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<p class="elementToProof" style="margin-top: 0px; margin-bottom: 0px;"><span style="font-family: Arial, sans-serif; font-size: 11pt; font-weight: 400; color: rgb(0, 0, 0);">Hi CALES faculty,</span></p>
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<span style="font-family: Arial, sans-serif; font-size: 11pt; font-weight: 400; color: rgb(0, 0, 0);">By now, you’ve likely heard about or viewed the
</span><span style="font-family: Arial, sans-serif; font-size: 11pt; font-weight: 400; color: rgb(17, 85, 204);"><a href="https://www.youtube.com/watch?v=GFA4-MvDnJ8&t=3643s" id="OWA844c5c51-1d8c-3999-8afe-d1f274edccb0" class="OWAAutoLink" data-loopstyle="linkonly" style="text-decoration: none; margin-top: 0px; margin-bottom: 0px; color: rgb(17, 85, 204);">ABOR
presentation</a> (</span><span style="font-family: Arial, sans-serif; font-size: 11pt; color: rgb(17, 85, 204);"><a href="https://www.youtube.com/watch?v=GFA4-MvDnJ8&t=3643s" id="LPNoLPOWALinkPreview" style="margin-top: 0px; margin-bottom: 0px;">https://www.youtube.com/watch?v=GFA4-MvDnJ8&t=3643s</a>)</span><span style="font-family: Arial, sans-serif; font-size: 11pt; font-weight: 400; color: rgb(0, 0, 0);"> from
Nov. 2nd in which CFO Lisa Rulney presents the financial outlook of the university. Below we have copied an excellent summary of the university’s financial position as written by Senator Joe Gerald in the College of Public Health and shared with his permission. </span></p>
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<span style="font-family: Arial, sans-serif; font-size: 11pt; font-weight: 400;">As you can read from the summary, the financial situation of the university is precarious, and it is because of mismanagement and a calculating error at the highest levels of our
institution. We know many of you are outraged by this, and we share these same feelings. Senator Zeiders expressed this frustration in her open session remarks during the Faculty Senate session on Monday, Nov. 7th (see comments attached). President Robins
was present and responded to questions and criticism during the meeting; however, the provided solutions were vague and not specific, noting “everything is on the table.” Please watch for yourself
<a href="https://arizona.app.box.com/s/xypikopn45wdko3esv4r16bdiumw5y5s/file/1356019940638" title="https://arizona.app.box.com/s/xypikopn45wdko3esv4r16bdiumw5y5s/file/1356019940638" data-loopstyle="linkonly" id="LPlnk719670">
here</a>.</span></div>
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<span style="font-family: Arial, sans-serif; font-size: 11pt; font-weight: 400; color: rgb(0, 0, 0);">We will continue to follow this situation closely. As your senators, we will also continue to advocate for the interest of all of you – and that there are
no program cuts, no salary cuts or furloughs, and no job losses. Of course, we will push to have faculty governance be at the center in seeking immediate and long term solutions. And, as always, we want to hear from you when problems arise and your thoughts
on the situation. We do know that it is all of you who know how to make our university run better. </span></p>
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<span style="font-family: Arial, sans-serif; font-size: 11pt; font-weight: 400; color: rgb(0, 0, 0);">Reach out to us via email our our anonymous Qualtrics survey:</span><span style="font-family: Arial, sans-serif; font-size: 11pt; font-weight: 400; color: rgb(17, 85, 204);"><a href="https://uarizona.co1.qualtrics.com/jfe/form/SV_a4vcRICRZwxfebc" id="OWAec495c6e-b656-8957-f0a8-1b5160f9990b" class="OWAAutoLink" style="text-decoration: none; margin-top: 0px; margin-bottom: 0px; color: rgb(17, 85, 204);">https://uarizona.co1.qualtrics.com/jfe/form/SV_a4vcRICRZwxfebc</a></span><span style="font-family: Arial, sans-serif; font-size: 11pt; font-weight: 400; color: rgb(0, 0, 0);"> </span></p>
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<span style="font-family: Arial, sans-serif; font-size: 11pt; font-weight: 400; color: rgb(0, 0, 0);">Katie, Bobby and Tim</span></p>
<div class="elementToProof"><span style="font-family: Arial, sans-serif; font-size: 11pt; font-weight: 400; color: rgb(0, 0, 0);"><u>Summary Written by Joe Gerald, College of Public Health Faculty Senator </u></span></div>
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<span style="font-family: Calibri, sans-serif; font-size: 12pt; font-weight: 400; color: rgb(0, 0, 0);">Good evening, all.</span></p>
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<span style="font-family: Calibri, sans-serif; font-size: 12pt; font-weight: 400; color: rgb(0, 0, 0);">I wanted to alert you to an emerging financial crisis that was recently reported at a presentation to ABOR on Thursday, November 2</span><span style="font-family: Calibri, sans-serif; font-size: 9.6px; font-weight: 400; color: rgb(0, 0, 0);">nd</span><span style="font-family: Calibri, sans-serif; font-size: 12pt; font-weight: 400; color: rgb(0, 0, 0);"> by
UA's CFO Lisa Rulney and President Robbins. In brief, central administration, through a series of strategic decisions, has caused the University's cash reserves to fall below the recommended amount. To correct this situation, the University is contemplating
a variety of remedies including targeted unit hiring freezes and budget cuts, reduced funding for, elimination of, or outsourcing of auxiliary units, ceasing funding for strategic initiatives, reducing or eliminating future salary increases, reducing merit-based
financial aid and phasing out guaranteed tuition promises. At this time, no decisions have been made on the specific interventions, but everyone should be aware that some of these actions are certain to be implemented over the next year.</span></p>
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<span style="font-family: Calibri, sans-serif; font-size: 12pt; font-weight: 400; color: rgb(0, 0, 0);">How big is the nature of the problem? While firm data are scarce, the structural deficit is around $300 million dollars annually and another $100 million
over 2 - 3 years will be needed to rebuild the reserve. This estimate could be substantially off because, of course, a serious lack of transparency. And effective communication from central administration further clouds the issue. </span></p>
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<span style="font-family: Calibri, sans-serif; font-size: 12pt; font-weight: 400; color: rgb(0, 0, 0);">At the ABOR presentation, days-cash-on-hand (COH) was expected to decline from 149 days to 110 days from 2022 to 2023 falling below the 140-day minimum target.
