The University of Arizona has a large budget deficit that has resulted in the school losing over $240 million. The budget miscalculation will lead to multiple programs being cut and a decrease in out-of-state financial aid.
UA will undergo a series of budget cuts and other changes to minimize spending, including ending guaranteed tuition. Starting in 2025 students will no longer have access to the guaranteed tuition program. This program gives students a fixed tuition rate for at least eight semesters of attending UA. Brophy College Counselor Ms. Karen Feltz said, “Guaranteed tuition provides some nice budgeting and stability for families.” Getting rid of this program makes tuition very unpredictable for students.
The Arizona Board of Regents oversees and governs all of Arizona’s public universities. ABOR is made up of powerful Arizonans from various fields, according to Ms. Feltz. ABOR requires that ASU, NAU and UA all achieve a certain number of “days cash on hand” – a ratio that compares spending and cash balance. In the 2023 fiscal year, UA was about $240 million short of the required amount.
Since the deficit UA has parted ways with its athletic director. Former Athletic Director David Heeke was let go by the university partly due to financial reasons. The department was given a $55 million loan during the pandemic which has not produced expected returns. The athletic department will also experience higher ticket prices and more layoffs.
To decrease spending, UA will reduce out-of-state tuition aid. Students that are not from Arizona will now receive less tuition aid from the university. This change will only affect out-of-state students and Arizonans will not have a change in tuition.
A few other schools are also experiencing budget problems including four schools in the Big Ten conference. Some schools, including West Virginia, Rutgers, and San Francisco State, have budget deficits in the tens or hundreds of millions of dollars. Bradley University in Illinois has proposed a cut worth over ten percent of the school’s total budget and the Vermont State University system experienced a budget deficit of over $22 million. In recent years, 101 schools have closed or had some sort of merger due to financial reasons.
