The dual appropriation structure continues in FY21. Additionally, the Organized Research allocation is consolidated into the Fairbanks Campus allocation, and the UAF Community & Technical College (CTC) was transferred from the Community & Southeast Campuses appropriation to the Main Campus appropriation.
Compensation and furloughs
The FY21 operating budget includes a compensation adjustment of a 1 percent increase for most regular employees (faculty and staff) and adjunct faculty. Executive and academic leaders who must temporarily furlough during FY21 will receive the increase. Employees under COVID furlough will receive the increase when they resume active employment. Increases for represented employees are specified in their respective Collective Bargaining Agreements. Temporary employees and student employees will not receive an increase. These increases are funded through reallocation at each university.
Leadership furloughs will be implemented in FY21. University officers are required to furlough for ten days and senior administrators and non-represented academic leaders are required to furlough for eight days.
The Board of Regents agreed with the recommendation to discontinue the second phase (year two) of the three-year market study compensation adjustment that began in FY20.
The FY21 capital budget final legislation appropriated $0.0 million for UA.
FY21 UAF Strategic Investments: Base and One-Time
In October 2020, the Chancellor committed $5.35 million for FY21 investments via a mix of one-time and reallocation of base general funds to support initiatives reviewed through the Planning and Budget Committee (PBC) process and the Strategic Enrollment Planning (SEP) process.
COVID-19 Actions and Impacts
The COVID-19 pandemic began during the last quarter of FY20 and continues into FY21. UAF has worked diligently to adapt and remain nimble to best serve its students, faculty, staff and the community. From a financial perspective, expense tracking and reporting mechanisms are in place and appropriate justification and backup is required for COVID-related expenditures. UAF continues to monitor expenses and seek reimbursement via relief funding at federal, state and local levels.
The FY21 UA operating budget request is $277 million, a reduction of $25 million (8.3 percent) from the FY20 level of $302 million. This reduction is year two of the three-year agreement (“compact”) between the Governor and the UA Board of Regents. In addition to a reduced state appropriation, the proposed budget includes an investment of $7.1 million to provide general market compensation ($3.9 million) and specific equity and market compensation ($3.2 million) increases to faculty and staff. The universities and statewide services will need to reallocate internally to cover this increased cost. Finally, the FY21 budget distribution will include $5 million of reallocations within each university to cover strategic initiatives. These combined items result in a UA budget reduction of $37.1 million, of which UAF’s estimated reduction target is $18.3 million (or 49.3 percent).
The BOR approved capital budget request includes $50 million for UA deferred maintenance (UAF portion is approx. $30.5 million, if funded) and $2.5 million for UAF USArray Earthquake Monitoring Network which is categorized as capital research.