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Chancellor's Budget Update: Nov. 20, 2024

ÐÔÓûÉç hosted the annual Chancellor’s Forum on the Budget on Oct. 29. At the forum, Vice Chancellor Julie Queen, Vice Chancellor Owen Guthrie, and Director of Office of Management and Budget Briana Walters gave updates on the FY25 budget outcomes, the current FY26 budget status, FY27 funding opportunities, and proposed tuition rate changes for fall 2025. If you were unable to attend, a recording of the event is available on the The following is an update of the topics discussed at the forum, outcomes from the recent Board of Regents meeting, and additional information about the budget process.

ÐÔÓûÉç FY26 State Budget Request

The UA Board of Regents met in Fairbanks earlier this month and UA recently communicated and Some highlights of the request are detailed below.

Operating Budget

Employee Compensation and Fixed Costs

The University of Alaska System submitted a compensation request that includes increases for employee groups as included in collective bargaining agreements, and a 2.75% wage increase for unrepresented staff. Faculty contracts (United Academics or UNAC and United Academics Adjunct or UNAD) expire in FY25, and negotiations for FY26 are in progress. Once a tentative agreement has been reached with each group, a state funding request will be made through the appropriate legislative process. Updates on the negotiations .

UA-wide fixed cost increases are also included to help ÐÔÓûÉç with the rising costs of existing infrastructure requirements (e.g. utilities costs, maintenance and repair), and contractual services (e.g. IT software annual cost increases, custodial services).

Enrollment and Economic Growth

In addition to compensation and fixed costs needs, a $2.5 million operating budget was approved to help ÐÔÓûÉç with essential recruitment and retention initiatives as well as for graduation support and economic development for Alaska. Specifically, this includes funding to support strategic enrollment marketing, scholarships, student advising support, enrollment initiatives in new or growing target markets, technology enhancement, and campus safety.Ìý

Athletics

The BoR also approved a $2.5 million initiative to enhance ÐÔÓûÉç’s competitiveness and excellence in Nanook Athletics. This request ensures a stable operating base for the Athletics program and continued gender equity with scholarships. ÐÔÓûÉç will continue to earn revenue through the Athletics program, seek and strengthen corporate partnerships and sponsorships, and expand Name Image Likeness opportunities for student-athletes. This approval was coupled with a $2.5 million initiative for UAA Athletics.

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Capital Budget

In the capital budget, the BoR approved ÐÔÓûÉç requests of:

• $18 million for Seward Marine Center infrastructure and shore side ship support (pending a National Science Foundation award for a new dock for the Sikuliaq);

• $7.5 million of continuation funding to support our goal of achieving R1 Research status;

• $14 million for Year 4 of the ÐÔÓûÉç Drone Program;

• $10 million for energy transitions, carbon monitoring and research compliance;

• $5 million for agriculture and food systems security research; and

• receipt authority to address increased non-state revenue generation.

In addition, UA will continue to pursue a deferred maintenance and modernization strategy with the legislature and Governor to ensure our facilities help support ÐÔÓûÉç’s enrollment goals and modern student needs.

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Operating and capital requests will go forward to the Governor for consideration, and the Governor will release his initial budget in mid-December. The legislative session begins in January and typically concludes in late spring. The final budget is typically released in May or June.

Tuition Rate Changes Effective Fall 2025

UA proposed modest increases of 3 percent across the board to all resident tuition rates and 5 percent to nonresident rates. The BoR approved the rates at their November meeting. These rate increases are effective Fall 2025. ÐÔÓûÉç continues to focus on increasing financial aid and scholarships available for students.

Get Involved

Budget planning for FY27 has begun. FY27 begins July 1, 2026, and ends June 30, 2027. The Planning and Budget Committee, co-chaired by Vice Chancellor Queen and Provost Anupma Prakash, plays a pivotal role in shaping our budget. The PBC is composed of representatives from across ÐÔÓûÉç, including Governance delegates. This committee reviews proposals for future state funding requests, evaluates recommendations from Strategic Enrollment Planning teams, and considers tuition rate changes in a budget context. The committee then recommends funding for well-developed proposals with a high return on investment to the Chancellor for consideration. An RFP for FY27 budget requests has been issued, kicking-off planning for the next state budget cycle.Ìý

Strategic Enrollment Planning, chaired by Vice Chancellor Guthrie, is in its seventh year. SEP has been instrumental in shaping the trajectory of our institution, and your contributions have played a crucial role in its success. Faculty and staff are invited to focused on increasing student enrollment, retention and student success.Ìý

Both PBC and SEP proposals must demonstrate strong return on investment and are due January 31, 2025.

As a ÐÔÓûÉç employee and community member, there are many ways to get involved in our budget process. Advocacy tools and tips, including sample advocacy letters and ÐÔÓûÉç points of pride can be found on the Chancellor’s website. The UA Office of Government Relations website also has information for individuals who want to As an advocate, the most important thing is to tell your story and share why ÐÔÓûÉç matters to you.

Thanks for choosing ÐÔÓûÉç.

— Dan White, chancellor