Capitol Report 2023

June 23, 2023

Governor Dunleavy signs FY24 budget and appoints a new Regent for the University System

Earlier this week Governor Mike Dunleavy signed the FY24 State Operating and Capital Budget. While the Governor did introduce several line-item vetoes, the finalized budget represents the continuation of a solid fiscal foundation for the University of Alaska.

Budget   

On Monday afternoon, Governor Mike Dunleavy announced that he signed the FY24 State budget. The announcement comes less than a week after the budget was transmitted to the Governor by the legislature and just shy of two weeks before the start of FY24 on July 1. The overall State budget signed by the Governor is a $202.5 million decrease from the one that lawmakers previously approved on May 18. The reduction is due to 46 line-item vetoes.

The budget passed by the Governor is welcome news for the University System. The enacted state appropriation for UA’s operating budget is just over $308 million, and is in line with the Board of Regents’ request that was included in the Governor’s budget requests to the Legislature. The budget contains the following state support for the University of Alaska: 

• $6.5 million in supplemental FY23 and base FY24 funding for retroactive pay increases (3% faculty and additional 1% staff) 
• $13.8 million increase in FY24 operating funds
• $13.2 million for a 2.75% pay increase for faculty and staff in FY24
• $48 thousand increase to the WWAMI program for growing the program by 10 students 
• $96.2 thousand increase in Technical Vocational Education Programs (TVEP)
• $444.4 thousand increase for Mental Health Trust Authority programs
• $12.5 million in capital funding for special projects:
• $10.0 million for continued UA Drones program support
• $500 thousand for Phase 1 of our Alaska Food Security and Independence initiative 
• $2.0 million for the WWAMI Program facilities expansion 
• $3.6 million for major deferred maintenance:
•  $3.6 million for UAS’s Technical Education Center, Maritime Training Center, and Sitka Hangar Building Roof Systems, Safety Improvements, and Regulatory Compliance projects 
• $8.5 million in receipt authority:
• $6.0 million for the UAA Alaska Leaders Archive and Library Renovation
• $2.5 million for the University Park Early Childhood Development Center

While some lawmakers have expressed frustration with the Governor’s vetoes following a reduction to a one-time increase in K-12 funding, any veto override requires three-quarters vote  - or 45 members - of the Legislature. At this point, it appears highly unlikely that the 23-member House Majority would lend their support to veto overrides. The budget will go into effect on July 1.

Other News

Yesterday,  Governor Dunleavy also announced the appointment of Seth Church to the University of Alaska Board of Regents. Regent-appointee Church is a long-time member of the Fairbanks business community where he has ties to the construction and investment community. The appointment of Mr. Church is effective immediately and fills the remaining vacant seat on the Board of Regents. 

 

May 19, 2023

The Legislature Passes the Budget and Adjourns Within 24 Hours of Special Session Call

One day after the adjournment of the first regular session of the 33rd Legislature, lawmakers met in the Capitol and quickly amended and passed a final budget.

Budget   

Less than one day after Governor Dunleavy issued a proclamation calling the Legislature back into special session, lawmakers came together and voted on an updated fiscal package. It became apparent midday Thursday that lawmakers had reached a tentative agreement on the budget. The House gaveled in and immediately kicked the budget back to the Senate to amend the bill. The Senate then introduced one amendment adding $34.2 million in capital projects. The capital project additions were mainly for municipalities and boroughs and benefitted lawmakers representing Anchorage, Fairbanks, Mat-Su, Kenai, Bethel, Dillingham, Kotzebue, and Tok. Once the amendment was adopted, the Senate overwhelmingly passed the budget and sent it back to the House for concurrence.  The House quickly took up the budget and voted 26Y-14N in favor of its passage.

Ultimately, the budget that passed through the Legislature is welcome news for the University System. The Legislature accepted the faculty and staff compensation increases, WWAMI expansion, TVEP funding,  MHT funding, and receipt authority introduced by the Governor, and added additional operating and capital components. In total, the budget passed by the Legislature contained the following for the University of Alaska: 

• $6.5 million in supplemental FY 23 funding for retroactive 3% faculty and additional 1% staff pay increases. 

• $15.0 million increase in FY 24 operating funds

  • $13.2 million for a 2.75% pay increase for faculty and staff in FY 24

  • $48 thousand,000 increase to the WWAMI program for growing the program by 10 students/year 

  • $96.2 thousand increase in Technical Vocational Education Programs (TVEP)

  • $444.4 thousand increase for Mental Health Trust Authority programs

  • $1.3 million for workforce capacity building efforts including supporting the Alaska Native Success Initiative (ANSI) program, our teacher and administrator preparation program (PITAAS), STEM, Earth Science, and Critical Minerals programs, the UAS Maritime program, and the UAF Middle College program

• $12.5 million in one-time capital funding for special projects:

• $10 million for continued UA Drones program support

• $500 thousand for Phase 1 of our Alaska Food Security and Independence initiative 

• $2 million for Phase 2 of the WWAMI Program facilities expansion 

• Approximately $39 million for major deferred maintenance:

  •  $17.5 million for UAA’s Heating, Mechanical, and Electrical System Improvements on four 40+-year-old facilities that are key to campus operations 

  •  $3.6 million for UAS’s Technical Education Center, Maritime Training Center, and Sitka Hangar Building Roof Systems, Safety Improvements, and Regulatory Compliance projects 

  •  $7.1 million for UAF Patty Pool Code Corrections, Campus-wide fire alarm replacements, and other Safety and Compliance projects 

  •  $1.5 million for UAA’s Arcade & Bridge Lounge Campus Building Envelope & Roof Systems Renewal 

  •  $1.7 million for UAS’ Fuel Tanks Replacement, Mourant Covered Stairway, and Sitka Emergency Power 

  •  $2.1 million for UAF’s Cutler Apartments Building Envelope and Roof Systems 

  •  $300,000 UAA Social Sciences Building Exterior Doors 

  •  $1.2 million for UAS’s Paul Building Elevator Replacement, Heat Pump Replacement, and Other Interior Systems projects 

  •  $4.0 million for UAF’s Rural and Community Campus Renewals

• $8.5 million in receipt authority:

  • $6 million for the UAA Alaska Leaders Archive and Library Renovation

  • $2.5 million for the University Park Early Childhood Development Center

This funding is a significant piece of providing stability for the university system. Now that the Legislature has finalized the budget, it will be transmitted to the Governor. Governor Dunleavy may accept all of the Legislature’s changes or veto any specific line items in the budget. Notably, any line item veto requires a two-thirds majority to override.  As the Governor fulfills his constitutional obligation to review this budget for final approval, any voice that can be raised to encourage the Governor to keep this budget is always appreciated.

 

May 12, 2023

The Senate Introduces a New Operating Budget ‘Turducken' that Includes Capital Budget

In the final days of the legislative session, lawmakers are scrambling to find consensus on the state operating budget. The Senate has indicated that they intend to gavel out on May 17 and to do so, they must pass the budget by midnight. Meanwhile, some lawmakers in the House are dubious about wrapping up by day 121 (May 17th).

Budget
After a week of no visible action on the state operating budget, the Senate Finance Committee released two sequential committee substitutes back to back on Wednesday and Thursday. In a Thursday press conference, key members of the Senate leadership said that they have been working with members of the House behind the scenes to create this compromised budget. Finance Co-Chair Senator Stedman (R-Sitka) said that lawmakers have missed the opportunity to send a budget package to a conference committee- there simply isn’t enough time left. If the Legislature plans to adjourn by the constitutionally mandated 121st day, the bodies must come to a consensus on the version of the budget passed by the Senate. If the House doesn’t concur with the budget the Legislature will either have to vote by a 2/3rds majority to extend itself for ten additional days or will need to be called into an immediate 30-day special session. Notably, if the budget isn’t passed by July 1, state agencies could face possible shutdown.

The most recent version of the Senate Finance Committee substitute to the operating budget includes a supplemental $6.46 million in unrestricted general funds (UGF) for staff compensation adjustments from FY 23, $309.7 million UGF for FY 24 operations, and $39.2 million for capital investments. Capital projects include $32.2 million for deferred maintenance at UAA, UAF, and UAS - including rural campuses. An additional $5 million is included for the UA Drones program and $2 million for the UAA WWAMI expansion project. The budget also includes $6 million in federal receipt authority for the UAA Alaska Leaders Archive and another $5 million in receipt authority from the Fairbanks North Star Borough for the UAF Early Childhood Development Center.  “Receipt authority” refers only to the university’s ability to receive future funds. In other words, there are no state general fund dollars attached - rather, the dollars would come from other sources in the future.    

Other News
On Tuesday morning, the Legislature held a marathon session to confirm newly appointed members of the Governor’s cabinet, as well as appointees to boards and commissions including the University of Alaska Board of Regents. Notably, the appointment of Bethany Marcum to the Board of Regents was narrowly rejected 29Y-31N. Other regent-appointees Dennis Michel, Paula Harrison, Joey Crum, student-regent Albiona Selimi, and returning regent Scott Jepsen were all confirmed.

Next Week’s Calendar
Saturday, May 13

• 10:00 a.m. - Senate Finance: Bills Previously Heard/Scheduled
• 11:00 a.m. - House Finance: Senate Bill 41: “Appropriations: Capital/Supplemental” (Pending referral)

Monday, May 15

• 9:00 a.m. - Senate Finance: Bills Previously Heard/Scheduled
• 10:30 a.m. - House Finance: Senate Bill 41: “Appropriations: Capital/Supplemental” (Pending referral)
• 1:30 p.m. - Senate Finance: Bills Previously Heard/Scheduled
• 1:30 p.m. - House Finance: Bills Previously Heard/Scheduled

Tuesday, May 16

• 9:00 a.m. - Senate Finance: Bills Previously Heard/Scheduled
• 10:30 a.m. - House Finance: Bills Previously Heard/Scheduled
• 1:30 p.m. - Senate Finance: Bills Previously Heard/Scheduled
• 1:30 p.m. - House Finance: Bills Previously Heard/Scheduled

Wednesday, May 17

• 9:00 a.m. - Senate Finance: Bills Previously Heard/Scheduled
• 10:30 a.m. - House Finance: Bills Previously Heard/Scheduled
• 1:30 p.m. - House Finance: Bills Previously Heard/Scheduled

 

May 5, 2023

With little visible action on the budget, Lawmakers focus on other legislation

As we quickly approach the 121st day of the legislative session, lawmakers are playing their cards closely and strategically. The operating budget hasn’t moved all week. Meanwhile, there's a flurry of activity as legislators focus on moving other prominent legislation.  

Budget

Even with less than two weeks left in the regular 2023 legislative session, the Senate Finance Committee continues to hold the state operating budget in committee. No hearings have been held and no changes have been made to the bill this week. 

Bills on the Move

While the budget has not had traction this week, several other notable bills relevant to the university system are currently in motion.  

