Budget & Planning
Budget Actions to Address FY15 Shortfalls
Chancellor’s Cabinet, with input from those attending the Executive Leadership Workshop in May and broad community response, has produced a list of budget actions for implementation in FY15 and FY16+. Some items can be implemented immediately, while other processes will take longer. For example, degree programs cannot be eliminated without a program review, according to Regents' Policy. The PBC has developed criteria for choosing programs to undergo a special program review, which will occur in Fall 2014.
Recognizing that all options may not produce substantial savings in FY15, UAF will implement a combination of an across-the-board (ATB) reduction (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.
A summary listing of the budget actions is posted HERE.
The full UAF report with detail is posted HERE.
Planning & Budget Committee (PBC)
This year, the UAF Planning & Budget Committee (PBC) was charged by the Chancellor with reviewing and assessing the options provided by the Budget Options Group. In March 2014, the PBC agreed to guiding principles and a decision process. About twenty additional budget reduction items were added to the initial Budget Options Group 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.
An overview including recommendations and general cost estimates can be accessed HERE.
Budget Options Group & Process
UAF faces an FY15 budget gap due to constraints in the state’s budget. Chancellor Rogers appointed a Budget Options Group to identify and assess both budget reduction and revenue enhancement options. The group identified areas unique to UAF’s mission and competitive strengths that should be maintained and/or enhanced. The group then reviewed and analyzed a range of budget ideas submitted from a variety of sources and forwarded a list of options to the UAF Planning & Budget Committee (P&BC) for its consideration.
The options identified by the group are not recommendations.
As the state budget process is finalized, the level of budget adjustment will be more clear. To remain competitive, UAF will also consider strategic investments and the P&BC may consider reallocation options as well.
The initial list of options compiled by Budget Options Group may be accessed HERE.
Budget Distribution & Management Guidance
A Need for Long Term Fiscal Solutions
Many factors, both internal and external, influence UAF's budget. Among the most influential are state general fund support, federal receipts, indirect cost recovery from research expenditures, tuition & fees and private & philanthropic giving.
UAF is facing significant, yet manageable, budget issues in FY14 but expects additional reductions in FY15 and beyond. This climate may additionally extend for the next several years.
Actions to manage this gap underway in FY14 include a mix of:
- Reducing off-campus lease obligations
- Saving money thru energy management
- Delaying hiring actions to maximize vacancy savings
- Identifying specific reductions to programs and services
- Utilizing staff benefit rate reductions
- Managing year-end reserves
UAF can balance its budget by increasing non-state revenue or decreasing spending. Based on state and national economic conditions, tuition and research funding will likely not increase enough to offset rising costs.
Please share your thoughts on how to best manage in this budget climate (anonymous or otherwise). Keep in mind, ideas should be for sustainable or longer term solutions.
UAF leaders are listening and will welcome creative ideas to best allocate resources while meeting UAF strategic goals.
**If you have trouble accessing the web form to submit an idea, try a direct link to the form HERE.