White flowers are planted around the historic fountain in front of the Old Main building on the University of Arizona campus.
The University of Arizona has released what it claims to be the framework of a preliminary “balanced” budget for this upcoming fiscal year.
“It prioritizes academic excellence, faculty and staff support, and student success across colleges,” an email from Chief Financial and Operating Officer John Arnold and Interim Senior Vice President for Academic Affairs and Provost Ronald Marx said.
The drawn-up budget fully funds faculty promotions and salary raises ranging from 2.5% to 2.75%. However, those increases are not across the board.
“For these raises, each college and division will have a salary pool equaling 2.75% of eligible staff salaries and 2.25% of eligible faculty salaries,” a February memo says.
The news comes after a strenuous time at the university, where hiring freezes and a pause on salary raises affected faculty and staff morale.
In the fall of 2023, then-university leaders announced a multi-million-dollar deficit due to accelerated spending. That left the university $140 million short in cash and investments. In comparison to the other two state public universities, UA’s cash reserves were far below the minimum standard required by the Arizona Board of Regents at 110 days. Employees were laid off, and open roles went unfilled as budget cuts ranged from 3-5% across campus departments.
While the financial crisis occurred, university leaders who miscalculated the budget were still paid out under their contracts, even after resigning.
This proposal has minor budget reductions for colleges, but the largest cut comes from reducing University Support and Administration units by 7.5%. Exact budget allocations for divisions outside of colleges will be released in a few weeks.
“We deeply appreciate the engagement of faculty, deans, division leaders, and finance officers throughout the budget process, as we work together to strengthen long-term institutional financial health and stabilize cash reserves in support of the university’s mission,” the email announcement reads.
Amidst recent budget developments, UA is still unsure of how potential changes in federal policy, state budgeting, and changes in university enrollments may impact the budget.
“We are actively monitoring these developments and evaluating the financial implications of the changing external environment,” Arnold and Marx said. “We will continue to collaborate with faculty, staff, and university leaders to safeguard university resources and will make budget adjustments as needed.”
Faculty Senate Chair Dr. Leila Hudson is eagerly awaiting a detailed budget, but says it can be difficult for colleges to plan their upcoming academic year when deans are given their budgets with little time left.
She is also concerned about the absence of across-the-board raises.
“Some people might not get a raise, and some people will get more than that,” Hudson said. “It's at the discretion of the deans, which I think is unfortunate.”
Though with a new university president and a seemingly brighter financial future, Hudson is confident that the university will rebuild.
“At least we will not be digging ourselves deeper into a deficit situation. That's a good starting point for the new administration to start rebuilding what was damaged and building a new university for the future.”
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