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Now that our current-year budget allocations are nearly finalized, we are beginning the planning process for next year’s budget.
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This spring the Legislature and governor approved a one-time FY19 capital budget allocation of $5 million. In the operating budget, a $10 million increase to the University of Alaska’s FY19 funding brought the systemwide total to $327 million. This is the first increase in state operating funds since FY14. Of that $10 million increase, the Board of Regents directed $5 million toward increases in fixed costs and the remaining $5 million toward the board’s strategic priorities. In addition, UA President Jim Johnsen reallocated $4 million of system office funds to help support the board’s strategic priorities for the next three years.
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At UAF, the state funding increases meant $3 million more in new base funding to offset fixed costs, such as increases in utility costs and operation and maintenance funding for the new Engineering Learning and Innovation Facility.
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UAF also received $3.94 million to fund the following Board of Regents’ strategic priorities:
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- Contributing to Alaska’s economic development
- Providing Alaska’s skilled workforce
- Growing UAF’s world-class research
- Increasing enrollment
- Increasing degree attainment
Of the $3.94 million, $1.86 million is new base funding and $2.08 million is time-limited funding. I was able to supplement the new funding provided by the system office with an internal reallocation from UAF’s FY19 central reserve of $1.5 million. These combined increases helped fund a suite of proposals from across UAF to advance enrollment and research.
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Based on recommendations from the Planning and Budget Committee, discussion with Core Cabinet and final FY19 funding levels, I issued a memorandum on July 9 allocating the available new funding. These allocations were distributed to applicable units within the last several weeks.
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UAF’s portion of the FY19 $5 million capital budget allocation was approximately $3.1 million and will be used to help address UAF’s facilities and deferred maintenance backlog.
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We greatly appreciate the Legislature’s and the governor’s recognition of the importance of Alaska’s higher education system in the final FY19 budget.
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Earlier this month, at the September Board of Regents’ meeting in Juneau, President Johnsen presented a draft FY20 budget proposal for the board’s consideration. That proposal was based on input from all three universities, including UAF. I based my budget proposal to President Johnsen on input I received from vice chancellors, unit leaders and the Planning and Budget Committee.
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The proposal would request a $351.5 million operating budget for the University of Alaska system, a $24.5 million increase over this year’s funding.
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The $24.5 million proposed increase includes:
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- $12.71 million for fixed cost increases, which include technology, facilities maintenance, utilities and campus safety;
- $10.04 million for investments in the board’s priorities: economic development, Alaska’s skilled workforce, research and enrollment; and
- $1.75 million for Title IX support.
As most employees are aware, compensation adjustments have been very limited over the past few years. President Johnsen’s draft budget proposal did not contain a request to support compensation increases, but he conveyed that he hopes to bring forward a compensation proposal to the board at its November meeting after the Statewide Human Resources Office completes the salary market and equity survey. More information on that effort is available here.
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On the capital side, President Johnsen proposed a $55 million appropriation for the university system, of which $50 million would be used for deferred maintenance system-wide and $5 million would be used to support UAF’s proposed operation of the USArray earthquake monitoring system.
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The Board of Regents is expected to adopt a final budget proposal at its November meeting in Fairbanks. After that, the UA budget proposal will be submitted to the governor, who will in turn release a proposed budget in mid-December. That proposed budget will then go to the Legislature, which begins its regular session in January 2019. Because this is a gubernatorial election year, it is also possible a new governor will be seated in January. If this is the case, the new governor will have the option to submit a revised budget proposal to the Legislature.
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We will be sharing additional budget information with you as it becomes available, so please keep an eye on your emails and Cornerstone newsletters over the course of the coming months. It’s important for all of us to be as informed as possible.
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— Daniel M. White, chancellor
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