Budget & Planning
FY17 Budget Guidance & Planning Scenarios
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.
Early communications from the Alaska Governor's Office are asking agencies to plan for reductions in FY17. UAF initial projections for the impending budget gap are $26 million, higher than past years, due to the uncertainty of funding availability for UA fixed costs including compensation and benefit increases (funded one-time only in FY16) and projected for FY17. This is expected to change over the course of the state legislative session, and planning scenarios will be adjusted accordingly as discussions progress. The planning process for FY17 is as follows:
- The Provost/Vice Chancellors will develop proposed budgets for FY17 in consultation with unit leaders
- These budgets will be submitted to the Planning & Budget Committee (PBC) in March/April
- The PBC will assess proposals and their effects on UAF as a whole, and make recommendations to the Chancellor's Cabinet in April
- The Chancellor and leadership team will work from April-June to make decisions for implementation in FY17
UAF continues to balance required cuts with sustaining the core mission and values of the insitution, and its high-quality programs and services. The coming year is expected to be challenging, but UAF is committed to an finding solutions to meet these budgetary shortfalls that are both strategic and sustainable.
Please feel free to provide feedback HERE as UAF works to implement solutions to these challenges.á
Travel and Hiring Restrictions
In light of the state's fiscal challenges and at the Governor's request, UA President Johnsen has suspended all non-essential travel and hiring funded wholly or in part by unrestricted funds, effective January 6, 2016. Unrestricted funds include general fund, recharge/auxiliary, event funds, TVEP and match. For additional guidance, see the FAQs and memo below.
FY16 UAF Budget Guidance
UAF is experiencing a third year of state funding reductions in FY16. When combined with operating cost increases, this results in substantial budget gaps. That gap in FY14 was $8.5 million. In FY15, the shortfall increased to $14 million. In FY16, the UA System 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 shouldered a $13.1 million portion of this UA reduction. When combined with other UAF-specific fixed costs, debt service requirements, and compensation increases that must be maintained in future years, UAF is managing 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.
FY16 Memo Archive
FY16 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 have been directed to take ten, seven and five furlough days, respectively within FY16. Furloughs are a one-time cost savings measure and are not intended to be a mechanism to sustain budgetary reductions if conditions persist.
Planning & Budget Committee (PBC)
The UAF Planning & Budget Committee (PBC) is charged with reviewing and assessing options provided by the Provost and Vice Chancellors in January 2016. Broad feedback will be collected and reviewed. PBC recommendations will be made to the Chancellor's Cabinet in March 2016, for discussion/implementation by June 2016. The FY17 budget cycle begins July 1, 2016.
In previous years, the PBC took feedback from the Budget Options Group and UAF community. For FY15-16 budget planning, the PBC agreed to guiding principles and a decision process that included Special Program Reviews, details below.
The PBC additionally created a UAF Vision 2020 document to guide its deliberations.á 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.á
Special Program Reviews
The PBC recommended special program reviews of a number of non-academic and academic programs.á Special committees are reviewing the operational and/or financial models for the following programs:á
- 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.á