• Upgrading the Alaska Performance Scholarship - In 2010 the Alaska Legislature passed legislation that created the Alaska Performance Scholarship (APS). The scholarship is aimed at retaining the brightest Alaska students here in the state. However, a 2023 APS Outcomes Report indicated that student eligibility has dramatically decreased since inception, and only 22% of those who are eligible actually utilize the scholarship. Borrowing from recommendations in the report, the current Legislature has introduced multiple bills to address expanding the scholarship’s eligibility. Two weeks ago, the House Education Committee passed House Bill 148 out of committee. The legislation provides for earlier scholarship award notice, allows for career and technical education credits to be applied toward eligibility, removes the standardized testing requirements, and increases student award level. This week the Senate Education Committee passed out the Senate’s “companion bill”, Senate Bill 56, which is identical to the House version. Both bills are now referred to the Finance committees of their respective bodies.  
• Education Tax Credit extension - The Education Tax Credit was established in 1987 to encourage Alaska businesses to invest in Alaska’s educational institutions. If a business owes the State of Alaska a tax liability and it makes a contribution to a qualified educational institution, it may be eligible for a credit against state taxes. The credit is a partnership that provides mutual benefit for industry, the university, and the State of Alaska. Notably, the credit is currently set to sunset in 2025. House Bill 144, introduced by Representative Ruffridge (R-Soldotna), does away with the sunset date - effectively continuing the program in perpetuity. Senate Bill 120, sponsored by the Senate Education Committee, instead extends the sunset to 2031. The Senate bill also increases the tax credit amount from $1 million to $5 million. Both bills were passed from the House and Senate Education committees, respectively, earlier this week. They are now referred to the Finance committees.
• Textbook cost transparency - At the beginning of the legislative session, Senator Robert Myers (R-Fairbanks), and Representative Ashley Carrick (D-Fairbanks) introduced matching bills in the Senate and the House which require the University of Alaska to publish textbook and course material costs and to indicate which courses utilize zero-cost materials. While House Bill 10 remains in the House Education Committee, Senate Bill 13 was passed by the Senate this morning. The bill will now be transferred to the House for further review.

Other News

On Wednesday, student Board of Regent appointee Albiona Selimi presented her qualifications in both the House and Senate Education committees. She will be considered once again, along with the other Board of Regent appointees, next week in a joint floor session of the House and Senate on Tuesday, May 9. During the joint session, lawmakers will consider all of the Governor’s appointees- a process that often takes several hours. Along with Ms. Selimi, the UA Board of Regent appointees include Dennis Michel, Paula Harrison, Joey Crum, Bethany Marcum and returning regent Scott Jepsen.  

Next Week’s Calendar

Monday, May 8

• 1:30 p.m. - House Finance: House Bill 21: “School/University Employee Health Insurance”

Tuesday, May 9

• 10:00 a.m. - Joint Session - Consideration of Governor’s Appointees to Boards & Commissions

Wednesday, May 10

• 9:00 a.m. - Senate Finance: Senate Bill 41: “Appropriations: Capital/Supplemental”

Thursday, May 11

• 10:30 a.m. - House Finance: House Bill 148: “Alaska Performance Scholarship; Eligibility”
• 1:30 p.m. - House Finance: Senate Bill 41: “Appropriations: Capital/Supplemental”

Friday, May 12

• 1:30 p.m. - House Finance: Senate Bill 41: “Appropriations: Capital/Supplemental”

Saturday, May 13

1:30 p.m. - House Finance: Senate Bill 41: “Appropriations: Capital/Supplemental” 

 

April 28, 2023

The Senate introduces its own budget plan, while the Governor considers new revenue measures

This week, all eyes were on the Senate as they introduced updates to operating and capital budgets. Meanwhile, the Governor announced that he is amenable to new revenue measures, including taxes, that would afford the State of Alaska some budgeting stability.

Budget

Earlier this week, the Senate introduced its amended operating and capital budgets. The new $6.2 billion Finance Committee operating budget substitute contains $4.65 million for agency and statewide operations, $175 million for a one-time increase to education funding, $30 million for additional Medicaid funding, and $15 million for childcare facilities. Also included in the substitute is $1,275,000 for priority University of Alaska for workforce development initiatives. 

To pay for the budget additions without dipping into state savings, the Finance Committee reduced the permanent fund dividend to a total of $881.5 million (a decrease from $2,700 to $1,300 per person). The new dividend amount relies on a formulaic split of the percent of the market value (POMV) of the annual permanent fund earnings. The 75/25 formula allows 75% of the earnings to be used for state government expenses, with the remaining 25% used for dividends. A larger $2,700 dividend would require using 50% of the earnings on dividends. 

Ultimately, the budget introduced in the Senate would result in a $93 million surplus if the projected $73/per barrel of oil in FY24 holds true. Alternatively, the budget introduced in the House with a larger dividend would leave the state with a $600 million deficit. The new version of the budget will still require support in the House to ultimately pass. Notably, last month the House rejected a 75/25 POMV split by 28-12. In all likelihood, the House will reject the changes made by the Senate at which point a conference committee containing 3 members of each body will work together to come to a budget compromise.

On top of the operating budget, Senate Finance introduced an updated $357 million capital budget. The capital budget, while one of the smallest in recent years, includes $32 million for the University of Alaska’s deferred maintenance. This is a notable step in reducing the University’s significant backlog. Other elements of the paired-back capital budget include $30 million for major school maintenance, required matches for federal funding for highways and infrastructure, and investments in statewide energy programs. 

Governor Indicates Willingness to Consider New Revenue Measures

On Thursday, Governor Dunleavy held a press conference flanked by House and Senate leadership. He spoke of the volatility of the state’s budgets due to commodities pricing and emphasized the need for budget stability to attract and increase new business. He touched base on currently proposed measures -  a sales tax, an income tax, and updated oil taxes, to name a few - and introduced a modeling program that shows the state’s returns on various revenue and spending measures. Legislative leadership joined in to say they are also interested and willing to consider new revenue measures, but they will all need a thorough review, and it is unlikely that they will be able to come to an agreement by the end of the 121-day session on May 17th. There has been some discussion about returning to Juneau later this year for a special session focusing specifically on new revenue measures.

Bills on the Move

On Monday afternoon the Senate Finance Committee heard and held the Senate Bill 56 - the Senate’s version of the Alaska Performance Scholarship expansion. A committee substitute was introduced that matched the bill to the version of House Bill 148 that passed the House Education Committee a week earlier. The benefit of having matching “companion bills” is that when one bill passes through a body, it can assume the place of the other body’s version and skip through committee referrals. This speeds up the overall hearing process. The new version of the Alaska Performance Scholarship legislation includes earlier award announcements, increased award amounts, the inclusion of CTE courses in prerequisites, and the removal of standardized testing requirements. The bill will be heard again next week on Monday when the committee will consider public testimony.

Other News

Last week the Office of Boards and Commissions appointed Ms. Albiona Selimi from UAA as the new student regent to the UA Board of Regents. Ms. Selimi will go through the same legislative review process as other regent-appointees. She will go through a confirmation hearing process next Wednesday in both the House and the Senate Education committees before her name is forwarded to a joint session of all of the legislature for final approval. The joint session will take place the week of May 9th. 

Next Week’s Calendar

Monday, May 1

• 9:00 a.m. - Senate Finance: “Bills previously heard/scheduled” 
• 1:30 p.m. - Senate Finance: “Bills previously heard/scheduled” 
• 3:30 p.m. - Senate Education: Senate Bill 56: “Alaska Performance Scholarship; Eligibility”

Tuesday, May 2

• 9:00 a.m. - Senate Finance: “Bills previously heard/scheduled” 
• 1:30 p.m. - Senate Finance: “Bills previously heard/scheduled” 

Wednesday, May 3

• 8:00 a.m. - House Education: Consideration of Governor’s Appointees: University of Alaska Board of Regents - Albiona Selimi / House Bill 144: “Repeal Education Tax Credits Sunset”
• 9:00 a.m. - Senate Finance: “Bills previously heard/scheduled” 
• 1:30 p.m. - Senate Finance: “Bills previously heard/scheduled” 
• 3:30 p.m. - Senate Education: Senate Bill 132: “Employment Tax for Education Facilities” / Senate Bill 120: “Extend Education Tax Credits” Senate Bill 56: “Alaska Performance Scholarship; Eligibility” / Senate Bill 120: “Extend Education Tax Credits” / Consideration of Governor’s Appointees: University of Alaska Board of Regents - Albiona Selimi

Thursday, May 4

• 9:00 a.m. - Senate Finance: “Bills previously heard/scheduled” 
• 1:30 p.m. - Senate Finance: “Bills previously heard/scheduled” 

Friday, May 5

• 8:00 a.m. - House Education: House Bill 144: “Repeal Education Tax Credits Sunset”
• 9:00 a.m. - Senate Finance: “Bills previously heard/scheduled”  
• 1:30 p.m. - Senate Finance: “Bills previously heard/scheduled”

 

April 21, 2023

The Senate Takes up the Operating Budget and Lawmakers Discuss a Long-Term Fiscal Plan with New Revenue Measures

With the 90th day of the regular legislative session in the rear-view mirror, lawmakers are prioritizing the budget and discussions of a long-term fiscal plan this week.

Budget

On Monday the State House passed the budget from the body by a vote of 23-17. The $6.4 billion budget remained similar to the Governor's proposed budget, with the notable differences of a scaled-down $2,700 PFD and a one-time $175 million addition for education funding. Notably, the budget passed by the house leaves a $600 million deficit, which some lawmakers proposed to fill from the State’s Constitutional Budget Reserve (CBR). A vote to utilize the CBR requires a two-thirds vote, and the motion ultimately failed to pass. This effectively means that the House sent the Senate a budget with an unfunded deficit.  

Now that the House version of the budget has arrived in the Senate, Senators may amend the bill to their own liking. On Tuesday, the Senate Finance Committee introduced its own committee substitute to the budget. The substitute contains agency operations but removes both the dividend and education funding. Without those components, the FY24 budget actually leaves the state with a $1.4 billion surplus. Senators have stated that it is now their job to determine how to split that $1.4 billion between a dividend, education funding and a capital budget. A bill from Senator Hoffman, Senate Bill 107, looks closely at the dividend formula, and may ultimately be part of the final budget package passed out of the Senate. Following the introduction of the Senate Finance Committee’s budget substitute, the committee has been taking public testimony on the budget. The committee will accept amendments through this afternoon and will revisit the budget next week to consider those amendments. Depending on the length of time for amendments, the Senate may send the budget to the Floor early the following week.

Another critical component of the picture is the Capital budget. The Senate is also still reviewing the Capital budget. Last week they introduced an extremely paired-back budget that mostly just meets federal matching requirements. 

Separate from the operating budget discussions, the Governor hosted meetings with the Senate and the House to discuss a long-range fiscal plan. He has indicated that he may be open to discussions of new revenue and he is anticipated to release legislation to create a 2% state-wide sales tax. More details on the proposal are anticipated as early as next week.

