University of Alaska End of Session Report

After 90 days, the 27^th Alaska State Legislature adjourned ‘sine die’ in the early morning hours of April 16. This concludes the two-year session. Any legislation left in play is now ‘dead,’ meaning it will have to be reintroduced next year. 595 bills were introduced; 114 bills passed both houses, just a little over a 19% passage rate.

The Governor called the legislature back into a special session commencing April 18, specifically for legislation dealing with oil taxes, in-state gas line and human trafficking. The university issues and budget items are not part of the mix. We now await the Governor’s action on legislation and the FY13 operating and capital budgets.

Typically the legislature does not send the budget bills to the governor for signature or veto immediately after passage; instead the bills are held for a period of time, sometimes for more than a month. Once the operating and capital budgets have been sent to the governor he will have 20 days, Sundays excepted, to exercise vetoes on specific appropriations.

The university fared very well this year, thanks in a large part to the active advocacy efforts of UA supporters throughout the state. UA advocates came out strong at all public hearings on the operating and capital budgets. Over 20% of those that testified at all three statewide public hearings were supporting UA initiatives.

The following is a summary of legislative actions this year. The following lists the FY13 Operating Budget and FY13 Capital Budget. Details are found in the links.

FY13 operating budget status (PDF - detailed spreadsheet w/recommendations)

The Conference Committee report on the operating budget (CCS HB 284 and CCS HB 285) was adopted by the House and the Senate in the final hours of the session. This final version of the operating budget will now be sent to the governor for his signature and any line item vetoes. Below is a comparison of the different versions of the operating budget, including the final Conference Committee version.

The Governor’s proposed budget for UA is an $8.9 million increase (2.5%) over the current fiscal year. This number includes the budget originally submitted by the governor, as well as amendments to that budget submitted by the governor following our House Subcommittee hearings. The Conference Committee’s (CC) budget for UA is higher at a $12.2 million increase (3.5%). The $3.3 million difference is for priority programs added by the House and Senate.

Conference Committee members included:
Senators Stedman, Hoffman and Thomas
Representatives Thomas, Stoltze and Gara

Funded Initiatives in this operating budget include:

• Honors Program
• New initiatives to improve graduation rates
• Health/Bio Med programs
  UAA Nursing, UAA Physical Therapy, UAF Vet Medicine
• Teacher Ed programs
  ISER Alaska Education Policy Research, UAS Elementary Ed program
• Workforce Development
  UAA Process Tech; UAF Early Childhood Education; UAS Alaska Tech Center; UAS Fisheries Tech
• UA Research, Economic Development
  UAF Indigenous PhD Program
  UAF Resilience Adaptation Program
  
• Also includes:
  UAF Future Farmers of America/4H programs
  UAA AMIPA
  UAF National Guard Scholarships
  UAS Marine Transportation Program

FY13 Capital Budget status

The Senate concurred in the House amendments and this bill passed as one of the last actions this legislative session. This means that the capital budget will be sent to the Governor in its current form. It is not part of the package of legislation specified by the Governor for the special session commencing April 18.

The final Committee Substitute of SB 160 endorses the Senate Finance Committee numbers for the UA FY13 capital budget with one small addition. This includes:

$37,500,000 Deferred Maintenance
$ 6,250,000 Banfield Hall Dorm

$46,300,000 UAF Engineering Facility

$58,600,000 UAA Engineering Facility

$ 2,700,000 Ocean Acidification Research (+s $750,000 receipt authority)
$  5,000,000 UAF Research/Development of Unmanned Aerial Systems

$     450,000 UAF Kuskokwim Campus R&R

$    190,000 UAS Mining Workforce Development

$      50,000 UAA Katchemak Bay Campus Pioneer Ave. Bldg.
$    100,000 UAF Georgeson Botanical Gardens Research

$157,140,000    Total GF

There is intent language attached to the $5.0 million for Unmanned Aerial Systems:

“It is the intent of the Legislature that the University of Alaska collaborate with the Federal Aviation Administration in establishing a research and development program and possible test facility for Unmanned Aerial Systems in Alaska. Unmanned Aerial Systems are already being utilized in Alaska in many ways and as the Arctic race progresses they will become even more vital as a resource to the State and the Country.”

In addition to the general fund appropriations, the bill contains the $15,000,000 in receipt authority for capital projects that was requested in the Regents' budget. These are funds the legislature gives the university ‘permission’ to receive, i.e. grants and contacts, indirect cost recovery, private dollars, etc.

The bill also contains a $20,743,999 GF appropriation to the Department of Law for the purpose of paying judgments and settlements. This amount is supposed to include the full ORP settlement, among other things.

Legislation:

Many pieces of legislation dealing with some aspect of the University of Alaska were introduced these past two years. The following highlights those bills that passed in 2012. (See complete list of legislation affecting UA.) Any legislation not passed by the end of session ‘dies’ at the end of this legislative session. 

These were the bills in play during the 2012 session:

HCR 18 – House Special Committee on Fisheries
Status: Awaiting transmittal to the Governor

Relating to an examination of fisheries-related programs to facilitate the entry of young Alaskans into commercial fisheries careers and to collaboration with the University of Alaska fisheries, seafood, and maritime initiative.

