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The University of Arizona will spend close to $90 million upgrading several central computer systems that will control student records, class scheduling and payroll, according to a plan approved by regents Friday.

Also on Friday, the Arizona Board of Regents asked the UA to trim close to $6 million from its current budget to meet state budget cuts.

The UA has needed to replace its aging computer systems — some of them at least 30 years old — for some time, as several components risk failure and no longer have outside technical support, according to a report prepared by Michele Norin, the UA's chief information officer.

But perhaps most critical is the possibility that the UA could lose millions of dollars in grants if it doesn't upgrade its systems.

The National Science Foundation, a federal agency that awards grants for scientific research, is auditing UA now.

If the agency finds a problem with the outdated systems, the university might not meet the organization's regulatory requirements, UA President Robert Shelton said.

"If we don't get into a viable and upgradable system, we could, in a short time, be out of compliance and shut down," he said.

The UA also risks losing support staff who have managed the old systems for decades and are nearing retirement.

The new programs and hardware, to be installed during the next three years, replace systems that control student records, budget planning, payroll, course scheduling and student recruitment.

The largest cost is $50.6 million for a system built by Peoplesoft that will handle human resources and student records. Peoplesoft, a business-software suite owned by Oracle technology company, is used by universities across the country.

Northern Arizona University and Arizona State University already have upgraded their computer systems and use Peoplesoft.

The rest of the $90 million will be divided among other computer systems, integration costs and contingencies.

The UA will pay the initial implementation costs by borrowing $33 million, with the remaining costs covered through increased enrollment and possibly administrative fees.

In other regent action, the board on Friday asked the UA to cut $5.9 million from its budget, a move officials have been expecting for months as lawmakers tried to bring the state's balance sheet into the black.

The Legislature asked the three state universities to cut $14.7 million from their budgets while also cutting funds for other projects, including $5.25 million in UA funding for its biomedical campus in downtown Phoenix.

Most of the UA cuts will come from keeping dozens of non-faculty positions left unfilled and cutting back on department spending across campus.

Regent Robert Bulla said he's leery of future cuts lawmakers might make as they attempt to close a projected $2 billion deficit.

"While 2008 has been painful, further cuts in 2009 will be much more devastating," he said.

The UA already is planning for a tight budget year in 2009, Shelton said.

Departments are hiring temporary faculty instead of academics on track for tenure in order to cut costs and are looking at other ways to save money.

But the reality is that a majority of the UA's budget pays for faculty salaries, meaning a large cut might mean fewer professors, Shelton said.

"I can't say there won't be layoffs," he added.