Gov. Hobbs 'continuing to lose patience' with U of A President Robbins

Gov. Katie Hobbs said she is “continuing to lose patience” with the University of Arizona’s financial crisis as President Robert C. Robbins faces more backlash over the UA Global Campus acquisition.

Hobbs told reporters the situation is “exceedingly frustrating” as she hears “one thing from (Robbins) and then something else from reporting.”

Her comments came after an investigation published by The Arizona Republic last week about the UAGC purchase. According to records obtained by The Republic, Robbins urged a lobbyist employed by the UA Foundation to lobby the California attorney general to erase millions of dollars in fines assessed to Ashford University, which became UAGC. Robbins had previously denied that, the newspaper reported.

Hobbs said she was “looking at all options” when asked whether she would urge the Arizona Board of Regents to fire Robbins or if her office would open a formal investigation.

“It is certainly concerning, and we’re still looking at options,” she said, adding: “I would love for President Robbins to just share what he knew at the time that he knew it.”

“Either the fact that U of A entered into this very large purchase without understanding the liability that they were taking on. Or the fact that they did know the liability and they’re trying to cover up how much they knew. We just don’t know. There’s been too much misinformation around this whole situation,” Hobbs said of the UAGC acquisition.

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“We’re not getting a clear picture from (Robbins) of the whole situation.”

The university, which is currently dealing with a $177 million budget deficit, agreed to buy Ashford for $1, rebranded it as UAGC, and last summer integrated it into the overall UA, gaining thousands of online students while adding $265.5 million to the UA’s operating costs.

Hobbs asked in February for a report from ABOR, which oversee the state’s three public universities, detailing the purchase’s rationale and process. Hobbs wrote that “significant ethical problems with Ashford University’s business model appear to have been brushed aside by university leadership during the acquisition.”

The regents subsequently reported to Hobbs that the board and the UA knew about the financial and legal risks before UA purchased Ashford but mitigated them through financial, contractual and academic measures, “entirely contrary to any assertion that these problems were ‘brushed aside.’”

In August, the U.S. Department of Education cancelled $72 million in student loans for borrowers who say they were cheated by Ashford. The department is seeking to recoup the money from the UA, which says it should not be held responsible because the actions occurred well before it acquired the school.

Hobbs first blasted leadership at the UA in late January, saying she “no longer (trusted) the process that is in place.” In that letter, Hobbs asked for an independent consultant, an external audit and monthly reporting on progress. In response to her demands, ABOR hired an outside consultant.