University of Alaska leaders approve $879 million operating budget

The University of Alaska Board of Regents on Tuesday quickly passed an operating budget for the upcoming academic year that included the previously approved 5 percent tuition increase, but did not include the additional midyear tuition hike once discussed.

That's because UA avoided the nearly $22 million funding cut proposed by the Republican-led Senate this year. Instead, the Legislature agreed on an operating budget last week that cut university spending by $8 million, or about 2.5 percent, for the fiscal year that starts Saturday. Gov. Bill Walker still must sign off on the state operating budget.

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The UA budget unanimously approved by regents Tuesday totals about $879 million, $317 million of that from state funding. That's down about $21 million from the roughly $900 million current operating budget and amounts to a $61 million cut in state funding over the past four years.

UA said a $3 million increase in fixed costs in the upcoming budget effectively widened the funding gap to $11 million.

A budget presentation during last week's regents meeting included lists of dozens of cuts across campuses to close the gap, including shrinking library hours, reducing athletic scholarships and cutting faculty and staff positions.

However, the presentation lacked specifics on the cuts, including the number of positions that would be eliminated. Robbie Graham, a UA spokeswoman, said Tuesday that campuses continue to evaluate their budgets.

Apart from the cuts, the UA budget for the upcoming fiscal year also spreads $6 million among "strategic investments," which include increasing enrollment and expanding online course offerings.

UA President Jim Johnsen said that UA continues to wait for Alaska lawmakers to pass a state capital budget, which may not happen until fall. He said he was hopeful UA would receive at least $5 million in that budget for maintenance projects.

"We will cross our fingers and we will continue our advocacy because it's not over yet," Johnsen told regents.