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)