U of A's Garimella aims to provide raises next fiscal year

University of Arizona President Suresh Garimella stated the administration’s “every intention” to bring the university’s financial deficit to zero by the end of fiscal year 2025, expressed his compassion for the faculty and staff who were most affected by repercussions of the deficit, and promised to try to provide raises next fiscal year.

“It’s important for the board to recognize and for everyone to hear me say, that these kinds of things have a very challenging effect on faculty and staff morale,” said Garimella to the room full of Arizona Board of Regents members, and UA, Arizona State University and Northern Arizona University representatives, at the board’s meeting Thursday in Tucson.

“I just want us all to keep in mind that the people that are most affected are those that make the least amount of money, and we’re at least keeping in mind that we need to do our best coming next (fiscal) year to give them something to look forward to,” said Garimella with a wistful smile.

His comments were in line with UA Chief Financial Officer John Arnold’s statements to the Arizona Daily Star in an earlier interview, when he said the UA was “not doing a university-wide salary adjustment” in fiscal year 2025 unlike the past three years, but is planning to provide one in fiscal year 2026.

Regent Larry Penley followed up on Garimella’s comments, saying, “When I watched what happened here at the university before you became president, I felt really bad for the faculty — faculty who in many cases, I suspect, didn’t even know their departments were overspending, faculty who were shocked at where the situation was, and I frankly wasn’t surprised at the reaction when that failure of central communication was not in place.”

Garimella, who succeeded former President Robert C. Robbins, became UA president on Oct. 1 and attended his first ABOR meeting on Nov. 7, while Arnold, the former executive director of ABOR, became UA’s chief operating officer and CFO last fiscal year. Since last fiscal year, the UA has reduced its projected deficit from $177 million to $63 million.

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“I’ve been very pleased to watch a much more serious budgeting process,” Penley said, “where we are monitoring budgets, and faculty and departments and colleges don’t get surprised. Because, that’s not the way we ought to be treating a valuable resource like the faculty that we have on this campus.”

Arnold noted at Thursday’s meeting that the UA delayed certain capital projects and paused the across-the-board salary raises for FY 2025; is requiring expenditures over $50,000 to be approved by a senior vice president; and has mandated that each unit on campus provide a monthly expenditure plan.

He also said the UA, although facing a “hiccup,” is a “powerful” engine with “incredible financial strength” that is on the road to a comeback.

Garimella emphasized the importance of the state Legislature’s funding, stating those funds support the largest part of the university’s budget, which is spent on salaries and wages.

But the funding from the Legislature to the three state universities was cut by $96.9 million between FY 2024 and 2025 in “program-related revenue,” said Bradley Kendrex, ABOR vice president of finance and administration.

UA faced the biggest cut in FY 2025 appropriations at $30.8 million, while ASU saw a $17.9 million reduction and NAU $5.1 million.

Additionally, the Arizona Promise Program, a guaranteed scholarship program which covers all tuition and fees at public universities, saw a reduction of $20 million; and the Arizona Teachers Academy, which offers tuition coverage for students who agree to teach in Arizona schools after graduating, of $14 million, the regents were told.