Budget & Planning
FY16 UAF Budget Guidance
UAF funding comes from a variety of sources. About 40 percent is from state general funds and the remaining 60 percent comes from things like externally funded research activity, student tuition and fees, and auxiliary activities.
Because a large percentage of the UAF budget comes from the state, and because the cost of doing business rises with inflation each year, even flat state funding has a sizeable effect on UAF operations. In recent years, as state revenues declined, appropriations to the university have gone from flat to reduced.
UAF is in its third year of state funding cuts. When combined with increases in operating costs, the result is substantial budget gaps. That gap in FY14 was $8.5 million. In FY15, the shortfall increased to $14 million. UAF was anticipating a similar gap in FY16, however due to the drop in the price of oil, the state reduced its funding by more than expected.
For the UA System, the total reduction in state funding is $31.4 million, excluding one-time funding for compensation increases. Compensation increases are usually funded as an ongoing commitment. UAF will shoulder approximately $13.1 million of the reduction. When combined with other UAF-specific fixed costs, debt service requirements, and compensation increases that must be maintained in future years, UAF is facing a budget gap of about $20 million in FY16.
Additional information on the campus-wide and unit-level effects of the FY16 budget reductions is detailed in the summary document, below.
Please feel free to provide feedback HERE as UAF works to implement solutions to these challenges.
FY16 Memo Archive
Administrative Leadership Furloughs
Employees in leadership positions were notified that President Gamble and all three chancellors agreed it would be prudent to implement furlough days for administrative leadership across the UA System. Officers, senior administrators and non-represented academic leaders will receive ten, seven and five furlough days, respectively.
UAF will continue to offer quality programs while streamlining its' administrative functions and looking at ways to reduce costs.
Results of the Special Academic Program Review
Provost Susan Henrichs has completed a review of academic programs, which aims to identify $1-3 million in reductions over time. Not all programs were reviewed.
Some degree and certificate programs will be discontinued or have admissions suspended. The discontinued or suspended programs will be only a fraction of what UAF offers, less than 10 percent of the total. Because these are lower-enrollment programs, only about 2 percent of UAF's students are enrolled in them.
UAF will make arrangements for all currently enrolled students to complete their programs in a timely fashion. This is a responsibility that the university has when it admits students to a program and is required by UAF's accrediting organization.
Planning & Budget Committee (PBC)
The UAF Planning & Budget Committee (PBC) was charged by the Chancellor with reviewing and assessing the options for reduction and revenue generation provided by the Budget Options Group (December 2013). In March 2014, the PBC agreed to guiding principles and a decision process. About twenty additional budget reduction items were added to the initial list, either by committee members or by other individuals from across the campus community. The PBC rated the reduction/efficiency options and passed those ratings and an evaluative review to the Chancellor's Cabinet in May 2014. Broad feedback was collected and reviewed.
As the budget climate has continued to tighten, the PBC was reconvened in the fall of 2014 to further examine all cost reduction actions, consider any new viable options, and determine which programs will undergo a special academic program review based on identified criteria.
Special Program Reviews
The PBC recommended special program reviews of a number of non-academic and academic programs. Special committees are reviewing the operational and/or financial models for the following programs:
- Farms and large animal care
- Public information, marketing and communications
- Summer Sessions and Lifelong Learning
- K-12 outreach/bridging programs
- Revenue enhancement options
For updates on current and completed special program reviews, click HERE.
UAF Vision 2020
The PBC additionally created a UAF Vision 2020 document to guide its deliberations. Vision for the future, strategies to achieve goals and areas that may be reduced as a result, are noted. The PBC recommends this for consideration by other university evaluation committees, as applicable.
FY15-FY16 Actions to Address Shortfalls
Recognizing that all PBC proposed options may not produce substantial savings in FY15, UAF has implemented a combination of across-the-board (ATB) reductions (applicable at the Vice Chancellor level) in addition to vertical or targeted reductions. This allows UAF leadership to achieve the necessary targets in FY15 while working on the longer-term items that may take more time to produce savings in FY16+.
A summary listing of the budget actions is posted HERE.
The full UAF report with detail is posted HERE.