The Capitol Report for Feb. 20, 2017
February 21, 2017
By Miles Baker
Associate vice president government relations
Happy President’s Day. Today is the 35th day of the legislative session.
Last week was a busy one for the university here in Juneau, with three committee hearings
and President Johnsen’s State of the University address.
On Thursday morning, President Johnsen presented the university’s FY18 operating budget to the
Senate Finance Committee. You can watch President Johnsen and get committee presentation
materials here: http://www.akleg.gov/basis/
The Senate Majority has announced a three-part plan to begin closing the state’s $3
billion budget deficit: establishing a statutory annual spending limit, restructuring
the management of the Permanent Fund and cutting $750 million from the operating budget
over the next three years. Article 9 Section 16 of Alaska’s constitution establishes
an annual appropriation limit, but in practical application, the language hasn’t prevented
the operating budget from continuing to grow during high revenue years. The Senate
is proposing either constitutional and/or statutory reforms that will tie operating
budget growth to changes in population and inflation. The Senate, like the House,
is also evaluating proposals for managing the Permanent Fund more like an endowment,
with a portion of annual earnings being available to fund government operations.
Of particular concern to the university is the Senate’s proposal to cut $750 million
from the state’s operating budget over the next three years. The plan calls for a
5 percent, $300 million reduction this year, another 4 percent next year and 3 percent
the following year. Finance Committee members have indicated that they will be looking
to specifically reduce the largest general fund budget recipients, those include K-12
education, health and social services, and the university. Below are the top five
unrestricted general fund budget requests this year.
1. Department of Education and Early Development $1,297 million
2. Department of Health and Social Services $1,063 million
3. University of Alaska $325 million
4. Department of Public Safety $155 million
5. Department of Transportation $146 million
As we all know, the university has already taken a significant $53 million (14 percent)
reduction over the last three years. This year, the governor’s $325 million request
for the university is already $16.3 million (5 percent) below the $341 million requested
by the Board of Regents. A 5 percent reduction from the governor’s number represents
an additional $16.3 million reduction. We will be advocating aggressively for the
legislature to not only maintain our current funding but to consider growing their
long-term investment in the university. Please stay tuned for opportunities to weigh
in on this critically important issue in the days ahead.
In other important budget news, this Thursday, Feb. 23, at 4:30 p.m., the House Finance University Subcommittee will hold its final hearing on our FY18 budget
request and is expected to close out their budget review. Subcommittee members are
required to have any budget amendments turned in by 5 p.m. today. The subcommittee is soliciting public input on our budget through 5 p.m. tomorrow, Feb. 21. They are using the Legislative Information Office’s Public Opinion Message
System to facilitate that process. Your input will be considered by the subcommittee
as it develops budget recommendations to send to the full House Finance Committee.
If you wish to send an online POM go to: www.legis.state.ak.us/poms/. I encourage you to share your thoughts on the university, the university's budget,
or on programs or activities that are important priorities to you. When
communicating with the legislature please do not use university email or other university
resources, and please do so on your own time, such as during lunch or after work.
There will be an opportunity to provide public comments on the budget later in the
process.
*Other Events of Interest from Last Week*
President Johnsen delivered his annual State of the University address to a packed
house at The Hangar on the Wharf ballroom in Juneau Thursday at noon. This year’s event was part of the Alaska Chamber and the Juneau Chambers Business Roundtable
lunch series. President Johnsen outlined the many strengths and serious challenges
facing the university. Because of these challenges it’s critical that “we keep our
eyes on what we can be, what we must be, and the assets we have to build the university
and the state we all want.” He declared our greatest strength is our people — faculty,
staff, students, alumni, donors and partners. Video and transcript of the address
are posted at www.alaska.edu/pres/sou. You can also watch 360 North’s recording of the address here https://mediaplayer.
Thursday afternoon, Dan White, vice president of academic affairs and research, delivered
a presentation to the Senate Labor and Commerce Committee on how the university is
supporting economic development through innovation. Dan outlined the benefits of commercializing
university research and innovation, the effort being made to identify and protect
the intellectual property of our innovative faculty and students, and highlighted
some of the exciting examples of faculty-led startups and new technologies being developed
at our campuses. You can watch the hearing and get committee presentation materials
here:
http://www.akleg.gov/basis/
Also on Thursday, the House Finance University Budget Subcommittee held its third meeting on our FY18
operating budget. President Johnsen and Michelle Rizk, vice president of university
relations, reviewed with the committee the Education Tax Credit, the university’s
athletics programs, several categories of tuition waivers, and our participation in
the Western Interstate Commission on Higher Education and its student exchange programs.
You can watch
the hearing and get committee presentation materials here: http://www.akleg.gov/basis/
*Coming Up This Week:*
Today at 9 a.m., President Johnsen discussed the university’s land grant deficit with House Education
Committee. You can watch the hearing and get committee presentation materials here: http://www.akleg.gov/basis/
Today at 3:30 p.m. President Johnsen will give a similar land grant deficit presentation to the Senate
Resources Committee.
Tuesday, Feb. 21, at 10 a.m., the House Fisheries Committee will hold a hearing on the Kodiak Seafood and Marine
Science Center by the Alaska Resource Consortium. The committee will be discussing
a resolution that proposes the legislature should continue to strongly support KSMSC
and urging the university to find a solution that keeps the center in operation.
Wednesday, Feb. 22, at 11 a.m., U.S. Sen. Lisa Murkowski will address a joint session of the legislature.
Also on Wednesday, the UAA Justice Center will be participating in a “Lunch and Learn” at noon. Dr. Lindsey Blumenstein will be presenting results from the Alaska Victimization
Survey and the University of Alaska Campus Climate Survey. The event is organized
by the Alaska Network on Domestic Violence and Sexual Assault.
Thursday, Feb. 23, at 11:15 a.m., the Senate Finance University Subcommittee will hold its first hearing on the university’s
FY18 operating budget. Sen. Natasha von Imhof is chairing the subcommittee, which
also includes Sens. Anna MacKinnon, Gary Stevens and Berta Gardner.
Friday, Feb. 24, at 10:30 a.m., U.S. Sen. Dan Sullivan will address a joint session of the legislature.
Thank you for your continued support of the University of Alaska.
For more information, contact Miles Baker at miles.baker@alaska.edu or visit www.alaska.edu/state.