Dec. 10, 2025

Dear UAF community,

As a followup to the budget forum last month, I want to share some additional information about the university’s budget and what’s next in the process.

Next year’s state budget request

The Board of Regents met in Anchorage in early November and approved the FY27 UA operating and capital state budget request. The request has gone to the governor for consideration. The governor will release his initial budget in mid-December. The legislative session begins in January, and the final budget is typically released in May or June. Following are some highlights of the FY27 request:

Operating budget

Employee compensation

The university is requesting a 3% increase for staff who are not represented by a union. For represented employees, the request also includes increases included in the current collective bargaining agreements. Both the Local 6070, which represents crafts and trades employees, and the Fairbanks Firefighter Union contracts are set to expire on June 30, 2026. Once a tentative agreement has been reached with each group, the university will request funding for the new contracts via the appropriate legislative process. If either the bargaining unit members or the Board of Regents do not approve the contract, the funding request will be withdrawn.

Fixed costs

The university is also requesting funding to help with the ever-rising costs of our existing infrastructure. For context, UA’s deferred maintenance backlog is more than $1.5 billion and UAF’s portion makes up more than 60% of the total. This is because UAF has more buildings than any other campus in the system, and many are among the oldest.

In addition to deferred maintenance, the fixed cost request includes funding for utilities, routine facilities maintenance and repair, cybersecurity and IT software, custodial services, and risk management. The budget also includes specific requests for increased campus safety and additional capacity for student mental health services and support.

Recruitment, retention and graduation

The approved budget request also includes $4.9 million to support the Board of Regents’ Systemwide Attainment Framework to increase student recruitment, retention and graduation. Of the $4.9 million, UAF’s $2 million request includes funding for: 

• • • Undergraduate and graduate enrollment capacity

    • Strategic enrollment marketing

    • Pursuing Lower 48 and international markets

    • Optimization of campus tours and recruitment events

    • Modernizing academic programs

    • Student advising and career placement

    • Meeting industry workforce needs at the Community and Technical College

Economic development

Economic development requests are considered one-time, multiyear (FY27-FY29) investments. UAF’s requests include:

• • • $7.5 million for R1 strategy continuity

    • $3 million for agriculture and food systems

    • $12 million for the ACUASI drone program

    • $3 million for the Alaska Critical Minerals Collaborative

Capital budget

In the capital budget, the regents continue to prioritize deferred maintenance and also approved the following UAF requests:

• • • $4 million for facility footprint reduction — program relocation and building demolition — creating efficiencies and operational cost savings in addition to preparing the footprint for new graduate and family housing.

    • $1.4 million in required institutional match funding for a pending Federal Transit Administration grant to improve and expand the facility that maintains UAF’s shuttle fleet.

The budget also includes requests for funding that the university is anticipating will be introduced as legislative next session. These include:

• • • A proposal to revitalize UAF student housing as a key component of our enrollment and retention strategies, and in partnership with UAA and UAS.

    • Replacement of the Whitaker Building, which houses the University Fire Department and student firefighters that are part of the CTC fire science and EMT/paramedicine programs.

Fall 2026 tuition changes

At the November meeting, the regents approved a modest 4% tuition increase across the board. These rate increases are effective starting in fall 2026. UAF continues to focus on increasing financial aid and scholarship packages for students. For instance, the recent Blue & Gold Celebration raised over $300,000 for student scholarships.

Managing and containing costs

Last fiscal year and continuing into this fiscal year, UAF implemented a series of cost-control measures for spending from unrestricted funding sources. These measures include:

• 60-day hiring delays on unrestricted positions

• Restricting nonessential travel and expenditures

• Requiring vice chancellor approval for essential contracts over $100,000 on unrestricted funds

These measures will continue to be monitored and active for the foreseeable future because the state and federal funding landscape is dynamic and uncertain.

Chancellor’s budget forum recap

On Nov. 20, I was joined by three UA colleagues to discuss the UAF budget and promote greater transparency into UAF’s finances. Julie Queen, vice chancellor for administrative services, shared an overview of UAF’s revenues and how they are distributed within UAF to support our mission. Chad Hutchison, UA director of state relations, and John Latini, UA director of federal relations, foreshadowed the constrained fiscal climate at the state and national level. Although UAF has done well managing through challenging conditions, it will be important to plan for conditions that may be tighter in the future.

If you weren’t able to attend the forum, you can find a recording on the UAF YouTube channel. While there wasn’t enough time to answer all of the questions posed at the forum, answers to questions we didn’t get to have been posted online. I encourage you to look through them.

Budget planning for FY28

Budget planning for FY28, which begins July 1, 2027, and ends June 30, 2028, has started. The Planning and Budget Committee, co-chaired by Vice Chancellor Julie Queen and Interim Provost Charlene Stern, plays a critical role in shaping our budget. The committee includes representatives from across UAF, including governance delegates. This committee reviews proposals for future state funding requests and recommends funding for well-developed proposals with a high return on investment. An RFP for FY28 budget requests has been issued, kicking off planning for the next state budget cycle. Proposals are due Jan. 30, 2026.

Thank you to those of you who attended the budget forum in person or on Zoom, and to those of you who watched the recording. I appreciate each of you for taking the time out of your busy schedule to learn more about UAF’s financial outlook. Our university is better when we are transparent about the budget and we all have a shared understanding of the resources necessary to continue the important work we do together.

Mike Sfraga, interim chancellor