Hobbs again rips regents for 'failed' oversight of U of A finances

Gov. Katie Hobbs said the Arizona Board of Regents has “failed in their oversight” in dealing with the University of Arizona’s financial crisis in a new statement “demanding” an in-person meeting with ABOR and UA President Robert C. Robbins “immediately.”

“New facts have come to light that once again show the Arizona Board of Regents failed in their oversight role and highlight a university leadership that was clueless as to their own finances,” Hobbs said.

Hobbs wants a closed-door meeting with leadership of the regents and with Robbins, said her press aide, Christian Slater.

The governor’s statement, released Monday, also attacked ABOR Chair Fred DuVal’s legal threats against UA Faculty Senate Chair Leila Hudson. DuVal sent Hudson a cease-and-desist letter last week after she accused him of a potential conflict of interest for his previous employment at Amicus Investors, which DuVal called defamatory and Hudson said was protected speech.

Hobbs wrote, “While I have not been given the facts and therefore cannot comment about the veracity of recent statements from faculty regarding ABOR board members’ potential conflict of interest, I do know one thing: ABOR members attacking faculty, even going so far as threatening a lawsuit, is not leadership." 

“I cannot be more clear: because of Chair DuVal and the Board’s actions, university employees are going to lose their jobs. Attacking the faculty is not, and never will be, the answer,” the governor added.

DuVal, Hudson and a UA spokeswoman did not immediately comment.

Both Hudson and DuVal have retained legal representation. Hudson’s legal team told the Arizona Daily Star last week that she was considering her own legal actions as a result of DuVal’s.

Amicus Investors’ website says it invested in universities, “partnering with them to help realize their master plans.” The UA and Arizona State University are listed as universities it worked with. DuVal formerly served as its managing director, a role that did not overlap with his regents’ service, he and an ABOR spokeswoman said.

Hobbs attacked several statements made by DuVal and Regent Lyndel Manson at Thursday’s ABOR meeting in Tempe. At the time, DuVal criticized the Faculty Senate and Hudson specifically and Manson urged Robbins to consider establishing other forms of faculty leadership.

Manson said then, “The behavior of the Faculty Senate has been of concern to the regents for a number of years. This past week’s personal attacks are beyond the pale. It is fully indicative of a culture of fear that has been instilled by current leadership, creating an environment where faculty are loath to speak their minds in opposition or even contemplate running against the current regime.”

Hobbs stated in response, “Instead of taking any accountability and guiding with a steady hand, ABOR is circling the wagons and announcing they are litigating personal grudges during board meetings. In the February 22nd meeting, an ABOR member openly called for President Robbins to overthrow the faculty’s governing body. This behavior is appalling and unacceptable.”

The Democratic governor continued, taking on DuVal — who was the Democratic nominee for governor in 2014 — by name again.

“Chair DuVal and members of the Board of Regents appear more concerned with saving face than fixing the problems they created,” Hobbs said. “It’s time for them to come down from their ivory tower and realize this is hurting Arizonans and the university.”

In a statement to the Star, a spokeswoman for ABOR said that the board “takes seriously its constitutional duty to oversee each of our state’s public universities. The board and governor have a shared interest in seeing (the UA) succeed, and that will require working together to help resolve the important issues facing this great university.”

The spokeswoman added that “we look forward to this opportunity to answer questions and allay any miscommunication.”

Hobbs wrote that she was still concerned about the UA’s purchase of Ashford University, which it has rebranded as UA Global Campus. In a previous, also scathing letter to the board, Hobbs demanded a report about the purchase. ABOR sent the report last week, though the governor made it clear she is not happy with it.

“In the past days, instead of addressing their failure of leadership, ABOR has told conflicting stories to me, the press, and the public about the purchase of Ashford University,” she wrote.

The report stated that the regents and university leadership knew about the financial and legal risks before the UA purchased Ashford University and that ABOR was concerned about the expedited purchasing process.

A spokeswoman for ABOR said that “on matters related to both the financial difficulties at (the UA) and the integration of UAGC, we have strived at all times to be transparent, detailed and specific in the information provided to the governor’s office and the general public.”

Hobbs concluded that “enough needs to be enough.”

“People’s livelihoods are at risk,” the governor said. “College affordability is under threat. The state and the University of Arizona have suffered immense reputational damage as a result of this crisis. This lack of accountability and continued scapegoating can no longer continue.”

Regents, who oversee UA, ASU and Northern Arizona University, are appointed by governors to eight-year terms.

DuVal and Manson were appointed by Republican Doug Ducey, Hobbs’ predecessor. Hobbs, as governor, is also a member of the board, although governors generally don’t attend ABOR meetings on a regular basis.