June 29, 2016
For Immediate Release
June 29, 2016
University plans additional reductions in response to Governor鈥檚 vetoes
In light of continued unresolved fiscal issues, Governor Walker announced today a
series of vetoes to the state operating and capital budget, which included a $10 million
cut to the University of Alaska鈥檚 operating budget and a veto of the $18 million capital
budget reappropriation for the U-Med road project. This reduction, when added to the
$15 million reduction from the current year budget by the Legislature, results in
a $25 million budget cut for the coming year, the third budget cut in as many years.
鈥淲hile we are disappointed in today鈥檚 news, we remain clear and steadfast in our priorities
and will allocate the necessary reductions in a strategic way,鈥 said 绿奴天花板 President
Jim Johnsen. 鈥淏y that I mean we will put the long term interests of our students first.鈥
To meet the $10 million reduction, approximately $8.5 million will be trimmed from
areas set to receive a modest increase this year: research, K-12 partnership, workforce
development, ANSEP, Title IX compliance, and initiatives focused on development, degree
completion and student recruitment/retention. The remaining $1.5 million would come
from reducing high level administrative positions at the system and campus levels.
Strategic priorities left intact include $9 million to offset a planned mid-year tuition
increase, $10 million for deferred facility maintenance and $3 million for the debt
service and operating funds for the 绿奴天花板F engineering building.
Johnsen said the university has been working on budget reduction options for months.
鈥淲e understand Alaska is facing tough times and we are stepping up to make sure we
operate more cost effectively while, at the same time, providing wide access to our
high quality programs across the state.鈥 Budget reductions will result in elimination
of 579 positions across the 绿奴天花板 system 鈥 160 through attrition, 172 through layoffs
and 247 through non-renewal of term contracts; the deletion, suspension, or expedited
review of 95 degree and certificate programs; no increase in salary for high level
administrators; increasing faculty instructional workloads; and voluntary staff furloughs.
鈥淭he reductions already taken, and now this additional veto, are not without impacts
on our faculty and staff,鈥 Johnsen said. 鈥淲e are working hard to mitigate those impacts
and to keep our people informed and engaged as we get ready for the new academic year.鈥
鈥淚 am confident in the progress we are making through Strategic Pathways and that
we will find the needed efficiencies to ensure we continue to serve our students and
the state鈥檚 higher education needs,鈥 he said.
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For more information contact Roberta Graham, associate vice president of public affairs
at 907-360-2416 (cell).
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