Looking to the Future
In a column published Aug. 26, 2025 in The Arizona Republic and Aug. 29, 2025 in The Arizona Daily Star, Garimella wrote "We have re-envisioned how we operate and restored balance to our finances," positioning the university to fulfill its land-grant mission. He explained the process to achieve a balanced budget, which also provides raises for faculty and staff and holds tuition flat for resident undergraduate students.
"We approached the process with purpose, emphasizing transparency and accountability, while providing regular updates to rebuild trust throughout our university community," he wrote.
Garimella thanked the deans, faculty, staff and administrative leaders who collaborated on the process, and he outlined the five strategies that anchored the turnaround: operational efficiency, revenue growth, modernized athletics operations, careful financial management and improved organizational performance.
Eliminating the deficit is not the conclusion of the process, but the "end of one chapter and the beginning of a brighter one," Garimella wrote.
This financial stability, he noted, enables the university to "boldly invest in our students and programs that engage every county across Arizona" and strengthen its role as a driver of economic development statewide.
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Financial Action Plan (Archive)
In the fall of 2023, the university began working to address a budget shortfall. The vast majority of the deficit was a result of accelerated spending to enhance and improve the overall experience for students, faculty and staff. This includes millions spent on student merit aid, spending to retain and attract world-class faculty and staff, and critical strategic investments. Learn more about the background of the University of Arizona financial situation, including external and internal factors.
The university is taking action to address and eliminate its structural deficit while providing an outstanding educational experience for our students, research that drives economies and improves lives, and outreach that benefits millions across the state of Arizona and far beyond.
Actions Implemented
- Conducted individual reviews of all budget units and implemented FY 2025 base budget reductions with focus on units spending in deficit, overhead and administrative functions.
- Implemented hiring and compensation freeze from December 2024 through June 2024 and delayed FY 2025 Salary Increase Program.
- Deferred nonessential capital projects and implemented new purchasing policies and guidelines.
- Rebalanced undergraduate non-resident merit aid for new students and eliminated the tuition guarantee in fall 2025 for new students.
- Eliminated Activity Informed Budgeting (AIB) model to implement centralized planning budget model.
- Concluded strategic initiatives funding.
- Implemented administrative services reorganization.
Our Priorities
Resources
Action Plan
Resources related to the financial action plan.
Finance & Budget
Resources related to budget and planning at the University of Arizona.
Arizona Board of Regents
Resources related to the governing body for Arizona's three state universities.