The University of Alaska has taken steps to reduce administrative and operating costs, freeing up funds for investment in high priority programs and services to better meet the future needs of Alaska and its students. The university continues to mitigate state funding decreases by increasing alternative revenue sources.
Governor – UA Compact
The August 13 compact between the Board of Regents and Governor Dunleavy outlined three years of operating budget reductions:
- FY20 $302 million UGF (-$25 M from FY19)
- FY21 $277 million UGF (-$25 million from FY20)
- FY22 $257 million UGF (-$20 million from FY21)
UA Needs a Stable Budget
UA needs stable state funding post-compact. The budget reductions have put extreme pressure on the university. Coupled with the hard hit from COVID-related expenses and lost revenue, the university needs time to adjust. Predictable budgets from the Legislature will allow UA to regain its stability, work to grow enrollment, maintain research excellence, and increase external partnerships and private giving.
UA’s Physical Assets Need Care and Attention
UA’s deferred maintenance backlog, valued at $1.4 billion in FY21, is increasing annually. Aging facilities and functional obsolescence detract from student recruitment and retention. Capital funding is a top priority and critical need. Since FY16 UA has received only $18 million for deferred maintenance and in FY21 and FY17 received zero capital budget.
- FY22 UA GO Bond Project Descriptions - prioritized list of projects eligible for a state general obligation bond package.
- FY22 UA DM/R&R Project Descriptions - UA’s highest priority deferred maintenance, renewal and repurposing projects that may not meet all GO Bond criteria.
Debt Service Relief
UA is seeking appropriation in Capital Budget to cover a significant fixed operating cost - $24M annually
- Principal outstanding - $300.5M
- FY12 and FY13, UA issued $50M in revenue bonds to address critical capital needs
- UA needs capital support and debt relief to maintain our substantial investment in facilities