The Capitol Report from Feb. 27, 2015
March 4, 2015
UA associate vice president
Today is the 39th day of the legislative session.
As previously reported, the governor and the legislature are considering unprecedented cuts in the state operating budget for FY16, and the assumption is that cuts will probably be made in subsequent years as well. The steep decline in oil revenues this year, coupled with the long-term reduction in oil production, has pushed the estimated deficit for the current fiscal year (FY15) to $3.6 billion. The deficit in FY16 may be as large if circumstances do not change.
Governor Bill Walker submitted an FY16 operating budget to the legislature that proposed non-formula cuts to state agencies that averaged 6.5 percent. The governor鈥檚 proposed cut for the university was only 2.5 percent. The governor believes that higher education, research, and workforce development are essential to Alaska鈥檚 well-being, and that the state needs to maintain a strong university system during this economic downturn and beyond.
The governor鈥檚 proposal would make a net reduction to UA鈥檚 operating budget of around $9.3 million. Note that UA would also have to absorb about $26
million in fixed cost increases for things like salaries, utilities, and new facility operating costs. The legislature doesn鈥檛 call it a 鈥渂udget cut鈥 when it declines to fund these cost increases, but regardless of what they鈥檙e called, UA has to pay for these new costs by reducing spending elsewhere or by increasing revenue.
Unfortunately, UA鈥檚 House Budget Subcommittee, chaired by Rep. Tammie Wilson of North Pole, has proposed cutting far more from UA鈥檚 budget than
Gov. Walker.
The proposal that Rep. Wilson originally presented to her subcommittee members was for a cut of more than $53 million in state funds. Some members were concerned with the sheer magnitude of that reduction, and the subcommittee finally sent a compromise proposal to the House Finance Committee that would cut UA鈥檚 budget by about $35 million. This is a cut of almost 10 percent, not counting the $26 million in fixed cost increases that UA must pay for by reallocating existing resources or raising new revenues. While the regents would have the final say as to how these cuts would be spread around the system, the subcommittee suggested significant personal and contractual services cuts to each main campus and community campus, as well as cuts to travel budgets (50 percent at the main campuses) that would cripple programs, particularly intercollegiate athletics. The subcommittee also made a specific cut to the advising program that has had such success in improving graduation rates. Finally, the subcommittee recommended a 20 percent reduction in personal services and a $500,000 cut in travel for Statewide. Remember, the reduction recommended by the subcommittee follows the 4.5 percent budget cut that UA received last year.
These proposed reductions will be debated by the full House Finance Committee during the week of March 9, when the committee is tentatively scheduled to adopt its version of the state鈥檚 FY16 operating budget. Our job in the next week is to let House members know that we think the subcommittee鈥檚 proposal goes too far in one year. We know that the state is in difficult financial circumstances, and we understand the need to reduce the budget. We believe that more gradual cuts over several years, as proposed by the governor, will enable us to continue contributing in a meaningful way to what will help lead the state out of its current fiscal situation. UA cannot absorb a cut of this magnitude in a single year without serious, long-term impairment of the system. That means harm to students, to employers, to faculty and staff, and to Alaska鈥檚 economy.
There are two effective things that you can do in the next week: testify during the public hearings, or contact House members via email or telephone. There is also an additional opportunity this weekend for advocates who live in Anchorage.
First, the House Finance Committee is going to take statewide public testimony on the operating budget at local Legislative Information Offices on Tuesday, March 3, Wednesday, March 4, and Thursday, March 5. This is the annual opportunity for advocates to have their voices heard. There have been years when more UA advocates offered testimony than did advocates for any other entity or program. This is the year that we need that kind of turnout.
You will have only two minutes to convey your message. You will be asked to identify yourself, including your name, affiliation, and legislative district. The latter gets your legislator鈥檚 attention if he or she is at the table. You should thank them for their past support of the university.
Legislators are not so much interested in the financial details of the budget request as they are to hear your story. Tell them why UA is important to you or why it is important to the state. Talk about personal experiences that demonstrate the value of a program. Tell them what your future plans are and how the university will help you accomplish them. Let them know why you think a budget closer to the governor鈥檚 number is in the best interest of the state.
