Understanding UA’s financial realities and the role of the State budget

November 21, 2025

The latest: UA’s salary and benefit decisions are directly tied to state funding and other public revenue sources, which are expected to tighten in the coming years.

  • Zoom Out: UA continues to provide information to help staff understand how union representation could affect compensation, workplace flexibility and the broader financial landscape in which the university operates. 

Stay up-to-date on staff unionization efforts at alaska.edu/cause.

Why it matters: Like most public universities, UA’s budget depends on a mix of state appropriations, tuition revenue and federal funding

    • These sources are influenced by Alaska’s broader fiscal environment and decisions made during the legislative session.
  • While UA strives to protect its workforce and maintain a competitive total compensation package, state funding and legislative appropriation, not union status, determine UA’s overall compensation budget. 

Financial Realities: How UA Currently Manages Costs

  • Funding pressures: State funding levels are projected to remain flat or decline in FY26 and FY27. Federal grants and tuition revenue provide important support, but cannot fully offset reductions in state appropriations.
  • Difficult trade-offs: UA leadership has indicated that FY27 may see fewer employees than in the current fiscal year. These challenges reflect budget shortfalls, not decisions related to unionization.
  • Flexibility to act: Currently, UA can make targeted financial adjustments to preserve jobs and academic quality. A union contract could add procedures that complicate the university’s ability to respond quickly to funding changes.

Looking ahead: UA continues to advocate for stable and adequate state funding while managing limited resources responsibly. Tuition increases planned for FY27 will support UA’s programs and services, but long-term fiscal challenges remain.

  • It is important to understand that union representation cannot shield the university or its employees from the effects of state budget decisions.

The bottom line: UA is committed to protecting the institution's long-term strength. University leadership will continue to make decisions that reflect both its financial circumstances and its mission.

Learn More: UA is committed to ensuring this process is fair, thorough and informed. 

If you have questions about salary increases, compensation practices, or the staff unionization process, visit alaska.edu/cause, or contact UA Labor Relations at ua-ler@alaska.edu