(SitNews) Anchorage, Alaska –The University of Alaska and Alaska Governor Michael J. Dunleavy have reached an agreement on a multi-year compact that preserves $110 million in state funding for the university for Fiscal Year 2020, reducing UA’s budget by $25 million for the fiscal year that began July 1, 2019. The agreement also means that budgets submitted to the governor by the Board of Regents over the next two fiscal years will reflect $45 million in additional reductions. The compact was signed Wednesday by UA Board of Regent Chair John Davies and Governor Michael J. Dunleavy.

“This agreement, worked out following a number of budget discussions by the Board of Regents, provides a clear, gradual multiyear year funding glide path,” said John Davies, chair of the UA Board of Regents. “Most importantly, the supplemental operating budget provides much more certainty and confidence for our students, staff, faculty, and the communities we serve.” 

“As an educator, a father, and a graduate of the University of Alaska, I believe in a strong university,” said Governor Dunleavy. “I also believe we must balance state support for the UA system with the very serious fiscal situation we face today. This agreement, which comes after extensive conversations and work with the university, is an honest attempt at balancing both realities. By choosing a multi-year, step-down approach, we provide our communities, campuses and students the certainty they’ve been asking for, while also taking on the serious challenge of reforming the university into a more efficient system. I thank both the UA Board of Regents and university President Jim Johnsen for engaging on these difficult discussions and for endorsing this three-year agreement.”

The agreement includes a multi-year step down in funding. In FY20, the budget will be reduced by $25 million in state general funds from the current level of $327 million; in FY21, the university would see another $25 million reduction from the state; and, in FY22 another $20 million cut in state funds. The total amount of reductions between now and FY22 would be $70 million – about half of the $136 million originally proposed.

“A $70 million reduction, even over three years is a serious reduction. It will require careful review and streamlining of administrative structure, academic programs, and services to ensure that resources are focused on student access and achievement,” said UA President Jim Johnsen. “But by restoring the legislature’s appropriated funding for this fiscal year, and by spreading reductions out over the next two years, the required restructuring can be done more methodically, with less impact on students.”

Discussions regarding the three-year “compact agreement” between the governor and the university began in earnest after the July 30 Board of Regents meeting. UA leaders and the Governor’s office met multiple times to create a path forward that allowed reductions to be split over time, rather than a severe, one-year budget cut anticipated for this year. Discussions focused on a budget scenario that would support the university’s mission and its strategic goals and outcomes – economic development, workforce development, research, educational attainment, and cost effectiveness.

“While it has been a long and sometimes contentious process, and we did not necessarily see eye-to-eye on all issues, everyone involved in the talks understood that an agreement must be made and actions taken to preserve the University of Alaska under the legislature’s FY2020 funding,” Johnsen said.  

Senator Scott Kawasaki (D-Fairbanks) was disappointed by what he says is a lack of vision by the Governor for the Universtiy of Alaska. In a news release, Kawasaki said the deal between the Governor's administration and the University of Alaska is a step-down approach, instead of a massive $135 million cut in one year. The announced deal institutes a three-year $75 million reduction to the University, causing a further reduction to courses offered, further reductions to Federal dollars, and a weakened university system.

“We have to ask ourselves, what do we value in our communities? Do we value an educated public that has the knowledge and skillset to make Alaska’s economy thrive or do we want diminished opportunities for young Alaskans,” questioned Kawasaki. “To have a thriving economy with a skilled workforce takes resources. Continuing to strip these resources will force the next generation of Alaskans to seek opportunities elsewhere. That is not the Alaskan way, and that is not what we do in Fairbanks where we value our University system.”

The University and Dunleavy Administration announced that this deal was negotiated between the governor's administration and the University of Alaska. Quoting a news release from Kawasaki, this process failed to involve the legislature, the branch of government that oversees appropriations.

“Governor Dunleavy simply doesn’t get it. We operate in a democracy where there are specific roles of each branch of government,” Sen. Kawasaki continued. “The legislature is the appropriating branch, and Governor Dunleavy cannot constitutionally make appropriation deals that bind future legislatures. It circumvents Alaska’s respected constitution and the public process.”

Members of the Alaska House Majority also released prepared statements on the agreement announced Wednesday:

Alaska House Speaker Bryce Edgmon (I-Dillingham) said, “I thank the thousands of Alaskans who stood strong behind the Legislature as it pushed back against the governor’s damaging budget. Your voices made the difference."

"While I am supremely grateful that the University of Alaska will not face such drastic cuts today, these vetoes never should have happened in the first place. I remain concerned about the potential impacts of future reductions, and I firmly stand by the legislature’s role as the appropriating body,” said Edgmon.

Rep. Adam Wool (D-Fairbanks) said, “The prospect of removing $135 million from the University of Alaska budget created an unnecessary crisis. While I am relieved to see a level of certainty for the university system, the possibility of $70 million in additional cuts in the coming years is troubling and needs to be closely examined.”

Rep. Steve Thompson (R-Fairbanks) said, “I am pleased that the governor partially restored funding for the University of Alaska and am hopeful that a three-year stepdown process will allow the university to plan for a successful future that preserves its role as an economic driver for our state. I thank all the university supporters who are fighting to keep UA intact.”

Rep. Andy Josephson (D-Anchorage) said, “Alaskans deserve a strong university system. I thank everyone who stood tall for our students, professors, and economy. If citizens wonder whether their voices carry any weight with policymakers, today’s decision makes it abundantly clear that they do.”

On the Web:

Click here to read the agreement (PDF)

Source of News:

Office of Governer Michael Dunleavy
www.gov.alaska.gov

Alaska House Majority Coalition
www.akleg.gov

Alaska Senate Democrats
www.akleg.gov

 

 

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