University of Arizona Implements Financial Restructuring and Program Cuts Amid $177 Million Deficit

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The Arizona Board of Regents has submitted a financial oversight report to Governor Katie Hobbs. The report outlines steps to improve financial management at the University of Arizona (UA), ASU, and NAU. It includes plans to hire a professional services firm for third-party evaluation of the University’s finances, with a focus on the athletic department and UA Global Campus.

The report shows that UA is facing a budget deficit of about $177 million. To address this, the university plans to cut administrative costs, centralize roles, and establish a new financial reporting method. It aims to save $27 million by eliminating vacant positions.

The university also plans to cut its eSports program, suspend the Strategic Priorities Faculty Initiative, and delay the President’s Postdoctoral Fellowship Program. These steps are expected to save millions annually. Additionally, UA is working on a new financial model to increase revenue, and plans to adjust merit-based aid for undergraduate and non-resident students starting in fall 2025.

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