June 22, 2021

FOR IMMEDIATE RELEASE
June 22, 2021

Board of Regents accepts FY22 Budget passed by the Legislature

The Board of Regents convened today to adopt an FY22 operating and capital budget, and voted unanimously to accept the $273 million operating budget and $31.6 million capital budget as passed by the Legislature. While both budgets are still awaiting transmission to the governor, this action by the board allows the university to move forward with distribution plans once the final budget bill is signed.

“In light of the extraordinary impact of COVID-19, the budget passed by the Board of Regents today demonstrates the importance of maintaining the legislative level of funding in both the operating and capital budget. Although still a reduction in state funding of $4.3 million compounded by remaining COVID impacts of $15.9 million, it is a much better position than prior estimates. Maintaining this funding level is critical for stability for the UA System’s three universities and our ability to support the goals shared by the UA Board of Regents and Governor Dunleavy - economic recovery,” said UA Interim President Pat Pitney.

The $273 million state funded operating budget coupled with earned revenue allows our universities to continue to provide stability in core programs – especially those that address workforce shortages – and focus on the state's economy by training ns to return to the workforce as well as support key research programs important to ’s economy. The reduction forces continued focus on reducing the facility footprint,  streamlining administrative functions, and encouraging more collaboration across the UA system.

Pitney said the $31.6 million capital appropriation for deferred maintenance would support an estimated 300 construction and indirect jobs for University of Alaska businesses in ’s economy while helping to maintain UA facilities critical to serving students.  The funding impacts facilities critical to student enrollment and key academic programs. 

State budget appropriations have been reduced by more than $100 million over the past eight years. The university has worked to resize while maintaining focus on its programs necessary for University of Alaska’s workforce and competitively-funded research.

“This state appropriation allows us stability as we continue to work through the net COVID impacts, which we now estimate at $15.9 million,” Pitney said. “We thank the Legislature for its support and the governor for clearly seeing how the university can help change the economics of our state’s recovery through research and preparing our workforce for the jobs ahead.”

The Board of Regents is an 11-member volunteer board, appointed by the governor and confirmed by the Legislature. Members serve an eight-year term, with the exception of the student regent who is nominated from one of the three universities and serves a two-year term. The board was established through the Constitution and is responsible for University of Alaska policy and management through the university president.

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For more information, contact Roberta Graham, associate vice president of public affairs at 907-360-2416 (cell).