If you feel comfortable talking more about this, feel free to mention the improvements we鈥檝e seen in metrics measuring student attainment and achievement; the federal research dollars we are attracting; the national and international recognition and engagement on matters related to the Arctic and its potential; and the partnerships we are forging with current industries and those looking to expand their presence in Alaska. To learn more about this, read the memo and backup materials that were sent by President Gamble in response to Gov. Walker鈥檚 call for state agencies and the university to submit budget adjustments reflecting possible 5 percent and 8 percent reduction scenarios. It provides context on what we have done and will continue to do to manage budget challenges and provides a sample of some of our recent achievements. At the same time, it acknowledges the critical work ahead to ensure that we maintain a strong university by preserving our core. You can find links to the memo and backup documents on this webpage:
. Look under 鈥淔Y2016 Budget Information.鈥
At the end of your testimony, be sure to thank the legislators for their time and ask for their continued support.
You can find the location of your local Legislative Information Office at this link: .
Here is the schedule for public testimony:
1鈥3:30 p.m.* Juneau
3:30鈥5:30 p.m.* Homer, Kenai, Ketchikan, Kodiak, Mat-Su and Seward
Wednesday, March 4
1鈥4 p.m.* Barrow, Dillingham and Fairbanks
4鈥 5:30 p.m.* Bethel, Cordova, Kotzebue, Nome, Valdez, Wrangell and **Off
Net sites
Thursday, March 5
1鈥4:30 p.m.* Anchorage
4:30 鈥 6 p.m.* Sitka, Petersburg, Delta Junction, Unalaska, Glennallen
and Tok
Public testimony is limited to 2 minutes each. Please arrive 15 minutes prior to the end of the allotted time period or testimony will close early. If you are a member of a group with the same message, in the interest of time, please select a spokesperson to testify for the entire group.
**If you are calling from a community without a legislative information office, i.e., an 鈥淥ff Net鈥 caller, only call during the designated Off Net time period on Wednesday. Please call 465-4648 by 5:00pm on Monday to obtain the call-in phone number.
*If you live in a community with a legislative information office, but are unable to access it during the specified time period, you may send your written testimony to the House Finance Committee via lhscfin@akleg.gov.
Please try to arrive 15 minutes early to expedite the sign-in process.
House Finance Committee members and alternate members are listed below. Note that an email link is on each member鈥檚 webpage, if you wish to contact
one or more of them directly, instead of or in addition to offering testimony at the hearings. The email link in the preceding paragraph (lhscfin@akleg.gov) can be used to provide written public testimony that will be given to all the members during the meetings.
Representative Mark Neuman, Co-Chair, (R) Big Lake
Representative Steve Thompson, Co-Chair, (R) Fairbanks
Representative Bryce Edgmon, (D) Dillingham
Represenative Lynn Gattis, (R) Wasilla
Representative Cathy Munoz, (R) Juneau
Representative Lance Pruitt, (R) Anchorage
Representative Dan Saddler, (R) Eagle River
Representative Tammie Wilson, (R) North Pole
Representative Les Gara, (D) Anchorage (minority member)
Representative David Guttenberg, (D) Fairbanks (minority member)
Representative Scott Kawasaki, (D) Fairbanks (minority member)
Representative Mike Hawker, (R) Anchorage (alternate member)
The second thing that you can do is contact the House member who represents you, whether or not that person is a member of the Finance Committee, and let them know how you feel. Those members will make their views known to their Finance Committee colleagues during caucuses on the budget. If you don鈥檛 know which House member represents you, you can find out on this webpage: .
You can find email links for House members here: .
The third thing that Anchorage advocates can do is testify at the Anchorage Legislative Caucus public hearing in the Loussac Library Assembly Chambers. The hearing will be held Saturday, Feb. 28, from 1-5 p.m. The Anchorage Legislative Caucus is a bipartisan group made up of all Anchorage
legislators, and they want to hear about any issue that concerns you, including the UA budget.
Once it is finished with public testimony, the House Finance Committee will take the comments it received under consideration and close out the state
operating budget around March 10. Shortly thereafter, the operating budget will be sent to the full House for a vote.
After the budget passes the House, we will do this all over again in the Senate, and then the House and Senate versions of the budget will be reconciled in a conference committee. The Senate has not yet started its work on the UA operating budget, and we will let you know when it does.
Thank you for all your work to promote and support the University of Alaska!
For more information, contact Associate Vice President Chris Christensen at cschristenseniii@alaska.edu or visit .