The Alaska State Senate has just passed their version of the FY11 state
operating budget. With three weeks remaining in this legislative
session, the '24 hour rule' will be invoked by the legislature once the
Conference Committee on the FY11 operating budget is announced,
possibility as early as next week. This means that the legislature can
post legislation for a hearing 24 hours prior to the committee hearing.
Expect bills to be moving at an accelerated pace through the legislative
process at this juncture, as these are the last days of a two-year
session, due to adjourn April 19. Also know that all bills not passed
'die' at the end, meaning work starts all over again the next
legislative session.
FY11 operating budget
A detailed summary, including information regarding the differences in
proposed intent language regarding a funding ratio, as well as a Senate
version of a 3% funding scenario for 'system-wide appropriation' to
address the Senate's version with seven appropriations. The full summary
is available at: www.alaska.edu/state/fast-facts/
In addition, differences between the House and Senate budgets include the following highlights:
SENATE
4.3 percent increase in state general funds over the current fiscal
year, for a total $14 million increment. The Senate proposes seven
separate appropriations to the university.
$257,400 of compensation and increases in day-to-day expenses (fixed
costs) would not be covered. The Senate budget revised the amount
appropriated under the so-called "fuel trigger" by increasing the
trigger start point and moving some one-time utility funds to base
funding ($1.6 million).
The Senate version would support $950,000 for priority programs. It also
includes program funding for the Alaska Natives in Science and
Engineering Program at UAA ($1.2 million); the Alaska Summer Research
Academy engineering component at UAF ($75,000); technology-based math
and summer bridge programs ($150,000); and the Marine Advisory Program,
part of UAF SeaGrant ($300,000).
HOUSE
$11.8 million increment, or a 3.6 percent increase in state funds over
the current fiscal year. The House proposes a single appropriation (as
did the governor.)
$832,400 of compensation and other fixed costs would not be covered. The
House budget revised the amount appropriated under the "fuel trigger"
by increasing the trigger start point and moving some one-time utility
funds to base funding ($1.6 million).
The House version provided $950,000 in program money. Money for ANSEP,
at $960,000 was included in the state Department of Education budget.
The operating budget process:
The Board of Regents submitted their FY11 operating budget request to
the Governor last fall. The Governor submitted his budget, including his
recommendations for the UA budget, to the legislature for consideration
in January. The House and Senate have completed their deliberations on
their versions of funding to operate state government. Now it is up to a
Conference Committee, consisting of three members from each body,
typically the co-chairs of the Finance Committees and one member from
each House. The Conference Committee will meet in a formal committee
setting (towards the very end of session), to negotiate the differences
between the House and Senate versions. No additional funding is added to
the budget. Only differing line items are open for discussion, and the
Committee votes on which number to accept.
Once the Conference Committee is done with their work, the bill goes
back to the House and Senate floors for final passage. It then travels
to the Governor's desk for consideration. Once the bill is received by
the Governor, he has 30 days to consider the budget before it is
finalized. The budget goes into effect July 1, 2010. In rare occasions,
the legislature has called for a special session to override the
Governor's veto items. Typically, the budget stands once it is signed by
the Governor without further legislative action.
FY11 capital budget
Now that legislative work on the operating budget is essentially done
except for the Conference Committee actions, you will see action on the
FY11 capital budget to provide for the infrastructure of state
government, i.e. buildings, repairs and renovations, roads and airports,
etc. As they say, 'it's not over until it is over' which is certainly
the case with the capital budget deliberations. The capital budget is
one of the last items of business before the legislature adjourns, as it
contains 'bargaining chips' for the various legislative districts.
Key to the capital budget discussions this year is the UA Life Sciences
Facility, as well as deferred maintenance. The Senate Finance Committee
has held its public hearing on this budget, receiving over two hours of
testimony during a statewide teleconference held on March 24th. Senate
bills now under consideration include SB 230, (state FY11 capital budget
including 37.5 million for UA deferred maintenance, $1.4 million for
community campus planning) as well as SB 226 (Life Science/Crime Lab COP
funding). Funding for engineering facilities ($10m request from the
Regents for planning, and SB 206 (UAA/UAF Engineering facilities).
Postsecondary Scholarships
Hearings on these bills continue through the process, and amended
versions of HB 297 and SB 224 includes a 'needs based' component. The
fiscal note starts out at $14 million and is accelerated to $35 million
five years out. The UA student governance leaders have been very active
in supporting a needs-based scholarship, and work continues to sort out
the details of the program.
Higher education tax credits
HB 367 and SB 236 provide cash contributions to an Alaskan educational
or vocational institution. Under the current versions, donors receive a
tax credit of 50 percent for contributions up to $100,000; 100% tax
credit for contributions between $100,000 and $300,000, and a 50 percent
tax credit for contributions over $300,000 and up to a maximum of $25
million per year. Both bills are in their respective Finance Committees.
