The sculpture of a grizzly bear stands near a public building a block away from the state Capitol in Juneau.
The 26th Alaska State Legislature adjourned 'sine die' in the wee hours of April 19. A number of university issues came to the forefront of discussions this year, including the funding for UA capital projects, consideration of a merit and needs-based scholarship program, the long-debated university land grant issue, as well as the yearly operating budget discussions. The following information is a brief summary of UA-related budget and legislative issues this session. Web links are provided for more information.
FY11 operating budget
The FY 2011 state operating budget was passed the last day of the legislative session. This budget totals $4.44 billion in state general funds, $1.937 billion in federal funds, and $1.8 billion in other funds.
UA received a $12.9 million increase, 3.9%, over the current fiscal year, covering the majority of the university's fixed costs. The total UA budget represents a little over 10% of the state operating budget.
With one exception, the six-member Conference Committee (Senators Hoffman, Stedman and Thomas, and Representatives Hawker, Stoltze and Gara) adopted the Senate Finance recommendations for the UA budget, the House intent language and seven appropriations (Senate version) with a transfer of 3% of university funds to provide more flexibility to the Board of Regents in the more rigid structure.
The exception was from the House Finance version of the operating budget was the ANSEP piece ($940,000 to the Dept. of Education for K-12 bridging.) (See UA Budget)
Now that the legislature has adjourned, the operating budget will be sent to the Governor for consideration. Typically, this happens within the next several weeks to allow for review time prior to Governor's vetoes 20 working days after he receives it.
FY11 capital budget
As predicted, the GO Bond bill (HB 424) was one of the very last items to pass the legislature before adjournment. Also passed in the last hours was the final version of the FY11 capital budget (see: SB 230), (a total of $3.1 billion) which includes the following UA projects:
General fund dollars:
- $37.5 million for deferred maintenance projects
- $ 5.0 million for UAA Engineering facility planning and design
- $10.0 million for UAF engineering & technology project design and development
- $ 1.4 million for community campus planning
- $ 1.8 million for Kenai Peninsula College Student Housing
- $250,000 for Kachemak Bay Campus – New Facility Completion
Also receipt authority for:
- $20.6 million for receipt authority for Life Sciences Facility
- $15.0 million for receipt authority for UA
$88.0 million UAF Life Sciences Classroom and Lab Facility
$60.0 million UAA Community Arena and Athletic Facility
$14.5 million Kenai campus career and technical education center
$16.0 million Kenai campus student housing
$23.5 million MatSu campus Valley center for art and learning
$ 5.0 million Prince William Sound Community College campus R&R
Also included in the GO bond bill is:
$20.0 million Mt. Edgecumbe High School aquatic facility
$18.5 million State Library/Archives/Museum facility
$46.5 million Alakanuk K-12 school replacement
$49.9 million Kipnuk K-12 school renovation/addition
$32.1 million Kwigillingok K-12 school renovation/addition
$20.0 million Dept of Fish and Game Near Island Research Facility
$ 3.2 million City of Klawock for Prince of Wales Island Voc Ed Center
($ 4.77 million Bond sale expenses)
Total GO bond is $397,200,000, which includes $207,000,000 for UA.
Legislation
A number of bills worked their way through the committee process during the last days of session and made it to the floor just in time for adjournment. Any bill not acted on by both bodies and passed, 'died' on April 18th at midnight, the end of the two-year legislative session. The following is a brief summary of legislation that passed this year, legislation that may have an impact on UA, and bills that did not pass, but worthy of mention.
Higher Education Student Financial Aid - SB 221 was the vehicle which turned into a 'compromise' bill to expand the AlaskAdvantage program, establishing an Alaska Merit Scholarship Program (without new funding) establishing a short-term 15-member joint member advisory task force on higher ed and career readiness, and a longer-term 20-member advisory task force on higher ed and career readiness. $400,000 was included in a fiscal note to allow ACPE to award up to $3,000/year (was $2,000/year) in AlaskAdvantage grants, for a total not exceeding $12,000 over a six-year period, in addition to the current funding of $1.05 million.
Although it did not pass this year, one version of SB 174 included funding to partially pay for the UA Scholars Program, and open the scholarship up to the top 15% of Alaska High School graduates.
Higher Education Tax Credits – SB 236 increases the amount of tax exemption given for contributions to an institution of higher education, with a cap of $5 million per year.
UPMIFA (Uniform Prudent Management of Institutional Funds Act) - House Bill 416 passed on April 18th with virtually no amendments throughout the legislative process. It replaces obsolete rules and concepts of investment and management of endowments and charitable funds currently in use. It provides current, industry best practices guidelines, essential to proper management.
UA Debt Authorization - HB 184 provides an increase to debt authorization for UA from $1 million to a new limit of $2.5 million per year.
Bills worthy of mention that did pass and may have an impact on UA:
SB 220 – State omnibus energy legislation
HB 306 – State Energy Policy
Bills worthy of mention that did not pass:
SB 226 – Certificates of Participation for the UA Life Sciences Facility and State Crime Lab
SB 56 – Appropriation for Life Sciences Facility
HB 234, HB 295 and SB 225 – UA Land Grant
HB 235 – Professional Student Exchange Loan Forgiveness
HB 297 and SB 224 – Postsecondary Scholarships (GPS)
SB 206 – Appropriation for University Engineering Buildings ($100M)