The Alaska State Legislature endorses and encourages the continuing work of the University of Alaska fisheries, seafood, and maritime initiative. The resolution directs the president of the senate to appoint one senator and the speaker of the house to appoint one representative as liaisons to the University of Alaska fisheries, seafood, and maritime initiative so that the Alaska State Legislature is kept well apprised of the initiative's progress. The appointed legislators shall provide quarterly reports to the legislature on the initiative's progress, and submit recommendations to the legislature by January 20, 2013.

HCR 23 – Alaska Arctic Policy Commission by request of the Northern Waters Task Force
Status: Awaiting transmittal to the Governor

This resolution was created to address one of the top three recommendations of the Alaska Northern Waters Task Force to continue the work in Arctic Policy. This 20-member commission is tasked with proving a preliminary report of their findings and recommendations by January 2014, and the final report by January 2015. The University of Alaska will hold one seat on the commission.

HCR 24 State Food Resource Development Group by Representative Stoltze
Status: died in the final hour of session

This resolution requests the Governor to establish a state food resource development working group to work with the Alaska Food Policy Council to identify resources and set policies to build a strong, sustainable healthy food system in the state; to identify new or expanded economic opportunities for state residents in new food production, food processing, and food distribution businesses; review existing or proposed programs, policies, and regulations that affect the state's food system and recommend to policymakers methods to improve the coordination and implementation of the programs, policies, and regulations.

The resolution encourages the governor to involve all state agencies, as well as the University of Alaska and the National Future Farmers of America organization, the National 4H Council, the Alaska Farm Bureau, and other farming groups, and to work cooperatively with the Rasmuson Foundation, Native organizations, etc., to address food production, nutrition, sustainability, availability in Alaska, and use of state grown food for the betterment of Alaskans.

HB 6 Removal of a Regent by Rep. Gruenberg
Status: awaiting transmittal to the Governor

This bill creates a statutory due process procedures under which the governor may suspend or remove a University of Alaska regent for good cause. It will protect both the regent's interests and the university's interests.

HB 104   Alaska performance scholarship by the Rules Committee by request of the Governor
Status: Conference Committee CS passed both bodies – awaiting transmittal to Governor

This bill makes amendments to the current Alaska Performance Scholarship to address requirements of eligibility of program to allow school districts more time to incorporate the necessary components into their schools’ course offerings, and to offer students opportunities to complete the eligibility requirements. It also makes funding adjustments on a pro-rata basis dependent upon availability of funds.

HB 282 /SB 150 ‘An Act relating to applying military education, training, and service credit to occupational licensing and certain postsecondary education and employment training requirements’ by Rep. Bill Thomas
Status : died in last hour of session

HB 282 requires the Division of Professional Licensing, University of Alaska and vocational educational facilities to examine the credentials of related military experience. Relevant military experience would be credited for licensing requirements and educational credit would be granted for appropriate training. 

HB 302  ‘Contributions to UA from PFD Pick-Click-Give program’ by Rep Seaton
Status: Died in Senate Rules Committee

This bill requires each campus of the university to pay a yearly administrative fee of $450 to be included in the PFD Pick-Click-Give program.

SB 130 – Alaska Native Language Preservation and Advisory Council by Senator Donny Olson
Status: Awaiting transmittal to the Governor

The intent of this legislation is to preserve and maintain Alaska Native languages. It creates a Council to assess the current status of Alaska Native Languages, evaluate programs within the state in this regard and to make recommendations to the legislature and governor to establish new programs or re-organize existing programs.

Special note: Now would be a good time to send letters of thanks to the co-chairs of the House and Senate Finance Committees for their support of the university, as well as Rep. Anna Fairclough, Senator Joe Thomas and Senator Johnny Ellis. The university has fared very well this year thanks to the efforts of many active advocates and legislators who understood the importance of funding the university requests. However, until the Governor signs the budget, everything is still in play.

Many thanks to all UA supporters who actively participated in advocating for the University of Alaska. Whether you provided public testimony on budget initiatives, wrote letters, sent emails or met with legislators and staff, the collective actions of all encouraged legislators to include many operating budget increments and capital budget funding for the coming fiscal year. Thank you for supporting your university!

April 4, 2012

With less than two weeks left in the 90-day session scheduled to adjourn April 15, here is where UA stands:

FY13 operating budget status (PDF)
Tthe Senate Finance Committee has passed out their version of this budget and has endorsed the House numbers as well as add on a few more increments for the university. Overall, the Senate budget is $4.9 million above the Governor’s proposed amended budget and $.6 million above the House budget.

The Senate passed the FY13 operating budget on April 4. The next step is for a Conference Committee on the operating budget to be appointed. The six-member committee consists of both co-chairs of the House and Senate Finance Committees as well as one other member from each body. Senators Hoffman and Stedman will represent the Senate, and Representatives Thomas and Stoltze will be on the House side.

Once the Conference Committee is appointed, the legislature goes under the ’24 hour’ rule, meaning bills will be moving very quickly out of committees and passed over to the other body if they are to pass this session.