UA Land Grant
Hearings continue on this legislation. HB 295 remains in the House Resources Committee after the last hearing.
Kudos
Thanks to all who participated in the recent Senate Finance Committee
teleconference on the state operating budget. Your active involvement
keeps the University front and center in the minds of the legislators,
which is most effective when it comes time to determine budget outcomes.
Stay tuned for one more opportunity to participate in the House Finance
Committee capital budget teleconference not yet announced.
Tuesday, March 30, 2010
Friday, March 12, 2010
March 15 – 19, 2010
With less than 30 days left before the Legislature adjourns April 19,
much is happening in Juneau. Here's the latest regarding the
University of Alaska.
Operating Budget:
After one meeting with UA, the Senate Finance Subcommittee (SFS) closed out the FY11 operating budget March 18, essentially restoring the Governor's budget numbers with several caveats. The subcommittee also amended intent language regarding a general fund ratio to UA-generated revenue. The subcommittee would increase the UA budget by 3.8 percent over the current fiscal year.
Major differences include the number of appropriations. The Governor and House propose one appropriation for UA; the Senate split it into seven appropriations spread throughout the campuses.
The SFS allocated 3 percent of UA funding into a 'systemwide appropriation' to give the Board of Regents flexibility in allocating funds between campuses when necessary, due to the multiple appropriations. This is a net zero change in the overall budget.
The subcommittee plan includes the following general fund distributions:
Expect the Senate Finance Committee to address the budget in committee late next week, with possible action by the full Senate soon after that. Once the Senate passes its version, the budget will go to a Conference Committee with the House.
The Senate Finance Committee will hold its statewide teleconference on Wednesday, 9 a.m., March 24. Public testimony is limited to two minutes each at the following Legislative Information Office locations:
9 – 9:45 a.m. Juneau
10 – 10:45 a.m. Kenai, Valdez, Ketchikan, Kodiak, Seward, Matsu, Glennallen, Tok
1:30 – 2:15 p.m. Fairbanks
2:30 – 3:15 p.m. Anchorage
3:30 – 4 p.m. Sitka, Wrangell, Petersburg, Homer, Dillingham, Cordova
4:15 – 5 p.m. Bethel, Kotzebue, Barrow, Nome, Delta Junction, Offnets
Capital Budget Status
On March 15, the Senate Finance Committee held a hearing on SB 226 to address the "certificate of participation" revenue bonding mechanism proposed for the Life Science Classroom and Lab facility, the top new construction priority of the Board of Regents.
Deven Mitchell from the Department of Revenue discussed the details of financing state capital projects with this method. No action was taken. Jay Quakenbush, Alaska Builders and Trades; Blake Williams, Central Labor Council; and Don Ethridge, AFL-CIO, testified in support of the Life Sciences facility.
On March 16, the Senate Finance Committee heard from UA President Mark Hamilton; Kit Duke, UA's chief facilities officer; and Michelle Rizk, UA associate vice president for budget, on the details of the university's capital budget request. The committee also held a statewide public hearing on March 18 on capital budget needs. The committee now will now look at the deferred maintenance and new construction requests from all agencies, municipalities, the university, court system and communities throughout Alaska.
Key items to the university's capital budget request are the deferred maintenance projects ($37.5 million in Governor's legislation), as well as the Life Sciences facility ($88 million) and planning money ($10 million) for the Engineering facilities at UAA and UAF. Funding scenarios, i.e. straight general fund dollars or a general obligation bond, are under discussion, as well as the COP revenue bonding mechanism. The capital budget is typically one of the last items to come before the House and Senate before they adjourn, so expect more discussion and opportunities for advocacy in the days ahead.
The House version of the UA Lands bill (HB 295) is in House Resources, its third committee of referral, and has had numerous hearings and amendments. Expect more action before the end of session.
The Governor's Performance Scholarship legislation has been heard in both the Senate and House Education Committees multiple times, and UA students have been advocating for a 'needs based' component to be included in the legislation. (HB 297 and SB 224) The merit based GPS is estimated to cost approximately $20 million per year once the program is up and running. The new fiscal note indicates a start of $14.5 million in FY12 and going up each year to show a total of $37 million in FY15. The Education Committee substitute for HB 297 addresses the 'needs based' aspect, and requires the student to qualify for the merit-based scholarship and demonstrate need for financial assistance. HB 297 is being heard in the House Finance Committee on March 22.
