UCLA has fired its chief financial officer, saying he made inaccurate claims about the institution’s budget
In a rare move against a top administrator, UCLA on Tuesday fired its chief financial officer, saying he mischaracterized the campus deficit, which has been scrutinized by faculty leaders amid rising operating costs, attacks by the Trump administration and weaker-than-promised funding.
Vice Chancellor and Chief Financial Officer Stephen Agostini, who has overseen UCLA’s $11 billion budget since May 2024, “will no longer serve in his role, effective immediately,” Chancellor Julio Frenk wrote in a brief campus-wide message, announcing the interim appointment and a national search to replace him.
The quick turnaround comes days after Agostino gave an interview to the Daily Bruin student newspaper that said the campus had “mistakes and financial failures” before his arrival, leading to what he said was a $425 million shortfall. In the interview, Agostini blamed financial problems on faculty and staff members, requests from academic departments for new positions and expanded programs, and UCLA athletics, which has run in the red for years.
Agostin suggested that UCLA’s annual financial reports going back to 2002 were inaccurate, saying he saw “very serious errors” — a charge UCLA officials deny. UCLA’s last submitted financial report covers the 2022-23 fiscal year.
Agostini did not respond to requests for comment from The Times.
In his letter to the institution, Frenk did not state the reason for Agostini’s dismissal.
A source with knowledge of the situation told The Times that the firing was linked to Agostini’s public statements about the budget and long-term financial management, which were made without Frenk’s approval. The person asked that his name be withheld because he is not authorized to speak to the media on administrative matters.
In a separate statement, Mary Osako, UCLA’s vice chancellor for strategic communications, dismissed Agostini’s comments outright.
“Recent claims of an estimated $425-million shortfall for UCLA’s 2025-26 fiscal year are inaccurate,” Osako said. “This number includes funds that are not obligated to be spent, including things that have been proposed or discussed but not approved. For that reason, it does not represent the lack of money that the university is considering.”
Osako said the deficit was “very low,” but did not say how much. A UCLA spokeswoman on Tuesday also declined to release the missing number.
Osako said the budget challenges are not caused by academic programs but rather “reflect broader institutional and external factors affecting higher education.”
“The university’s financial strategy has evolved under successive campus leaders to address changing economic conditions, state funding levels and operational priorities,” she said. And, “despite the current challenges, UCLA has the financial strength to remain competitive while adapting to new realities and financial opportunities.”
He also said that the allegations suggesting that funds have not been used properly for a long time are not correct. “Chancellor Frenk is confident in the integrity of UCLA’s leadership, past and present, and their financial oversight and decision-making processes. Statements suggesting otherwise are baseless and do not reflect his or UCLA’s position.”
Financial challenges are common at American universities, which have faced fluctuating enrollments, rising costs and funding pressures and the lingering effects of pandemic-era funding cuts. Harvard, which has faced major funding challenges since last year, recently said it has a $113-million deficit. UC Santa Cruz — whose operating budget is a fraction of UCLA’s — recently reported a $95 million deficit.
UCLA leaders say the university is facing rising costs and unexpected state and federal funding — including a $584 million freeze on a federal research grant from the Trump administration that is currently blocked in court. UC began a program-wide freeze on most hiring last year and UCLA has made several cuts since then.
At UCLA, the changes include layoffs at the extended school, and a reduction in the number of courses or the lack of contract renewals among some part-time faculty. The cuts aren’t the same, and the campus areas go back in different ways. Last year, the math department reported a reduction in paid grade students and instituted reduced hours for teaching assistants. Low-enrollment and less-taught foreign language courses also faced cuts. Faculty in other departments said their travel and conference budgets have been reduced.
UCLA, which is gearing up to host the Olympic Village in 2028 and has invested tens of millions in athletics since joining the Big Ten, has also faced internal criticism over spending on sports programs that have run into the red.
A UCLA Academic Senate report released last month called for a “phased plan for divesting or reducing funding” for the university’s athletics funds. The senate represents thousands of faculty members.
Overall, the report said there were “incomplete data” and “large gaps in transparency” on financial matters.
Speaking Tuesday, Megan McEvoy, a professor at the Institute for Society and Genetics who chairs the Academic Senate, said, “I’m glad that Chancellor Frenk has taken seriously the ongoing and serious concerns expressed on campus about the CFO now.”
But McEvoy said he and his colleagues still have questions.
“The Senate needs a full, honest accounting of the decisions and policies that have created the current campus budget deficit,” she said. “Without accountability, we are concerned that the administration may repeat the same type of decisions that led to failure. The Senate panel wants to understand how the administration will write the budget in ways that preserve the mission of education. Recent allegations that we cannot trust past financial statements are troubling, if true.”
Anna Markowitz, president of the UCLA Faculty Assn. — A private campus group suing the Trump administration over its demand for UCLA’s $1.2 billion bailout — said it has similar concerns.
“We want to know how much money was spent on athletics funding; on police costs that have no clear goals or accountability structures; on real estate purchases; on management consultants; and on senior leadership that didn’t act last year when our school was in great danger,” said Markowitz, an associate professor in UCLA’s School of Education and Research.
UCLA is not the only Southern California campus facing financial constraints. Last year, USC laid off about 1,000 employees as it faced a $230 million deficit. Speaking to The Times this month, USC President Beong-Soo Kim said the university is “in a very strong financial position now” and that he is “optimistic” about its financial situation.
