Budget update: Aug. 19, 2020

August 19, 2020

Tori Tragis

— by Dan White, chancellor

Today I sent FY22 budget guidance to the provost and vice chancellors (VCs) to begin planning for FY22. This will be the third and final year of the compact agreement made between the Board of Regents and Gov. Dunleavy.

Based on planning done with the core leadership team, I have provided an initial target of 10% in reductions to units’ general fund (GF) budgets. As in past years, the provost and VCs may allocate different percent reductions amongst their units as they deem appropriate.

At an initial target reduction level of 10%, UAF will generate $9.2 million in state GF savings towards our target reduction of $12.2 million for FY22. I have provided the 10% guidance for VCs to budget to as the expectation to fund the remaining budget gap of $3 million will be made up with potential new revenues, such as through sale of power from our new power plant, or via utility cost reductions.

Additionally, other factors that could allow us to lower the overall percent reduction include reduction in footprint, additional revenue sources such as might be provided through new business models for our non-credit programs, and increased enrollment. In the coming weeks I will be sharing a few new strategies to grow revenues and reduce footprint that we expect to help with the FY22 reductions. It is important to keep in mind that we are early in the budget planning season and targets will be adjusted up or down as we learn more.

Additionally, tied to the budget we have developed two scenarios that recommend modest increases to tuition. These increases will be reviewed by our Tuition and Fee Committee and the Planning and Budget Committee concurrent with communications with students and prior to presentation to interim President Pitney for her consideration.

Detailed budgets will be due in advance of the November 2020 Board of Regents meeting. Please look for guidance from the provost or your vice chancellor in the coming week.