UA in the Capitol

This week Jodie Anderson, the new director of UAF’s Institute of Agriculture, Natural Resources and Extension (IANRE), was in the Capitol with IANRE Communications Manager Jenn Wagaman to meet with lawmakers to share the work of the institute as well as answer questions they might have about the recent fall 2022 Food Security Task Force Final Report that IANRE helped put together. IANRE is UAF’s agriculture arm of our land grant institution. The institute oversees the cooperative extension service, the experiment farms, and a natural resources workforce development program which includes mining and petroleum training. Lawmakers were very interested in IANRE’s projects ranging from soil studies in Nenana, to bark-beetle kill research along the Parks Highway.  

Bills on the Move

The House Education Committee passed House Bill 148 - updating and expanding the Alaska Performance Scholarship eligibility - out of committee earlier this week. The bill is referred to the House Finance Committee. It was not scheduled for this upcoming week. A similar Senate version of the bill, Senate Bill 56, is scheduled to be heard in the Senate Education Committee early next week.

Legislation to update the Education Tax Credit Program is still moving through both bodies. In the House, lawmakers are considering House Bill 144 which removes the sunset date for the program. Senators are considering Senate Bill 120 which extends the sunset date and increases the amount which is eligible for a tax credit. SB 120 will be heard in the Senate Education Committee next Wednesday.

Next Week’s Calendar

Monday, April 24

• 1:30 p.m. - Senate Finance: “BIlls previously heard/scheduled” 
• 3:30 p.m. - Senate Education: Senate Bill 56: “Alaska Performance Scholarship; Eligibility”

Tuesday, April 25

• 9:00 a.m. - Senate Finance: Senate Bill 41: “Appropriations: Capital/Supplemental”
• 1:30 p.m. - House Finance: House Bill 40: “Appropriations: Capital/Supplemental”

Wednesday, April 26

• 1:30 p.m. - Senate Finance: House Bill 39: “Appropriations: Operating Budget/Loans/Fund; Supplemental” / House Bill 41: “Appropriations: Mental Health Budget”
• 3:30 p.m. - Senate Education:  “Senate Bill 56: “Alaska Performance Scholarship; Eligibility” / Senate Bill 120: “Extend Education Tax Credits”

Thursday, April 27

• 1:30 p.m. - Senate Finance: House Bill 39: “Appropriations: Operating Budget/Loans/Fund; Supplemental” / House Bill 41: “Appropriations: Mental Health Budget” 

Friday, April 28

• 9:00 a.m. - Senate Finance: House Bill 39: “Appropriations: Operating Budget/Loans/Fund; Supplemental” / House Bill 41: “Appropriations: Mental Health Budget” 
• 1:00 p.m. - Senate Finance: “Bills previously heard/scheduled”

 

April 14, 2023

Operating Budget Idles in the House while the Senate Prepares to Deep Dive into the Capital Budget

Today is the 88th day of the 2023 legislative session. Even with the 90th day just around the corner, the much anticipated State of Alaska FY 2024 operating budget idled in the House this week. Meanwhile, the Senate continued Finance subcommittee budget closeouts and took its first look at the FY 2024 capital budget. Pending the passage of the operating budget in the House, the Senate anticipates taking public testimony as soon as next Thursday.

Budget

Last week the House took up amendments to the State operating budget, after which the budget moved into its third and final reading in the House. Procedurally, once a bill is in “third reading” lawmakers can only vote in favor of or against the legislation as a whole, rather than on specific amendments. Since moving the budget to the third reading last Thursday, the House has met three times without taking a vote. The bill continues to linger in the body and will be taken up again next Monday.

In the meantime, the Senate had its first hearing earlier this morning on the State FY 2024 capital budget. The committee adopted a committee substitute that sets a bare-boned base budget strictly meeting federal matching requirements. Notably, the $177 million capital budget includes state matches for federal funds for the village safe drinking water program, Alaska Housing and Finance Corporation (AHFC) programs, the state’s Airport Improvement Program, and the Department of Transportation & Public Facilities (DOT&PF) highway improvement and surface transportation programs. The committee briefly discussed their own role in funding major deferred maintenance, noting that the members intend to look more closely at this in upcoming discussions. 

In the same vein, the Senate noticed public testimony on the operating budget for Thursday and Friday of next week if the House sends it over. However, for the Senate to take up testimony on the operating budget, the House must first convene and vote to pass the budget bill out of third reading at which time it may be transmitted to the Senate. Similarly, the Senate noticed a tentative hearing early next week for the FY 2023 supplemental budget pending its transmission from the House. The supplemental bill includes the FY 2023 retroactive  compensation increases for UA employees. However, the bill was not transmitted to the Senate today, indicating that the timeline for the FY 2023 supplemental budget will likely be pushed back. 

Bills on the Move

The House Education Committee will once again be taking up legislation relating to the Alaska Performance Scholarship and the Education Tax Credit Program. House Bill 148 and House Bill 144 are scheduled to be heard in committee next week. 

Senate Bill 120, which also extends the Education Tax Credit Program, is anticipated to be heard, for a second time, next week in the Senate Education Committee. It may likely be heard under “bills previously heard.” Many voices are interested in moving this bill.

Next Week’s Calendar

Monday, April 17

• 8:00 a.m. - House Education: House Bill 148: “AK Performance Scholarship; Eligibility”
• 9:00 a.m. - Senate Finance University of Alaska Finance Subcommittee: “Budget Closeout” 

Tuesday, April 18

• 9:00 a.m. - Senate Finance: House Bill 54: “Appropriations: Supplemental; Reappropriations: Amending” / Senate Bill 41: “Appropriations: Capital/Supplemental” 

Wednesday, April 19

• 8:00 a.m. - House Education: House Bill 144: “Repeal Education Tax Credit Sunset”
• 9:00 a.m. - Senate Finance: House Bill 39: “Appropriations: Operating Budget/Loans/Fund; Supplemental” / House Bill 41: “Appropriations: Mental Health Budget” 
• 1:30 p.m. - House Finance: House Bill 40: “Appropriations: Capital/Supplemental”

Thursday, April 20

• 9:00 a.m. - Senate Finance: Public Testimony for House Bill 39: “Appropriations: Operating Budget/Loans/Fund; Supplemental” / House Bill 41: “Appropriations: Mental Health Budget” / Senate Bill 41: “Appropriations: Capital/Supplemental” 
• 1:30 p.m. - Senate Finance: Public Testimony for House Bill 39: “Appropriations: Operating Budget/Loans/Fund; Supplemental” / House Bill 41: “Appropriations: Mental Health Budget” / Senate Bill 41: “Appropriations: Capital/Supplemental” 

Friday, April 21

• 8:00 a.m. - House Education: House Bill 144: “Repeal Education Tax Credit Sunset”
• 9:00 a.m. - Senate Finance: Public Testimony for House Bill 39: “Appropriations: Operating Budget/Loans/Fund; Supplemental” / House Bill 41: “Appropriations: Mental Health Budget” / Senate Bill 41: “Appropriations: Capital/Supplemental” 
• 1:00 p.m. - Senate Finance: Public Testimony for House Bill 39: “Appropriations: Operating Budget/Loans/Fund; Supplemental” / House Bill 41: “Appropriations: Mental Health Budget” / Senate Bill 41: “Appropriations: Capital/Supplemental” 
• 1:30 p.m. - House Finance: House Bill 40: “Appropriations: Capital/Supplemental”

Other News:

As lawmakers continue to express interest in Alaska drone development, the UAF Alaska Center for Unmanned Aerial Systems Integration (ACUASI) announced on Wednesday that it will be building its own hangar at the Nenana airport. In February, the Board of Regents approved the hangar construction project. The project will include the construction of a 4,800-square-foot hangar that will serve as the base of operations for test flights between Nenana and Fairbanks. The hangar is expected to provide year-round space for drone storage, maintenance, and testing of communications equipment. Construction is expected to be completed in early fall.  

State lawmakers have been very excited about drones in Alaska. Currently there is $10 million in the budget to help grow the unmanned commercial cargo industry in the state. Good cooperation with the State Department of Transportation (DOT) is necessary to ensure the best steps moving forward for Alaska’s airports (as unmanned aerial vehicles become more common). Special thanks to DOT Commissioner Ryan Anderson and DOT liaison Andy Mills and for their recent push to assist with the UA’s strategic partnerships.

April 7, 2023

Operating Budget Advances Slowly in the House Amidst Heated Discussions About K-12 Education Funding

The State of Alaska FY 2024 Operating Budget advanced to the House floor earlier this week and kicked off several days of robust discussion about funding priorities. The House finished considering budget amendments on Thursday and are now preparing to take up final comments on the bill on Monday before passing it out of the body.  Meanwhile, in the Senate lawmakers are currently reviewing agency budgets and putting together a proposed budget of their own.

Budget

Lawmakers in the House began discussions on the state operating budget on Monday. Members proposed 93 amendments to the budget which took the better part of three days to work through. Notably, on Wednesday, some members of the House staged a walkout after the introduction of a controversial series of amendments adjusting the funding source for K-12 education. Ultimately, members returned to the chambers and passed the disputed budget amendment by a vote of 23Y-17N. On Thursday afternoon legislators finished debate on the amendments. The budget must be read one final time over the floor next Monday and members will have a final opportunity to speak to the bill.  

Once the House passes the operating budget, business will likely return to normal in the body with regularly scheduled standing committee meetings. Meanwhile in the Senate, lawmakers will continue their own review of the Governor’s proposed budget. FInance subcommittee closeouts are scheduled for this upcoming week after which the Finance Committee will consider amendments. After taking public testimony the Senate will introduce its own version of the operating budget. Once the budget is approved on the Senate floor by a majority of Senators, a six-person conference committee will be announced to find compromise between House and Senate versions.

Bills on the Move

This week the House Education Committee introduced a new piece of legislation - House Bill 148 - proposing changes to the Alaska Performance Scholarship aimed at increasing the number of scholarships awarded. The legislation increases the awarded amount, allows students to apply career and technical education (CTE) credits towards placement, removes college entrance exam testing requirements, creates “step-up” provisions for those who are working on improving their grades, and provides for earlier notification of award.

Separately, the Senate Education Committee introduced Senate Bill 120 to extend the Alaska Education Tax Credit program. The program allows Alaska corporations to claim tax credits for charitable gifts made in support of education in Alaska. Eligible donation recipients include accredited Alaska two-year or four-year colleges, non-profit elementary or secondary schools, regional and state operated vocational education and training programs, apprenticeship programs, Alaska Native cultural programs, and the Alaska Higher Education Investment Fund. SB 120 would extend the program to January 1, 2031 and increases the tax credit cap from $1,000,000 to $5,000,000.