FY13 Capital Budget status
The Senate is currently holding onto the capital budget for the time being, and the House is waiting for them to reveal what is included in this bill. The House will still need to act on their version once it is passed over to them. Expect action on this budget late in the session. This is one of the key pieces for adjournment, and it is typically acted upon as one of the last items on the adjournment calendar.

The Senate Finance Committee is reviewing oil and gas issues at the present time, and no resolution has been reached. There is speculation of a special session or an extension of the current session to deal with this issue.

Special note: Now would be a good time to send letters of thanks to the co-chairs of the House and Senate Finance Committees for their support of the university. The university has fared very well this year thanks to the efforts of many active advocates and legislators who understood the importance of funding the requests; however, until the Governor signs the budget, everything is still in play.

March 23

Today marks the 67th day of session. There are 23 days remaining before adjournment on April 15. Legislators are focused on oil and gas tax structures, operating and capital budgets, and pushing towards adjournment holding many hearings to get through the large number of bills still outstanding. Once the session adjourns this year, all legislation not passed ‘dies’.

We are focused on the FY13 Operating and Capital budgets right now, and are pleased to see so many university advocates take an active part in public testimony opportunities, as well as submitting letters and emails of support for university budget items. Keep up the good work! This support makes the difference in the outcome of our budget appropriations for both capital and operating funds, and legislators take note of what they are hearing from their constituencies, especially in an important election year.

FY13 Capital Budget

The FY13 Capital Budget is also underway, and includes funding for 'tangible' items such as buildings, deferred maintenance and research funding. The Senate Finance Committee is currently in possession of this budget and is working on recommendations prior to sending it over to the House. The capital budget is typically used as 'trading stock' in the final adjournment package between the House and Senate, and is usually one of the last pieces of the adjournment package at the very end of the legislative session.

The Senate Finance Committee members are keeping their recommendations close to the chest for the moment, and encourage supporters to send in their letters of support regarding capital budget requests. This past Wednesday night, an overwhelming number of university supporters took time out of their busy lives to spend three hours waiting to testify to the Senate Finance Committee on FY13 capital budget items. Thank you for your efforts. These will pay off in many ways!

FY13 Operating Budget

We are pleased to announce the Senate Finance Committee has closed out the UA FY13 Operating Budget, and the results for the university are very positive.

Thanks to strong advocacy efforts statewide, the Senate Finance Committee members chose to accept the House Finance Committee recommendations for the upcoming years' operating budget, to include the Governor's recommendations of funding salary increases, fixed costs and the Honors Program at UAA and UAF, as well as the addition of many increments requested by the Board of Regents.

Here is what the FY13 operating budget process looks like to date:

• UA Board of Regents submit budget proposal – November 2011
• Governor submits recommendations to legislature – December 2011
• House Finance Committee/House Floor action on operating budget – February/March 2012
• Senate Finance Committee action – closeout March 22, 2012
• Senate Finance Committee public testimony – March 28 (see schedule below)
• Senate Finance Committee action – after public testimony
• Senate Floor action on FY13 Operating Budget – towards end of session
• Conference Committee action just before adjournment April 15

Senate Finance Committee FY13 Operating Budget recommendations to date:

House Budget: Governor’s recommendations plus $4.3 million in state support for the following program areas: improving graduation rates ($1.3 million); engineering retention ($400.0 thousand); health/bio-medical – nursing, vet-med ($939.9 thousand); workforce programs ($749.1 thousand); Alaska research ($300 thousand); and additional legislative priority programs ($590.0 thousand).

The Senate Finance Subcommittee’s (SFS) proposed budget for UA is an $8.0 million (general fund) increase, 2.3%, above the current fiscal year (before one-time item reversals). The proposed Senate Finance Committee budget is $4.9 million above the Governor's proposed amended budget and $.6 million above the House budget.

Senate Finance Subcommittee Proposed FY13 Operating Budget (PDF): House plus $580.6 thousand in state support for: UAA ISER- Alaska education policy research ($250.0 thousand); UAF indigenous studies PhD and Alaska native knowledge network ($250.0 thousand); and UAS honors program ($80.6 thousand).

Wednesday, March 28
Public Testimony - Senate Finance Committee re: FY13 Operating Budget

Note: This is the last opportunity to participate in public testimony on the FY13 Operating Budget. Funding in the operating budget includes salaries, fixed costs and program expenditures. 

Note testimony will be taken only from local legislative information offices at designated times – ‘Offnet’ option available only to participants without a legislative information office in their communities.

Special note: Two-minute time limit per person. Testimony will be closed 15 minutes early if there are no further testifiers.

FY13 State Operating Budget public testimony
Wednesday, March 28 at the following times/locations:

• 8:45 - 9:45 a.m. Juneau
• 10 - 10:45 a.m. Kenai, Valdez, Kodiak, Seward, Matsu, Glennallen, Tok,
• 1 - 2:15 p.m. Anchorage
• 2:30 - 3:30 p.m. Fairbanks
• 3:30 - 4:15 p.m. Ketchikan, Sitka, Wrangell, Petersburg, Homer, Dillingham,Cordova
• 4:30 - 5:15 p.m. Bethel, Kotzebue, Barrow, Nome, Delta Junction, Unalaska, Offnets

March 14, 2012

With five weeks left in the session, there is much activity in the capitol building.

