University of Arizona's budget problem? It's awash in administrative bloat

The University of Arizona offers degrees in accounting, finance and economics.

That didn’t prevent the school from falling $240 million short in its annual budget.

This is nealy 10% of the school’s yearly expenditure, but it still leaves the school without necessary cashflow.

UA spends more money than the gross domestic product of several African nations, so it shouldn’t be too painful to tighten a belt or two.

The missing money took school leadership by surprise, as well as the Arizona Board of Regents. They called university president Robert Robbins to account for the mess in a hearing late Wednesday.

Administrative bloat is out of control

UA’s Chief Financial Officer Lisa Rulney resigned, which is a good start. Yet the board promised increased scrutiny of all state universities to make sure this doesn’t happen again.

As usual, Robbins threatened cuts to school athletics and higher prices for Wildcats tickets. There’s no better way to energize alumni and sports fans to demand state government give UA more money.

But if he really wants to reduce spending, he needs to look at administrative bloat.

UA has more than 16,500 employees. About a third of that total includes school faculty and graduate assistants. The other two-thirds are made up of administrators, staff and other non-teaching positions.

Both ASU and NAU share similar numbers. And Arizona schools are hardly alone on this front.

No wonder college tuition is so expensive

Over the past three decades, Washington State University has seen its enrollment grow by 61%. To better serve the student body, WSU has grown its faculty by 41%, while its administration staff grew by a staggering 861%.

Between 1975 and 2008, California’s state university system increased its faculty size by 4% while its administration staff more than tripled.

It’s no wonder tuition costs have risen 132% in the past 20 years. There are more college students than ever, but higher education is getting less and less efficient.

There are several reasons for this administrative bloat.

Regent: Here's how we keep UA from overspending again

Government regulations and strings-attached subsidies require more paperwork and red tape. There’s also the managerial tendency for administrators to solve headaches by hiring more administrators.

But the schools wouldn’t be spending so much without the distorting economics of endless federally guaranteed student loans.

Other line items that UA should cut

In a freer market, universities would have to watch every dollar that flows in and out of their coffers. They would compete for new freshmen on cost as well as academics and amenities.

But our broken federal system disincentivizes thrift and sticks cash-strapped college kids with the bill.

Some will be paying the rest of their lives.

As the Board of Regents improves its oversight, administration isn’t the only line item to cut.

UA has gifted financial aid to out-of-state students, based on merit, not need. I’m glad Trevor wants to escape the brutal winters in Eau Claire, Wisc., but Arizona taxpayers shouldn’t be flying him to the Old Pueblo, all expenses paid.

In Wednesday’s hearing, President Robbins said that program would be reduced, but it should be eliminated entirely. State schools were created to serve Arizonans, not our friends from the Upper Midwest.

How did UA, Regents not know?

In addition, UA has launched a hiring and compensation freeze, ended international travel for senior administrators and restricted purchases in general.

“This work will take some time, but it will begin immediately,” Robbins said.

What’s most concerning about this mess is the fact that UA’s leadership was blindsided by it. Considering all the non-faculty staff they’ve hired, how exactly does $240 million just go missing and no one noticed?

To reestablish our state schools on firmer economic footing, it’s past time for the Arizona Board of Regents to rein in administrative bloat and focus on educating young Arizonans.

Jon Gabriel, a Mesa resident, is editor-in-chief of Ricochet.com and a contributor to The Arizona Republic and azcentral.com. On Twitter: @exjon.

This article originally appeared on Arizona Republic: Univeristy of Arizona has budget issues because it's full of bloat