'Some colleges and units overspent,' U of A president says in campus letter

"It has become clear that we have overinvested and that some colleges and units have overspent," University of Arizona President Robert C. Robbins said in a letter Saturday to the campus community about the university's financial crisis. 

He did not say which colleges or units. "There will be much more information shared in the days and weeks ahead," he wrote. 

However, in a Nov. 2 statement to the Arizona Board of Regents and when he spoke a Faculty Senate meeting Monday, Robbins blamed the financial situation on overspending in athletics and financial aid.

He said then that the university is considering cutting some sports programs and lessening the amount of financial aid given to students. There will also be a 2% budget cut put in place. He has said there might be a hiring freeze. 

Before sending out the letter Saturday afternoon, Robbins did not respond to multiple questions and comment requests from the Arizona Daily Star submitted to a UA spokeswoman in the last week.

At the regents meeting, Robbins and Lisa Rulney, UA senior vice president for business affairs and chief financial officer, admitted to a financial miscalculation that left the university much more fiscally vulnerable than they originally predicted. Administrators originally believed they had 156 days’ worth of cash on hand, but are now projecting only 97 for this fiscal year. That’s a miscalculation of $240 million.

In his letter Saturday, Robbins said the UA was using a financial model it "had used successfully for the last decade."

"The model has been replaced," he wrote. 

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"The model produced a significant overestimate because it did not account for the collective accelerations in spending," Robbins said.

Robbins gave a lengthy explanation of the spending accelerations:

"Over the past several years, the University of Arizona has made significant investments in key areas that advance our strategic plan; support our faculty, staff, and students; and elevate our University’s impact. That plan has proved effective, resulting in a very successful period in our University’s history.

"We began implementing our strategic plan initiatives in 2018. At that time, we had built up 182 days of cash on hand (reserves) and planned to strategically invest our surplus in a concerted effort to advance the University in bold ways and to best serve the state of Arizona. As a result, the University has had great success in critical areas. For example, we have achieved record applications, enrolled the largest, most diverse, and most qualified classes in University history, and improved retention and graduation rates. We have experienced record years in research activity and expect to surpass $900 million this year. As demonstrated during the Fuel Wonder fundraising campaign launch earlier this month, our alumni and donors are supporting this University more than ever before.

"We purposefully used reserves to fuel this success."

As for what's next, Robbins noted: "We must report our strategy to address the University’s financial issues to ABOR by Dec. 15. As I recently told the Regents and members of the Faculty Senate, we will review all options. I am committed to working with our faculty, staff, and shared governance partners to take the actions necessary to ensure this University continues its upward trajectory and remains strong in its core teaching, research, and outreach mission."