In a uncommon motion towards a prime administrator, UCLA on Tuesday fired its chief monetary officer after officers stated he inaccurately described the campus deficit, which has come beneath scrutiny by school leaders amid rising operation prices, assaults by the Trump administration and weaker-than-promised state funding.
Vice Chancellor and Chief Monetary Officer Stephen Agostini, who had overseen UCLA’s $11-billion price range since Could 2024, “will not serve in his position, efficient instantly,” Chancellor Julio Frenk wrote in a quick campuswide message, saying an interim appointment and a nationwide seek for a alternative.
The abrupt change got here days after Agostini gave an interview to the Every day Bruin scholar newspaper saying the campus had “monetary administration flaws and failures” predating his arrival, resulting in what he stated was a $425-million deficit. Within the interview, Agostini blamed monetary woes on school and employees raises, educational departments’ requests for brand spanking new positions and expanded applications, and UCLA athletics, which has run within the crimson for a number of years.
Agostini advised that UCLA’s annual monetary experiences going again to 2002 have been incorrect, saying he noticed “very critical errors” — a cost UCLA officers deny. UCLA’s final posted monetary report covers the 2022-23 fiscal 12 months.
Agostini didn’t reply to requests for remark from The Occasions.
In his campus letter, Frenk didn’t state a motive for Agostini’s dismissal.
A supply with data of the state of affairs advised The Occasions that the firing was tied to Agostini’s public statements relating to the price range and long-term monetary administration, which have been made with out Frenk’s approval. The individual requested to have their identify withheld as a result of they weren’t approved to talk to the media about administrative issues.
In a separate assertion, Mary Osako, UCLA’s vice chancellor for strategic communications, dismissed Agostini’s feedback straight.
“Current claims of a projected $425-million deficit for UCLA’s fiscal 12 months 2025–26 are inaccurate,” Osako stated. “The determine contains funds that aren’t dedicated for expenditure, together with gadgets which have been proposed or mentioned however not accredited. As such, it doesn’t characterize the college’s projected working deficit.”
Osako stated the deficit was “considerably decrease,” however didn’t say by how a lot. A UCLA spokesperson on Tuesday additionally declined to launch a deficit quantity.
Osako stated price range challenges have been triggered not by educational applications however as a substitute “mirror broader institutional and exterior elements affecting larger schooling.”
“The college’s monetary technique has developed beneath successive campus leaders in response to altering financial circumstances, state funding ranges and operational priorities,” she stated. Additionally, “regardless of present strains, UCLA has the monetary power to take care of its excellence whereas adapting to new monetary realities and alternatives.”
She additionally stated allegations about long-term monetary mismanagement have been incorrect. “Chancellor Frenk is assured within the integrity of UCLA’s management, previous and current, and their monetary oversight and decision-making processes. Statements suggesting in any other case are unfounded and don’t mirror his or UCLA’s place.”
Monetary challenges are widespread at U.S. universities, which have grappled with shifting enrollment, rising prices and funding pressures in addition to lingering results of pandemic-era monetary declines. Harvard, which has confronted main federal funding clawbacks since final 12 months, just lately stated it has a $113-million deficit. UC Santa Cruz — the place the working price range is a fraction of UCLA’s — just lately reported a $95-million deficit.
UCLA leaders say the college is going through growing prices and unpredictable state and federal help — together with $584 million in federal analysis grant suspensions from the Trump administration which might be presently blocked in court docket. The UC initiated a systemwide freeze on most hires final 12 months and UCLA has made a number of cuts since then.
At UCLA, modifications embrace layoffs on the extension college, and decreased courseloads or an absence of contract renewals amongst some part-time school. The cuts should not uniform, with areas of the campus scaling again in several methods. Final 12 months, the mathematics division reported slicing paid graders and instituting decreased hours for instructing assistants. Decrease-enrollment and fewer generally taught foreign-language programs have additionally confronted reductions. School in different departments stated their journey and convention budgets have been decreased.
UCLA, which is getting ready to host the Olympic Village in 2028 and has invested tens of hundreds of thousands into athletics since becoming a member of the Large Ten, has additionally confronted inside criticism for heavy spending on sports activities applications which have run within the crimson.
A UCLA Educational Senate report launched final month known as for a “phased plan towards break-even or considerably decreased subsidy” for college cash funneled towards athletics. The senate represents 1000’s of college members.
Total, the report stated there was “incomplete information” and “main gaps in transparency” over monetary issues.
Talking Tuesday, Megan McEvoy, a professor within the Institute for Society and Genetics who chairs the Educational Senate, stated she was, “heartened that Chancellor Frenk took significantly the continuing and critical issues raised on campus in regards to the now-former CFO.”
However McEvoy stated she and her colleagues nonetheless had questions.
“Senate school want full, reliable accounting of selections and insurance policies that triggered the present campus price range deficit,” she stated. “With out accountability, we’re involved that the administration might repeat the identical type of selections that led to the deficit. Senate school need to perceive how the administration will stability the price range in ways in which protect the tutorial mission. The latest allegation that we are able to’t belief prior monetary statements is worrisome, if true.”
Anna Markowitz, president of the UCLA School Assn. — an impartial campus group that sued the Trump administration over its $1.2-billion UCLA settlement demand — stated she had related issues.
“We need to understand how a lot cash has been paid to subsidize athletics; on policing prices that don’t have any clear objectives or accountability constructions; on actual property purchases; administrative consultants; and for high-level management who didn’t take motion final 12 months when our college was beneath grave menace,” stated Markowitz, an affiliate professor in UCLA’s Faculty of Schooling and Info Research.
UCLA is just not the one Southern California campus to face monetary hurdles. Final 12 months, USC laid off roughly 1,000 staff because it confronted down a $230-million deficit. Talking to The Occasions this month, USC President Beong-Soo Kim stated the college was in a “a lot stronger monetary place now” and that he was “optimistic” about its monetary outlook.
