University of Arizona Foresees Slight Decline in Tuition Revenue and State Funding The University of Arizona (UA) is projecting a modest decrease in student tuition revenue for fiscal year 2027, according to CFO John Arnold, who presented the forecast to the Arizona Board of Regents. Arnold attributed the decline to the university’s decision to reduce the size of the incoming class for fall 2026. This strategy, part of a broader enrollment adjustment, aims to create “right-sized” classes by prioritizing Arizona residents and students requiring financial aid while reducing merit-based scholarships for out-of-state and international applicants. The smaller class size for fall 2026 follows a trend of declining enrollment, with the 2025 class already 19% smaller than the 2024 cohort. This decline was driven by reduced enrollment from out-of-state and international students. UA officials, including Provost Patricia Prelock, have emphasized that the shift in enrollment strategy is intentional, reflecting a focus on accessibility and financial sustainability. Despite the smaller class, the university managed to maintain revenue levels in 2025 by being selective with merit aid. However, further enrollment reductions in 2026 are expected to lead to a slight drop in tuition revenue for 2027. Arnold also highlighted a small decline in state funding and other revenue streams for fiscal year 2027. This is partly due to the absence of one-time revenues from the Center for Advanced Molecular and Immunological Therapies (CAMI) construction project, which contributed significantly to the university’s finances in fiscal year 2026. The CAMI project, a 205,000-square-foot bioscience research hub in Phoenix, will no longer provide one-time funding in 2027.#university_of_arizona #john_arnold #arizona_board_of_regents #patricia_prelock #cami
