University of Arizona releases preliminary FY 2026 budget framework and college budget allocations

May 8, 2025

TUCSON, Ariz. — The University of Arizona today released a preliminary fiscal year 2026 budget framework, including allocations for its academic colleges, that reinforces its commitment to long-term financial stability, academic excellence and student success. The framework and allocations mark a major milestone in the university's financial recovery, following an institution-wide effort to eliminate a $177 million structural deficit reported just 18 months ago. 

“This progress reflects the hard work and commitment of the entire university community,” said John Arnold, senior vice president, chief operating officer and chief financial officer. “By prioritizing administrative savings, protecting our academic programs and implementing a more structured and consistent budget process, this balanced budget eliminates what was a $177 million budget deficit just 18 months ago, stabilizes our finances and strengthens our ability to deliver on the U of A’s land-grant mission and strategic imperatives now and into the future.”

The FY 2026 framework reflects a balanced budget and reduced overall spending. The university projects that the overall allocated budget of the university will decrease by about 3%, with the majority of the reductions coming from central administration, averaging just over 7%. College budget reductions average around 2%. 

Preliminary college budget allocations include fully funded faculty promotions and the employee raises announced in February. They also support areas of strategic growth, including student success programs in introductory math and writing, as well as accreditation requirements for the College of Veterinary Medicine. Academic deans were notified of the dollar amount that will be allocated to their respective colleges this week and will use that information to finalize their spending and staffing plans for the fiscal year beginning July 1. Budget allocations for the remaining university divisions and administrative units will be shared in the coming weeks. The FY 2026 budget will be finalized later this summer.

“We are grateful to our faculty, deans, finance officers and division leaders who have worked collaboratively to restore financial health while keeping our focus on students, faculty and staff,” said Ron Marx, interim provost and senior vice president for academic affairs. “These budget allocations reflect our unwavering commitment to support our academic and research priorities as Arizona’s flagship, land-grant university.”

University leaders continue to monitor the potential impacts of new federal guidance affecting higher education, as well as other variables such as the state budget and enrollment and are prepared to make adjustments as needed. 

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Media contact:
Mitch Zak
University Communications
916-612-0979
mitchzak@arizona.edu

Established in 1885, the University of Arizona is the state's flagship, land-grant institution. The U of A ranks among America's top institutions, focusing on student access and success while driving a $1 billion research enterprise and engaging communities throughout the state, nation and world. As a leading Research 1 institution and member of the Association of American Universities, the U of A advances the frontiers of interdisciplinary scholarship and entrepreneurial partnerships. With two accredited medical schools, designation as a Hispanic-Serving Institution by the U.S. Department of Education, recognition as a premier university for service members, distinguished programs in management information systems, planetary sciences, dance, photography, and public and applied humanities, the U of A offers the world to its students while uplifting Arizona.