Update on Fiscal Year 2027 Budget

Dear colleagues,

The University of Arizona budget continues its strong fiscal recovery amid broader challenges in higher education. This progress has established a solid foundation, and we are pleased to share that the university is implementing a balanced budget for fiscal year 2027.

We are now well positioned to invest in our academic and research missions and deliver on our promise to students, faculty, staff, and the broader community.

Update on the annual budget process
Earlier today, we notified senior leaders of the budget allocated to their respective college or division for FY 2027, starting July 1.

This year’s budget prioritizes sustained financial health in alignment with the university’s strategic imperatives – Success for Every Student, Research that Shapes the Future, and Engagement with Our Communities to Create Opportunity.

We have identified additional savings on the administrative side to support a shift of resources to the academic enterprise. The budget for next year provides an additional $40 million to the university’s colleges and academic programs to support investments in student support structures, faculty and staff, program expansions, and college financial stability.

While the FY 2027 budget framework is preliminary, it gives college leaders the information needed to finalize staffing and operational plans.

Once funding sources, including state appropriations and Fall 2026 tuition revenue, are confirmed, the university will release the FY 2027 General Operating Budget, detailing the sources and uses for each unit.

A new budget model starting FY 2027
Starting in the new fiscal year, the university will adopt Arizona Forward, a new budget model for distributing net tuition and research-related revenue to academic colleges based on teaching, enrollment, and research activity.

Arizona Forward represents an important step in strengthening financial planning and transparency. The model gives academic leaders greater visibility into how funding is allocated and creates incentives to support student success, enrollment growth, and the development of innovative academic programs. As Arizona Forward is incorporated into the university’s budget and planning processes, it will provide a sustainable and reliable foundation for long-term planning across our colleges.

The University of Arizona enters this next chapter with stability and focus to achieve lasting excellence as we continue to build financial strength and accelerate progress on our strategic imperatives and Academic Success Goals.

Thank you for your continued dedication and commitment to our students, our campus community, and our shared mission.

Sincerely,

Patricia A. Prelock
Provost and Chief Academic Officer

John Arnold
Chief Financial Officer

This email was sent to all faculty, staff and designated campus colleagues.