Next Week’s Calendar

Monday, April 10

• 6:00 p.m. - House Ways & Means: Overview: “Long Term Fiscal Plan”

Tuesday, April 11

• 6:00 p.m. - House Ways & Means: Overview: “Long Term Fiscal Plan”

Wednesday, April 12

• 3:30 p.m. - Senate Education: Senate Bill 110: “School/University Employee Health Insurance”
• 3:15 p.m. - House Labor & Commerce: House Bill 21: “School/University Employee Health Insurance”
• 6:00 p.m. - House Ways & Means: Overview: “Long Term Fiscal Plan”

Friday, April 14

• 9:00 a.m. - Senate Finance: Senate Bill 41: “Appropriations: Capital/Supplemental”
• 3:30 p.m. - Senate Education: Senate Bill 120: “Extend Education Tax Credits”

March 31, 2023

Operating Budget Heads to the House Floor After the House Finance Committee Passes Amended Version

After a week of public testimony on the state’s FY 2024 operating budget, lawmakers in the House Finance Committee considered several budget amendments. Simultaneously, President Pat Pitney provided overviews of the university system in the House Education Committee and the Senate Finance University of Alaska Budget Subcommittee. 

Budget

On Monday and Tuesday, the House Finance Committee met to take up amendments to the FY 2024 operating budget. In total, more than 80 amendments were filed. Lawmakers worked into the evenings debating the proposed changes. Ultimately no changes were made to the University of Alaska budget.  Subsequently, on Thursday a revised budget incorporating the adopted amendments was introduced in the House Finance Committee. The committee took a quick procedural vote to pass the budget from committee, notably voting to use the Constitutional Budget reserve (CBR) to fill the $400 million deficit. The revised House Finance budget has now been referred to the House floor where it will be considered by the whole body, where any representative may offer amendments. Amendments will likely be taken up starting at the beginning of the week. This may result in marathon all-day floor sessions which often result in canceled or postponed standing committee meetings.

Meanwhile, in the Senate, the Finance Committee is currently hosting its own agency budget overviews. Informed by these meetings, the Senate will begin to work on its own version of the operating budget. Both bodies will eventually select three members each to meet in a “conference committee” to decide on the differences between the House and Senate versions.

UA in the Capitol

As part of its agency overview process, the Senate invited University of Alaska President Pat Pitney to testify on the university system’s budget request in committee. President Pitney shared the Board of Regents’ FY 2024 budget request and highlighted employee compensation, fixed cost increases, and the system’s deferred maintenance needs. Senators were particularly interested in the WWAMI program. Watch the Senate hearing.

President Pitney was also invited to provide general updates to the House Education committee. She spoke about increased enrollment trends, workforce training programs, the UA land grant, and student success initiatives. Watch the House Education meeting.

Separately, Senator Kawasaki hosted a Lunch and Learn in the Capitol to direct attention to UAF’s International Arctic Research Center’s (IARC) recent report Alaska’s Changing Arctic: Energy Issues and Trends for the Alaska State Legislature and its Citizens. Amy Lovecraft, Director of the Center for Arctic Policy Studies, presented the background leading up to the development of the report, as well as which topics legislators and staff should expect to find in the publication. The report contains non-partisan policy information on Alaska’s Arctic oil economy, our Arctic energy systems, climate-smart infrastructure, and Alaska’s strategic placement in international relations. Amy’s presentation is available to stream.

Next Week’s Calendar

Monday, April 3

• 8:00 a.m. - House Education: Presentation: “‘Alaska Performance Scholarship’ by Sana Efird, Alaska Commission on Postsecondary Education” / House Bill 148: “AK Performance Scholarship; Eligibility”

• 1:00 p.m. - House resources: House Bill 120: “Hunt/Fish License for Nonresident Student”

• 3:15 p.m. - House Labor & Commerce: House Bill 21: “School/University Employee Health Insurance”

• 3:30 p.m. - Senate Education: Senate Bill 110: “School/University Employee Health Insurance” / Consideration of Governor’s Appointees: University of AK Board of Regents - Joey Crum”

Tuesday, April 4

• 12:00 p.m. - Lunch & Learn: “‘Mariculture in Alaska’ by Juliana Leggitt and Dan Lesh, Southeast Conferences Alaska Mariculture Cluster; Schery Umanzo, Assistant Professor of Aquaculture, College of Fisheries & Ocean Sciences, University of Alaska Fairbanks; and Jordan Hollarsmith, Mariculture Research Lead, Alaska Fisheries Science Center, National Oceanic and Atmospheric Administration”

• 3:30 p.m. - Senate Resources: Senate Bill 78: “Hunt/Fish License for Nonresident Students”

Wednesday, April 5

• 8:00 a.m. - House Education:  House Bill 148: “AK Performance Scholarship; Eligibility”

• 3:30 p.m. - Senate Education: “Legislation to extend the Alaska Education Tax Credit Program (pending introduction & referral) / Consideration of Governor’s Appointees: University of AK Board of Regents - Scott Jepsen”

March 20, 2023 

The House Prepares to take Public Testimony on the State Operating Budget

While many students, staff and faculty enjoyed spring break last week, the Legislature continued to plug away in Juneau. In the House, the Finance Committee heard the subcommittee closeout reports and set the wheels in motion to introduce a committee substitute next week. Meanwhile, in the Senate, members listened to the University of Alaska present on our drone and heavy oil recovery research.

Budget & Public Testimony

Last Monday and Tuesday, the House Finance committee reviewed the budget closeout reports from each department’s subcommittee. The finance subcommittees are tasked with reviewing their respective department’s budgets and making budgetary recommendations. Notably, this year, of the 19 state agencies or departments, only six were changed from the initial budget proposed by Governor Dunleavy. Subcommittee recommendations are used to create a House Finance-sponsored committee substitute for the budget. The House committee substitute for the FY24 operating budget (House Bill 39/House Bill 41) is anticipated to be released this week. In the meantime, the House Finance Committee will consider public testimony on the bills. Public testimony will start tomorrow. The schedule is as follows:

Tuesday:

• 1:30 - 3:30 p.m.:  Sitka, Petersburg, Delta Junction, Dillingham, Glennallen, Valdez, Wrangell, Homer, Ketchikan, Kodiak, Seward, Tok
• 5:00 - 8:00 p.m.: Juneau, off-net callers

Wednesday: 

• 1:30 - 3:30 p.m.: Fairbanks, Delta Junction, Kenai, bethel, Cordova, Kotzebue, Nome, Utquiagvik, 
• 5:00 - 8:00 p.m.: Anchorage, Mat-Su, off-net callers

Thursday:

• 1:30 - 3:30 pm: off-net callers

Testifiers can visit their local Legislative Information Offices or call in:

• Anywhere: (844) 586-9085
• Anchorage: (907) 563-9085
• Juneau: (907) 586-9085

Visit the Alaska Legislature website for information on how to provide public testimony.

UA in the Capitol

In other news, the university has been well represented in the Capitol over the last week. On Tuesday, Teri Cothren, UA Associate Vice President of Workforce Development, co-hosted a Lunch and Learn about the Alaska Maritime Education Consortium (AMEC). AMEC is a collaboration between the University of Alaska and the Alaska Vocational and Technical Center (AVTEC) with a mission to “collaborate to prepare Alaskans for afloat and ashore careers that will support and strengthen the maritime workforce by combining efforts to provide maritime training and education across the state”. Watch the lunch and learn presentation.

On the same afternoon, Nick Adkins, Deputy Director of the Alaska Center for Unmanned Aircraft Systems Integration (ACUASI) presented to Senate Transportation about UAF’s efforts to build a drone industry in Alaska. Committee members were eager to learn more about this budding industry and applauded ACUASI’s work to date.

Last Friday, Dr. Abhijit Dandhekar, Chair of the Department of Petroleum Engineering with UAF, shared with Senators an update on heavy oil-related research at UAF. Last year the research team received $5 million from the state to invest in new technology using polymers and solvents to extract heavy and viscous oils. The extraction has been highly successful and is garnering more industry interest. See the entire presentation in the Senate Resources Committee.

This Week’s Calendar

Monday, March 20

• 8:00 a.m. - House Education: House Bill 9: “Add Faculty Member University Board of Regents” / House Bill 10: “University: Textbook/Materials Cost”
• 1:30 p.m. - House Finance: House Bill 39: “Appropriations: Operating Budget/Loans/Fund; Supplemental”/ House Bill 79: “Appropriations: Supplemental” 
• 3:30 p.m. - Senate Education - Senate Bill 13: “University: Textbook/Materials Cost”

Tuesday, March 21

• 1:30 p.m - House Finance: House Bill 39: “Appropriations: Operating Budget/Loans/Fund; Supplemental”
• 5:00 p.m. - House Finance: House Bill 39: “Appropriations: Operating Budget/Loans/Fund; Supplemental”

Wednesday, March 22

• 9:00 a.m. - Senate Finance: Presentation “Spring Revenue Forecast by Department of Revenue”
• 1:30 p.m. - House Finance:  Presentation “Spring Revenue Forecast by Department of Revenue” / House Bill 39: “Appropriations: Operating Budget/Loans/Fund; Supplemental”
• 5:00 p.m. - House Finance: House Bill 39: “Appropriations: Operating Budget/Loans/Fund; Supplemental”

Thursday, March 23

• 10:15 a.m. - House Energy: Presentation: “Alaska Center for Energy and Power by Gwen Holdman, Director”
• 1:30 p.m. - House Finance: House Bill 39: “Appropriations: Operating Budget/Loans/Fund; Supplemental”

Friday, March 24

• 8:00 a.m. - House Education: Consideration of Governor’s Appointees: University of Alaska Board of Regents - Dennis Michel, Bethany Marcum, Joey Crum, and Paula Harrison
• 3:30 p.m. - Senate Education: Consideration of Governor’s Appointees: University of Alaska Board of Regents - Dennis Michel, Bethany Marcum, Joey Crum, and Paula Harrison

 

Correction: We shared the sad news of Regent Darroll Hargraves’s passing last week. In the initial publication, Darroll’s name was misspelled.

 

March 10, 2023

The House Finishes Budget Subcommittee Closeouts, Prepares to Review the Operating Budget Next Week

The pace in Juneau has picked up markedly in the last week. With budget subcommittee closeouts wrapping up in the House today, members are preparing for their first look at a revised state operating budget early next week. The Senate is also beginning to review agency budgets and will follow the House process in the upcoming weeks. The first opportunity for public testimony on the budget is anticipated to take place the week of March 20th.

Budget

The House Finance University of Alaska subcommittee met this morning to wrap up its overview of the University’s budget. The committee reviewed and ultimately opted not to pass three amendments. The university’s current proposed budget (unrestricted general funds) remains at $308,411,000 which aligns with the Governor’s FY24 amended budget.  The budget will now be incorporated with other state agencies’ budgets into the larger state operating budget (House Bill 39) which House Finance will begin reviewing next week. Members anticipate taking public testimony the following week, beginning on March 20. Watch the committee hearing.

