Layoffs at the University of Arizona will occur in phases throughout this spring, UA Interim Chief Financial Officer John Arnold told staff this week.
The layoffs will begin with senior administration at the directive of UA President Robert C. Robbins, Arnold said.
βWeβre not planning a big date where weβre going to announce layoffs,β Arnold said. βI think itβll come in phases.β
Robbins told staff at the same meeting that there have been βconversationsβ about him potentially taking a salary cut himself. He previously told the Arizona Daily Star in an interview that he βabsolutelyβ would take a pay cut amid the universityβs $177 million deficit.
Arnold, Robbins and interim Provost Ron Marx spent an hour and a half answering questions and speaking to the UA Staff Council Tuesday afternoon.
Arnold said his team will go through every collegeβs budget request by mid-April. Fiscal year 2025 begins July 1.
βWeβll have to see (if they) can meet those expenditure targets within their existing staff and faculty or if we are going to have to reduce some positions,β he stated.
Gov. Katie Hobbs, who has been highly critical of the handling of UAβs financial situation, had asked leaders of UA and the Arizona Board of Regents to meet privately with her on Tuesday afternoon after releasing a fiery statement Monday demanding they βcome down from their ivory tower.β
Hobbs agreed to meet next week rather than Tuesday after she found out that Arnold and Robbins were scheduled to speak with the Staff Council, Arnold said.
Robbins said he has been in βconstant communicationβ with Hobbsβ office, while Arnold stated there appeared to be some βmiscommunications and misunderstandingsβ with the governor.
Investing in academic units?
Arnold stated heβs not in favor of βrankingβ different departments and colleges based on how much money they bring in.
βIf we just rank them in order of which divisions and departments are making money and those at the bottom that arenβt making money are going to go away, there wouldnβt be a lot left,β he said. βAnd we would end up eliminating some of the programs that are core to the identity of the University of Arizona.β
He said judgements will be based more on βvalueβ than finances.
βCertainly, we need to be aware of how any cutback is going to impact the flow of revenue into the university and we will certainly make these calculations,β he said. βBut we also have to be aware of where our values are; what are the programs we want to have as a university?β
Robbins interjected, and acknowledged he hadnβt first asked Arnold what he was about to propose at the meeting.
βCould there be a short-term income investment?β Robbins asked, implying that βunits that had reservesβ could provide for βthose who werenβt doing as well.β
βThere are many units that are in deficit that have been under-resourced for years,β he said. βEven if the unit is in structural deficit, maybe they just need investment of more resources instead of cuts.β
Marx echoed Robbinsβ statements.
βThere are some programs that have high social value, high educational value, that we just really need to do because that is what it means to be a university,β the interim provost said. βThat being said, we have to be able to figure out how to pay the cost of those kinds of programs.β
But, while the team figures out the budget and new roles of employees, Arnold said βthere may be a period where youβre asked to do a little bit of extra stuff.β
There will be a process this summer, he added, to βreally look at our staffing structures to make sure we have appropriate staffing levels.β
Centralizing and modernizing
Melanie Madden, the chair of the Staff Council, told the leadership present that the current centralization efforts were βunsettlingβ to staff, as most believe their jobs are being βtreated as low value and disposable.β
In response, Arnold, who is leading efforts to centralize offices such as information technology and human relations, said the process is under way βnot because we donβt value you, (but) because we value you so much.β
Centralizing HR, he said, will βbuild out this really powerful, well trained, well developed, very professional class of employees that can help us run the university in a professional and modern way.β
Arnold seemed to place blame for some of the financial deficit onto the universityβs HR systems.
βA lot of the financial difficulties weβve run into is because of decentralized HR personnel-related decisions,β he said.
βThe IT system that theyβre functioning under is 142 years old,β Arnold said. βMost of them cost $100 million to replace. Weβre doing our best but we need to modernize our tools around the university.β
One of those modernizations might be changing the way the UA bills its students.
βDo you know we are still sending a paper bill to every single student and their family?β he asked the audience. βEvery single one.β