At a meeting Wednesday night with the Arizona Board of Regents, the University of Arizona announced that it’s making immediate changes to address a budget shortfall of $240 million.
UA President Robert Robbins told the Board of Regents — which oversees the state’s public universities — that having low cash on hand is the product of a dysfunctional system.
"Cash on hand only reflects the overall health of the university financial situation. It’s a symptom not the core problem, and we will work to address as we work to address the university’s finances. We’ll focus on the disease and not the symptoms," said Robbins.
Regent Larry Penley says the board and UA need to work together to stop a systemic problem.
"To assure that the university can go forward successfully, we must address both its budget and its management procedures, and we must address ours as well," Penley said.
The board recommended a centralized planning and budgeting process for UA, budget controls, and a requirement for board approval to spend cash reserves past certain levels. Robbins also reported on the changes he’s making to cut down on spending, including a hiring freeze, delaying planned salary increases and ending tuition guarantees. He also announced that Chief Financial Officer Lisa Runley has resigned.
Robbins assured the board that student aid is not on the chopping block. The board also proposed much stricter financial policies for the state’s three public universities going forward.
