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Office of Strategy, Planning and Budget
PO BOX 755260
2025 Yukon Drive Ste. 202
Fairbanks, AK 99775-5260
Michelle Rizk
Vice President UA Relations
(907) 450-8187
(907) 450-8012 fax
To: Chancellors White, Caulfield, and Gingerich
Provosts Henrichs, Carey, and Stalvey (Interim)
Vice Chancellors Burrell, Ciri, and Shuford
Chief Finance Officer Dosch
Vice President Layer
From: Michelle Rizk, Vice President UA Relations
Date: 7/03/18
Re: FY19 UA Authorized Budget and Budget Principles
The FY19 Operating Budget Distribution Plan approved by the Board of Regents can be found at
http://www.alaska.edu/swbudget/budget_planning/ . The FY19 budget principles included in the
distribution are as follows:
Compensation Distribution
There are no compensation increases included in the FY19 operating budget. Negotiated
contracts include:
o Local 6070: contract ends December 31, 2018;
o Fairbanks Firefighters: contract ends June 30, 2020;
o United Academic Adjuncts (UNAD): contract ends February 28, 2020; and
o United Academics (UAFT merged into UNAC effective May 13, 2018): contract ends
December 31, 2019.
The UA Human Resources department is facilitating a total compensation review and pay equity
analysis for competitiveness, equity and retention. Results of this initiative are expected to be
available in fall 2018.
Strategic Investments
As part of the FY19 budget, the universities should preserve the intent of prior Strategic
Investments (FY17 $17.5M and FY18 $6M). In FY19 Strategic Investments are funded with $5
million of general funds and $4 million from a pool of funds established to fund priority
investments over the next three years. Strategic Investment Pool details and accounting process
can be found in Appendix A.
The FY19 $9 million strategic investment increment is directed to initiatives that support UA
performance goals and measures. As part of the FY20 budget development process, please be
P a g e | 2
prepared to provide the anticipated impacts on performance measures from your FY19
strategic investments (a worksheet will be provided).
Distribution from the Strategic Investment Pool includes a multi-year commitment to allocating
funds to the Occupational Endorsement and Certificate tuition-discounting initiative. Each
university will be responsible for further distribution of funds to impacted units (see Appendix
B).
UA made a 5-year commitment to the Education Advisory Board (EAB). The FY19 distribution
includes base funding to cover the annual service fee for the EAB contract (see Appendix C).
FY19 represents the 2nd year of a 3-year commitment to the following Strategic Investment
areas:
o Research ($1.8 million)
UA will grow research capacity for academic excellence, and to leverage additional
funds. Funding for this investment area is from Statewide Services’ unreserved fund
balance. Please submit by August 17th, an expenditure plan for your allocation of
Research funding to CFO Dosch.
o Process Improvement/Automation ($1.1 million)
An investment of $1.1 million annually over the three years (FY18-FY20) will be made
from the Statewide working capital fund to integrate and automate back office systems to
improve service, reduce long-term costs, and provide system-wide benefits. The
Business Council is tasked with identifying viable projects and will send a request
for proposals to the following areas in early FY19: Information Technology
Institutional Research
Human Resources
Finance
Student Services
Facilities Maintenance
The capital budget passed by the Legislature (SB142) includes $2 million in deferred
maintenance (DM)/renewal & repurposing (R&R) funding for UA. UA will receive an additional
$3 million of a separate $20 million appropriation directed to the Governor’s Office to address
public facilities deferred maintenance across the state (see Appendix D).
This is the same level of state funding UA received in FY18. Therefore, of the $10 million
reallocated to facilities maintenance in FY17, the campuses may continue to allocate $5 million
to Strategic Investment areas in FY19 (see Appendix E). In order to establish reporting
consistency for facility maintenance expenditures, the Facilities Council (a subgroup of the
Business Council) is working on criteria to guide future financial management reporting.
As the pace of capital appropriation spending will continue to be the focus of attention, please be
prepared to provide a plan for spending prior capital appropriations.
