Budget forum Q&A follow-up

During the chancellor’s budget forum last month, there wasn’t enough time to answer all of the questions posed by the audience online. If you missed the forum, or want to hear the answers to some questions posed at the forum, you can find the recording on the UAF YouTube channel.

Following are answers to the questions that were not answered live during the budget forum:

Why was a change as broadly impactful as the closure of the Center of Teaching and Learning made without stakeholder input? Why was it implemented without adhering to the "Creating a Community of Belonging" strategic goal?

The Center for Teaching and Learning is not being closed or eliminated; it is being restructured. That management decision was informed by review of existing services and staffing, comparisons with peer institutions and the need for investments in core areas to meet strategic priorities. Communications for specifically impacted employees have been direct, thoughtful and handled with care.

As a result of the reorganization, staffing will be at a level designed to meet current demand for services and will be comparable to UAF’s peers and other universities of similar size. The provost’s office will be sharing additional information about the transition soon and it will be linked here once available. 

How much is UAF projected to save by eliminating the UAF Center for Teaching and Learning? How will those funds be reallocated? 

The CTL is not being eliminated. CTL and its core services will remain as part of the faculty affairs and services office, with support from Nanook Technology Services and the Graduate School. Other functions formerly part of CTL either continue or may exist under different departments. This also reduces duplication of services among similarly functioning groups.

The total CTL operating budget was approximately $3.5 million. The reorganization will result in a savings estimated at $1.2 million, which will be reinvested in other areas. We have not finalized decisions about where those reinvestments will go, but they will be directed to high-priority areas in support of our academic mission and student enrollment efforts.

How can staff and faculty get more involved in the budget process? How can they learn more about the allocation process?

UAF’s Office of Management and Budget is the central repository of information about UAF’s budget and process. The information available there includes financial reports, Planning and Budget Committee resources and planning calendars. Updates regarding the budget, including information about ways to give formal feedback, will usually be shared in Cornerstone or sometimes via direct emails from university leaders. 

More information about the University of Alaska budget is available on the Strategy, Planning and Budget Office website, including requested budgets, approved budgets and funding distribution plans for current and past years. 

Why was inflation not factored into the graphs? 

We report actual numbers, rather than inflation-adjusted numbers, on our budget documents. However, inflation affects how far today’s dollars go toward rising costs of goods and services. For UAF, inflation has meant that flat funding translates to reductions in services, because those services cost more to provide each year. So, while UAF’s state revenue has returned to FY16 levels and total revenue has increased in that time frame, inflation has reduced the buying power of those funds. 

Has UAF looked at a tuition model where a higher fee is charged for those academic degrees and courses that are in high demand?

This is something that UAF already does. For example, the College of Business and Security Management and the College of Engineering and Mines each have tuition surcharges for the courses they offer. The university system is also exploring new tuition models, such as program-based tuition, in an effort to make it easier for students to see the total cost of their degrees. This will be discussed further in 2026.

Is the legislature planning to amend the Alaska Constitution to operate at a deficit?

We are not aware of any plans to amend the state Constitution. If you have questions about individual legislators’ plans, you can find contact information for your representative or senator on the Alaska Legislature website.

Should we expect more department reorganizations and layoffs of UAF staff this year? Can we expect other departments to be cut at a similar rate as CTL?

This is not expected. However, given the federal landscape and what is likely to be a challenging legislative session, it’s possible that reorganizations and layoffs could become necessary, particularly if connected to a change or elimination of externally sponsored or agency funding. It’s also possible that new funding opportunities, attrition, short-term cost-containment strategies like purchasing limits and delays in filling vacancies, or other longer-term strategies will help UAF manage without additional layoffs. 

What staff pay raises do you predict for the next few years?

The University of Alaska budget request recently approved by the Board of Regents includes a 3% increase for staff who are not represented by a union and increases for represented employees as part of their collective bargaining agreements. Two unions, Local 6070 and the Fairbanks Firefighter Union, have not yet negotiated their contracts for FY27. Increases for those employees may be identified during the bargaining process.

It was mentioned that the $46 million in tuition and fees is up from $43 million in FY24. Do those numbers account for inflation?

No, the numbers shared at the budget forum were not adjusted for inflation.

How does screening questions and not allowing everyone to see what others are asking meant to improve perceptions of transparency?

We use an online platform to gather questions from people both in the room and online. The platform is basically a digital version of collecting index cards with written questions from the audience, rather than an online discussion. During the budget forum, we answered questions from people in the room and some of those posed online. Because of limited time, we couldn’t answer all of the online questions, which is why we are answering all of them here. Duplicate questions have been combined and, in some cases, summarized. 

Why is the College of Liberal Arts expected to "pay back" the university for our basic operating expenses? CLA fields are not meant to be revenue generating. Why does the university just not support having the liberal arts?

The College of Liberal Arts is one of our largest colleges, both in majors and in overall enrolled students, and it provides a large percentage of the core baccalaureate courses. Just like all other academic units, CLA receives the majority of the tuition revenue generated by its courses. All UAF units are required to balance their budget annually, including meeting unreserved fund balance guidelines. If a unit ends the fiscal year with a deficit balance, the university's budget office works with the responsible unit leader(s) and with their respective vice chancellor on a plan to repay those funds over an agreed-upon time period. This is expected as part of maintaining the overall financial health of the organization.

Is there an update on the summer email from the UA system about the unclear and confusing UA budget that Dunleavy signed off on?

The UA president has not sent any follow-up emails about the FY26 budget since the June 13 message that outlined the governor’s approved budget for this fiscal year. However, more details on how the state funding is allocated in both the capital and the operating budgets are available in the FY26 distribution plans approved by the Board of Regents over the summer.

How will we allocate the budget to increase the questionable and already expensive quality of service from Chartwells?

Chartwells is an independent contractor that provides dining and catering services to the university under a contract. Dining Services, which is a self-funded auxiliary unit, manages and pays for that contract. Those funds come from meal plan rates and food service sales. Chartwells welcomes feedback to improve food quality and service, and strives to remain responsive to input from the campus community. 

How will the tuition increase be spent?

The majority of tuition revenue is distributed to the schools and colleges. Those funds support academics, including additional course sections and faculty support. Tuition revenue will also support increases in student services and enrollment management, UAF fixed costs, the Bursar’s and Financial Aid offices, and online education support. In addition, UAF may allocate additional funding to expand our support of student mental health and wellness. For an explanation of how those funds are spent, visit the recording of the forum on YouTube.