UA in the Capitol

On Wednesday experts from UAA’s Institute for Social and Economic Research (ISER) and Alaska College of Education Consortium joined the Department of Education and Early Development to present their research findings on teacher recruitment and retention. Dr. Dayna DeFeo from ISER discussed teacher turnover in depth with committee members. On average it costs school districts ~$20k to replace teachers. Factors in the turnover include working conditions, salary and compensation, school district/administrative support, and community amenities. Dr. DeFeo summarized that the best way to retain educators is to “grow our own” in Alaska – ones who know and are anchored in the communities they teach. Dr. Amy Vinlove, Dean of the UAF School of Education and Chair of the Alaska College of Education Consortium followed with an overview of UA’s teacher preparation programs targeted towards Alaska-grown educators. Dr. Vinlove noted that UA, with the help of the Legislature, has developed a scholarship program providing teacher interns with tuition scholarships and living stipends while they are completing their mandatory school internship programs. She also discussed UA’s efforts with registered apprenticeships and “grow-your-own” programs. Watch the committee hearing.

What We’re Watching

Several bills relating to the university system are currently moving through the committee process:

Senate Bill 13: Sponsored by Senator Rob Meyer (R-Fairbanks), this bill requires the University of Alaska to provide the costs of course materials on the online course catalogs. The bill also mandates that UA label its zero and low-cost courses. This bill will be heard in Senate Education on Monday, March 13. (Note: Representative Ashley Carrick (D-Fairbanks) has introduced the companion House Bill 10 in the House)

House Bill 31: Representative Andi Story (D-Juneau) introduced this bill to expand the Alaska Performance Scholarship (APS). Currently, through the APS, high-performing students may be awarded up to $4,755/year in recognition of their good grades and placement test scores. In recent years, usage of the APS has dramatically declined. HB 31 expands the eligible pool of applicants in several ways, including increasing the scholarship amount, removing standardized testing requirements, and extending the eligibility window up to eight years after graduation from secondary school. (Note: Senator Forrest Dunbar (D-Anchorage) has introduced the companion Senate Bill 56 in the Senate)

House Bill 9: The legislation, introduced by Representative Ashley Carrick (D-Fairbanks) would increase the number of UA Board of Regents (BOR) by one member, to include a UA faculty representative. 

House Bill 106: Earlier this week, Governor Dunleavy introduced this legislation as an effort to recruit and retain educators in Alaska. The bill would mandate that for the next three years, teachers in rural and urban schools would receive additional compensation (between $5,000-$15,000/year) for staying with the district. (Note: A companion Senate Bill 97 has been introduced in the Senate). This bill will be heard in House Education on Monday, March 13. 

House Bill 21: Representative Sarah Vance introduced this legislation which gives school districts and the University of Alaska the opportunity to pool with the State of Alaska in group insurance and self-insurance coverage for employees. This bill will be heard in House Education on Monday, March 13. 

Empower Alaska Campaign:

From now through April 30, the University of Alaska will be airing short videos on Gavel Alaska/KTOO. The videos highlight the system’s initiatives in teacher education, the blue ocean economy, drone commercialization, Alaska Native success, and green technology in mining.  Visit the Empower Alaska website to watch the short video spots.

Next Week’s Calendar

Monday, March 13

• 8:00 a.m. - House Education - House Bill 106: “Teacher Recruitment; Lump Sum Payment” / House Bill 21: “School/University Employee Health Insurance”
• 9:00 a.m. - House Finance: House Bill 39: “Appropriations: Operating Budget/Loans/Fund; Supplemental”
• 1:30 p.m. - House Finance: House Bill 39: “Appropriations: Operating Budget/Loans/Fund; Supplemental”
• 3:30 p.m. - Senate Education - Senate Bill 13: “University: Textbook/Materials Cost”

Tuesday, March 14

• 9:00 a.m. - House Finance: House Bill 39: “Appropriations: Operating Budget/Loans/Fund; Supplemental”
• 12:00 p.m. - Lunch and Learn: “Workforce Development Partnerships in Alaska by Cathy LeCompte, Director, Alaska Vocational Technical Center; Greg Snyder, Marine Training Manager, Yamaha Marine; and Teri Cothren, Associate Vice President of Workforce Development, Office of Academics, Students & Research”
• 1:30 p.m. - House Finance: House Bill 39: “Appropriations: Operating Budget/Loans/Fund; Supplemental”
• 1:30 p.m. - Senate Transportation: Presentation: “Advanced Air Mobility by Nick Adkins, Deputy Director of Alaska Center for Unmanned Aircraft Systems Integration, UAS; and Ryan Marlow, CMS, UAS Program Coordinator, DOTP&F Statewide Aviation”

Wednesday, March 15

• 1:30 p.m. - House Finance: House Bill 39: “Appropriations: Operating Budget/Loans/Fund; Supplemental”

Thursday, March 16

• 9:00 a.m. - Senate Finance: Presentation: “Alaska’s Economy by Dan Robinson, Research Chief, Dept. of Labor; and Brett Watson, ISER”

Friday, March 17

• 3:30 p.m. - Senate Resources: Presentation: “Heavy Oil Recovery by Abhijit Dandekar, Ph.D., Professor and Chair, Department of Petroleum Engineering, UAF College of Engineering and Mines”
  
  

Other News

Regent Darroll Hargraves Passes Away
It is with great sadness that we share that UA Regent Darroll Hargraves passed away Wednesday afternoon after a period of illness. Regent Hargraves was a member of the Board of Regents from 2019-2023. He had an extensive education background prior to his service on the Board, including as Superintendent of Schools in Nome, Ketchikan, and Tok. He was the Director of the Division of Statewide Services for UA in the 1970s and the former Executive Director of the Alaska Association of School Administrators. Over the years, he served on numerous commissions, boards, and councils, and received three legislative citations for meritorious service. In addition, Regent Hargraves received Masters and Educational Leadership degrees from the University of Alaska Fairbanks. We extend our deepest sympathies to his family, friends, and colleagues.

New UAS Chancellor selected as Chancellor Carey Prepares for Retirement

This week President Pat Pitney announced the new Chancellor of the University of Alaska Southeast. Dr. Aparna Palmer was selected from a competitive field to lead UAS as its next Chancellor. Dr. Palmer comes to UAS from Front Range Community College in Colorado, where she currently serves as Vice President. Before joining FRCC, Dr. Palmer was the Assistance Vice President for Academic Affairs at Colorado Mesa University (CMU) where she worked for 22 years. She holds a Ph.D. in Zoology and a B.S. in Biological Sciences. Dr. Palmer’s first day will be July 1, 2023. She succeeds Dr. Karen Carey, who is retiring on June 30, 2023.

March 3, 2023 

Lawmakers prepare to wrap up department budget reviews and President Pitney speaks to the Juneau Chamber

This week, with a winter blizzard storm warning in place, lawmakers in the House began to wrap up the review of agency budgets in the finance subcommittees, a process that will continue over the next week. As the snow flew, legislators hunkered down in the Capitol where they continued to analyze proposed policy and meet with governance and advocacy groups. The university-affiliated Coalition of Student Leaders and the University of Alaska Foundation Board of Directors were among those groups.

Budget

Both this week and next, House Finance Subcommittees will be meeting to “close out” agency and department budget reviews. During these budget closeouts, lawmakers may propose amendments. Amendments may either grow or reduce the budget. The House Finance University of Alaska Budget Subcommittee meeting will take place next Friday, March 10 at 8:00 a.m. The House Finance committee-of-the-whole will review recommendations from the budget subcommittee. 

UA in the Capitol

Lawmakers met with many university advocates over the last week. The Coalition of Student Leaders (CSL), a group comprising student leaders from UA campuses across the state, flew in over the weekend and spent two days networking and connecting with lawmakers to share their experiences as current students and advocate for student priorities. Additionally, some of the Board of Directors of the University of Alaska Foundation visited the Capitol to talk about the importance of the current Alaska Education Tax Credit program.

What We’re Watching

On Thursday, President Pat Pitney addressed the Juneau Chamber of Commerce and emphasized the university systems’ contribution to the state workforce. She noted that in Alaska 75% of students that graduate from the UA system remain within the state as active members of the workforce. She shined the spotlight on UA’s teacher and nurse training pilot programs and heralded their “earn while you learn” approach. Separately, President Pitney noted the success of last week’s 3rd annual UA Giving Day, applauding the record-breaking $1.3 million raised in just 49 hours. She heralded community partnerships and called for continued support in the future. She also recognized Chancellor Karen Carey’s upcoming retirement and praised her stewardship at UAS. President Pitney noted that the new UAS Chancellor will be announced in the near future. You can read more about her speech in the Juneau Empire.

Next Week’s Calendar

Monday, March 6

• 8:00 a.m. - House Education: Presentation: “Consideration of Governor’s Appointed: University of Alaska Board of Regents - Scott Jepsen”
• 3:30 p.m. - Senate Resources: Presentation “Carbon Capture, Utilization and Storage by David Greesons, Carbon Capture Project Consultant Frank Paskvan, Affiliate Professor on Carbon Capture, Utilization and Sequestration, University of Alaska Fairbanks”

Tuesday, March 7

• 1:30 p.m. - House Finance: House Bill 79: “Appropriations: Supplemental” / Overview: FY 2023 Governor’s Supplemental by Neil Steininger, director, Office of Management & Budget

Wednesday, March 8

• 8:00 a.m. - House Education: House BIll 9 “Add Faculty Member University Board of Regents” / Presentation: “ Alaska Performance Scholarship Program and Outreach by Department of Education & Early Development / House Bill 31: “AK Performance Scholarship; Eligibility”
• 3:30 p.m. - Senate Education: Presentation: “Teacher Retention and Recruitment in Alaska by Alaska Department of Education and Early Development and University of Alaska Institute of Social and Economic Research”

Friday, March 10

• 8:00 a.m. - House University of Alaska Finance Subcommittee: Overview: FY24 Budget Closeout

 

February 24, 2023 

Funding Stability is the Focus of State of the University Address by President Pat Pitney 

This week the University of Alaska took a front seat in Juneau in a big way: UA President Pat Pitney heralded the system’s accomplishments in light of budget stability in her State of the University address, and she spoke directly with lawmakers about the success of several recent pilot programs. U.S. Senator Lisa Murkowski also highlighted the recent UA Land Grant legislation during her annual speech to the Legislature. 

State of the University

On Tuesday, President Pitney delivered her annual State of the University to a crowded room in Fairbanks. She spoke at length about the value of budget stability. For the first time in nine years, the university system did not receive budget cuts, and with this stability, the UA system saw an enrollment increase for the first time in as many years. She also highlighted that 2022 saw the most externally funded research in system history, and noted that the 2023 number is on track to be even larger. 

The President emphasized that the UA remains Alaska’s number one source for a robust workforce. She reminded the audience that only 25% of students that go to school out of state return to the Alaska workforce post-graduation. The UA system has the capacity to produce nurses, teachers, engineers, accountants, and so many other professions right here at home with our expansive range of baccalaureate, graduate, and vocational programs. Watch the State of the University address here.