P a g e | 3
Legislative Intent Language
The Statewide office of Strategy, Planning and Budget will compile and submit the required
information on behalf of the University.
(1) “It is the Intent of the Legislature that the University of Alaska continue to pursue the
goals of the Strategic Pathways process to take the greatest advantage of each campus’
strengths, minimize redundancies, eliminate underutilized and/or under resourced
programs, expand student access to programs across the system, maximize utilization of
facilities, streamline administrative processes, and create a stronger, more focused, and
efficient system overall.”
(2) “It is the Intent of the Legislature that the University of Alaska maximize, consistent with
the terms of its collective bargaining agreements, the teaching and research capability of
the University workforce and enable the University to serve the most students at current
staffing levels.”
(3) “It is the Intent of the Legislature that the University of Alaska emphasize the importance
of maintaining and extending its position as the leader in Arctic related research, and to
contribute to Alaska’s economic development, provide Alaska with a skilled workforce,
and increase degree completions.”
If you have any questions or concerns, please feel free to contact me.
cc: Thorngren, Braniff, Theis, Queen, Walters, Vigil, Carlson, Prakash, Sandeen
Appendix A
June 15, 2018
Process for Strategic Investment Funding Pool
Per Board of Regent FY19 budget approval on May 31, 2018, a Strategic Investment Funding Pool (Fund)
was created. The Fund will start with a beginning balance of $11.4m, and distributions from the Fund
will be $4m, $4m and $3.4m, in FY19, FY20 and FY21, respectively. Distributions from the Fund are for
Strategic Investments as identified by the President.
UAA UAF UAS SW/UA Total Pool Contributions FY19 Staff Benefit Adjustment $2,439.8 $2,642.4 $ 509.0 $ 408.8 $ 6,000.0 UA Scholars Reserve Adjustment $4,600.0 $ 4,600.0 Natural Resources Fund $ 300.0 $ 300.0 Statewide Unreserved Fund Balance $ 500.0 $ 500.0
FY19 Pool Contribution $2,439.8 $2,642.4 $ 509.0 $5,808.8 $11,400.0
Pool Distributions FY19 $1,660.5 $2,083.5 $256.0 $ 4,000.0 FY20 $1,660.5 $2,083.5 $256.0 $ 4,000.0 FY21 $1,411.4 $1,771.0 $217.6 $ 3,400.0
Total Pool Distributions $4,732.0 $5,938.4 $729.6 $0.0 $11,400.0
The following represents the accounting and budget process for the Fund.
1. The Fund will use fund # 101032.
2. As soon as practical in FY19, each university will transfer the following amounts of staff benefit
savings to the following funds using account code 8453:
UAF 103014 $2,642,400
UAA 104115 $2,439,800
UAS 105015 $509,000
SW 101032 $408,800
3. As soon as practical in FY19, Statewide Fund Accounting will write JV’s to transfer the UA
Scholars Reserve, the FY18 Natural Resources Fund and Statewide Fund balance components to
fund 101032. They will also process a JV to clear the respective university staff benefit holding
funds (see above) and place those amounts in 101032 using account code 8453.
4. After the Fund has a fund balance of $11.4m, Statewide Fund Accounting will process a JV to
distribute $4m as authorized by the Board/President (see above). The Universities will need to
provide a receiving fund/org.
5. In FY20 and FY21, Statewide Fund Accounting will process a JV to distribute from the Fund as
directed by the Board/President.
