University of Arizona searches for new budget model following $240 million shortfall
Download mp3 (1.15 MB)
The Arizona Board of Regents got an update Thursday on the University of Arizona’s budget problems.
Late last year, UA president announced it was facing a $240 million budget shortfall.
That led to speculation that its acquisition of the online school, Ashford University, now University of Arizona Global Campus (UAGC), contributed to the financial crisis.
But during a meeting Thursday, ABOR Executive Director John Arnold said while UAGC has $265 million in operating costs, it’s generating enough revenue to cover them.
“They’ve also realized some savings as we go through the merger process between UAGC and the University of Arizona," Arnold said. "As you can imagine, there’s a lot of duplication there and as we merge together, we’re able to eliminate positions and combine duty sets.”
Arnold is also serving as UA's interim chief financial officer. He said previous administrators used an outdated financial model, which caused a disconnect between the cost of operating each school and the resources that were allocated for them. He’s looking for a more predictive model to use in the future.
"We’re looking at various universities and other large entities to look at what those budget models might be," he said. "It may be something that needs to be continually managed and tweaked over time."
In the meantime, the university has implemented a hiring freeze and other measures to slow down its spending.
