Impact on the University of Arizona from a $141.5 Million Mid-Year Budget Reduction to the Arizona Universities System
February 2, 2009
At the behest of the Arizona Board of Regents, The University of Arizona began plans for a mid-year cut in FY 2009 in state general funds of $40 million, representing UA’s share of an anticipated $100 million cut to Arizona’s public university system. A cut of that magnitude was anticipated to have a significant impact on the UA’s operations.
The cut of $141.5 million to the system that has now been approved by the legislature and signed by the governor will slash UA’s funding by approximately $57 million and dramatically compound the challenges facing the University. This increase in the cut equates to the loss of an additional 200 positions and the elimination of many outreach functions of the University. The long-term impact on the operations of the University will truly be devastating, seriously affecting class-size, access and time-to-degree for students at the UA. It will result in the following specific consequences for the University:
A total reduction of approximately 600 positions through attrition, unfilled vacancies and layoffs. These reductions are being achieved through:
The loss in general fund-supported personnel of nearly ten percent means students will see:
The loss in operating funds also means
In addition, the University will implement furloughs of one week, beginning in July.
The immediate economic loss to the State is at least $2.6 million in lost income tax revenue. Further, every $1 of State funds at the University generates an economic impact of $6.70. UA’s $57 million generates over $380 million in economic impact to Southern Arizona and across the State. Clearly, more than just The University of Arizona suffers from a $57 million reduction this year.