Prepared by: Myron Dosch
University of Alaska System
Academic Affairs and Research
202 Butrovich Building
P.O. Box 755000
Fairbanks, Alaska 99775-5000
Phone: (907) 450-8019
Fax: (907) 450-8002
www.alaska.edu/research/
MEMORANDUM
Date: March 15, 2018
To: Samuel Gingerich, Interim UAA Chancellor Daniel White, UAF Chancellor Richard Caulfield, UAS Chancellor
From: Paul Layer, SW Interim Vice President for Academic and Student Affairs
RE: Occupational Endorsement 25% Tuition Discount
Effective this fall semester, the University of Alaska (UA) will reduce tuition rates by 25
percent in selected Career and Technical Education (CTE) programs. While UA’s tuition is
low compared to peers and to other universities in the western states, UA recognizes
that its tuition for certain Career and Technical Education (CTE) programs is high. The
discount is being offered in order to provide some relief to students taking courses in
selected CTE programs, grow enrollment, increase degree completion, and meet the
state’s workforce needs. The decision to implement the discount was made following
consideration and discussion by the Summit Team, and with concurrence of the Board
of Regents.
The University of Alaska Anchorage, University of Alaska Fairbanks and University of
Alaska Southeast each identified the courses and programs that would qualify for the 25
percent discount recognizing that for many of these courses, students may not be
enrolled in an Occupational Endorsement Certificate (OEC) program. However, students
can elect to take these courses as non-degree seeking students or as part of their
Certificate, Associate, or other degree programs.
The discount or tuition reduction of 25 percent will be applied on a course-by-course
basis. As an example, the 2018-2019 lower division course tuition is $212 per credit so
the applied discount would be $53 per credit. There is no reduction to assessed fees or
other costs. Although each campus will implement the discount internally, coordination
is needed across the system to ensure the ability for the registration process to allow
students to easily search for and register for discounted course sections in the future. To
Appendix B
Page 2 of 4 OE Tuition Discount Memo - Layer
that end, please provide me a list of potential candidates for the implementation team
by Wednesday March 21, noon. One task of the implementation team will be
establishing a UA-wide common data entry practice in Banner to identify courses
receiving the 25 percent discount. The discount coding will need to be completed in
time for fall registration that begins on Monday, April 2.
Funding to support this discount was included in the FY19 budget request. Given the
broad scope of the implementation (more than 300 courses in 50 degree programs), it is
recognized that the cost of the discount might be more than was originally included in
the FY19 budget request. Statewide administration will establish a baseline calculated
from prior enrollment data. President Johnsen has requested a systemwide marketing
and communications plan to be developed. Vice President Rizk will be following up with
you to discuss how best to coordinate this effort with each of your universities.
The list of programs and associated courses as provided by each university is attached.
Occupational Endorsement (OEC) and Certificate (CERT) Courses/Programs
Based on recommendations from the provosts, below is a list of programs with courses
eligible for the discount in AY 2018/2019. For most programs, all courses required for
the OEC are included. Programs denoted by an asterisk (*) exclude courses that also
meet GER requirements or contain upper division courses not covered by the discount.
University of Alaska Anchorage (18 OEC, 90 courses)
Identified Program/Course Identified Program/Course
