Financial Updates

University Financial Updates

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. 

Latest Update 

Updates on University Finances and Operations to ABOR

On June 20, the University of Arizona presented an update on its finances and operations at the Arizona Board of Regents (ABOR) June meeting hosted by Northern Arizona University. 

The presentations included updates on the University’s budget for fiscal year 2025 and highlights from the independent assessments of Arizona Athletics and the University’s online education operations conducted by a global services firm, as part of the financial action plan.


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 all actions necessary 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 implementing ongoing cost-reduction measures and structural changes that address budget decision-making 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

Restructuring Administration
  • 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
  • Rebalance resource allocation and reduce costs for each college and division to address the deficit across the institution. 
Modernizing Athletics
  • Centralize administrative functions, identify efficiencies in operations, reset the budget starting from zero.
  • Install hard caps on spending and implement revenue packages. 
  • Review finances and operations with guidance from a global services firm. 
Ensuring UAGC Efficiency
  • Work to ensure University of Arizona Global Campus (UAGC) is more efficient and effective post-integration, achieving a significant positive financial impact.
  • Review finances and operations with guidance from a global services firm and identify appropriate next steps as we continue the acquisition process. 
Launching a New Budget Model
  • Establish a new budget model and process by Jan. 1, 2025.
Reviewing Faculty and Staff Workload
  • Review faculty and staff workload to ensure we are appropriately staffing our University and avoiding the hidden costs of an overstressed workforce.
Enhancing Revenues
  • Reset how we make budget decisions and rightsize our operations.
  • Tap into new revenue sources to ultimately restore our financial health.
  • Continue the Tuition Guarantee Program for all current undergraduate students and those admitted for fall 2024, and 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, fully maintain need-based aid for Arizona resident students and recalibrate merit-based aid for undergraduate non-resident students.

University Strategic Investment Successes

The University of Arizona began implementing its Strategic Plan initiatives in 2018 and has achieved great success in critical areas.



Budget & Planning

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

Budget Reports

FY 25 Original Budget (Colleges/Divisions)

Expenditure Authority Guidance for FY 2025 [requires NetID]

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
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
April 25, 2025 Helena Rodrigues, John Arnold, Ronald Marx Update on Recent Decisions Regarding Separation Processes