across campus, the university created an action plan that includes ongoing cost-reduction measures and structural changes that address budgeting frameworks and accountability controls, and create operational efficiencies. The plan was submitted to the Arizona Board of Regents on Dec. 13, 2023.
University leadership continues to work with the Arizona Board of Regents and shared governance partners to balance our budget by Jan. 1, 2026, while also minimizing the impact on our students, faculty and staff.
Actions Over the Next 18 Months | Dec. 2023-July 2025
- Implementing FY 2025 base budget reductions with focus on units spending in deficit, overhead and administrative functions.
- Delaying FY 2025 Salary Increase Program.
- Conducting individual reviews of all budget units; ensure ongoing financial accountability.
- Rebalancing undergraduate non-resident merit aid for new students.
- Eliminating tuition guarantee in fall 2025 for new students.
- Eliminating Activity Informed Budgeting (AIB) model; implement centralized planning budget model.
- Reorganizing administrative services in: information technology, human resources, marketing and communications, business and finance, facilities management, and university development (fundraising).
Actions Implemented | Dec. 2023-July 2024
- Implementing hiring and compensation freeze through June 30, 2024.
- Freezing international travel for senior administrators.
- Restricting purchasing.
- Deferring nonessential capital projects.
- Concluding strategic initiatives funding.
Our Priorities
![UArizona stadium sign](/sites/default/files/styles/az_full_width_bg_extra_small/public/2024-05/StadiumARed-6075x2478%201.jpg?h=53f85253&itok=Yj0q8NY2)
University Strategic Investment Successes
The University of Arizona began implementing its Strategic Plan initiatives in 2018 and has achieved great success in critical areas.
Resources
Action Plan
Resources related to the financial action plan.
Budget & Planning
Resources related to budget and planning at the University of Arizona.
Unrestricted Funds Operating Budget FY 2025
Expenditure Authority Guidance for FY 2025 [requires NetID]
Arizona Board of Regents
Resources related to the governing body for Arizona's three state universities.
Previous Updates
Date | Sender/Information Source | Title or Subject |
---|---|---|
Sept. 4, 2024 | John Arnold | Presenting the Fiscal Year 2025 Unrestricted Funds Operating Budget |
June 26, 2024 | John Arnold and Ronald Marx | Update on Fiscal Year 2025 College and Division Budgets |
June 20, 2024 | Desireé Reed-Francois, Athletics Director | Arizona Athletics Plan to Strengthen Operational and Financial Accountability |
June 20, 2024 | Robert C. Robbins, President | Updates on University Finances and Operations to ABOR | ABOR Meeting Recording |
April 25, 2024 | John Arnold and Ronald Marx | Update on Fiscal Year 2025 College Budgets |