‘Long road ahead’: Gov. Katie Hobbs says ABOR, UA leadership have their work cut out for them

Gov. Katie Hobbs called on the University of Arizona to restore the “public’s faith and trust” after a Wednesday afternoon meeting with Arizona Board of Regents and UA leadership.

The closed-door meeting is the latest development in a back-and-forth between the governor and those involved in the school’s $177 million budget shortfall. Last week, Gov. Hobbs came down hard against the board and UA officials. She said the university was “heading in the wrong direction,” referencing conflicting information provided to the public and legal threats made by former board chair, Fred DuVal, against a UA faculty senate leader.

On Wednesday, the governor made it clear the university and its oversight board still have their work cut out for them.

“There is a long road ahead of us to fix the gross financial mismanagement and ensure the university emerges from this situation stronger than it was before,” Hobbs said in a statement.

The governor said she’s made her expectations to the board clear, asking that “external experts” be brought on to improve the school’s financial procedures. Hobbs also wants monthly financial updates, but it's unclear how those will be different from the ones the university already committed to sharing with her office and the board last month. So far, the university has brought on consulting firm Ernst & Young to review the finances of both the school’s athletics program and its online school, The University of Arizona Global Campus.

New Board Chair Cecilia Mata attended Wednesday’s meeting after taking over for DuVal, who stepped down from his leadership role days after Hobbs’ recent criticism. He will remain on the board for the remainder of his term, which ends in 2026. Executive Director John Arnold also announced a leave of absence from the board as he works as interim chief financial officer for UA — a position he took on at the request of President Robert Robbins late last year.

In a statement on Wednesday, Mata said she appreciated speaking with Gov. Hobbs and looks forward to more communication between them.

"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," she said.

Since the budget shortfall was discovered last November, UA leadership said the fiscal headaches can be remedied — but that will come at a cost. Faculty and staff have been told to expect budget cuts up to 15%, likely including layoffs.

In her meeting Wednesday, the governor asked leadership to protect the employees who have been with the school longest, as well as working-class and Arizona-based employees. She also requested President Robbins’ newly created advisory group include a variety of voices, and not inhibit the work of existing shared governance.

On Monday, the board announced UA President Robbins would be taking a 10% pay cut in the midst of the financial stressors. In a Tuesday press conference, Gov. Hobbs called the move a "step in the right direction," but more will be needed.

"I think we need to see more in cost-cutting measures," Hobbs said.

Reporter Stacey Barchenger contributed to this story.

Helen Rummel covers higher education for The Arizona Republic. Reach her at hrummel@azcentral.com. Follow her on X, formerly Twitter: @helenrummel.

This article originally appeared on Arizona Republic: Gov. Katie Hobbs sees ‘long road ahead’ for ABOR, UA leadership