TUCSON, Ariz. (AP) — As the University of Arizona continues to search for a new president, embattled outgoing president Robbins has announced “encouraging news” about the college’s ongoing financial crisis.

The Tucson-based university is trying to dig out of a $177 million budget shortfall that stems from a miscalculation of cash reserves late last year.

In a statement Friday, Robbins said the school is projecting that the fiscal year 2025 budget deficit “will be reduced from $162 million down to $52 million.”

Robbins added that the largest portion of the budget savings will come from reductions in administrative expenses.

“As a result of our budget decisions, the university will be in a position to allocate sufficient funds to ensure no college starts FY 2025 in a budget deficit,” Robbins’ statement said.

Robbins announced on April 2 that he will resign as the university’s president when his contract ends on June 30, 2026. He plans to step down sooner if a successor is hired before that date.

The Arizona Board of Regents, which oversees the state’s three public universities, is holding a town hall on campus Wednesday so members of the Tucson community can share their input about the nationwide presidential search that began on April 15.

Robbins, 66, became the university’s 22nd president in June 2017.

The regents recently reduced Robbins’ annual base salary by 10% from about $816,000 to nearly $735,000, and said he was no longer eligible for up to $270,000 in other compensation for meeting certain goals.

Robbins said that was OK, as he had recommended to the regents that his total compensation be significantly reduced. In addition, Robbins has repeatedly said he will continue to work with the regents to ensure a smooth transition after a new school president is hired.