Dear Students and Supporters:

I recently received 1733 postcards from you student government associations, asking me to "keep my promise" to fund the University with a five percent increase. I have been a steadfast supporter of the University. Regarding my campaign statements, it is important to know the facts. My wife, Nancy, delivered a speech to the University's Board of Regents on October 16, 2002. In that speech, she stated that it was my intention to "help the University plan for future programs by fighting for stable increases of five percent per year until we put a sufficient endowment in place to meet long-term needs." That commitment has been referenced frequently by University supporters. Often overlooked, however, is the qualifying statement that followed the five percent commitment: "This will be a difficult fight and it cannot be guaranteed."

I share your support for the University and have proposed to increase the university system's budget for Fiscal Year 2005. I recognize this increase is less than the University requested, but the additional five percent is much more than the budget proposes for other state departments. For the short-term, the reality is that unless Alaskans agree on a new way to pay for state programs, any increase in funding for the University will have to come from reductions in other state programs.

Alaska is at a critical fiscal crossroad. In spite of high oil prices and $245 million in spending reductions, the state continues to spend more than it can afford. The Constitutional Budget Reserve (CBR) has propped up annual day-to-day spending for the last 13 years. With the CBR balance projected to drop to $1.6 billion by the end of FY 05, we are finally nearing the edge of the "fiscal gap" that has been discussed for years.

The question Alaskans must now answer is whether we fall over the cliff or build a bridge to the other side. My administration is aggressively working on resource development, but a financial return to the state treasury from these efforts will take time. It was with this in mind that I called for the Conference of Alaskans in my State of the State address to help answer the major question of what role, if any, should the Permanent Fund and its earnings play in Alaska's fiscal future. I urge you to follow up on the recommendations of the conference by contacting your legislators in Juneau, to let them know how you believe the state should address its fiscal challenges.

Thank you for your commitment to Alaska and to your University.

Sincerely yours,

Frank H. Murkowski

Comment on this story...