President Johnsen to appear before House Finance
January 24, 2017
By Miles Baker, associate vice president, UA Government Relations
The 30th Alaska State Legislature gaveled in to begin the first day of their 90-day legislative session on Tuesday, Jan. 1. While there are many familiar faces in the building this year, we have an unusually large freshman class of both legislators and staff. Nearly one-quarter of the elected members are new, and the House will be led by a bipartisan coalition. It’s clear that the entire legislature will need a little more time than normal to settle in.
I’m extremely honored to be at the University of Alaska and working on your behalf. It’s my job to advocate for the university’s policy priorities, legislative agenda, and most importantly, our operating and capital budgets. I’ll be based in Juneau for the duration of the session, working out of the office the university maintains in the historic Ebner Building just across the street from the state Capitol.
Gov. Bill Walker’s FY18 budget proposal maintains total spending at roughly last year’s $5 billion level. With general fund revenue only expected to cover 32 percent of those costs, the governor’s proposal includes a $2.5 billion draw from the permanent fund earnings reserve, a motor fuel tax increase and a two-year salary freeze for non-unionized public employees. Even if these proposals are approved, the state will still have an $800 million structural deficit in FY18. Consequently, the Walker administration has indicated that they expect additional revenue measures to be part of the legislative discussion this session.
These are challenging and consequential times for the state and the university. Declines in both oil production and price have resulted in Alaska’s unrestricted general fund revenues dropping from $9.5 billion in FY12 to just $1.4 billion this year and are projected to be only slightly higher in FY18 at $1.6 billion. For the sixth year in a row, the state’s general fund revenues are not sufficient to cover annual operating expenses. Running $3 billion annual deficits has forced dramatic reductions in state spending and drawn down the state’s primary savings accounts.
Advocating for the university’s annual operating and capital appropriations is UA's most important task. As you know, our budget has been cut by $53 million, or 14 percent, over the last three years, and we expect continued pressure from the legislature this year. While the governor’s budget proposal holds our funding at last year’s $325 million level, it’s $16.3 million less than the Board of Regents’ request. The regents also requested $50 million in capital funds for deferred maintenance. Those funds were not included in the administration’s budget proposal.
University President Jim Johnsen is scheduled to appear before the House Finance Committee on Tuesday, Jan. 31, at 1:30 p.m. to present the university’s FY18 operating request. You can stream this hearing online at www.gavelalaska.org or at akl.tv, or watch it on television on 360 North.
In addition to garnering support for UA's FY18 budget, there will be an effort to reauthorize the Technical Vocational Education Program and the Alaska Education Tax Credit and raise awareness within the legislature of our critical land trust deficit in the hopes of achieving a near-term resolution at the state and federal level.
Watch for additional updates in your campus newsletters or subscribe to receive the Capitol Report directly. Simply follow the links on the UA Government Relations webpage.