University of Arizona President Robert C. Robbins committed to not imposing furloughs or cuts to retiree benefits in an email sent to faculty and staff amid the university’s “financial crisis.”
Robbins also committed to not reducing need-based financial aid for students, and to protecting the university’s teaching and research mission “first and foremost.”
He wrote that any decisions about financial aid would strictly affect students receiving merit-based scholarships. Any potential changes will not affect current or accepted students, either, he said.
Robbins sent the message to employees Wednesday, writing that “no decisions about any budget cuts or related issues have been made at this point.”
Additionally, Robbins assured faculty and staff that “the university is not in financial jeopardy,” but wrote that “new budget controls must be implemented to prevent deficit spending in the future.”
The university has until Dec. 15 to share its plan with the Arizona Board of Regents after admitting to a $240 million miscalculation of projected cash on hand for this fiscal year.
“The news and discussions surrounding the university’s financial situation also have unfortunately led to several inaccurate assumptions and misunderstandings,” Robbins wrote in the email. “I regret the stress this has caused many in our community and hope the information that follows will help address some of the misconceptions and bring greater clarity to the university’s financial position.”
Robbins said he has been in touch with Gov. Katie Hobbs. She recently expressed concerns about the UA cutting financial aid programs.
“I think it’s important that we make college as accessible as possible for Arizonans,’’ the Democratic governor said after Robbins stated he was considering cuts to financial aid. “I don’t think financial aid should be the answer,’’ Hobbs said.
On June 30 of this year, the university had $704.5 million in reserves, down $140 million from the year before due to “continued spending on strategic initiatives and accelerated spending at the department level,” Robbins wrote.
“The bottom line is that the days cash on hand shortage is due to the fact that the university’s expenditures continue to outpace its revenue, and we’ve been making up the difference with reserves,” he wrote. “Our immediate financial task is to right our ship and address the structural deficit we are experiencing with a number of our central, college and unit budgets.”
He added that the university will work to implement enhanced reporting and monitoring tools to “ensure timely awareness as well as accountability when overspending occurs.”
He committed to continuing to work with the university’s shared governance partners to come up with solutions.
“Like other challenges we have faced together in recent years, this one also will be met and the University of Arizona will continue to thrive,” Robbins wrote.
“We thought the future was gonna be brighter as a member of the Big 12. … I think this is a very exciting deal for us.” — Arizona president Robert Robbins; Video by Justin Spears/Arizona Daily Star