The House Finance Committee passed out their version of the FY13 Operating Budget on March 13th and it’s good news for the university!

The House Finance Subcommittee on the UA Budget (a subcommittee of the whole) recommended the Governor’s numbers, meaning fixed costs, compliance issues and the Honors program funding to base. When the full committee met on March 13, Representative Anna Fairclough and Representative Bill Thomas offered a large amendment to include multiple agency amendments, including the following for UAF:

MAU  Program   GF $ Other $

Student Success 
UAF   Trio Program   $600,000 $273,200
UAF  National Guard tuition  $  80,000

Workforce Development
UAF  Vet Med   $200,000 $200,000
UAF  Early Childhood Ed  $144,000
UAF   CEM (Engineering)  $400,000  $400,000

Research
UAF  RAP   $300,000 $472,600

Other funding
UAF   CES 4-H/FFA  $250,000 $750,000

The FY13 operating budget is scheduled for House floor action on March 15 and will then head to the Senate Finance Committee where it will receive numerous hearings, including another opportunity for public testimony.

Many, many thanks to all those active advocates who took time to write letters, meet with legislators and attend the House Finance Committee’s public hearing on the operating budget. Your voice was heard, and it incentivized House Finance Committee members to vote for the UA amendments.

On the capital budget front, UA was on the schedule March 13 in the Senate Finance Committee. UA President Gamble presented the UA capital budget request to include the deferred maintenance request as well as the research requests.

UAA and UAF governance students came back to Juneau this week to encourage positive action on the UA FY13 operating budget. Confirmation hearings will take place for UA Student Regent Mari Frietag on March 16.

Several members of the UAF Alumni Board will be in Juneau from March 17 - 20 to advocate for UAF. Joe Hayes, Jim Dixon and Tania Clucas will also meet with the UAF Student Investment Fund leaders and attend their presentation to the House Labor & Commerce Committee on March 19.

Gwen Holdmann, Director of the Alaska Center for Energy and Power, will give a luncheon presentation March 20 in the state capitol to legislators and staff. She will be focusing on "Diversifying Alaska’s Economy through Applied Energy Resources" to give legislators an overview of UAF research in this area.

Please note: Expect to see another ‘call to action’ from the Senate Finance Committee within the next couple of weeks to support UA FY13 operating budget.

We appreciate all the hard work of our active advocates and encourage you to keep up the good work!

ALERT: ACTION NEEDED!

House Finance Committee announces public testimony on March 6-7 for FY13 Operating Budget

Date	Time	Location
Tuesday, March 6	1:30-2:30 p.m.	Juneau
	2:45-3:45 p.m.	Bethel, Kotzebue, Barrow, Nome, Delta Junction, Offnets
	4-5:15 p.m.	Anchorage
Wednesday, March 7	1:30-2:45 p.m.	Fairbanks
	3-4 p.m.	Sitka, Wrangell, Petersburg, Dillingham, Cordova, Unalaska
	4:15-5 p.m.	Homer, Kenai, Valdez, Ketchikan, Kodiak, Mat-Su, Glennallen, Tok, Seward

Legislative Information Office locations

UA FY13 operating budget:

The House Finance Subcommittee for the University has endorsied the Governor’s numbers to maintain a ‘hold the line’ budget for the FY13 UA operating budget.

However, Representative Fairclough has indicated there may possible amendments to include funding for student success initiatives, and a number of high-demand workforce programs including engineering and nursing in the Board of Regents’FY13 operating budget request. These amendments may be offered when the full budget comes before the House Finance Committee in mid-March.

These amendments have a better chance of making it into the University budget IF the House Finance Committee hears from supporters of the initiatives to back up their actions. This is where the public testimony becomes very important. Legislators keep a tally of how many individuals support the initiative, the names of those that testify and the compelling stories they hear.

The House Finance Committee will take public testimony on March 6 and 7.  Participants must go to their local legislative information office (LIO) to testify, and will have two minutes to make their case.   The Committee will close out the hearings if testimony has ended 15 minutes before the allotted time ends.

What do I say?

(Note: You will have two minutes to make your case)

• Identify yourself by giving your name and affiliation. If you know your House District even better!
• State why you are testifying.
• Pick two or three bullet points about the importance of the initiative.
• Then Tell Your Own Story!

What are the currently unfunded university   FY13 operating budget initiatives?
(See Pages 36-47 of FY13 UA BOR request book)

New Initiatives to Improve Graduation Rates 
These requests support UA’s responsibility during students “the 3 critical years”. They include supporting UA’s part in the joint effort for insuring college readiness and student success during their three key decision and high attrition years (last year of high school and year 1 and year 2 of college). Specific focus placed on improving retention, timely completion, removing student obstacles, establishing much better performance facts, and creating a common database for student decision making.

Funding to accommodate the growing demand for trained professional in the areas of Engineering, Health/Bio-Medical, Teacher Education, and Workforce Development continues to be a top priority for UA. Only through continued investment in these areas will we keep up with the State’s need. The alternatives are to recruit from outside or go without.

Alaska research, economic development, intellectual property
These requests support UA’s newly initiated efforts to create economic value from UA intellectual property commercialization and focused research.

