FY22 Budget
The COVID-19 pandemic began during the last quarter of FY20 and has continued into FY22. UAF has received relief from federal, state and local sources and this funding was used to provide emergency financial aid to students; reimburse students for tuition, housing, housing and food, or other fee refunds; replace lost revenue due to reduced enrollment; and replace lost revenue from non-tuition sources. While COVID funding has helped, it is not enough to offset COVID-related expenditures and lost revenues. UAF tracks expenditures and revenue losses related to COVID-19. Reporting mechanisms are in place and appropriate justification and backup is required for COVID-related expenditures.
FY22 is the final year of the three-year agreement (“compact”) between the Governor and the UA Board of Regents. In recognition of the negative financial impacts UA sustained as a result of the COVID-19 pandemic, the Legislature passed and the Governor signed an FY22 operating budget for UA with a $4.3 million state general fund reduction, instead of the original $20 million as noted in the agreement. It is important to note that this is not “new money” but rather less than a reduction than anticipated. In addition to the FY22 reduction, UAF has absorbed nearly $25 million in budget reductions over the last two fiscal years (FY20 and FY21) through the Governor’s compact. This is compounded by millions of dollars in COVID-19 costs and lost revenue, only a portion of which has been recovered through relief aid.
Dual appropriation
The dual appropriation structure and leadership furloughs continue in FY22.
Compensation
No compensation increases. Leadership furloughs continue in FY22. University officers
are required to furlough for ten days and senior administrators and non-represented
academic leaders are required to furlough for eight days.
Capital budget
Initially, the FY22 capital budget was vetoed by the Governor, however, UA was later
appropriated $5.0 million for deferred maintenance (DM) purposes. UAF’s DM increment
is $3.1 million.
Other
Technical Vocational Education Program (TVEP) was reauthorized for three years.
FY22 is the final year of the three-year agreement (“compact”) between the Governor and the UA Board of Regents.
FY20-FY22 UA & State of Alaska Three-Year Compact
FY22 Operating and Capital Budget Requests
The FY22 UA proposed budget request is $257 million, a reduction of 7.2 percent from the FY21 level of $277 million. The Governor will release the FY22 budget in December 2020. The legislative session will run from January through April 2021.
The BOR approved capital budget request includes $50 million for UA deferred maintenance (UAF portion is approximately $30.4 million, if funded) and other select capital items for the UA System.