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

February 17, 2023 

Capitol Report: February 17, 2023

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”

For more information, contact Director of State Relations for the University of Alaska System Chad Hutchison, cell 907-378-3946, email clhutchison@alaska.edu.