FY13 budget status update as of February 27

FY13 operating budget:
The House Finance Subcommittee on the UA FY13 operating budget has "closed out" with their recommendations of supporting the Governor's recommendations. No amendments were added in this process. However, the full House Finance Committee may take amendments when they meet to deliberate on the full FY13 operating budget.

If you are interested in supporting an increment in the OPERATING BUDGET, now is the time to send in letters of support to all House Finance Committee members:

Representative Bill Stoltze (Chugiak)
Representative Bill Thomas (Haines)
Representative Anna Fairclough (Eagle River)
Representative Bryce Edgmon (Dilllingham)
Representative Reggie Joule (Kotzebue)
Representative Mark Neuman (MatSu)
Representative Tammie Wilson (North Pole)
Representative Mia Costello (South Anchorage)
Representative David Guttenberg (Fairbanks)
Representative Les Gara (East Anchorage)
Representatie Mike Doogan (West Anchorage)
Representative Mike Hawker (Alt.) (Anchorage Hillside)

Also note - the House Finance Committee will announce a statewide teleconference on the FY13 operating budget for March 6-7, and times will be posted when we are notified of specifics. This is a perfect opportunity for RAP advocates to provide their testimony for this program. The more students and supporters you can send on that day, the better!

FY13 capital budget status:

Although the operating budget is taking center stage in the Alaska House right now, work is quietly underway on the Senate side to input information on all capital budget priorities to include the requested projects, letters and resolutions of support and backup documentation. The Governor has recommended funding $37.5 million in deferred maintenance projects as part of his five-year pledge to address critical items in this category. 

The UA Board of Regents have also asked for an additional $50 million for renewal and repurposing funding, as well as $100 million to address the backlog of necessary repairs, maintenance, renewal and replacement projects for the university statewide.

Also key in the FY13 capital budget request are a number of UAF research projects to be considered, including a  $10 million request for energy projects (PDF), $2 million for an  Oil Spill Research Center (PDF) (with a potential $25 million competitive grant in the mix), and  $2.5 million for studies involving ocean acidification (PDF). The last two projects have been endorsed in the recent Alaska Northern Waters Task Force recommendations (PDF). Note that for every dollar of state general funds, UA can leverage an average of $5 of other funds in research project funding.

Here is a sample letter of support (PDF) for consideration. Use the fact sheets highlighted above to insert a few salient bullet points, and then give a paragraph about why you support the project in your own words.  Letters should be a page in length and addressed to:

Senator_Joe_Thomas@legis.state.ak.us

Letters of support DO MATTER, especially when written by 'outside' advocates.

February 13, 2012

Time to Gear UP!

Anchorage legislators are headed home on Saturday, Feb. 18 to hold a Town Hall meeting at the ZJ Loussac Public Library from 10 a.m. to noon.

A number of Interior Delegation legislators are also headed home, and have their Town Hall meeting on Sunday, February 19 at West Valley High School from 1 to 3 p.m.

House Finance Committee Statewide Teleconference on the FY13 operating budget – helpful tips to make it easy!

Within the next several weeks, the House Finance Committee will be calendaring their statewide teleconference on the FY13 operating budget.  This is a great opportunity to actively participate in the process. 

How does this teleconference work?
Notice will be posted on the legislative calendar as to the date and times the House Finance Committee will be taking public testimony on the FY13 operating budget.  Typically, time is allotted for Anchorage, Fairbanks, Juneau, rural and offnet sites throughout the day. The public is invited to attend these meetings at their local legislative information office where they will sign up to present their supportive testimony.  Once the committee receives the roster of speakers, they will call upon each person to come to the table to give a two-minute presentation.  And they are serious about this time constraint!

Note: We will send out a notice on our legislative update enewsletter as soon as the dates/times are posted.

What if I can’t make it to the hearing?
House Finance Committee members will also accept written testimony sent by email, US Postal Service or fax. It’s also a great idea to ‘cc’ your own legislators so they know what you are supporting.

Why is this hearing important?
Legislators WANT to hear from their constituents! They will be listening intently to take notes of what is said and what budget items have the most vocal support. The more people that show up to testify on the budget, the better, especially when it comes to the University.

What’s in the UA FY13 operating budget? (PDF)
The UA Board of Regents have addressed the most pressing funding requirements for the University, i.e. fixed costs, salary increases, and high priority program initiatives.  It is important to note here that the Governor has reviewed the UA Regents’ request, recommending funding of fixed costs, salary increases and the Honors Program.  No funding was provided for the high-priority program requests.

However, it is very appropriate to advocate for anything in the UA Regents’ FY13 operating request, and support is needed for any of the program requests to succeed. This opportunity to provide testimony is a very effective way of getting your messages to legislators. It is especially important for ‘outside’ advocates, that is, private citizens, students, alumni, business and industry leaders, and UA partners. 

This is a proven method of advocacy – in years gone by, legislators were swayed by passionate testimony for various programs, and funding was included in the final budgets. In fact, the more people that testify to promote a program, the better!

