Flagstaff Regents Approve University Presidents’ Pay Raises Amid $99 Million State Funding Cut

The Arizona Board of Regents voted Friday to raise the pay of all three public university presidents, even as the system grapples with a $99 million loss in state funding.

The regents met at Northern Arizona University in Flagstaff for their vote, placing the decision squarely in northern Arizona as the board approved significant compensation increases for UA President Ann Weaver Hart, ASU President Michael Crow, and NAU President Rita Cheng.

Pay packages approved

The board unanimously approved the following compensation changes:

• Ann Weaver Hart received a $25,000 raise to her $475,000 base salary, a $20,000 boost to her housing allowance bringing it to $70,000, and a $115,000 merit bonus. Her total compensation package reaches $665,500. Her contract was also extended one year through June 2018.
• Michael Crow received a $30,000 base pay increase to $600,000 and a $150,000 merit bonus.
• Rita Cheng was approved for $390,000 in base pay and a $40,000 merit bonus in her first year leading NAU.

Regents defend raises despite budget cuts

The pay increases came on the heels of a major state funding reduction for Arizona's public university system. Regents acknowledged the financial pressure on the universities but argued the presidents earned the raises through performance.

"Personally, I think they're way underpaid," Regent Mark Killian of Mesa said. "We are fortunate to have these people. We don't want to lose them."

"We've got a great leadership team," Regent Greg Patterson of Scottsdale agreed.

Hart's merit bonus was tied to specific performance goals. She increased UA's freshman retention rate to 83.7 percent and the university awarded 6,700 bachelor's degrees last year.

What it means for Flagstaff

NAU President Rita Cheng, hired to run Arizona's smallest state school, received the smallest merit bonus of the three presidents at $40,000. Her base pay of $390,000 remains below both Hart and Crow.

The regents' decision signals that leadership compensation at Arizona's public universities is being protected even as overall state support shrinks. For Flagstaff residents and NAU stakeholders, the vote underscores the tension between retaining top administrators and managing tighter budgets across the system.

The Arizona Board of Regents oversees University of Arizona, Arizona State University, and Northern Arizona University. The board's compensation decisions for university presidents are part of its ongoing governance of the state's public higher education system.