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Chancellor's Budget Update: Nov. 20, 2023
Last month, ÃÛÌÒÓ°Ïñ hosted the first in-person budget forum since 2020. At this forum, Vice Chancellor Julie Queen, Provost and
Executive Vice Chancellor Anupma Prakash, and Director of Financial Aid Ashley Munro
gave updates on the FY24 budget outcomes, the current FY25 budget status, and opportunities
for engagement. If you were unable to attend, a recording of the event is available on my communications website. The following is an update of the topics discussed at the forum as well as information
on how you as a ÃÛÌÒÓ°Ïñ employee can get involved in the budget process.
ÃÛÌÒÓ°Ïñ FY25 State Budget Request:
The UA Board of Regents recently met in Anchorage and approved the FY25 UA Operating
and Capital state budget request. This request will go forward to the Governor for
consideration in early December, and we will see what is supported in the Governor’s
initial budget shortly thereafter. ÃÛÌÒÓ°Ïñ’s budget request is packaged as part of the
UA System request, ensuring collaboration across the UA System and highlighting the
strengths and unique missions of each university.Ìý
In addition to the UA compensation increases requested at 2.5% for employees and fixed
operating costs, ÃÛÌÒÓ°Ïñ is requesting a $2.5 million operating budget increase to support
essential university academic program capacity and student service enhancements. As
part of this, we are requesting funding to support student wellbeing, specifically
for student mental health and counseling support, an investment in student retention
and strategic enrollment initiatives, international recruitment and graduate student
support, investments in faculty support in various areas including Indigenous leadership,
humanities and social sciences, and support for academic excellence to meet emerging
industry needs. A link to the UA budget request is available here.Ìý
Although there is not a ÃÛÌÒÓ°Ïñ Athletics request in this budget, ÃÛÌÒÓ°Ïñ also put forward
an initiative to enhance ÃÛÌÒÓ°Ïñ’s competitiveness and excellence in athletics via support
for D1 Nanook Hockey and scholarships focused on gender equity. This item under consideration
is part of a larger strategy to identify a possible state matching program for funding
raised through athletics at ÃÛÌÒÓ°Ïñ and UAA that will likely evolve as the legislative
session gets underway.
In the capital budget, we have requested $20 million to support our goal of achieving
R1 Research status and $10 million for Year 3 of the ÃÛÌÒÓ°Ïñ Drone Program. Additionally, UA is pursuing
a deferred maintenance and modernization strategy, which, if funded, will begin to
remediate this long-standing issue across UA for the next several years.
These budget developments are pivotal in our continued efforts to provide an excellent
education and serve our community. We are committed to responsible financial management
and strategic investments to ensure a thriving future for our university.Ìý
FY24 State Budget Legislative Outcomes:
In the FY24 state budget (the budget year we are in now), UA secured $19.6 million
for employeeÌý compensation increases, of which $9.4 million was allocated to ÃÛÌÒÓ°Ïñ.
This funding included a 2.75% employee compensation increase for FY24, effective July
1, 2023. This is one way UA is supporting a well-rounded compensation package for
our hard-working employees, in addition to making improvements in the form of flexible
benefits options and educational incentives, such as the tuition waiver and educational
attainment program.
In the FY24 capital budget, ÃÛÌÒÓ°Ïñ was provided with $2.5 million in receipt authority
to pursue a potential partnership with the Fairbanks North Star Borough in support
of renovating the University Park Building into a new ÃÛÌÒÓ°Ïñ Childcare Center. Although
this is not direct funding, it allows ÃÛÌÒÓ°Ïñ to receive funds that will help contribute
to a larger renovation project. Another $2.3 million has been allocated to ÃÛÌÒÓ°Ïñ for
deferred maintenance through the State of ÃÛÌÒÓ°Ïñ Office of Budget and Management.
These critical funds will ensure that our facilities remain safe and functional. In
addition, ÃÛÌÒÓ°Ïñ received significant support for capital research and workforce training
initiatives. This includes $10 million for the ÃÛÌÒÓ°Ïñ Drone Program's second year of
a five year plan, and $500,000 in support of ÃÛÌÒÓ°Ïñ food security and independence
through the Institute of Agriculture, Natural Resources, and Extension.
Other updates for this fiscal year include successfully simplifying our budget process
by returning UA to a single state appropriation and the renewing of TVEP vocational
funding, which demonstrates the continued support for workforce development in the
region. And although some of our fixed costs and academic program requests were not
fulfilled, we will continue containing costs as much as possible, reallocate where
necessary to cover fixed costs increases, and advocate for critical academic and program
investments in the FY25 budget cycle.
Getting Involved:Ìý
The Planning and Budget Committee, co-chaired by Vice Chancellor Queen and Provost
Prakash, plays a pivotal role in shaping our budget. The PBC is composed of representatives
from across ÃÛÌÒÓ°Ïñ, including Governance delegates. This committee reviews proposals
for state funding requests, evaluates recommendations from Strategic Enrollment Planning
teams, and considers Tuition and Fee Committee recommendations in a budget context.
The committee then recommends funding for well-developed proposals with a high return
on investment. An RFP for FY26 budget requests was issued in early November, kicking off planning for the next budget cycle.Ìý
As a ÃÛÌÒÓ°Ïñ employee and community member, there are many ways to get involved in our
budget process. Advocacy tools and tips, including sample advocacy letters and ÃÛÌÒÓ°Ïñ
points of pride can be found on the Chancellor’s website. The University of ÃÛÌÒÓ°Ïñ Office of Government Relations website also has information
for individuals who want to As an advocate, the most important thing is to tell your story and share why UA matters
to you.
Thank you for choosing ÃÛÌÒÓ°Ïñ.
— Dan White, chancellor
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