Senator Lisa Murkowski’s Annual Legislative Address

On Wednesday, U.S. Senator Lisa Murkowski returned to Juneau for her annual legislative address. She noted the many new legislators and welcomed them to the chamber where she once served. Senator Murkowski spoke of the big successes of the Alaska Congressional delegation, including returning federal dollars to the state from the federal infrastructure bill and from congressionally delegated spending, as well as passing legislation in December granting the University of Alaska, the state’s land-grant institution, rights to an additional 360,000 acres of land.  

Senator Murkowski challenged the Legislature to “think big” in terms of making Alaska an attractive place to live. She cited research from Nolan Klouda, executive director of the University of Alaska Center for Economic Development, finding that Alaska is recovering from the COVID-19 pandemic slower than other states and we have a greater out-migration than in-migration. She urged the bodies to prioritize addressing Alaska’s budget constraints, noting that federal funds have kept the state afloat, but they can’t be relied on consistently. Watch Senator Murkowski’s address here.

UA in the Capitol

On Monday afternoon, the Senate Education Committee heard an update from President Pitney on the university system’s enrollment numbers, as well as our efforts in teacher and nurse training programs. 

The university system’s overall spring 2023 headcount is up 1% from spring 2022 enrollment numbers. Those numbers are driven, in part, by significant enrollment increases at most rural and community campuses, as well as the UAF Community and Technical College, and the UAS School of Career Education. In the same vein, the dual enrollment program allowing high school students to take college-level courses saw a 10% increase from FY21 to FY22, up to 2,300 students total. Dr. Tonia Dousay, Dean of UAA’s School of Education, joined in the presentation to share the recent highlights of the Alaska College of Education Consortium - including accreditation efforts, a recent teacher placement pilot program, and K-12 outreach programs. Dr. Dousay also shared that former Juneau School District superintendent Bridget Weiss will be joining the consortium as its first program liaison. Dr. Deborah Craig, Dean of the UAA College of Health, shared highlights of its nursing pilot program including the creation of 13 new faculty positions aimed at increasing the number of nursing students in the program. Watch the committee hearing here.

In other news, the University of Alaska will have ample representation in the Capitol over the next two weeks with a large influx of visitors arriving to advocate on issues relating to the university system. The Coalition of Student Leaders (CSL) will arrive in Juneau this weekend and will be meeting with legislators on Monday and Tuesday. Separately, the University of Alaska Foundation is hosting its annual legislative fly-in next week. The Foundation’s Board of Directors will be in Juneau March 1-2 to discuss the foundation’s legislative priorities. The following week the Faculty Alliance is meeting in Juneau and several members plan to meet with legislators during that time.

Next Week’s Calendar

Monday, February 27

• 1:30 pm - House Finance: House Bill 39: “Appropriations: Operating Budget” 

Tuesday, February 28

• 1:30 pm - House Finance: House Bill 39: “Appropriations: Operating Budget” / Presentation “History of the Base Student Allocation Formula by Alexe Painter, Director, Legislative Finance Division”

Wednesday, March 1

• 1:30 pm - House Finance: House Bill 39: “Appropriations: Operating Budget”

Thursday, March 2

• 1:30 pm - House Finance: House Bill 39: “Appropriations: Operating Budget”

Friday, March 3

• 8:00 am - House Education: Presentation: “University of Alaska by Pat Pitney, President”
• 1:30 pm - House Finance: House Bill 79: Appropriations: Supplemental / Overview: FY 2023 Governor’s Supplemental by Neil Steininger, Office of Management & Budget / House Bill 39: “Appropriations: Operating Budget”/ House Bill 40: Appropriations: Capital/Supplemental

Other News

The University of Alaska Board of Regents is meeting all day today in Anchorage to hear updates on UA’s efforts to empower Alaska through workforce and economic development, access and efficiency for students, and Arctic policy and research. This will be the first board meeting for newly appointed regents Joey Crum, Paula Harrison, Dennis Michel, and Bethany Marcum. The board will be briefed on the UA economic impact report conducted by the McKinley Research Group, as well as the university’s Land Grant. Regents will also hear reports on the Alaska Native Success Initiative, Title IX, and the UA Foundation, and will vote on approval of the Crafts & Trades Collective Bargaining Agreement. The agenda is available here and the meeting can be live-streamed here.

 

February 17, 2023 

Governor Introduces Amended Budget Supporting Salary Increases for UA Faculty and Staff

On Wednesday, February 15, Governor Mike Dunleavy introduced an amended FY 24 budget. The new version includes an additional $117 million in undesignated general fund (UGF) amendments. Notably, salary adjustments for UA employee compensation increases are among the included amendments.

Salary Adjustments

Last December, Governor Dunleavy introduced the “Governor’s Proposed” FY24 budget. The initial budget proposal was a $4.5 billion package that included $301.4 million in support for the University of Alaska. Notable funding for the university system included UA’s requested FY24 compensation increases: $12.7 million for the recently negotiated 2.75% pay increase. The Governor’s FY24 amended budget includes $461.7 thousand for the compensation increases recently agreed to in labor negotiations by the Alaska Higher Education Crafts and Trades Employees Local 6070 union. 

Notably, the Governor recently introduced a supplemental FY23 budget that addresses pay increases for the current year. The supplemental budget retroactively adds dollars for agency operations not initially included in the final FY23 budget. Because of the timing of the United Academics labor negotiations, no salary increases were included in the initial operating budget. The supplemental budget introduced by the governor includes a retroactive $6.46 million for the negotiated 3.0% FY23 compensation increase for faculty and an additional 1% for staff. The Governor’s FY24 amended budget includes this funding in UA’s base operating budget.

These FY23 and FY24 compensation increases are important because UA faculty and staff salaries have been held flat from FY18-FY22.

UA in the Capitol

Last Friday, the House Finance University of Alaska Subcommittee met for the first time for an overview presentation by university experts. The committee heard about UA’s FY 24 operating and capital requests, as well as program updates on our nursing and teacher education programs. The committee ran long and re-convened on Tuesday morning. Legislators were very interested in UA’s positive enrollment trends. Watch the two-part overview here and here.

What We’re Watching

Congresswoman to All Alaska, Rep. Mary Peltola, Addresses the Legislature for the first time.

Alaska Congresswoman Mary Peltola made her first address to the State Legislature this morning. This is the first time in decades that the Legislature received an address from Alaska’s U.S. Representative. The speech is available here.

President Pitney to deliver the State of the University in Fairbanks

On Tuesday, February 21, UA President Pat Pitney will deliver the annual State of the University address to the Fairbanks Chamber of Commerce at noon at the Westmark Hotel in Fairbanks. She will provide an update on the important role the University of Alaska system has in the state’s economic recovery and in building Alaska’s workforce; the contributions of UA’s world-class research; and highlight excellence across the university system. Her speech can be viewed here.

The Governor’s Amended Budget Overview presented to House Finance

The Office of Management and Budget will present a high-level overview of the Governors' amended budget this afternoon in House Finance. This will be a breakdown by department of significant amendments. 

House Education hears legislation relating to the University of Alaska

On Monday morning at 8:00 am the House Education Committee will review two bills that are relevant to the university system. House Bill 9, by Representative Ashley Carrick (D-Fairbanks), relating to adding a faculty member to the Board of Regents, and House Bill 31, by Representative Andi Story (D-Juneau), relating to updating the Alaska Performance Scholarship will both be heard.

Senate Education receives an overview from President Pitney

On Monday afternoon the Senate Education Committee is hosting a University of Alaska overview presentation by President Pitney. The overview will include enrollment and program updates, as well as a budget overview and the systems’ legislative priorities.

Next Week’s Calendar

Monday, February 20

• 8:00 am - House Education: House Bill 9 “Add Faculty Member to University Board of Regents” / House Bill 31 “Alaska Performance Scholarship: Eligibility”

• 9:00 am - Senate Finance: Presentation: Overview of Governors Budget Amendments

• 12:00 pm - Lunch and Learn: Alaska 529 by Lael Oldmixon, Executive Director

• 3:30 pm - Senate Education: Presentation: Overview of the University of Alaska by President Pat Pitney

Tuesday, February 21

• 9:00 am - Senate Finance: Presentation: “Fiscal Position with Governor’s Budget Amendments from Alexei Painter, Director of Legislative Finance Division”

Friday, February 24

• 8:00 am - House Finance University of Alaska Subcommittee: Presentation: “Reviewing All Transactions and the Governor’s Amended Budget”

• 9:00 am - Senate Finance: Presentation: Update on Broadband Equity, Access, and Deployment in Alaska by Thomas Lochner, Director of the Alaska Broadband Office”

• 1:30 pm - Senate Labor & Commerce: Presentation “ Workforce Challenges in Alaska”

 

February 10, 2023 

Senator Sullivan Addresses Lawmakers in Annual Address to Legislature

This week in Juneau, Alaska Senator Dan Sullivan addressed lawmakers in the third joint speech to the State Legislature, the UA students in the Ted Stevens Legislative Internship program hosted a lunch and learn, and the folks from UAF’s Alaska Center for Unmanned Aircraft Systems Integration (ACUASI) shared a drone program progress report in the House Transportation Committee. Additionally, the House University of Alaska finance subcommittee met for the first time for an overview of the university system’s budget. We also looked more closely at the university system’s deferred maintenance request.

Senator Sullivan Addresses the Legislature

While President Biden was delivering the State of the Union in Washington D.C., Senator Dan Sullivan was providing his own address to the State Legislature in Juneau. During his hour-long speech, Senator Sullivan highlighted federal progress in several areas key to Alaska’s economy: resource development, military, infrastructure, fisheries, tourism, and aviation. He also spoke about continued social challenges including Alaska’s high rates of sexual assault and domestic violence, as well as a growing mental health crisis- particularly in younger Alaskans. He finished his speech by sharing his support for resource development projects like Willow and Ambler Road. He challenged the presidential administration to look to Alaska for its energy and critical mineral needs. Read Senator Sullivan’s whole speech here.

UA in the Capitol

The university system has many wonderful advocates who travel to the Capitol throughout the legislative session, but perhaps none are as visible or appreciated as the university system’s legislative interns. The internship program, known as the Senator Ted Stevens Legislative Internship Program, brings University of Alaska students into legislative offices for a semester to get a front-row view of the legislative process. Interns get hands-on opportunities to interact with lawmakers and constituents, as well as draft and carry bills throughout the session. Many interns eventually go on into full-time staff positions, and perhaps even become lawmakers themselves like current Senator Robert Myers (R-Fairbanks) and Representative Genevieve Mina (D-Anchorage). On Monday, Senator Jesse Kiehl hosted a lunch and learn for the internship program welcoming the new students. Current interns from UAA, UAF, and UAS introduced themselves and both lawmakers and former interns shared their own advice for the newest class. The program is made possible with the continued support of the legislature, the Ted Stevens Foundation, and most recently, Peak Trust Company. We look forward to seeing the future accomplishments of these great students.