Advanced Welding Millwright
Children’s Behavioral Health* Nondestructive Testing Technology*
Cisco Cert. Network Associate Office Foundations
Commercial Refrigeration Office Support*
Conflict Resolution* Pharmacy Technology
Corrections* Phlebotomist
Limited Radiography Residential and Light Commercial Heating and Ventilation
Logistics and Supply Chain Ops Veterinary Assisting
Medical Office Coding* Welding
EXCLUDED: Alutiiq Language
Appendix B
Page 3 of 4 OE Tuition Discount Memo - Layer
University of Alaska Fairbanks (18 OEC, 119 courses and 3 CERT, 37 additional courses)
Identified Program/Course Identified Program/Course
Administrative Assistant RHS Behavioral Health Aide
Basic Carpentry Rural Surface Water Quality
Bookkeeping Technician Rural Utilities Business Management
Facilities Maintenance Rural Waste Management Spill Response*
Entry Level Welder Sustainable Energy*
Financial Services Rep Tribal Justice
Homeland Security Wildland Fire Science
Medical Billing Ethnobotany (Certificate)
Medical Coding Rural Human Services (Certificate)
Medical Office Reception Tribal Management (Certificate)
Nurse Aide
EXCLUDED: Law Enforcement, Mining Mill Operations
University of Alaska Southeast (11 OEC, 78 courses)
Identified Program/Course Identified Program/Course
Accountant Endorsement* Healthcare Information Tech
Building Energy Retrofit Technician Marine Transportation
Certified Nurse Aide Northwest Coastal Art
Construction Technology Power Technology
Financial Institutions* Welding
Fisheries Technology
EXCLUDED: Law Enforcement
Totals: 50 programs, 324 courses
Attachment
cc: James Johnsen, UA President Michelle Rizk, UA Vice President University Relations Myron Dosch, UA Chief Finance Officer Provosts, UAA, UAF, UAS Saichi Oba, UA Associate Vice President Student and Enrollment Strategies
Appendix B
University of Alaska System Academics, Students & Research 202 Butrovich Building P.O. Box 755000 Fairbanks, Alaska 99775-5000
Phone: (907) 450-8019 Fax: (907) 450-8002 www.alaska.edu/research/
June 1, 2018
To James Johnsen, UA President Sam Gingerich, UAA Chancellor Daniel White, UAF Chancellor Rick Caulfield, UAS Chancellor
From: Paul Layer, Vice President for Academics, Students and Research
Re: Fiscal distribution for the OEC discount for FY19
The final numbers for the OEC discount program resulted in 50 total programs and 305 eligible courses UAA - 18 OEC UAF - 18 OEC, 3 Two-year certificates UAS - 11 OEC
To calculate the unrecovered tuition revenue, we examined the annualized student credit hours generated by courses to be discounted in FY16, FY17 and FY18.
Lower Division SCH 25% Discount Estimate UAA 9,112 $483,000 UAF 13,507 $716,000 UAS 4,829 $256,000
UA Total 27,448 $1,455,000
Each university will be responsible for further disbursement to the impacted units. As part of our regular enrollment reporting, we will track enrollment in the OEC courses to assess the success of the discounting program.
Cc Michelle Rizk Alesia Kruckenberg
Appendix BPage 4 of 4 OE Tuition Discount Memo - Layer
FY18 Strategic Investment
FY17 Student Success - Carryforward 578,200$
Statewide
Emsi - System Workforce 100,000$
EAB - Education Advisory Board, 5 year commitment UAA UAF UAS Total
Annual Service Fee 176,948$ 146,175$ 61,547$ 384,670$
(Prorate based on EAB contract termination fee) 46% 38% 16% 100%
Travel and Similar administrative fees 7,500 7,500 7,500 22,500
Total EAB FY19 Base Distribution 184,448 153,675 69,047 407,170
Remaining FY17 Carryforward Balance 32,700 27,000 11,300 71,000
(Prorate based on EAB contract termination fee) 46% 38% 16% 100%
Total FY19 Base Distribution 217.2$ 180.7$ 80.3$ 100.0$ 578.2$
This workpaper documents the amounts fo the FY17 Student
Success Strategic Investment that is transitionaing to base.
