The Governor wants the board to come up with a plan to cut administrative costs and make college more affordable.
It comes as the state's major universities are grappling with a $100 million cut, and the board may be considering a hike in tuition.
"The process was not easy, nor was it popular. And I acknowledge that," said Gov. Doug Ducey.
Ducey conceded that cuts to the state's 3 public universities may be tough to overcome.
"Now that our budget is balanced it is time for us to move forward," he said.
With the board set to discuss a possible hike in tuition, the Governor had this warning.
"I urge you to use restraint because price and value matter. In business making a quality product that a few can afford does not often make sense," said Ducey.
Tuition costs have risen consistently over the years. An ASU student paying in-state tuition shells out about $10,000 per year. Out of state tuition costs about $25,000.
"I don't think it is sustainable in the long term, and I don't think it is fair in the long term, but we work with what we got," said Ryan Bord.
And with such deep cuts to higher education, tuition is expected to rise.
"If they can't keep going to school because of these budget cuts, how can we expact the next generation to advance society because this is what education does," said Isra Mishqat.
While asking for the board to come up with a cost cutting plan, the Governor couldn't promise that university funding would return to higher levels.
"I would much rather be in a time of abundance. If the economy is growing we will have more dollars in which to make decisions. I inherited a 1 billion dollar shortfall, I was very candid with the regents and how we would fix the budget, and now it is time to go forward," said Ducey.