Friday, March 12, 2010

March 12, 2010

The legislative session is more than half over, and there is still much to be completed before April 19. Many university advocates are actively working to promote this institution and it is greatly appreciated!

FY11 operating budget

The House Finance Committee reviewed the FY11 operating budget, and added back the utility cost surcharges of approximately $1.6 million, as well as a complicated funding formula to hold the university at a 'level' rate of spending based on the percentage of general funds vs. 'other' non-state funds. Amendments to include the Marine Advisory Program funding and new programs as requested by the UA Board of Regents both failed in the committee. House action concludes March 12th, and although an amendment was considered to add in the new UA programs, it failed.

Meanwhile, the Senate Finance Subcommittee on the UA Budget (also a 'committee of the whole'), met last week, and will meet again on March 16th to close out their version of the FY11 operating budget for the university.

Note: Expect the Senate Finance Committee will be holding a statewide legislative teleconference around March 25 or 26 to ask the public for input about the FY11 operating budget. Although testimony is limited to two minutes, it is a great way to get out and show support for the university, or any other state-funded entity for that matter.

FY11 Capital Budget
Discussions are now being started on consideration of the FY11 capital budget, the funding that provides buildings and infrastructures. A hearing on SB 226, the Governor's bill to finance the Life Sciences Facility with Certificates of Participation, has its first hearing in the Senate Finance Committee March 15th.

There are several scenarios for funding the Life Sciences facility, the UA Board of Regents only new construction priority for FY11. This includes the Governor's legislation to fund it with 'Certificates of Participation', a revenue bonding mechanism of sorts, straight general fund appropriation, or a general obligation bond which would be presented to the voters in the upcoming general election this November. 'Build America' bonds are also being talked about, as the interest rates are lower than a GO bond rate because the federal govt. 'buys down' the interest rate to make it more affordable. Currently, the Build America Bond rates are at 3%.

The university has a long list of deferred maintenance projects, as do all state agencies. The Governor introduced SB 253 and HB 325 to grant $100 million to start to address these projects, including $37.5 million of UA projects. Although the Governor had indicated he wanted this bill to pass early in the session to get the projects out in the street for this next construction season, more detailed information has been requested on state projects before the House Finance Committee will consider the legislation. The university has provided a very detailed list of projects, and stands ready to address questions regarding our request.

Expect more action in the capital budget area once the operating budget gets through the House and Senate.

Legislation:
Scholarships - Both the House and Senate Education Committees have been working through a version of the postsecondary scholarships, commonly referred to as the “GPS” bill, or Governor's Performance Scholarship legislation. UA students have been very active in supporting this legislation as well as including a 'needs based' component to the bill. Expect committee substitutes to come out of both committees shortly, with an expanded fiscal note, meaning it will cost more than the original estimate of $20 million per year.
Education Tax Credits - The House has currently introduced a bill mirroring the Senate version of the education tax credits to postsecondary institutions in the state. Multiple hearings have transpired, and the Department of Revenue is weighing in on the ramifications to state coffers. This legislation would increase the amount of tax credits a business or corporation could receive by donating funds to the university or other qualifying postsecondary entity in the state.
UA Lands legislation – The House version of this bill (HB 295) has moved out of the House Community and Regional Affairs Committee, and still has two more committees of referral before it can come to a floor vote in the House. A hearing is scheduled for March 17th in the House Resources Committee. The most recent version of the bill would transfer about 200,000 acres of land to the university. This is the sixth time this legislation has been before the legislature, having been struck down by the Alaska Supreme Court due to an issue of funding appropriations.

Recent advocacy efforts:
Kudos to all those that participated in the recent House Finance Committee's statewide teleconference on the FY11 operating budget. Committee members heard from university supporters representing all areas of the state.

A group of the Coalition of Student Leaders is in Juneau this week to advocate for the university budget and scholarship programs. Most of these students attempted to get into Juneau earlier this session to join the rest of the student leaders, and instead, gained a great deal of knowledge about Southeast Alaska as they waited for the fog to lift in the capital city.

The Staff Alliance will be coming to Juneau March 15-16, and the UAF Alumni Association Board members will be here March 21-23.

Five UAF Rural Alaska Honors Institute graduates (high school students) will be in Juneau March 16th to present their short documentary films about their villages created during last summers' program. The films were written and created by: Corey Joseph from Kwigillingok, Jayna Kelly from Pilot Station, Laura Fox from Takotna, Samantha Foss from Pedro Bay, Jerica Aamodt from Barrow, and Nellie Iyapana from Diomede. To view their films, see:  http://www.yahdiimedia.com/rahifilmfest.html.

Speaking of students, eight UA students and one student from the University of Utah are working in legislative offices this session in the UA Legislative Internship Program run by Clive Thomas, Professor of Political Science and statewide program coordinator at UAS. They are: Michael Dunning, (UAA), working for Rep. Peggy Wilson, Robert Ervine (UAA), working for Rep. Lindsey Holmes, Brenda Hannah, (UAF), working for Sen. John Coghill, Amy Hundertmark, (UAF), working for Rep. David Guttenberg, Quinn Kendall, (University of Utah), working for Sen. Bettye Davis, Jennifer Penaherrera (UAF), working for Rep. Paul Seaton, Ellie Sica, (UAS), working for Rep. Berta Gartner, Megan Rodgers, (UAA), working for Sen. Bill Wielechowski, and Peder Terland, (UAA), working for Rep. Pete Petersen.

It is a well known fact that some interns go onto legislative staff positions, as well as run for public offices, winning legislative seats in their home districts. Kudos to these students for spending the legislative session working with constituents, assisting with legislation and learning the legislative process firsthand.
 
Cooperative Extension Service agents, as well as 4-H leaders and students, and Future Farmers of America leaders were also in Juneau recently to learn about the legislative process, and advocate for the university.

Next week:
Hearings on SB 226 – Life Sciences facility (3/15 – Senate Finance Committee), UA FY11 operating budget closeout in Senate Finance Subcommittee (March 16); UA Lands (HB 295) in House Resources (March 17); UA Boosters Caucus – Private sector – (March 17); RAHI students documentary film premier (March 16)

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