Financial Updates

University Financial Updates
Page updated April 18, 2024

Ensuring Financial Health and Success

The University of Arizona is actively working to ensure strong financial health and the ongoing success of our teaching, research and outreach mission. This page contains the most up-to-date information about our progress, resources and more.

Latest Update

University of Arizona Budget Update for Fiscal Year 2025

On April 18, President Robert C. Robbins announced the University is projecting that the FY 2025 budget deficit will be reduced from $162 million down to $52 million. This anticipated improvement of $110 million in the University’s deficit is preliminary but marks considerable progress in the implementation of the institution’s financial action plan. 

John Arnold, Interim Chief Financial Officer and Senior Vice President for Business Affairs, shared this update as part of an overview of the University's initial budget for FY 2025 presented to the Arizona Board of Regents at its April meeting. 


Financial Situation and Action Plan Overview

The University has an annual budget of approximately $2.7 billion. As a result of accelerated spending from FY 2022 to FY 2023, the University experienced a decline of $140 million in cash and investments, when comparing the University's cash position snapshot in June 2022 to its cash position snapshot in June 2023. On June 30, 2023, the University had $704.5 million in unrestricted cash and short-term investments, which translated to 110 Days Cash on Hand, 30 days short of the ABOR-required minimum. Days Cash on Hand is not a comprehensive measurement of the University's financial health. It is one key directional indicator of some systemic financial issues that need to be addressed and it is a factor in the University's credit rating.

The University's immediate financial task is to address and eliminate its structural deficit while ensuring the ongoing success of its teaching, research and outreach mission.


Our Progress

Updated April 5, 2024

To implement the long-term solutions needed to eliminate our structural deficit and to ensure the University’s long-term financial health, we must act now. We will gain significant operational efficiencies and beneficial structural changes; however, some of our choices will be difficult.

As part of the next phase of our financial action plan, we will implement the following changes.

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. 

Moving Forward

University leadership will continue to work with the Arizona Board of Regents and shared governance partners to inform solutions that will allow us to balance our budget by Jan. 1, 2026, while also minimizing the impact on our students, faculty and staff. We will share regular updates about the financial action plan and budget decisions impacting the campus community.

This process will be transparent, measurable and accountable. 

We will take all actions necessary to ensure our University continues to provide 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. 

Please continue to consult this website if you have questions or would like more information.



Action Plan Items 

Resources related to the financial action plan items.

Human Resources Guidance

Financial Services Guidance

Capital Projects Guidance

HR Centralization

IT Centralization

Budget & Planning

Resources related to budget and planning at the University of Arizona.

Budget Reports


Arizona Board of Regents

Resources related to the governing body for Arizona's three state universities.

ABOR Website

ABOR Reports

Previous Updates

Date Sender/Information Source Title or Subject
April 18, 2024 Robert C. Robbins, President University of Arizona Budget Update for Fiscal Year 2025 |  ABOR meeting recording
April 4, 2024 John Arnold and Ronald Marx Update on the University’s Financial Action Plan Progress | ABOR committee meeting recording.
March 28, 2024 Ryan Goodell College and Division Leaders to Submit Capital Projects Inventory for FY 2025-2027
March 15, 2024 University of Arizona News Regents Vote to Approve President Robbins' Request to Reduce Salary
March 4, 2024 Robert C. Robbins, President Financial Updates