University of Arizona has reduced its projected deficit to $52 million in fiscal 2025 — down from an earlier estimate of $177 million — through numerous planned cuts at the institution, according to a presentation Thursday to the board of regents by John Arnold, interim chief financial officer.
That comes as the state’s recently passed budget is set to reduce funds for the university’s main campus by $6.6 million in fiscal 2025.
Arizona lawmakers also cut $1.5 million to the university’s health sciences college and $1.5 million to its teacher’s academy. University of Arizona will also see a $4 million reduction to a state grant program for Pell-eligible first-year students.
Officials are still working through how they will “fully adjust for the state reductions,” Arnold said.
He added that the university is talking with its health sciences program about possible savings in response to state reductions. The university could “unwind” the teacher’s academy to account for the loss of funding, he said.
Officials project that cash reserves will decline by about $50 million from the current fiscal year to the next one. For fiscal 2025, leaders project the institution will carry 67 days, or $500 million, of cash on hand — the lowest it has been since 2011, according to Arnold’s presentation.
The board of regents requires the university to carry 140 days cash on hand, a threshold the university hasn’t met since fiscal 2022.
Arnold said he hopes the cash declines stop at the $500 million figure, and the university can start rebuilding its reserves from there.
Even with those financial challenges, University of Arizona plans to make investments, including in its business and information sciences schools, nursing program expansions, and international recruitment.
The university also plans to spend on deferred maintenance, new security measures, its Arizona State Museum and the relocation of its hydrology and atmospheric sciences program, and other other capital projects.
While the University of Arizona carries about $1.3 billion in debt, Arnold said the institution has room for an additional bond program to fund its capital projects.
On top of all that, the University of Arizona officials are considering how to adapt the athletics department budget to revenue sharing with athletes.
Among other changes, the department is planning to reduce its leadership personnel costs by half a million dollars, Desireé Reed-Francois, vice president and director of athletics, said at the meeting.
#University #Arizona #narrows #budget #gap #52M
