Weekly Briefing: A president takes responsibility for financial crisis

The University of Arizona has a serious budget problem. Can leaders fix it? ADVERTISEMENT [Weekly Briefing Logo]( You can also [read this newsletter on the web](. Or, if you no longer want to receive this newsletter, [unsubscribe](. U. of Arizona’s president takes ‘full responsibility’ for financial woes. Does the university trust him to make amends? In November, the University of Arizona announced a big, unexpected [budget deficit](. This week, administrators outlined a financial-recovery plan, which includes budget reductions to departments and academic divisions, layoffs, and possible cuts, even to athletics. University leaders are trying to regain the confidence of students and employees, and alleviate a projected $177-million budget deficit. This is a [steep departure]( from the university’s fairly recent financial position. Just a few years ago the university was “cash rich,” said John Arnold, its interim chief financial officer. How did this happen? The university says that it lost track of its spending because of inaccurate budget-forecasting models and poor communication between the central administration and individual academic units. Robert C. Robbins, Arizona’s president, said to a university leadership forum, “We have some serious financial issues, and I want you to know that I take full responsibility.” National trends have also added to Arizona’s budget problems, like the Covid-19 pandemic and financial strains on athletics. The university says it loaned its athletic department $86 million since 2018. Administrators have also continued to increase merit aid to attract more students. Today, out of 81 budget units, 61 have been operating at a deficit, the university said. Already, the institution has put in place a hiring and salary freeze, and employee-travel restrictions. The facilities department has been centralized, and the human-resources and IT departments will be centralized in March. Academic units have to submit three budget-cut plans for a 5-percent cut, a 10-percent cut, or a 15-percent cut. ‘It was a management crisis’ Administrators say they sounded the budgetary alarm when they discovered the glaring hole. Critics find that account unsatisfying. The United Campus Workers of Arizona called on Robbins and Lisa Rulney, the university’s chief financial officer, to resign. Rulney stepped down in December. However, she remains employed at the university as a senior adviser with a salary of $506,325. Leila Hudson, chair of the faculty and an associate professor of Middle Eastern and North African studies, told The Chronicle that the university’s leadership team suffered from a “profound misunderstanding” of how to run a high-profile research university. Arizona’s governor, Katie Hobbs, a Democrat, is among those who are upset at the university’s position. In a letter written last week to the Board of Regents, Hobbs demanded monthly updates on the budget crisis. She also asked questions about the university’s inconsistent explanations for how the crisis started. University leaders have said they will be transparent about cuts and that they will evaluate administrative positions, not just rank-and-file employees. [Our Michael Vasquez has the full story.]( ADVERTISEMENT NEWSLETTER [Sign Up for the Teaching Newsletter]( Find insights to improve teaching and learning across your campus. Delivered on Thursdays. To read this newsletter as soon as it sends, [sign up]( to receive it in your email inbox. Extra! Extra! This week The Chronicle hosted an Ask Me Anything on Reddit’s r/politics. Our Daarel Burnette II, senior editor, and Katie Mangan, senior writer, answered Redditors’ questions about our[DEI tracker]( coverage of legislative attacks on diversity, equity, and inclusion programs. Although you can’t ask us questions on the platform (the session closed on Tuesday afternoon), [you can read the conversation here](. Lagniappe - Read. 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