TUCSON, Ariz. — Gov. Katie Hobbs requested specific actions on Wednesday when she met with leaders of the Arizona Board of Regents and the University of Arizona to address challenges brought on by financial mismanagement of the university.
UArizona and ABOR have been grappling with a $177 million budget shortfall which led to the university president's 10% pay cut – he was allowed to keep his job.
Hobbs, who is an ex-officio member of the board, recently criticized the regents and UArizona for alleged "appalling" behavior while responding to criticisms about the university's budget problems. Shortly after the governor delivered her blistering statement, the board's chair agreed to step down and the board's executive director took a leave of absence.
Specific action
In Hobbs' meeting Wednesday with UA President Robert Robbins and new Regents Chair Cecilia Mata, she requested the following:
- Engage external experts in supporting the improvement of financial processes and procedures;
- Provide monthly financial updates on progress to date to Governor Hobbs and her staff;
- Prioritize those who have longer lengths of time working at the university, working class staff and Arizona-based employees when assessing layoffs;
- Resolve the issues with the University of Arizona Global Campus (UAGC) and the U.S. Department of Education;
- Ensure the new advisory council is inclusive of elected leadership of staff, faculty and student groups and does not silence the existing groups.
“From day one when the financial mismanagement at the University of Arizona became public, my goal has been to restore the public’s faith and trust in this institution,” Hobbs said in a news release. “There is a long road ahead of us to fix the financial mismanagement and ensure the university emerges from this situation stronger than it was before. Now is the time for ABOR and university leadership to step up to ensure that this situation is not just resolved, but resolved in a way that propels this university forward.”
Dr. Leila Hudson, who's taught at the University of Arizona for more than 25 years and is the elected chair of faculty said she's pleased especially to see the prioritization of employees in assessing layoffs.
"We need to protect the jobs of the people who make the university run. That means faculty, staff, graduate students, postdocs who contribute to the academic mission of research, teaching and service to the community, and who constitute in many ways, one of the beating hearts of our local Tucson economy," Hudson said.
The University of Arizona has yet to respond to 12News' request for comment on the meeting and steps Hobbs outlined.
In an emailed statement to 12News, Mata said appreciated meeting with Hobbs.
"Our shared goals are what unite us: a bright and strong future for Arizona students and our state’s public universities and improving the financial health of the University of Arizona. I look forward to building increased communication and our continued work together," Mata said in part of the written statement.
Another financial setback
Officials with the U.S. Department of Education confirmed Tuesday they have started the process of asking UArizona to pay back millions of dollars in loans from students of an online university that UArizona bought, and which the Department of Education says "cheated" its customers.
UArizona bought Ashford University, a for-profit university, in 2020 and turned it into the University of Arizona Global Campus (UAGC).
At the time, Ashford had dealt with decades of issues, including lawsuits over its recruiting practices and the quality of its education.
Within three years, Ashford's parent company, Zovio, had dissolved and the University of Arizona was on the hook for more than $250 million in budget hits from running the Global Campus.
Also in 2023, the U.S. Department of Education canceled $72 million in student loan debt for students of Ashford University, saying those students had been "cheated."
On Monday, a department spokesperson said, “We are in the process of initiating the recoupment action, which has not yet gone to UAGC.”
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