Regents chair, executive director step away from roles as UA budget controversies heat up

Fred DuVal is stepping down as Arizona Board of Regents chair and Executive Director John Arnold is taking a leave of absence in the midst of controversy over their handling of a financial crisis at the University of Arizona.

The change in leadership comes days after Gov. Katie Hobbs released another critical statement against the board's and University of Arizona's leadership, citing conflicting statements about the vetting process before the university bought an online school as well as DuVal’s threat to pursue "all legal remedies" after comments made by a UA faculty leader.

DuVal will remain with the board as a regent until his term ends in January 2026, according to a news release from the board on Thursday.

Arnold will take a leave of absence as the board's executive director as he continues as interim chief financial officer at UA. He has held both roles since December as the university tries to navigate its way out of a $177 million budget shortfall.

Hobbs and various faculty leaders have criticized the dual positions, saying it could result in a real or perceived conflict of interest.

Last week, DuVal said UA Faculty Chair Leila Hudson's comments were defamatory after she raised questions about his former involvement with a private investment company. He said the comments cast doubt on whether she is engaging in shared governance in good faith.

He was met with pointed remarks from the governor.

“This behavior is appalling and unacceptable,” Hobbs wrote on Monday. “Chair DuVal and members of the Board of Regents appear more concerned with saving face than fixing the problems they created. It’s time for them to come down from their ivory tower and realize this is hurting Arizonans and the university.”

The governor anticipates a sit-down meeting with leadership from the board and UA to “discuss next steps.”

In a statement, DuVal said the change would give him time to focus on the financial issues at UA, which he said need to be addressed with a clear mind.

"It's imperative that we move away from the heat of rhetoric and politics and refocus on addressing the genuine challenges facing our institution," DuVal said. "By resigning as board chair, I want to do my part to create space for collaborative efforts toward real solutions."

In the interim, Chair Elect Cecilia Mata will lead the board and Chad Sampson, vice president of academic affairs and institutional analysis, will serve as interim executive director. Both moves are subject to board approval.

In January, Gov. Hobbs released an open letter criticizing UA and Board of Regents leadership, citing an investigation published by The Republic. She said she no longer trusted the process in place to correct the university's financial worries, a storyline that has garnered national attention.

The Republic investigation found that UA engaged in a careful public relations campaign during the acquisition of a for-profit online college, Ashford University. The purchase has been defended in reports submitted to the governor as a way for the university to expand its land grant mission to a more diverse student body, but she remains concerned, said a spokesperson with her office.

"It's clear that UArizona knew about the issues with Ashford University and has not fully resolved all of them, which has further perpetuated concerns at the national level," spokesperson Christian Slater said.

'Enough needs to be enough': Hobbs reprimands UA leadership, regents over financial crisis response

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: Fred DuVal, John Arnold step away from Arizona Board of Regents roles