June 13, 2025

FOR IMMEDIATE RELEASE
June 13, 2025

Governor Dunleavy signs University of Alaska FY26 budget with base increases to support key programs, infrastructure, compensation

(FAIRBANKS, AK) - The University of Alaska system’s FY26 budget has been signed by Governor Dunleavy. Signed Thursday, June 12, the budget provides strong operating support, critical infrastructure funding, and resources that allow UA to honor compensation commitments to its employees.

“The budget signed yesterday reflects continued confidence in the University of Alaska and the role we play in growing opportunity across the state,” UA President Pat Pitney said. “It supports our students, employees, and facilities, and helps ensure we can keep making progress on enrollment, retention, and graduation across the system. I’m grateful to the Governor and the Legislature for their continued support and investment in educating and empowering Alaskans.”

Operating Budget Summary

The state’s FY26 operating budget provides just over $351 million in operating support for the university system, an increase of approximately 6% over the previous year. Combined with federal receipts and university-generated revenue, UA’s total operating budget stands at just under $1.1 billion.

The enacted operating budget includes approximately 75% of the compensation and fixed cost increases requested by the Board of Regents last November. Through internal reallocations and strategic cost control, the university will maintain status quo operations and move forward with planned compensation increases for employees.

“We recognize that state and federal fiscal environments remain uncertain, and we are managing resources responsibly,” President Pitney added. “The funding in this year’s budget puts us in a strong position to keep serving Alaska and to sustain momentum in enrollment, research, and workforce development.”

All planned UA employee’s pay increases are in place for FY26. Most employees will receive a 2.75% across-the-board raise. Although the legislature only funded part of UA’s compensation request, UA will cover employee compensation increases through the appropriated state funding, internal re-allocations, and savings. 

“We deeply value our employees and the work they do every day for students and communities across the state,” President Pitney said. “This budget validates our balanced approach and allows us to keep our commitments without large-scale reductions.”

Capital Budget & Alaska Performance Scholarships

The FY26 capital budget also supports high-priority infrastructure needs, with $10 million in state funding and $87.5 million in receipt authority. Approved projects include:

• $6.75 million for systemwide deferred maintenance;
• $1.25 million for renovations to the UAA Consortium Library Leaders Archives, with $34.5 million in receipt authority.
• $2 million for expansion of the UAS mariculture program; and
  $53 million in receipt authority for private fundraising for the UAF Troth Yeddha’ Indigenous Studies Center.

UA leaders also confirmed that Alaska Performance Scholarship (APS) awards remain stable for the coming year and will be available for all eligible students this fall. While a portion of the Higher Education Investment Fund (HEIF) will be used to support other state priorities, state leaders have indicated the fund will be made whole, thus securing the scholarships and access to academic and vocational post-secondary programs well into the future.

The University of Alaska inspires learning, and advances and disseminates knowledge through teaching, research, and public service, emphasizing the North and its peoples. The UA system’s three universities (UAA, UAF, and UAS) are separately accredited institutions with 13 community campuses and extended learning centers across the state of Alaska.

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For more information, contact Jonathon Taylor, director of public affairs at 907-350-0168 (cell), or via email at jmtaylor9@alaska.edu.