Kudos –
This past Tuesday, the UA Boosters Caucus had its fourth hearing on an overview of the university from various perspectives. This last meeting included individuals from the private sector who shared their experiences and support of university programs. Many thanks to these participants, including:
Jim Johnsen, Sr. Vice President of Administration, Doyon
Bruce Lamoureux, Chief Operating Officer, Providence Health
Doug Murray, President, Murray and Associates
John Aho, retired Vice President, CH2M-Hill
Boyd Morgenthaler, President, AMC Engineers
Jack Wilbur, President, Design Alaska Inc.
Anne Brooks, P.E., Owner Brooks and Associates
Eric Eriksen, AEL&P Vice-President of Transmission and Distribution
Five students from the Rural Alaska Honors Institute (RAHI) and Denise Wartes, the Executive Director, traveled to Juneau to present their documentary films at two legislative hearings and met with their legislators March 16. A special luncheon sponsored by the Senate Special Committee on World Trade, Technology & Innovation, and the House Special Committee on Economic Development, Trade & Tourism was held for legislators, staff and public officials to view the films and meet the student creators. This presentation was also broadcast on Gavel to Gavel 360 North.
Recognition goes to:
Corey Joseph from Kwigillingok ('A River without a River")
Jayna Kelly from Pilot Station ("Living Alaskan Life")
Samantha Foss from Pedro Bay ("Pedro Bay and the Pebble Mine")
Laura Fox from Takotna ("Takotna")
Nellie Iyapana from Little Diomede ("Let Your Light Shine")
Also shown:
Jerica Aamodt from Barrow ("Barrow and Global Warming")
The Staff Alliance leaders were also in Juneau for several days this past week to advocate for the University of Alaska. They spent time meeting with legislators and attending committee hearings. Thanks to:
Maria Russell, Chair, Staff Alliance and President-elect, UAF Staff Council
Martin Klein, President, UAF Staff Council
Megan Carlson, President, UAA Classified Council
Russell Pressley, President, UAA APT Council
Cynthia Rogers, President, UAS Staff Council
Gwenna Rogers, Vice President, UAS Staff Council
Vicky Inkster, Member, UAS Staff Council
Kim Eames, President, Statewide Administration Assembly
Lisa Sporleder, Member, Statewide Staff Alliance
Melodee Munson, UAA winner, 2005 Staff Make Students Count award
Suzanne Browner, member, UAA APT Council
Next Week
March 22 - HB 297 – GPS legislation in House Finance
March 21-23 - UAF Alumni Board members meeting with legislators
March 24 – Senate Finance Committee statewide teleconference on the state operating budget
All week - Continuing hearings on the State operating budget in Senate Finance
On behalf of UA, thank you for all your help in supporting our university system.
Operating Budget:
After one meeting with UA, the Senate Finance Subcommittee (SFS) closed out the FY11 operating budget March 18, essentially restoring the Governor's budget numbers with several caveats. The subcommittee also amended intent language regarding a general fund ratio to UA-generated revenue. The subcommittee would increase the UA budget by 3.8 percent over the current fiscal year.
Major differences include the number of appropriations. The Governor and House propose one appropriation for UA; the Senate split it into seven appropriations spread throughout the campuses.
The SFS allocated 3 percent of UA funding into a 'systemwide appropriation' to give the Board of Regents flexibility in allocating funds between campuses when necessary, due to the multiple appropriations. This is a net zero change in the overall budget.
The subcommittee plan includes the following general fund distributions:
- $1.2 million for the Alaska Natives in Science and Engineering Program
- $314,200 for Anchorage fixed cost priorities
- $300,000 for the Marine Advisory Program
- $ 75,000 for the Alaska Summer Research Academy
- $150,000 for individual technology based math and Summer Bridge Program at UAF
- $260,800 for UA community campuses for additional lease cost increases
Expect the Senate Finance Committee to address the budget in committee late next week, with possible action by the full Senate soon after that. Once the Senate passes its version, the budget will go to a Conference Committee with the House.
The Senate Finance Committee will hold its statewide teleconference on Wednesday, 9 a.m., March 24. Public testimony is limited to two minutes each at the following Legislative Information Office locations:
9 – 9:45 a.m. Juneau
10 – 10:45 a.m. Kenai, Valdez, Ketchikan, Kodiak, Seward, Matsu, Glennallen, Tok
1:30 – 2:15 p.m. Fairbanks
2:30 – 3:15 p.m. Anchorage
3:30 – 4 p.m. Sitka, Wrangell, Petersburg, Homer, Dillingham, Cordova
4:15 – 5 p.m. Bethel, Kotzebue, Barrow, Nome, Delta Junction, Offnets
Capital Budget Status
On March 15, the Senate Finance Committee held a hearing on SB 226 to address the "certificate of participation" revenue bonding mechanism proposed for the Life Science Classroom and Lab facility, the top new construction priority of the Board of Regents.