What UA Board of Regents’ FY13 operating budget program initiatives are not funded to date? (See BOR FY13 Operating Request details - PDF)

• New initiatives to improve graduation rates
  These requests support UA’s responsibility during students “the 3 critical years”. They include supporting UA’s part in the joint effort for insuring college readiness and student success during their three key decision and high attrition years (last year of high school and year 1 and year 2 of college). Specific focus placed on improving retention, timely completion, removing student obstacles, establishing much better performance facts, and creating a common database for student decision making.
• Response to state high-demand jobs
  Funding to accommodate the growing demand for trained professional in the areas of Engineering, Health/Bio-Medical, Teacher Education, and Workforce Development continues to be a top priority for UA. Only through continued investment in these areas will we keep up with the State’s need. The alternatives are to recruit from outside or go without.
• Alaska Research, Economic Development, Intellectual Property
  These requests support UA’s newly initiated efforts to create economic value from UA intellectual property commercialization and focused research.
  

What points should I cover during my testimony?
You will have two minutes to convey your message, so short bullet points are essential in this case. This hearing is on the operating budget only.

Note: Two opportunities will be provided for public testimony for capital budget (infrastructure and building) requests. The capital budget deliberations typically happen towards the end of session in late March/early April. 

You will be asked to identify yourself, including your name, affiliation, and legislative district. This will really get the legislators’ attention if they are at the table.

Legislators are not so much interested in the financial details of the budget request as they want to hear your own story. Tell them what program initiatives you are supporting and why – what will this provide to the state, to Alaskans, to enhance workforce development, student achievements, etc. What will happen if the initiative is not funded?

At the end of your short testimony, make sure to thank the legislators for their time and ask them for their support of your request.

Who are the House Finance Committee members?

Representative Bill Stoltze (Chugiak)
Representative Bill Thomas (Haines)
Representative Anna Fairclough (Eagle River)
Representative Bryce Edgmon (Dilllingham)
Representative Reggie Joule (Kotzebue)
Representative Mark Neuman (MatSu)
Representative Tammie Wilson (North Pole)
Representative Mia Costello (South Anchorage)
Representative David Guttenberg (Fairbanks)
Representative Les Gara (East Anchorage)
Representatie Mike Doogan (West Anchorage)
Representative Mike Hawker (Alt.) (Anchorage Hillside)

What’s happening on the Hill? 

All three Chancellors have been invited by Senator Johnny Ellis to present to the UA Boosters Caucus on Feb. 28 to discuss collaborative and cooperative efforts between campuses. The Chancellors will also be presenting to the Juneau Downtown Rotary on the same date. This hearing may be available on Gavel or Gavel or Alaska Legislative TV.

The UA Board of Regents will be meeting in Fairbanks on February 15 and 16.  Public testimony will be taken on both days from 10 am to 11 am. Testimony is taken in-person only. During this meeting, a ribbon-cutting event will take place for the new ACEP Lab Modules. Senator Lesil McGuire is expected to make a few remarks at this ceremony.

Governor’s Cup Hockey! February 24 in Anchorage and February 25 in Fairbanks.  Come cheer on UAA or UAF in this final tournament of the season.

February 8, 2012

There are less than 70 days left to go in this legislative session, and the House Finance Committee has been working steadily in their subcommittees to focus on agency and university FY13 operating budget details.

The University has been especially busy these past couple of weeks providing information to the House Finance Subcommittee on the UA Budget, and UA President Gamble has made three presentations to date covering the high level view of mission and goals, research, distance education, and various topics regarding the university. More budget hearings are scheduled before the

House Finance Committee finalizes their recommendations in late February.

Typically, the Senate Finance Committee usually does not formally start working on this budget until it is passed out of the House. However, due to the shortened session and many issues on the table, the Senate Finance Committee will most likely try to get some work done ahead of schedule in order to meet the end-of-session deadlines.

What’s at stake?

The Governor submitted his FY13 operating and capital budgets to the legislature on December 15.  He is focusing on a ‘hold the line’ budget, and little else. He included salary increases and fixed cost increases in the UA FY13 operating budget, but chose not to include any of the high priority program increments from the Board of Regents request (PDF). These include:

• New initiatives to improve graduation rates
  These requests support UA’s responsibility during students “the 3 critical years”. They include supporting UA’s part in the joint effort for insuring college readiness and student success during their three key decision and high attrition years (last year of high school and year 1 and year 2 of college). Specific focus placed on improving retention, timely completion, removing student obstacles, establishing much better performance facts, and creating a common database for student decision making.
• Response to State High-Demand Jobs in Engineering, Health/Bio-Medical, Teacher Education, and Workforce Development
  Funding to accommodate the growing demand for trained professional in the areas of Engineering, Health/Bio-Medical, Teacher Education, and Workforce Development continues to be a top priority for UA. Only through continued investment in these areas will we keep up with the State’s need. The alternatives are to recruit from Outside or go without.
• Alaska research, economic development, intellectual property
  These requests support UA’s newly initiated efforts to create economic value from UA intellectual property commercialization and focused research

Capital Budget:

The Governor included $37.5 million in his FY13 capital budget for UA deferred maintenance to continue his pledge to start to address the backlog of necessary repairs, maintenance and renewal of UA facilities.  The university building inventory is about 37.5% of all state buildings..