Separately, Dr. Cathy Cahil, Director of UAF’s Alaska Center for Unmanned Aircraft Systems (ACUASI), was called upon to present to the House Transportation Committee on Thursday. Dr. Cahill introduced new lawmakers to ACUASI’s programs. The center leads all unmanned aircraft programs for the university system, including operating both small racing-style drones used in STEM programs and large 300+ lb. research aircraft. Notable and exciting is the work that ACUASI is doing with larger aircraft beyond the visual line of sight (BVLOS). The economic implication for long-range unmanned aircraft flights is huge, and the topic continues to be of interest to lawmakers looking to expand Alaska’s economic development footprint. Listen to Dr. Cahill’s presentation here.

Budget

On Friday morning, the House Finance’s University of Alaska subcommittee convened for the first time this session. Lawmakers received a fiscal overview of the University of Alaska Board of Regents’ budget request. State Relations Director Chad Hutchison highlighted the university’s operating budget request, including increases in compensation for faculty and staff. He also detailed the system's deferred maintenance and facilities modernization needs, as well as economic development research projects and legislative priorities. Lawmakers asked about UA enrollment numbers and accreditation for teacher training programs at UAA, as well compensation increase negotiations. The committee will meet again early next week to finish the budget overview. Watch the hearing here.

Last week, readers learned about the university system's $1.5 billion deferred maintenance backlog. This week we take a closer look at the top priority projects at each university.

UAA: Professional Studies Building, Wendy Williamson Auditorium, Social Sciences Building, Consortium Library Campus Building Interior & Systems Renewal

UAA’s priority project includes work across campus in the Professional Studies Building, Wendy Williamson Auditorium, Social Sciences Building, and Consortium Library to maintain a quality educational environment through building system modernization and increased energy efficiency which will stabilize failing interior systems and minimize disruptions for students and staff. Many of the original buildings on the UAA campus were constructed in the early- to mid-1970s and the building systems are beginning to fail. Replacement parts for many of these systems are no longer available. 

This time-sensitive project incorporates heating, mechanical, and electrical system improvements to the four facilities to prevent critical failures, reduce maintenance costs, and provide energy savings through increased efficiency. 

UAS: UAS TEC, Maritime Training Center, and Sitka Hangar Building Roof Systems, Safety Improvements, and Regulatory Compliance projects 

UAS’ Technical Education Center in Juneau, the Sitka Hangar Building. and the Ketchikan Maritime training Center building envelopes are more than 40 years old, showing signs of compromise, and need to be replaced. Building envelope and roof systems provide our students, staff, faculty, and building systems protection from wind, rain, snow, and cold. When a building envelope fails, everything inside the building is at risk of damage, and decay which can make the building unsafe and unusable. Building envelopes last 30-50 years depending on the construction type and require periodic cleaning, repainting, and resealing. New roof systems last 40-60 years and besides periodic cleaning need little maintenance. These UAS facilities are showing signs of failure including leaking roofs, substantial heat loss, and structural damage.

UAF: Patty Pool Code Corrections, Campus-wide fire alarm replacements, and other Safety and Compliance projects

Many of our facilities constructed before code adoption in the State of Alaska do not meet current requirements for ventilation, disease mitigation, emergency egress, ADA/Title IX, and fire protection. Remaining in compliance requires an ongoing effort to modify and upgrade every component of campus from exterior hardscapes, elevators, building passageways, and restrooms to fire alarms, locker rooms, signage, and security infrastructure. Safety and regulatory compliance projects at UAF include repairing and renewing the finishes, mechanical, electrical, and structural systems in the Patty Pool, replacing fire alarm systems across campus, and replacing outdated lab ventilation systems.

What We’re Watching:

Next Week’s Calendar

Monday, February 13

• 1:30 pm - House Finance: House Bill 39: “Appropriations: Operating Budget” 
• 1:30 pm - Senate Labor & Commerce: “Workforce Challenges in Alaska from the Perspective of Public Education”

Tuesday, February 14

• 7:30 am - House Finance University of Alaska Subcommittee: Presentation “Continuation of the University of Alaska Budget Overview”

Wednesday, February 15

• 3:15 pm - House Labor & Commerce: Presentation “Overview from State of Alaska Broadband by Director Thomas Lochner”

Thursday, February 16

• 11:30 pm - House Commerce, Community & Economic Development: Presentation: “Alaska State Broadband Office”
• 1:30 pm - Senate Community & Regional Affairs: Presentation: “Overview: Alaska Office of Broadband by DIrector Thomas Lochner”

Friday, February 17

• 9:00 am - Senate Finance: Presentation: “Update on Broadband Equity, Access & Deployment”
• 1:30 pm - House Finance: “Overview: Governor’s Budget Amendments by Neil Steininger, OMB”

 

February 3, 2023 

Lawmakers begin to look closely at the Governor’s proposed Operating Budget

This week in the Capitol, the legislative bodies gathered together for a State of the Judiciary update from Supreme Court Chief Justice Daniel Winfree. Legislators in both the Senate and the House have begun reviewing the Governor’s proposed budget for the upcoming fiscal year. The standing finance committees have received overviews of the operating and capital budgets, while the agency finance subcommittees are taking a deep dive into their respective agency’s operations and management plans.

State of the Judiciary

Supreme Court Chief Justice Daniel Winfree gave the annual “State of the Judiciary” address to a joint session of the Legislature. He shared his perspectives as a long-time employee of the court system, emphasizing the need for an independent branch of the Judiciary insulated from the politics of the Executive and Legislative branches. He noted that the court’s case backlog, caused by courthouse closures during the COVID-19 pandemic, is slowly decreasing and that the court system may expand its use of online hearings in place of in-person proceedings. The address was met with support from both the Senate and the House. Senate President Gary Stevens noted in a follow-up press briefing that this speech was “the finest speech I think I have ever heard from a chief justice.” Winfree, the state’s first “Alaska-grown” justice, is required to retire later this year at the age of 70.

UA in the Capitol

Both the Senate and the House finance committees have begun the process of examining the Governor’s proposed FY 24 operating budget. Over the last few weeks, lawmakers heard from experts on the state’s FY 24 revenue forecast, and they are in the process of looking at budget specifics now. The Office of Management and Budget has been sharing the details of both operating and capital budgets. 

As part of the budget review process, both legislative bodies asked the University of Alaska system to share the status of our facilities’ deferred maintenance needs. In summary, the university system owns 394 of the state’s 2,400 facilities and has the largest maintenance need of all state agencies. Our deferred maintenance backlog totals $1.5 billion, more than three times any other agency. Deferred maintenance refers to the “correction of deficiencies from the cumulative effect of renewal, repurposing and renovation projects that have not been carried out”. These are critical projects necessary to extend the useful lifetime of our facilities. High-priority deferred maintenance projects include replacing heater and electrical systems in 40+-year-old buildings, replacing leaking roofing, repairing fire alarm systems, and bringing buildings up to code compliance. The UA system is taking steps to consolidate our footprint by selling or demolishing under-utilized buildings. Additionally, by coupling multiple maintenance and restoration projects together, we are maximizing return on smaller maintenance operations budgets to extend the service lives of our buildings. However, a reliable funding source is required to adequately maintain our facilities and to reduce the system's overall deferred maintenance liability. Facility maintenance funding extends facilities’ life spans, reduces future operating costs, leverages federal and private funds, and improves safety, energy efficiency, accessibility, and overall student success. See here to view the Senate Finance hearing and here to view the House Finance hearing. 

In addition to budget discussions, lawmakers are very interested in the University’s historic land grant transfer approved by Congress. Adrienne Stolpe, the University of Alaska’s Director of Land Management, joined both Senate and House Resource committees to share the status of the transfer. As it sits, Congress recently authorized the university system to receive 360,000 acres of state-selected federal land. Land owned by the university may be used to generate revenue from which the university system directly benefits. Now that the transfer has been authorized, the university must work with the State Department of Natural Resources to select which parcels the university will receive. The work is expected to be completed in the next 4 years. See the Senate Resources hearing here and the House Resources hearing here. 

What We are Watching

The House University of Alaska Finance Subcommittee will hold its first meeting next Friday. During the meeting, lawmakers will hear from representatives from the university system who will share the systems’ proposed FY24 operating budget. Tune in at 9:00 am Friday, February 10.

Next week’s calendar:

Monday, February 6

• 12:00 pm - Lunch and Learn: University of Alaska Ted Stevens Legislative Internship Program
• 9:00 am - Senate Finance: Senate Bill 54: ”Appropriations: Supplemental; Reappropriations, Amending”

Wednesday, February 8

• 1:30 pm - House Finance: Presentation: “Federal Infrastructure Investment and Jobs Act (IIJA) Update”
• 1:30 pm - Senate Labor & Commerce: Workforce Challenges in Alaska] 

Thursday, February 9

• 1:00 pm - House Transportation: Presentation: “DOT&PF Unmanned Aircraft Systems Update / Alaska Center for Unmanned Aircraft Systems Integration”

Friday, February 10

• 9:00 am- House University of Alaska Finance Subcommittee: Presentation: “Overview: University of Alaska Financial Overview”

 

 

January 27, 2023 

Governor Dunleavy Delivers 5th Annual State of the State Address to the Legislature

The Capitol remains abuzz this week as legislators settle into new offices and many constituents and interest groups descend on legislative offices. On Monday night, for the fifth year in a row, Governor Michael Dunleavy delivered his annual State of the State address to a chamber full of Senators and Representatives. The House Finance committee also decided on subcommittee chairs, and a few special guests traveled to the capitol to speak in favor of the university system.

State of the State Address

Governor Dunleavy addressed a packed room of legislators on Monday night to share his updated vision for the state of Alaska. During the 45-minute speech, the Governor touched base on the administration’s Typhoon Merbok emergency relief efforts and highlighted world-class research at our universities in unmanned aircraft, heavy and viscous oil, critical minerals, hydrogen, micronuclear power, and mariculture.  He also detailed his 2023 legislative priorities, which include improving public safety, developing carbon management systems, implementing higher penalties for sex traffickers and fentanyl distributors, investing in food security systems in fisheries and agriculture, and building up a Statehood Defense Force to respond to emergency response and recovery. See here for a  full transcript of the address and here for the video.

House Finance Subcommittee Chairs Decided

This week the House Finance committee selected chairs for the department subcommittees. Representative Will Stapp (R-Fairbanks) will chair the University of Alaska Finance Subcommittee. Finance subcommittees are responsible for diving into agency operations and management plans and taking a critical look at each department’s budget. The finance subcommittees often make budget suggestions which are then considered by the finance committee as a whole. We anticipate that the University subcommittee will meet in January and February only.

UA in the Capitol

This morning the Senate Finance Committee heard from the director of the Office of Management and Budget as well as the university system about deferred maintenance projects. State relations Director Chad Hutchison shared the top University of Alaska priorities including $17.5 million for renovations and system renewals in the UAA Professional Studies Building, Wendy Williamson Auditorium, Social Sciences Building, and Consortium Library Campus Building.