Deven Mitchell from the Department of Revenue discussed the details of financing state capital projects with this method. No action was taken. Jay Quakenbush, Alaska Builders and Trades; Blake Williams, Central Labor Council; and Don Ethridge, AFL-CIO, testified in support of the Life Sciences facility.
On March 16, the Senate Finance Committee heard from UA President Mark Hamilton; Kit Duke, UA's chief facilities officer; and Michelle Rizk, UA associate vice president for budget, on the details of the university's capital budget request. The committee also held a statewide public hearing on March 18 on capital budget needs. The committee now will now look at the deferred maintenance and new construction requests from all agencies, municipalities, the university, court system and communities throughout Alaska.
Key items to the university's capital budget request are the deferred maintenance projects ($37.5 million in Governor's legislation), as well as the Life Sciences facility ($88 million) and planning money ($10 million) for the Engineering facilities at UAA and UAF. Funding scenarios, i.e. straight general fund dollars or a general obligation bond, are under discussion, as well as the COP revenue bonding mechanism. The capital budget is typically one of the last items to come before the House and Senate before they adjourn, so expect more discussion and opportunities for advocacy in the days ahead.
The House version of the UA Lands bill (HB 295) is in House Resources, its third committee of referral, and has had numerous hearings and amendments. Expect more action before the end of session.
The Governor's Performance Scholarship legislation has been heard in both the Senate and House Education Committees multiple times, and UA students have been advocating for a 'needs based' component to be included in the legislation. (HB 297 and SB 224) The merit based GPS is estimated to cost approximately $20 million per year once the program is up and running. The new fiscal note indicates a start of $14.5 million in FY12 and going up each year to show a total of $37 million in FY15. The Education Committee substitute for HB 297 addresses the 'needs based' aspect, and requires the student to qualify for the merit-based scholarship and demonstrate need for financial assistance. HB 297 is being heard in the House Finance Committee on March 22.
Kudos –
This past Tuesday, the UA Boosters Caucus had its fourth hearing on an overview of the university from various perspectives. This last meeting included individuals from the private sector who shared their experiences and support of university programs. Many thanks to these participants, including:
Jim Johnsen, Sr. Vice President of Administration, Doyon
Bruce Lamoureux, Chief Operating Officer, Providence Health
Doug Murray, President, Murray and Associates
John Aho, retired Vice President, CH2M-Hill
Boyd Morgenthaler, President, AMC Engineers
Jack Wilbur, President, Design Alaska Inc.
Anne Brooks, P.E., Owner Brooks and Associates
Eric Eriksen, AEL&P Vice-President of Transmission and Distribution
Five students from the Rural Alaska Honors Institute (RAHI) and Denise Wartes, the Executive Director, traveled to Juneau to present their documentary films at two legislative hearings and met with their legislators March 16. A special luncheon sponsored by the Senate Special Committee on World Trade, Technology & Innovation, and the House Special Committee on Economic Development, Trade & Tourism was held for legislators, staff and public officials to view the films and meet the student creators. This presentation was also broadcast on Gavel to Gavel 360 North.
Recognition goes to:
Corey Joseph from Kwigillingok ('A River without a River")
Jayna Kelly from Pilot Station ("Living Alaskan Life")
Samantha Foss from Pedro Bay ("Pedro Bay and the Pebble Mine")
Laura Fox from Takotna ("Takotna")
Nellie Iyapana from Little Diomede ("Let Your Light Shine")
Also shown:
Jerica Aamodt from Barrow ("Barrow and Global Warming")
The Staff Alliance leaders were also in Juneau for several days this past week to advocate for the University of Alaska. They spent time meeting with legislators and attending committee hearings. Thanks to:
Maria Russell, Chair, Staff Alliance and President-elect, UAF Staff Council
Martin Klein, President, UAF Staff Council
Megan Carlson, President, UAA Classified Council
Russell Pressley, President, UAA APT Council
Cynthia Rogers, President, UAS Staff Council
Gwenna Rogers, Vice President, UAS Staff Council
Vicky Inkster, Member, UAS Staff Council
Kim Eames, President, Statewide Administration Assembly
Lisa Sporleder, Member, Statewide Staff Alliance
Melodee Munson, UAA winner, 2005 Staff Make Students Count award
Suzanne Browner, member, UAA APT Council
Next Week
March 22 - HB 297 – GPS legislation in House Finance
March 21-23 - UAF Alumni Board members meeting with legislators
March 24 – Senate Finance Committee statewide teleconference on the state operating budget
All week - Continuing hearings on the State operating budget in Senate Finance
On behalf of UA, thank you for all your help in supporting our university system.
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)
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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