The University of Arizona reported 76 days cash on hand, an improvement from their estimate of 67 days from the year’s initial budget, but still far below the Arizona Board of Regents required minimum of 143.
The update on the university’s cash crunch came at the regents meeting Thursday after a yearlong financial crisis that started at a similar meeting on Nov. 2, 2023 with the UA announcing their cash on hand was below the minimum. That set off budget cuts, the replacement of the university’s president and other leadership overhauls.
“We’re making tough calls but I want to keep in mind that those that are affected are the ones making the least,” said new president Suresh Garimella who started in October.
The board approved a $10,000 increase in next year’s deferred maintenance budget for necessary repairs to campus infrastructure.
In reports to the regents, university officials also shared details about enrollment and tuition revenue.
The university saw an increase in enrollment and a decrease in payroll, especially among faculty and classified staff this fiscal year, according to a September report which said “employee numbers have returned to levels comparable to those seen two years ago in the first quarter of fiscal year 2023.” The enrollment difference between the two years was 55,649 in Fiscal Year 2025 vs 47,926 in Fiscal Year 2023.
“Larger numbers of students mean contingent faculty have less time to provide quality feedback on students’ assignments,” Beatriz Urrea, associate professor of practice in the Department of Spanish and Portuguese, said during the call to the audience, a time when anyone can address the board.
Garimella acknowledged the additional labor strain on staff and the lack of compensation.
“I have told the team that we are going to do our best to have a raise next year,” he said.
The board’s executive director, Chad Sampson, said the university is bringing in less than expected in tuition and fee revenue this school year, making $38.8 million less than anticipated according to the meeting report.
One year into a financial crisis
The meeting comes a year after the University of Arizona’s then-Chief Financial Officer Lisa Rulney presented a shocking financial update to the board, revealing the school had a significant deficit in their cash reserves.
Staff, students and faculty erupted, demanding Rulney and then-President Robert Robbins’ resignation.
Robbins announced in April 2024 that he would step down at the end of his employment contract or when the Arizona Board of Regents selects a new UA president, according to an email to UA stakeholders. He did step down in September when Garimella, the regents’ new presidential hire, started as president.
Robbins is likely to continue working as a tenured faculty member in the surgery department, according to a September press release. He is also listed as a distinguished visiting fellow at the Hoover Institution. Robbins requested a 10% cut to his base pay and elimination of his bonuses in light of the university’s troubled financial state, according to a March 4 statement from the regents. Despite the board of regents approving this request, they approved a $40,000 bonus for Robbins earlier this month.
John Arnold, then executive director of the board of regents, joined the University of Arizona on an interim basis in December 2023 to help the school get its finances in order. Arnold’s employment with the university became permanent in June when he accepted a position as senior vice president, chief operating officer and chief financial officer.
Corrections and clarifications: This story was updated to correct the name of speaker Beatriz Urrea and her title.
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