Arizona Regents: DuVal steps down as chair, director takes leave of absence

Fred DuVal is stepping down as chair of the Arizona Board of Regents after Gov. Katie Hobbs’ fiery statement Monday that the board failed in its oversight of University of Arizona finances.

Additionally, ABOR Executive Director John Arnold is taking a leave of absence from that position as he continues to serve as the UA’s interim chief financial officer dealing with the university’s $177 million deficit.

Both changes are effective immediately, ABOR announced Thursday evening.

“It’s imperative that we move away from the heat of rhetoric and politics and refocus on addressing the genuine challenges facing our institution,” DuVal said. “By resigning as board chair, I aim to do my part to create space for collaborative efforts toward real solutions.”

“Personally, this transition allows me to dedicate more time to serving the University of Arizona during my remaining two years on the board,” DuVal stated.

Earlier Thursday, Phoenix NPR station KJZZ reported that a spokesperson for Hobbs said she was exploring whether she has the power to expel members of the Board of Regents, who oversee the state’s three public universities. DuVal was appointed to the board by former Gov. Doug Ducey.

Hobbs and UA faculty senators have said Arnold’s position as both executive director of ABOR and interim chief financial officer at the UA was a potential conflict of interest.

In a letter released in January, Hobbs said she was concerned there was a “real or perceived conflict of interest” in Arnold’s appointment at UA and likened it to a case of “the fox guarding the henhouse.”

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Hobbs, in her second statement criticizing the board, released Monday, demanded a private meeting with regents’ leaders and with UA President Robert C. Robbins. Arnold and Robbins said they are scheduled to meet with her next Wednesday.

“New facts have come to light,” Hobbs wrote, “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.”

The governor’s statement Monday also blasted DuVal for sending a cease-and-desist letter last week to UA Faculty Senate Chair Leila Hudson. Hudson accused DuVal of a conflict of interest for his previous employment, when he was not on ABOR, at Amicus Investors, which invested in universities. DuVal called the suggestion defamatory; Hudson said it was protected speech. Hobbs wrote that threatening faculty with a lawsuit “is not leadership.”

ABOR’s statement late Thursday said DuVal was emphasizing “the need for all stakeholders to dial down the intensity surrounding recent controversies at University of Arizona.”

DuVal’s appointment as board chair was set to end on July 1, while his term as a regent continues until January 2026.

Chair-elect Cecilia Mata will take over early as leader of the board.

Mata has appointed ABOR Vice President of Academic Affairs and Institutional Analysis Chad Simpson to serve as interim executive director of the board, subject to full board approval.

DuVal said he will be at the UA March 5-6 to hear from anyone who wants to talk to him, as ABOR and UA set strategies to fix the university’s financial situation.

“I will plan to be available on campus Tuesday, March 5, from 1-5 p.m. and Wednesday, March 6 from 8-10 a.m. to visit with anyone who wants my ear,” DuVal said. “I will be available in the Madera Conference Room on the 2nd floor of the Student Union. We must solve this together and in my remaining two years on the board I plan to do so constructively and with an open mind.”