In other university-related news, UA alumni were on the move in Juneau this week. Alumni from all around the state converged on the capitol to share their experiences with legislators. Representative Ashley Carrick (D-Fairbanks) and Senator Click Bishop (R-Fairbanks) hosted an alumni “lunch & learn” program and invited the alumni associations to share success stories. Thank you to all of our alumni who are active in engaging with lawmakers and encouraging support for the University of Alaska!

What We are Watching

Monday, January 30

• 9:00 a.m. – Senate Finance: Senate Bill 40: “Appropriations: Operating Budget/Loans/Fund” / Senate Bill 41 “Appropriations: Capital/ Supplemental”/ Senate Bill 42: “Appropriations: Mental Health Budget”
• 1:30 p.m. - House Finance: House Bill 40: “Appropriations: Capital/Supplemental/ Presentation: “Overview: Capital Budget by Neil Steininger, Director Office of Management and Budget

Wednesday, February 1

• 11:00 a.m. - State of the Judiciary - Chief Justice Daniel Winfree will address the Senate and the House jointly
• 1:00 p.m. – House Resources: “Overview: University Efforts and Status of Land Grant”
• 1:30 p.m. - House Finance: House Bill 39 “ Appropriations; Operating Budget/Loans/Fund” / House Bill 41: “Appropriations: Mental Health Budget” / Presentation: “Deferred Maintenance: Office of Management and Budget, Department of Transportations, and University of Alaska”  

Thursday, February 2

• 1:30 p.m. - House Finance: Presentation: “Overview: FY23 Governor’s Supplemental Budget”

 

 

January 20, 2023

The 33rd Alaska Legislature Begins

The 33rd Alaska State Legislature commenced on Tuesday, January 17th and Senators and Representatives were sworn in. The Senate immediately started scheduling committee meetings. Meanwhile, House members were able to put together a majority and vote in a new speaker.

The House organizes and Committee seats are assigned.

On Wednesday morning, in a departure from recent years, the House was able to organize under the leadership of Wasilla representative Cathy Tilton. Speaker Tilton was affirmed with 26 votes in the 40 person body.  The new majority is made up primarily of House Republicans but also includes four rural democrats and independents, a group informally known as the “Bush Caucus”.

The House Majority and Minority are made up of the following representatives:

Notably, neither former Speaker Louise Stutes (R-Kodiak) nor Representative David Eastman (R-Wasilla) have been included in either majority or minority.  

Both the Senate and the House have now announced committee memberships. Committee organization directly determines policy outcomes as the committees have the authority to either pass a bill forward to its next committee of referral or to kill it.

Committee membership is as follows:

Budget

In December Governor Dunleavy introduced a proposed $7.3 billion FY24 state operating budget. The proposed budget includes $301.4 million in UGF dollars for the University of Alaska, including $12.7 million for UA’s requested 2.75% compensation increases. The budget also includes support for expansion of the WWAMI program at UAA to accommodate 30 medical students a year, up from 20 students currently, and capital funding for UAF’s Alaska Center for Unmanned Aircraft Systems Integration (ACUASI) efforts to position Alaska as the nation’s leader in drone production, education, and operations. Notably, while the FY24 budget appears to have a $17.3 million UGF decrease from the FY23 budget, the FY23 operating budget contained $30.0 million in one-time funding for several economic development research projects in areas such as drones, critical minerals, mariculture, and heavy oil recovery.  The $17.3 million dollar decrease simply reflects that those FY23 one-time funding projects were not part of the  FY24 base operating budget.

The next step in the budget process is for the Legislature to review agency requests. Finance subcommittees will review agency operations and develop revised budget proposals. Simultaneously the Governor will be putting together an amended request which will be published in February.

Next Week’s Calendar - What We are Watching

Monday, January 23

• 7:00pm - State of the State - Governor Mike Dunleavy will address the House and Senate Jointly

Tuesday, January 24

• 1:00pm - Senate Finance: Senate Bill 40: Appropriations: Operating Budget/Loans/Fund

Wednesday, January 25

• 1:30pm - House Finance: Presentation: “Overview: Governor’s FY 2024 Operating Budget”
• 3:30pm - Senate Resources:  Presentation: “Introducing the Frontiers Collaboration by Idaho National Laboratory” 

Thursday, January 267

• 9:00am - Senate Finance: Senate Bill 41: Appropriations: Capital/Supplemental Budget

Friday, January 27

• 9:00am - Senate Finance: Presentation: “Deferred Maintenance - Office of Management & Budget, Department of Transportation, University of Alaska”
• 3:30pm - Senate Education: Presentation: “How much does Alaska spend on K-12 Education” presented by Dayna Jean DeFeo, Director of the Center for Alaska Education Policy research, ISER

Other happenings

This afternoon the Senate Resources committee is hosting a hearing on the status of the University of Alaska Land Grant. UA Chief Lands Officer Adrienne Stolpe will join the Government Relations team in presenting the history of UA’s land grant acquisitions and the status of the additional 360,000 acres recently authorized by Congress. You can watch the presentation and view the powerpoint here.

Next week at UAF, the Idaho National Laboratory will be presenting information relating to state energy transitions and the Frontiers collaborative- an initiative involving Alaska, Idaho and Wyoming. For the past few years, a group of academics from the University of Alaska, University of Wyoming, University of Michigan, MIT, and Boise State have been collaborating with Idaho National Laboratory (INL) on the Emerging Energy Market Analysis initiative. In short, developing a framework for how communities, regions, and states can approach an energy transition. The initiative aims to best position states as energy transition first movers to leverage the economic development benefits. This work includes advanced nuclear, believed to play a significant role in the future energy mix that will drive economic development.

The event will take place on Thursday, January 26 from 2:30-4:30pm at the BP Design Theater in the UAF Usibelli ELIF Building. If you are interested in attending, please contact Christi Bell so that a seat may be held.

Meanwhile, UAS will host the five prospective Chancellor finalists for an on-site campus visit, as well as candidate presentations and a candidate forum. More information about the events can be found online at https://alaska.edu/pres/uas-chancellor/.

​

January 13, 2023 

Legislators Return to Juneau and Prepare to Kick Off the 33rd Legislature Session

Juneau is experiencing a flurry of activity this week. The first session of the 33nd legislature commences next Tuesday, January 17. Legislators and staff have returned to Juneau from their home districts across the state. In this last week before session begins, legislators and staff are settling into their offices, undergoing ethics and legal training, and introducing prefiled legislation. Additionally, the House of Representatives is still working to create an organized majority. The next few days promise to be full of activity with swearing-in ceremonies and the first floor sessions of both bodies. 

Senate and House Organization

The 20 member Senate organized quickly after the November election. A 17-member bipartisan supermajority formed with several veteran lawmakers in leadership roles. Senator Gary Stevens (R-Kodiak) will serve as Senate President, Sen.-elect Cathy Giessel (R-Anchorage) as Majority Leader, Sen. Bill Wielechowski (D-Anchorage) as Rules Chair, Sen. Click Bishop (R-Fairbanks) as Majority Whip, Sen. Bert Stedman (R-Sitka), Sen. Lyman Hoffman (D-Bethel), and Sen. Donny Olson (D-Golovin) as chairs of the Finance Committee, and Sen. Elvi Gray-Jackson (D-Anchorage) as Legislative Council Chair. 

In a press release yesterday, the majority released its legislative priorities. “The 17-member Senate Majority’s initial priorities will focus on finding long-term solutions to lower Alaska’s high energy and healthcare costs, providing adequate funding for public education while accessing accountability and performance, and identifying and seeking solutions for teachers and public employee recruitment and retention.”

Meanwhile, the House remains unorganized. The 40-member body contains 21 Republicans and 19 Democrats and Independents. Since 2017, the House has been controlled by a bipartisan majority made up of democrats, independents, and some moderate republicans. While the republicans make up the majority of the elected body this year, at least one, Kodiak republican Louise Stutes, has previously caucused with the bipartisan majority. Without Rep. Stutes, the republicans do not have a majority. Members have had many closed door meetings attempting to work out deals. Until the House organizes, no committee memberships can be assigned and no legislation will be heard in the body. 

Pre-filed Legislation

While organization remains up in the air for many, legislators are still filing bills that were drafted during the interim. The bills, called “pre-filed legislation”, are released in two batches before session officially kicks off. The first batch was released on Monday, and the second was released today. The Alaska Beacon has put together a short summary of the bills released on Monday. The following pre-filed bills are relevant to the university system:

• House Bill 9 - Add Faculty Member to University Board of Regents
• House Bill 10 & Senate Bill 13 - University: Textbook/Materials Cost
• House Bill 21 - School/University Employee Health Insurance
• House Bill 31 - AK Performance Scholarship; Eligibility
• Senate Bill 11 - Teachers and Public Employee Retirement Plans
• Senate Bill 14 - Retirement Incentive Programs for Public Employees and Teachers

Other News

Over winter break, the university also received word that Congress passed legislation to grant the university 360,000 acres of land to fulfill our land grant allotment. The law, signed by President Biden in December, establishes a framework for the university to work with the state Dept. of Natural Resources to jointly identify up to 500,000 acres of federal land to be conveyed to the state. It requires the Bureau of Land Management to survey the selection and work with UA to transfer up to 360,000 acres of state land to the university. The UA Lands office already has selected 200,000 acres and provided the selection to DNR for review. The acreage ultimately transferred to UA will be deducted from Alaska’s outstanding statehood lands entitlement and managed by the UA for the benefit of our students and to further meet our mission of teaching, research and workforce development for Alaska. 

Historically, the UA Lands office earns revenue from the university’s existing acreage that includes real estate, timber sales, mining, gravel sales and other activities. Income from UA’s lands has funded the highly successful UA Scholars Program, awarding $12,000 scholarships to the top 10 percent of graduates from each Alaska high school who attend UA. Land earnings have also supported teaching and research in natural resources, fisheries/ocean science, biology, agriculture, minerals, and education. 

As with many land issues in Alaska, original congressional intent to convey lands to the university has been eroded by a complex history of federal laws and adverse court rulings. As a result, the University of Alaska has one of the smallest allotments of any land grant institution. With the passage of this act, the university system, working with the state, now has four years to jointly select the land parcels that will be conveyed to the university to fulfill the unmet land grant. 

In a recent statement, UA President Pat Pitney concluded “We are most grateful to Senator Lisa Murkowski who is responsible for this tremendous outcome. I also want to thank Representative Mary Peltola and Governor Dunleavy for their leadership on this issue and Sen. Dan Sullivan for his support of the UA Fiscal Foundation Act. I also want to recognize the bipartisan backing we’ve had from our Alaska businesses, organizations, and state leaders who advocated for this positive outcome. [...] I want to thank everyone who has contributed to this long-standing effort including our federal relations team, general counsel’s office, UA Land office and the hard work of many staff to find a solution to the long-standing land deficit.”