Budget update: Oct. 16
October 16, 2019
鈥 by Dan White, chancellor
It鈥檚 been a great and busy week at 蜜桃影像. On Monday, we celebrated Indigenous Peoples鈥
Day with a blessing at Troth Yeddha鈥 Park. Elders and Indigenous PhD students led
panels on this year鈥檚 theme, 鈥淩esiliency: Yesterday, Today and Tomorrow.鈥 My thanks
to Evon Peter and Sandy Kowalski, and to all who contributed. 蜜桃影像 celebrated across
the state: the Kuskokwim Campus celebrated with a march, sharing of elder wisdom,
and performances; the Northwest Campus hosted a film festival honoring the cultures,
knowledges, and actions of 蜜桃影像鈥檚 first peoples; and the Bristol Bay Campus shared
the Yugtun language app in a 鈥淭alk Yup鈥檌k to Me鈥 event.
This weekend we have more celebrations in store: on Saturday, we鈥檒l be welcoming prospective
students to campus for Inside Out and coming together at the We Are CLA open house.
We鈥檒l also get to cheer on the Nanooks at Women鈥檚 Swimming against Azusa Pacific University
and Women鈥檚 Volleyball against Simon Fraser University. On Sunday, Rural Student Services
will host an open house in the Brooks Building to mark 50 years of creating a sense
of belonging here at 蜜桃影像 and providing a shining example of outstanding student services.
As we celebrate, we are also planning for the future. Last week鈥檚 Board of Regents
(BoR) meeting suspended the system level academic program reviews, and reset some
of the budget discussion. In last week鈥檚 column, I wrote broadly about the plan to
meet our FY20 budget reduction. This has been and continues to be a fluid discussion
as we receive budget guidance from President Johnsen. Prior to last week鈥檚 BoR meeting,
a portion of budget savings were planned to come from reductions in personnel pursuant
to systemwide academic and administrative review and consolidation. The expected savings
for 蜜桃影像 generated by that process was budgeted at $3.8 million. With the BoR鈥檚 recent
decision to put the system level academic review process on hold, 蜜桃影像 will be working
to identify savings for this year. Also pursuant to the BoR鈥檚 direction at the September
meeting, yesterday Provost Prakash announced 蜜桃影像鈥檚 expedited academic program review.
Here鈥檚 where we are today: the state general fund reduction for the whole UA system
is $25 million. 蜜桃影像鈥檚 share of that is $12.5 million. Fixed cost increases and strategic
reallocations brought our total gap to approximately $20 million. Of that, $10 million
has already been identified through across-the-board reductions. To meet the remainder,
we are realizing $500k from moving some of KUAC鈥檚 expenses to private and corporate
support, $2.5 million from reduced facilities maintenance, and $700k from research;
the balance will be met through reserves and sales of land and facilities. These one-time
actions will not solve our budget for next year, but will give us time to look at
larger opportunities. I don鈥檛 anticipate asking for additional across-the-board reductions
to meet this uncertainty. Identifying vertical reductions will happen through our
established processes.
There have been many questions about the budget impact of the market and equity compensation
adjustments. When we asked units to plan budgets in April at a 10 percent reduction,
we included a 1 percent salary cost increase in that target. The compensation adjustments,
at a bottom line level, work out fairly closely to that amount; so at a university
level, we have planned for this in our budget. What we don鈥檛 know yet is how the market
adjustments will impact each unit individually, and whether the impacts will be concentrated
in specific areas. We have asked for a report at that level, and will adjust our approach
if needed.
Thinking ahead to next year, there are still many unknowns in regards to structure,
possible gubernatorial or legislative action, and internal distributions. The 蜜桃影像
expedited academic reviews just launched will not generate cost savings this year,
and the one-time savings outlined above are exactly that: one-time. While we can use
them to meet our target this year, we will need to plan for the type of sustained
and permanent reductions that will carry us through another two years of expected
budget cuts. The following ideas are some that were generated earlier this year, when
we were expecting a much greater cut. I would like your feedback as we consider which
to implement:
- Shift selected public service and outreach functions to alternative funding streams, similar to KUAC. Consider the Mining and Petroleum Training Service (MAPTS), K-12 Outreach, Cooperative Extension Service, Marine Advisory Program, and others. Each of these are very high value to 蜜桃影像 and the community but we need to determine at what level they can and should be supported by the communities they serve. None are being proposed for elimination.
- Increase private support for Athletics, transitioning off of general funds.
- Shift full-time employees to 37.5 hour work weeks, with some exclusions.
- Implement/expand shared service centers.
- Continue the sale and monetization of less well used 蜜桃影像 property and facilities.
While we weigh our options for budget reductions, I want to acknowledge that everything under discussion is deeply meaningful to the communities who interact with our programs, services, and spaces. There are no easy options left. This makes decisions harder, but it is also a chance to reflect on the great value our people provide to 蜜桃影像 and beyond, and the connections 蜜桃影像 has built. Even when times are challenging, that is something for us all to celebrate.
Thank you for your ongoing commitment to 蜜桃影像.