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The University of Arizona’s plan to take legal ownership of about $70 million in endowment earnings has sparked questions from donors and finance experts about transparency and accounting practices. University officials say the change will improve cash-on-hand metrics while ensuring funds continue to be spent for donor-designated purposes.

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The University of Arizona Foundation is proposing a change to donors to transfer $70 million in endowment payouts, that don’t go into financial aid for students, to the UA for “more direct insight” into how these funds are being used and to increase the university’s days of cash on hand. This change is set to take effect at the end of this fiscal year on June 30, 2026.

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University of Arizona’s budget update for fiscal year 2027 includes a projected slight decrease in student tuition revenue, state funding and all other forms of revenue, and a slight increase in grants and contracts. The university is also officially operating on a balanced budget after the $177 million budget deficit from the 2023 financial crisis.

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University of Arizona officials say the integration of UA Global Campus is moving forward after aligning the online institution’s general education requirements, course numbering and faculty appointments with Arizona Board of Regents standards. The changes are part of a broader effort to modernize the university’s online education programs.

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