Given that 1-day COH is about $6 million, this translates to a decline of $240million. Because the University's operational cash flow this year is predicted to be +$80 million, this means a total drawdown of $320 million from the cash reserve this past year. </span></p>
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<span style="font-family: Calibri, sans-serif; font-size: 12pt; font-weight: 400; color: rgb(0, 0, 0);">How did we get here? Self-inflicted wound basically. Facing a large cash-reserve and RCM/AIB budgeting process that encouraged leveraging the reserve, central
administration embarked on a series of strategic initiatives to seed high-value research and to attract a more academically qualified student body. The research program accounted for a small share, about $20 million annually. However, the increased merit-based
scholarships and guaranteed tuition programs consumed considerably more, perhaps $100 million or more. In addition, central administration loaned the athletic department $55 million which they are unable to repay owing in part to structural deficits within
the unit and partly the failure to secure increased PAC-12 TV revenue. While these initiatives were qualitatively successful, they were not cost-effective. The end result is our current financial precarity.</span></p>
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<span style="font-family: Calibri, sans-serif; font-size: 12pt; font-weight: 400; color: rgb(0, 0, 0);">This self-inflicted wound was compounded by a large accounting error which led to an erroneous financial forecast of days COH. At the May 2023 ABOR meeting,
the UA predicted days COH would be 156 days at the end of 2023, not 110. The reason for the error has not been revealed, nor clearly articulated. </span></p>
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<span style="font-family: Calibri, sans-serif; font-size: 12pt; font-weight: 400; color: rgb(0, 0, 0);">ABOR's response was less than ideal. Paraphrasing, they encouraged central administration to slash early, often and deep. They would have administration's
back no matter what. Of course, ABOR failed to acknowledge that University OPERATIONS were profitable! If not for the actions of central administration, the University would have a small, but meaningful operational surplus
<u>plus</u> an adequate number of days COH. This is sadly consistent with ABOR's recent hostility towards UA faculty grievances and UA Faculty Senate in particular.</span></p>
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<span style="font-family: "Times New Roman", serif; color: black;">Katharine H. Zeiders, Ph.D. (she/her)</span></p>
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<span style="font-family: "Times New Roman", serif; color: black;">Professor | Human Development and Family Science</span></p>
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<span style="font-family: "Times New Roman", serif; color: black;">Norton School of Ecology </span></p>
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<span style="font-family: "Times New Roman", serif; color: black;">College of Agriculture, Life & Environmental Sciences (CALES)</span></p>
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<span style="font-family: "Times New Roman", serif; color: black;">650 N Park Avenue, Rm 235</span></p>
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<span style="font-family: "Times New Roman", serif; color: black;">Tucson, AZ 85719-5089</span></p>
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<span style="font-family: "Times New Roman", serif; color: black;">University Roles: CALES Faculty Senator, Nominating Committee Member</span></p>
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<span style="font-family: "Times New Roman", serif; color: black;"><a href="https://norton.arizona.edu/person/katharine-h-zeiders-phd" id="OWA175a0f26-5060-ec35-70e7-ea11ee875f7b" class="OWAAutoLink" data-loopstyle="linkonly" style="margin-top: 0px; margin-bottom: 0px;">https://norton.arizona.edu/person/katharine-h-zeiders-phd</a></span></p>
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<span style="font-family: Calibri, sans-serif; font-size: 14.6667px; color: rgb(32, 31, 30); background-color: rgb(255, 255, 255);"><i>I respectfully acknowledge the University of Arizona is on the land and territories of Indigenous peoples. Today, Arizona
is home to 22 federally recognized tribes, with Tucson being home to the O’odham and the Yaqui.</i></span><br>
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