TUCSON, Ariz. (KGUN) — The Arizona Board of Regents (ABOR) last week presented an update on the University of Arizona's financial situation, saying its cash-on-hand shortfall late last year was around $140 million, rather than the initially-reported $240 million.
Today, UA President Robert Robbins and ABOR Chair Fred DuVal plan to give a presentation updating the community on the university's Financial Action Plan around 1 p.m.
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According to a presentation delivered to ABOR by interim chief financial officer John Arnold last week, no dollars were unaccounted for during the cash-on-hand shortfall; rather, he presented that the university had 'overspent' on certain strategic investments. He also pinpointed the lack of the centralized budgeting process as another contributing factor to the 2023 overspend.
Today Arnold reiterated the university's plans to prevent future overspending by reducing administration—those include centralizing finance, HR, IT and marketing and communications.
The Associated Students of the University of Arizona (ASUA) and the Graduate and Professional Student Council (GPSC) sent the following joint statement today to KGUN 9 following the afternoon presentation:
“As the elected undergraduate and graduate student body leaders of UA, we were dismayed to see the misleading statements made today by the University administration.
At no point prior to today’s presentation, were any student leaders consulted or informed about the University’s financial plan going forward. We are disappointed to see the university continuing to erode trust internally and externally.”
Following the Board of Regents meeting last Thursday, Arizona Governor Katie Hobbs called university leadership into question—specifically over the purchase of Ashford University, now branded as University of Arizona Global Campus (UAGC). In a letter released to the public via social media, Hobbs said the UAGC acquisition "demonstrated a secretive process which downplayed, and some might even say attempted to hide altogether, the incredibly risky nature of the purchase to the University of Arizona's finances and reputation."
ABOR said during last week's meeting that moving forward they would develop a comprehensive strategy for handling and managing money. In her letter, Gov. Hobbs outlined a series of requests:
- A detailed plan presented to the governor by Friday, Feb. 9 that includes the major strategies for resolving the school's financial issues
- A reduction in overlap between the university's governance and ABOR's
- Clearer messaging to the public that emphasizes transparency and and accuracy
- A report detailing the "rationale and process that were used to assess the purchase of Ashford University" by Tuesday, Feb. 20
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