University of Arizona President Suresh Garimella stated the administrationβs βevery intentionβ to bring the universityβs 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.
βItβs 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,β said Garimella to the room full of Arizona Board of Regents members, and UA, Arizona State University and Northern Arizona University representatives, at the boardβs meeting Thursday in Tucson.
βI 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 weβre at least keeping in mind that we need to do our best coming next (fiscal) year to give them something to look forward to,β said Garimella with a wistful smile.
His comments were in line with UA Chief Financial Officer John Arnoldβs statements to the Arizona Daily Star in an earlier interview, when he said the UA was βnot doing a university-wide salary adjustmentβ in fiscal year 2025 unlike the past three years, but is planning to provide one in fiscal year 2026.
UA President Suresh Garimella
Regent Larry Penley followed up on Garimellaβs comments, saying, βWhen I watched what happened here at the university before you became president, I felt really bad for the faculty β faculty who in many cases, I suspect, didnβt even know their departments were overspending, faculty who were shocked at where the situation was, and I frankly wasnβt surprised at the reaction when that failure of central communication was not in place.β
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 UAβs 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.
βIβve been very pleased to watch a much more serious budgeting process,β Penley said, βwhere we are monitoring budgets, and faculty and departments and colleges donβt get surprised. Because, thatβs not the way we ought to be treating a valuable resource like the faculty that we have on this campus.β
Arnold noted at Thursdayβs 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 βhiccup,β is a βpowerfulβ engine with βincredible financial strengthβ that is on the road to a comeback.
Garimella emphasized the importance of the state Legislatureβs funding, stating those funds support the largest part of the universityβs 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 βprogram-related revenue,β 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.
