ϲͼ Board of Regents seek $732 million in state funding for public universities
Budget request aims to reverse state cuts, boost economic growth
The ϲͼ Board of Regents is seeking $732.2 million in state funding for ϲͼ’s three public universities in fiscal year 2026. The funding request would focus state investment on widening educational opportunity and producing the workforce and economic investments that are needed in ϲͼ.
The universities are facing the challenges of a $96.9 million reduction in state appropriations from FY 2025, as well as continued historic cuts. ϲͼ now for state support of higher education, and that support has fallen by 20% since 1980. The board’s budget request asks for the state to restore all FY25 budget cuts and make some substantial investments in talent and workforce readiness.
"We're committed to ensuring that ϲͼ's public universities continue to drive economic growth and innovation," ϲͼ Chair Cecilia Mata said. “Our budget request prioritizes strategic investments in healthcare education, workforce development, and affordability, aligning with the state's critical needs and the desire of ϲͼ voters. We look forward to collaborating with Gov. Katie Hobbs and the legislature to prioritize funding that supports the needs of our communities and secures ϲͼ's future.”
The request includes $130 million for the AZ Healthy Tomorrow initiative to expand healthcare education programs at the state's public universities. It’s have limited access to primary care, and more than face a critical staffing shortage.
The regents are also seeking $129 million to increase affordability and access for ϲͼ students through the ϲͼ Promise Program and the ϲͼ Teachers Academy. Another $150 million would go toward workforce development and innovation initiatives, including programs in emerging industries such as technology and sustainable energy.
“Our public universities have been defying gravity since the Great Recession – providing more academic offerings and serving more students while receiving less money from the state,” said Regent Fred DuVal, treasurer of the board. “The simple truth is this – investing in public higher education is an investment in our students, families, the economy and our future.”
Regent DuVal shared that this year’s cuts slashed funding for critical programs like the ϲͼ Teachers Academy and the ϲͼ Promise Program, saying, “When the state had billion-dollar surpluses, higher education saw cuts. When the state had a deficit, universities got cut. We must prioritize investment in public higher education, and these vital programs that open doors of opportunity for students.”
To maintain the facilities needed to educate more than 250,000 students and ensure researchers are able to develop the newest technologies, find cures to diseases and solutions to some of ϲͼ’s biggest challenges, the board is also requesting a $300 million investments in capital funding. The constitution requires the legislature to maintain the state’s education buildings. Without a dedicated funding source, ϲͼ’s public universities face a maintenance backlog in excess of $1 billion.
The regents approved the an initial budget framework in August, and will submit this final request to Gov. Katie Hobbs by Oct. 1.