Prepared by D Carlson, SW Controller's Office, 24Apr18
Appendix C
Appendix D
Location
# of
Bldgs
Average
Age
(years)
Gross
Area
(sq. feet)
Adjusted
Value
(thousands)
DM/R&R
Backlog Index Dist. %
Budget
Goal
% of
Adjusted
Value
FY2018
Base
Budget
One-Time
Capital
Funds
Budget
Minimum
Budget
Shortfall
(Min.-Goal) Request
Capital Bill
Distribution
Executive
Branch
Distribution
Anchorage Campus Anc. 69 25.7 3,211,623 1,249,505.3 280,970.9 22.7 26.1% 15,700.0 1.3% 12,000.0 1,300.0 13,300.0 (2,400.0) 12,825.0 500.0 800.0
UAA Community Campuses 30 23.3 452,094 224,795.3 22,054.0 5.2 6.0% 3,600.0 1.6% 2,600.0 300.0 2,900.0 (700.0) 2,968.0 100.0 200.0
Kenai Peninsula College Soldotna 8 26.8 160,626 77,378.9 4,775.6 1.6
Kachemak Bay Homer 3 17.0 26,041 12,585.3 445.9 0.4
Kodiak College Kodiak 5 39.8 45,049 23,120.9 3,849.4 0.9
Matanuska-Susitna College Palmer 8 23.9 153,051 78,568.7 4,732.9 1.9
Prince Wm. Sound College Valdez 6 7.5 67,327 33,141.5 8,250.1 0.4UAA
Total 99 24.0 3,663,717 1,474,300.6 303,024.9 27.9 32.1% 19,300.0 1.3% 14,600.0 1,600.0 16,200.0 (3,100.0) 15,793.0 600.0 1,000.0
Fairbanks Campus Fbks. 246 36.9 3,268,725 1,844,710.0 705,403.3 49.6 57.1% 34,300.0 1.9% 21,500.0 2,900.0 24,400.0 (9,900.0) 27,720.0 1,200.0 1,700.0
Community & Technical College Fbks. 4 38.5 226,053 41,154.7 8,860.0 0.5 0.6% 300.0 0.7% 500.0 300.0 - 387.0
31 31.2 155,130 121,667.6 31,340.1 3.8 4.4% 2,600.0 2.1% 1,100.0 200.0 1,300.0 (1,300.0) 2,058.0 100.0 100.0
Bristol Bay Campus Dillingham 3 15.0 20,217 14,050.0 891.6 0.4
Chukchi Campus Kotzebue 1 40.0 10,362 9,273.5 2,854.1 0.4
Interior Alaska Campus Various 5 28.2 29,111 21,915.6 1,610.0 0.7
Kuskokwim Campus Bethel 7 32.3 51,774 43,296.6 19,515.7 1.4
Northwest Campus Nome 14 35.9 20,758 18,310.9 5,998.6 0.7
Rural College Fbks. 1 13.0 22,908 14,821.0 470.0 0.2UAF
Total 281 36.3 3,649,908 2,007,532.3 745,603.4 53.9 62.0% 37,200.0 1.9% 23,100.0 3,100.0 26,000.0 (11,200.0) 30,165.0 1,300.0 1,800.0
Southeast Campus Juneau 32 25.5 449,877 219,631.7 6,413.8 4.0 4.6% 2,100.0
UAS Community Campuses 5 13.4 115,908 49,471.8 2,215.0 0.5 0.5% 500.0
Ketchikan Campus Ketchikan 4 15.8 47,850 25,946.2 1,390.0 0.4
Sitka Campus Sitka 1 4.0 68,058 23,525.5 825.0 0.1
UAS Total 37 23.9 565,785 269,103.4 8,628.8 4.5 5.2% 3,100.0 1.2% 2,600.0 300.0 2,900.0 (200.0) 2,551.0 100.0 200.0
Statewide (2)
Various 9 37.7 220,050 87,276.0 3,999.5 0.6 0.7% 400.0 0.5% 300.0 300.0 (100.0) 1,491.0
SW Total 9 37.7 220,050 87,276.0 3,999.5 0.6 0.7% 400.0 0.5% 300.0 300.0 (100.0) 1,491.0
UA Total 426 32.6 8,099,460 3,838,212.3 1,061,256.6 86.9 100.0% 60,000.0 1.6% 40,600.0 5,000.0 45,400.0 (14,600.0) 50,000.0 2,000.0 3,000.0
1. Between the FY19 budget request and this distribution the Facility Inventory values have been updated to include infrastructure.
2. Statewide facility values include Land Management properties; distribution % reduced at SW to allow a larger portion of the funding to be distributed to campuses.
3. The index (distribution) is based on the individual building age times the adjusted value by campus.
Deferred Maintenance (DM)
and Renewal & Repurposing
(R&R)
UAF Community Campuses (CRCD)
University of Alaska
FY2019 Budget Distribution Facilities Maintenance
Facility Inventory 2016 (1)
Calculated
Index (3)
Appendix E
