UCLA fires high finance officer, saying he made inaccurate claims about campus finances

In a uncommon motion towards a high administrator, UCLA on Tuesday fired its chief monetary officer after officers mentioned 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 finances since Could 2024, “will now not serve in his position, efficient instantly,” Chancellor Julio Frenk wrote in a short 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 Day by day Bruin pupil newspaper saying the campus had “monetary administration flaws and failures” predating his arrival, resulting in what he mentioned was a $425-million deficit. Within the interview, Agostini blamed monetary woes on school and workers raises, educational departments’ requests for brand new positions and expanded packages, and UCLA athletics, which has run within the crimson for a number of years.

Agostini recommended that UCLA’s annual monetary studies going again to 2002 had been incorrect, saying he noticed “very severe 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 Instances.

In his campus letter, Frenk didn’t state a purpose for Agostini’s dismissal.

A supply with information of the state of affairs advised The Instances that the firing was tied to Agostini’s public statements relating to the finances and long-term monetary administration, which had been made with out Frenk’s approval. The particular person requested to have their title 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 instantly.

“Current claims of a projected $425-million deficit for UCLA’s fiscal 12 months 2025–26 are inaccurate,” Osako mentioned. “The determine consists of funds that aren’t dedicated for expenditure, together with gadgets which have been proposed or mentioned however not permitted. As such, it doesn’t signify the college’s projected working deficit.”

Osako mentioned 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 mentioned finances challenges had been prompted not by educational packages however as a substitute “mirror broader institutional and exterior components affecting greater 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 mentioned. Additionally, “despite present strains, UCLA has the monetary power to take care of its excellence whereas adapting to new monetary realities and alternatives.”

She additionally mentioned allegations about long-term monetary mismanagement had 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 frequent 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, not too long ago mentioned it has a $113-million deficit. UC Santa Cruz — the place the working finances is a fraction of UCLA’s — not too long ago 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 are at present blocked in courtroom. 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 embody layoffs on the extension college, and diminished courseloads or an absence of contract renewals amongst some part-time school. The cuts usually are not uniform, with areas of the campus scaling again in numerous methods. Final 12 months, the mathematics division reported slicing paid graders and instituting diminished hours for educating assistants. Decrease-enrollment and fewer generally taught foreign-language programs have additionally confronted reductions. College in different departments mentioned their journey and convention budgets had been diminished.

UCLA, which is making ready to host the Olympic Village in 2028 and has invested tens of tens of millions into athletics since becoming a member of the Large Ten, has additionally confronted inner criticism for heavy spending on sports activities packages 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 diminished subsidy” for college cash funneled towards athletics. The senate represents 1000’s of college members.

Total, the report mentioned 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, mentioned she was, “heartened that Chancellor Frenk took significantly the continuing and severe considerations raised on campus in regards to the now-former CFO.”

However McEvoy mentioned she and her colleagues nonetheless had questions.

“Senate school want full, reliable accounting of choices and insurance policies that prompted the present campus finances deficit,” she mentioned. “With out accountability, we’re involved that the administration might repeat the identical type of selections that led to the deficit. Senate school wish to perceive how the administration will stability the finances in ways in which protect the educational mission. The current allegation that we will’t belief prior monetary statements is worrisome, if true.”

Anna Markowitz, president of the UCLA College Assn. — an unbiased campus group that sued the Trump administration over its $1.2-billion UCLA settlement demand — mentioned she had related considerations.

“We wish to understand how a lot cash has been paid to subsidize athletics; on policing prices that don’t have any clear targets 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 risk,” mentioned Markowitz, an affiliate professor in UCLA’s Faculty of Schooling and Info Research.

UCLA isn’t the one Southern California campus to face monetary hurdles. Final 12 months, USC laid off roughly 1,000 workers because it confronted down a $230-million deficit. Chatting with The Instances this month, USC President Beong-Soo Kim mentioned the college was in a “a lot stronger monetary place now” and that he was “optimistic” about its monetary outlook.