Budget update: Aug. 19, 2020
August 19, 2020
— 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.