A quick view of the impact the scholarship allowances have on UA’s budget.
For 2015:
Tuition and Fees = $633,391,083
Less Scholarship Allowances = ($180,673,861)
Tuition and fees, net = $452,717,202
Total Operating Revenues (including Tuition and fees) =$770,632,974
Net nonoperating revenues (state appropriations, gifts, grants, etc.) =$150,538,299
Net Tuition & Fees has grown from $386 million in 2013 to $452 million in 2015 (which reflects the large growth in undergraduate students). But note how much the scholarship allowances have grown, from $127M to $180M.
The challenge for UA is how to make the pivot to growing it’s graduate program/increase research output, while sustaining the improvements made so far in undergraduate recruitment.
EDIT: UA also wants to improve it’s need based aid to low in-state SES students, lots of demands on a limited amount of revenue. 