Missing in this request are research projects designed to provide Alaska with answers to energy solutions, oil spill recovery in Arctic environments and ocean acidification studies in the Bering and Chukchi Seas. This includes:

Research for Alaska

• UAF Partnership to Develop Statewide Energy Solutions (PDF)
  The University of Alaska Fairbanks has significant capabilities to assist the State of Alaska, Alaska communities, and Alaska industries in making informed decisions about energy technology, analysis, and development. The University of Alaska Fairbanks can serve as a neutral information broker to impartially assess a wide range of potential energy options from numerous perspectives.
• UAF Effective Arctic Oil Spill Response (PDF)
  On April 20, 2010, the Deepwater Horizon exploded and sank in the Gulf of Mexico. The resulting well-blowout flowed for nearly 4 months and resulted in one of the largest manmade oil spills everon Earth. Given the huge offshore circum-arctic resource potential, oil development in the Arctic is a critical issue for the US and Alaska. Many of the difficulties associated with offshore development are intensified by the Arctic environment, and have not been studied as much as development in more temperate zones. UAF is uniquely situated to create a center focused on oil spill prevention and preparedness in the Arctic that would fill existing gaps in arctic knowledge and technology.
• UAF Assessing the Impacts of Ocean Acidification on Alaska’s Fisheries (PDF)
  Rapid and significant changes are occurring in the ocean waters surrounding Alaska that will affect our fisheries. One major change is the increased ocean acidification (OA). Currently, there are a number of independent studies (some inside of Alaska and others are being done national and internationally) that are working to better understand the impacts of OA to specific organisms and ecosystems. The modeling effort will require a multidisciplinary, highly integrative approach in order to accurately assess the impacts of OA in Alaska.

Call to action:

Now is a good time to contact all House Finance Committee members (PDF) and voice your support for items you feel are important in the Regents’ request. All three areas of focus listed above resonate with legislators; however, they need the encouragement and support of their constituency to even consider including them in the budget mix.

A sample template has been created for easy use, providing you with some bullet points regarding the budget and it gives you specifics about what legislators want to hear. Speak from experience and share your stories with them.  Make sure to send copies of your letters to your own legislators.

What’s happening on the Hill?

UA Student Governance leaders met in Juneau last weekend to attend their annual legislative conference to learn about the legislative process, participate in round-table discussions with legislators (thank you Interior Delegation for spending your Saturday afternoon with our students!) and focus on two days of meetings with legislators in the state capitol.  The UAF Alumni Association, along with counterparts from UAA and UAS also treated the students and legislators and staff to an annual ice cream social in the Speaker’s Chambers.

Right now, the issue of oil and gas taxes is front and center on the legislators’ agenda, and this issue will dominate the session for the most part. Education funding (K-12) is also being discussed.

Legislation:

The House and Senate have passed out their respective versions of the military training credits legislation, and it appears one of these bills will most likely pass in the near future. HB 148 passed out of the House by a 40-0 vote, and SB 150 moved out of the Senate by a vote of 19-1.  Senator Huggins opposition vote was because of the effective date of the bill – he wants it to take effect immediately.

UA Research:

The Northern Waters Task Force just completed their report of their recommendations based on their meetings held all over the state during the interim.  As part of their report, they recommend a university oil spill research center, studies on fisheries issues and Arctic waters, transportation and marine ecosystems.  Lots of great recommendations to support UAF research!

UAF Vice Chancellor for Research Services Mark Myers and Dan White, Director of UAF INE and OIPC gave a ‘lunch and learn’ presentation to members and staff of the legislature to give them an overview of the research presently in place and future possibilities for research specifically focused on climate change, oil spill recovery, ocean acidification and intellectual property expansion.

See Gavel to Gavel and the Alaska Legislature TV to view live and archived committee hearings during the session.

January 2012

The Alaska State Legislature gaveled into session on January 17 and are now working towards an April 15 adjournment date to comply with the 90-day session limit.

We will be posting regular updates on this website as well as sharing links and information in our new enewsletters that will be sent to our UAF Alumni members and friends. Be sure to bookmark this page for easy reference.

This promises to be a very interesting session with issues ranging from energy cost relief, oil and gas tax amendments to operating and capital budgets and the looming election season ahead.

Already the House Finance Committee is working on its review of the Governor’s FY13 operating budget.   UA President Gamble will be making his introductory overview on the FY13 Board of Regents request (PDF) on February 1 and 2 to the House Finance Subcommittee for the UA Budget (consisting of all members of the House Finance Committee ) and future hearings are scheduled for this purpose on February 14 and 16.   These hearings may be televised on “ Gavel to Gavel ”.   Operating budget closeout hearings will be posted in late February.

There will be a number of great opportunities to actively advocate for your issues throughout the session.   The first one on the operating budget will probably fall around the last week in February or first week in March so stay tuned to this website for updates and more information in this regard.

Thank you for all you do for the University of Alaska!

