Briefing Paper

UA in the past has taken drastic measures to keep campuses open for business, including layoffs, budget reallocations and increasing tuition. The insitution has aggressively sought additional revenue from sources other than the state treasury, including federal research grants and private donations.

Funding from the state has not kept pace with inflation or with peers in the Lower 48. UA’s budget requests have not been fully honored by the state in decades. In only four of the last 20 years have legislative appropriations exceeded day-to-day costs, allowing the university to expand programs for students. The lack of regular program investment is particularly challenging in light of high cost drivers for day-to-day expenses, such as utilities, retirement and healthcare.

In spite of this, UA has responded to the needs of Alaska's employers, starting 100 new programs in the last 10 years. Most of these are workforce programs leading to high-demand jobs, such as engineering, nursing and allied health, process technology, construction management and others. Enrollment has increased; college-bound Alaskans are attending the university at record levels; and Alaska businesses are eager to hire UA graduates.

Much of this success  was achieved with money generated through private donations, expanded research dollars and tuition increases. One example is the nursing program expansion, started with eight different sources of money--only one of which came from the state.

It is appropriate to seek outside funds for new programs, but "soft money" is not reliable for core programs demanded by students and needed by Alaska employers.

The university has already received millions from private industry, the Rasmuson Foundation, Denali Commission, the Mental Health Trust and others. Those funds are directed toward specific programs. Increases from other sources, including tuition and federal research grants, cannot be replicated at the same rate as the past 10 years.

Bottom Line: UA needs additional investment from the state.
 

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For Information Contact:        
Pete Kelly, Director, State Relations                   
450-8006/463-3086