Restructuring Administration

We will restructure operations across the University, including reducing administrative costs, centralizing certain functions and balancing authority, and implementing a new standard of financial reporting. These measures will improve outcomes through efficiencies. 

Rightsizing College and Division Budgets

We will rightsize college and division budgets. The deficit is a university-wide problem and must be addressed university wide. We will work with each college and division to rebalance resource allocations and to reduce costs. 

Modernizing Athletics

We will modernize our Athletics operations from the ground up, including centralizing administrative functions, identifying efficiencies in operations, resetting the budget starting from zero, and installing hard caps on spending and implementing revenue packages. Dozens of athletic departments around the country also are considering similar steps to address ongoing financial challenges. To help us in this process, the University is engaging a global professional services firm to review Athletics finances and operations. 

Ensuring UAGC Efficiency

While the University of Arizona Global Campus (UAGC) has not had a negative financial impact on the University, we will continue working to ensure UAGC is more efficient and effective post-integration, achieving a significant positive financial impact.

UAGC had a positive $47 million cash impact in FY 2023. We currently project that UAGC will achieve a small gain of $110,000 for this fiscal year.

The University is engaging with a global professional services firm to review UAGC finances and operations and to assist in identifying the appropriate steps as we continue the acquisition process.

Launching a New Budget Model

We will establish a new budget model and process by Jan. 1, 2025.

Reviewing Faculty and Staff Workload

We will review faculty and staff workload to ensure we are appropriately staffing our University and avoiding the hidden costs of an overstressed workforce.

Discussing Retirement Incentives

As part of the financial mitigation effort, the University was exploring a retirement incentive program. Following additional review and considering complications related to state laws, we are not currently pursuing that option.

Enhancing Revenues

We will enhance our revenues in the years to come, which means focusing on a new financial model, increasing summer and winter session revenues and exploring all auxiliary revenue opportunities.

The Tuition Guarantee Program will continue for all current undergraduate students and those admitted for fall 2024. The University will eliminate the Tuition Guarantee Program beginning fall 2025 for new undergraduates.

There are no changes to need-based or merit-based aid for fall 2024 admitted students or current students.

Beginning in fall 2025, the University will fully maintain need-based aid for Arizona resident students and will recalibrate merit-based aid for undergraduate non-resident students.

In short, we are fundamentally resetting how we make budget decisions, rightsizing our operations and tapping into new revenue sources to ultimately restore our financial health.