Summary of the 2010 legislative session results

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

$400,000 for SE campus mining machinery simulators

Also receipt authority for:

• $20.6 million for receipt authority for Life Sciences Facility
• $15.0 million for receipt authority for UA

Note: The capital budget does not contain any general fund dollars for the Life Sciences Facility, the Regents' only new construction priority. Instead, this project, along with a number of other UA projects in certain legislative districts, is being funded with a State General Obligation (GO) bond package to be placed on the November general election ballot for voter consideration, in SB 230 and HB 424. These bills include:

$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)

April 13, 2010

FY11 Operating Budget
The Conference Committee finalized the FY11 state operating budget yesterday afternoon with a few open items yet to be determined. The six members consist of: Senators Hoffman, Stedman and Thomas, and Representatives Hawker, Stoltze and Gara.

The Conference Committee has been given limited powers, meaning the only items open for discussion were those that differed between the House and Senate. The committee and accepted the Senate numbers for the open items on the UA budget. The only number from the House budget was the ANSEP piece ($940,000 to the Dept. of Education for K-12 bridging.) (See UA Budget )They accepted the intent language from the House, kept the seven appropriations, and included the 3% transfer of funds to the BOR for more flexibility.

Once the few open items are resolved, the House and the Senate will approve the Conference Committee version on both floors before adjournment. It will then be sent to the Governor for consideration.

FY11 Capital Budget
Now the focus is on the FY11 capital budget.  It’s complicated. Bottom line is the Life Sciences Facility may be funded with a number of funding sources, including a general obligation bond, a university revenue bond, and general fund dollars. As of April 12, the House passed a $397.2 million GO bond bill to include $207 million for UA, including full funding of the Life Sciences Facility at $88 million, as well as several UA building projects, including:

$88.0 million Life Sciences Facility
$60.0 million UAA community arena and athletic facility
$14.5 million Kenai campus housing and technical education
$16.0 million Kenai campus 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

Although the House Finance Committee noted intent to fund the Life Sciences Facility and UAA Sports Facility with some cash, the actions on the House Floor would indicate funding will come from the GO bonds. Total capital spending could be over $2.8 billion when the actions are finalized. Note there is currently $12.2 billion in state savings account.

The Senate has been holding onto the FY11 capital budget (SB 230), which includes over $2.2 billion in spending. The University projects funded with general fund dollars include $37.5M for deferred maintenance, $1.4M for community campus planning, and $5M for the UAA Engineering facility planning. Also included is $20.6M (UA revenue bond) for the Life Sciences Facility, $15M in receipt authority.

Bottom line on UA capital projects: It’s not over until the legislature adjourns.

Pending legislation
A number of bills are working their way through the committee process, and committees are now working through the early hours of the evening and weekend to get the hearings completed before the legislature adjourns April 18th. Any bill not acted on by both bodies and passed, will die on April 18th at midnight.

GPS – Probably will not pass this year, and the Department of Education will continue to work through the issues in this regard. However, SB 174 would include 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 has made its way over to the House Finance Committee and it looks like there is still time for passage. The House version (HB 367) has already had a number of hearings on the House side.

March 30, 2010

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.

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:

• $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

The Subcommittee also amended the House intent language to direct UA to move to a long-term goal of providing a higher ratio of other funding to balance state general funds (125 general fund to 100 percent other funds).

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)

Weeks of February 14-27, 2010

FY11 Operating Budget
The House Finance Subcommittee closed out the university's FY11 operating budget request this past week, cutting the Governor's budget by $2.3 million. The amended budget does not support additional energy costs borne by UAF due to weather and energy cost increases, nor does it support a request to fund new costs associated with two new facilities, (the Integrated Science Facility in Anchorage, and the additional cost to UAF now that the State Virology Building is on line.) In addition, the members considered a future funding formula to fund the operating budget based on state general fund support as a percentage of the total funds the university raises elsewhere.

Happenings:
UA Student Governance Coalition members met in Juneau this past week to learn about the legislative process and meet with legislators on issues important to their membership, including needs-based funding for students. Many of the students learned about the process the hard way as they flew throughout Alaska and Seattle trying to land in Juneau during a very foggy weekend. Needless to say, not all made it into the capital city, and some have plans to try again. Those members that did make it into Juneau were able to meet with many legislators and staff, and met with the UA Boosters Caucus, as well as UAF Chancellor Rogers and Dept. of Education Commissioner Larry LeDoux. Kudos to all the students who participated – in and out of Juneau!

Special Note:
The House Finance Committee has posted times and locations for their only statewide teleconference on the FY11 state operating budget March 2nd and 3rd. This is your opportunity to tell the legislators what is important to you about the university budget in terms of programs, research, outreach, and higher education in Alaska.

What to expect in the next few weeks:
Many members of the legislature will be traveling to Washington DC to attend the annual Energy Council meetings, so expect committee hearings and floor sessions to be in recess until March 9th. Once they get back, the House will be in full gear to pass the FY11 state operating budget, and the Senate is already having subcommittee hearings on the same subject, with the intent to get their version of the budget on the Senate floor by March 22nd or so.

The UAF Alumni Association will be in Juneau March 21-23 to meet with legislators and staff about issues important to the organization, including the Life Sciences Facility, deferred maintenance funding, and legislation dealing with education tax credits, and the Governor's Performance Scholarship program.

Also note that when the operating budget deliberations are being finalized, the capital project budgets will be under discussion. While it is typical not to see the results until the very end of session, it's not too early to send in letters of support for Life Sciences, and deferred maintenance at UA. The session ends April 19, 2010.