TUCSON, AZ — In an Arizona Board of Regents meeting on Thursday, University of Arizona officials updated the organization that oversees them, saying that their upcoming fiscal year budget will be “balanced.”
“The fiscal 2026 budget eliminates the deficit,” said John Arnold, the Chief Financial Officer for the University.
In the fall of 2023, the University of Arizona announced it was in a $177 budget deficit, citing a miscalculation of cash reserves.
In roughly a year and a half, university leaders said they were able to pull themselves out of that financial fiasco.
“This is not an easy task. We covered that in a short time,” said Suresh Garimella, the president of the University of Arizona.
Through trying to balance their budget, the university had to make difficult decisions which included laying off staff, put in a hiring freeze and much more. In figuring out their financial situation in 2024, protests came up on campus as workers hoped for no layoffs.
Then-president Robert Robbins had said he’d get a salary reduction as the university figured out their budget. However, he then resigned weeks after agreeing to take a pay cut. Garimella was then chosen to be the next president in the fall.
“Looking ahead, our priority is to continue strengthening our financial foundation by restoring healthy liquidity,” Arnold told the Board of Regents.
The university is not completely out of the woods yet. Arnold said they’re still working to build their cash reserves. The Arizona Board of Regents requires universities to have 140 days of cash reserves. Arnold said they’re estimating it at 77 days for fiscal year 2026.
As they move forward, Garimella said he is proud of the work his team did to overcome the deficit.
“We've done that while keeping our in-state tuition flat. We're not increasing our in-state student tuition and we're offering raises to our faculty and staff. I'm very proud of this accomplishment of the team,” Garimella said.
