Financial Situation and Action Plan
Where We Are Today
There are significant structural budget deficits and real challenges that must be addressed. Fixing these challenges will require timely, strategic and sometimes difficult decisions. We will address these challenges head on, implement effective solutions and keep our University on an upward trajectory.
This is a widespread issue. According to our latest budget review, 61 of the 81 (or 75%) reporting units within the University forecast continued deficit spending.
The vast majority of the deficit is due to increased spending to enhance and improve our student experience and to strengthen our faculty and staff. This includes millions spent on student merit aid, compensation 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
Without further action, we would face a projected budget shortfall of $162 million this year. Our budget shortfall would only get worse year-after-year if we took no immediate action to course-correct the overspending trend. We are not going to allow that to happen.
In December, we announced immediate actions to slow spending and to help change the budget trajectory. These actions included the implementation of a hiring and compensation freeze, strict procurement guardrails and travel restrictions. Even with those measures, the latest information provided by college and division leaders indicates that we remain on a path of overspending, further depleting our cash reserves.
Longer-term solutions will be necessary over the next 18 months to implement ongoing cost-reduction measures and structural changes that address budget decision-making frameworks and accountability controls, and create operational efficiencies.
Based on input and feedback from faculty, student, staff and administrative leaders across campus, the University submitted its financial action plan to the Arizona Board of Regents on Dec. 13, 2023.