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Day-to-Day Costs

Briefing Paper

The state of Alaska was relatively generous to UA in FY09. Unfortunately, even with the increased support, state funding has not kept up with inflation.  In fact, UA’s budget request has not been fully honored in decades and only four times in the last 20 has the state provided an appropriation in excess of fixed costs, allowing for program and academic funding. This situation has been particularly challenging in light of big increases in the state's retirement program, health care for employees and increases in utilities and fuel.

UA must pay its bills and meet payroll to stay in business. With 7,000 employees and over 30,000 students attending UA campuses across the state, the system's day-to-day costs are always significant. 

UA must continue to meet the higher education and workforce training needs of the state. Students continue to graduate at record levels, and demand for trained workers by Alaska’s employers is on the rise.  The budget section known as the "adjusted base" addresses fixed costs.

Bottom Line: To meet the needs of the state, UA's day-to-day costs must be funded.

*Highlighted amounts below represent the funding requested from the state legislature.

  GF NGF Total
Adjusted Base Requirements $17,457.8 $15,135.1 $32,592.9
     Compensation Increases             $9098.4 $5,676.5   $14,774.9
     Non-Personnel Services              $3,214.9 $7,614.3 $10,829.2
     Compliance Mandates               $654.0 $400.0    $1,054.0
     Utility Cost Increases             $1,700.0   $1,100.0 $2,800.0
     New Facility Costs              $2,790.5      $344.3     $3,134.8
       
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For Information Contact:        
Pete Kelly, Director, State Relations                   
450-8006/463-3086