The following is the opinion and analysis of the writers:
Alison Levine
Terry J. Lundgren
Higher education across the country faces an existential crisis in the face of declining enrollment, loss of public faith, unsustainable costs and a growing belief among students that a traditional four-year university education is just not worth the time and money.
Recent headlines about the University of Arizona’s reserves shortfall have portrayed the state’s oldest and only land-grant university as emblematic of the troubles facing other campuses. It’s not. In fact, the deficit — and the university’s response under President Robert C. Robbins — should more accurately be called a blessing in disguise because it forces the U of A to reposition itself for future success and sustainability, while many of its peers continue to kick the can down the road.
If traditional universities like Arizona are to survive, they must figure out how to operate in a financially responsible and sustainable way, while also investing aggressively in the academic disciplines of the future. The stakes are high. In 2023, at least 30 colleges closed. By 2030, the research consultancy EAB estimates that 449 colleges will see a 25% decline in enrollment, and 182 will see a 50% decline.
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The challenge undertaken by U of A’s leadership has been to balance the budget and manage costs while making college more accessible to more students from Arizona and beyond.
Just six months after identifying the shortfall, President Robbins has implemented reforms that will shrink the deficit by 70% in one year thanks to a hiring freeze, cuts in administrative costs, and reductions in some schools and programs. What’s left amounts to a rounding error for a university with an annual budget exceeding $2.5 billion. By the second year, that deficit will be fully eliminated. The swift and precise action, despite political headwinds and institutional obstacles, should serve as an example for other colleges and universities facing similar — or worse — shortfalls.
The decisions are not easy, but they are necessary. This includes reassessing academic programs, faculty and staffing levels, financial aid and student services. The budgetary crises’ colleges and universities are facing in a post-pandemic world no longer can be solved by merely increasing enrollment and relying on individual donors. Structural changes must be made.
Make no mistake; there will be winners and losers in this national higher education shakeout. The U of A aims to be a winner. Through strategic planning, bold decision-making, and relentless focus on sustainability, the university is poised to emerge stronger and more resilient than ever.
President Robbins has spent seven years advancing the university’s mission and ensuring its long-term success. He has energized the donor base in raising nearly $2 billion, more than any president in U of A’s 139-year history. Fundraising must be at the top of the list of skills for any potential successor, particularly given the State of Arizona’s sorry finances.
President Robbins also obtained funds totaling $800 million to build 10 major buildings on its campuses; recruited and hired academic talent, including a new provost and many new deans; and enabled the addition of 92 endowed faculty positions – making the U of A a leader in research and technology.
Do not conflate the long-term crisis at universities and colleges with the temporary budget constraints at the U of A. They are not the same, and the U of A is not in crisis. President Robbins is building the framework for the next generation of higher education. His leadership provides a blueprint for how institutions can confront financial challenges head-on and come out ahead. His efforts deserve recognition and commendation, as they not only secure the future of the university, but also offer hope and guidance for other universities navigating similar waters.
The University of Arizona, under the stewardship of President Robbins, is a testament to what can be achieved with visionary leadership and a commitment to sustainable practices. By addressing the reserve shortfall head-on, Robbins is setting the university on a path to long-term success and innovation.
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Alison Levine, a University of Arizona alumna, is a history-making polar explorer and mountaineer, New York Times bestselling author, faculty member at the Thayer Leadership Group at West Point, consultant and renowned speaker on the subject of leadershipdevelopment.
Terry Lundgren, a graduate of the University of Arizona and co-chair of its Fuel Wonder campaign, is former chair and chief executive officer of Macy’s Inc. and founder of The Terry J. Lundgren Center for Retailing at the University of Arizona.
