The University of Arizona anticipates revenues to fall by June. | Pixabay
The University of Arizona anticipates revenues to fall by June. | Pixabay
The University of Arizona is taking the first steps in limiting expenditures by halting hiring new employees.
This may expand into furloughs and salary freezes as the stay-at-home orders continue due to the COVID-19 pandemic.
Part of the mitigation strategy, hiring is being put off until at least June, according to Tucson. This plan was developed by UA’s Financial Sustainability Emergency Response Taskforce. Seven groups participate in the task force, and they analyze a variety of categories, such as athletics, capital projects and finances.
“Everything is on the table for discussion. We have great people, many of whom are world-class experts in their fields, and we are tapping into their insights and ideas to address this challenge,” wrote Lisa Rulney, the UA’s CFO.
A financial strategy is in the works to help navigate the significant financial losses due to the decrease in tuition money coming in.
“Our net tuition revenue is derived greatly from out-of-state and international students, so we’re going to have significant shortfalls in the projections of what we’re going to have from tuition revenue,” said UA President Robert Robbins in a conference call April 8, according to Tucson
Robbins estimates that 40% of students come from outside Arizona and 15% classify as international students.
Summer classes are being continued virtually until at least June 30.
Staffing changes are also in the works. Fewer administrators will be hired next year. Also, lecturers in nontenured or nontenured-eligible positions will be cut. According to AZCentral, there will be a $7.5 million revenue shortfall in this current fiscal year, ending in June.
A memo sent by David Heeke, athletics director, stated that there may be pay cuts and reduction in expenses, according to AZCentral.
Financial aid offers to graduate students who had not accepted the offer were taken back as well, but their admissions offers still stand. According to KJZZ, students who accepted financial aid still are eligible.