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University of Alaska FY15 Operating

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University of Alaska FY15 Operating University of Alaska FY15 Operating Budget Request Summary UA Board of Regents' compared to Final Legislation (HB 266 & HB 267) (in thousands of $) Final over/(under) UA Board of Regents' Budget Final Legislation BOR State Rcpt. State Rcpt. State Approp. Auth. Total Approp. Auth. Total Approp. Base - FY14 Operating Budget 376,613.1 535,746.0 912,359.1 376,613.1 535,746.0 912,359.1 - Unallocated General Fund Reduction (15,900.0) (15,900.0) (15,900.0) Reduction to UA Travel Expenditure (1,066.2) (1,066.2) (1,066.2) Adjusted Base Requirements Compensation by Employee Group UA Federation of Teachers (UAFT) 400.2 400.2 800.4 400.2 400.2 800.4 - Local 6070 (1) 279.9 279.9 559.8 279.9 279.9 559.8 - United Academics Faculty (UNAC) (1) 1,686.5 1,686.5 3,373.0 1,686.5 1,686.5 3,373.0 - UA Adjuncts (UNAD) (1) 174.8 174.8 349.6 174.8 174.8 349.6 - Fairbanks Firefighters Union (FFU) 16.4 16.4 32.8 16.4 16.4 32.8 - UA Staff 2,553.5 2,553.5 5,107.0 2,553.5 2,553.5 5,107.0 - Subtotal - FY15 Compensation Increase 5,111.3 5,111.3 10,222.6 5,111.3 5,111.3 10,222.6 - Additional Operating Cost Increases Utility Cost Increases(2) 3,400.0 1,415.0 4,815.0 1,415.0 1,415.0 (3,400.0) Facility Maintenance and Repair (4) 1,081.5 1,081.5 2,163.0 1,081.5 1,081.5 2,163.0 - New Facilities Est. Operating Costs 3,260.0 2,289.0 5,549.0 2,150.0 2,289.9 4,439.9 (1,110.0) UAA AK Airlines Center (3) 2,720.0 1,789.0 4,509.0 1,610.0 1,789.9 3,399.9 (1,110.0) UAA Mat-Su Valley Ctr. for Arts 540.0 75.0 615.0 540.0 75.0 615.0 - & Learning(3) UAS Freshman Residence Hall 425.0 425.0 425.0 425.0 - Leases 1,500.0 1,500.0 1,500.0 1,500.0 UAF P3 Housing Development 1,500.0 1,500.0 1,500.0 1,500.0 Non-Personal Services Fixed Cost 410.0 - 410.0 - Increases UAF Rasmuson Library Electronic 250.0 250.0 - (250.0) Subscriptions - - UAF Smart Classroom Tech. Refresh 160.0 160.0 - - - (160.0) Subtotal-FY15 Add'l Op. Costs 8,151.5 6,285.5 14,437.0 3,231.5 6,286.4 9,517.9 (4,510.0) Subtotal-FY15 Adj'd Base 13,262.8 11,396.8 24,659.6 8,342.8 11,397.7 19,740.5 (4,510.0) 3.5% 2.1% 2.7% 2.2% 2.1% 2.2% High Demand Program Requests Student Achievement and Attainment (4) 997.1 463.4 1,460.5 400.0 400.0 (597.1) Productive Partnerships with Alaska's 400.0 25.0 425.0 - (400.0) Schools Productive Partnerships with Public 1,654.9 361.8 2,016.7 90.0 27.8 117.8 (1,564.9) Entities and Private Industries R&D to Enhance Alaska's Communities 300.0 50.0 350.0 - (300.0) and Economic Growth Legislative Priority Programs for UA (4) - - - 500.0 500.0 500.0 Subtotal-High Demand Programs 3,352.0 900.2 4,252.2 990.0 27.8 1,017.8 (2,362.0) 0.9% 0.2% 0.5% 0.26% 0.01% 0.11% Budget Adjustments Technical Vocational Education Program 51.8 51.8 (153.1) (153.1) (204.9) Mental Health Trust Authority 652.9 1,865.0 2,517.9 1,865.0 1,865.0 (652.9) Subtotal-Budget Adjustments 704.7 1,865.0 2,569.7 (153.1) 1,865.0 1,711.9 (857.8) FY15 Increment 17,319.5 14,162.0 31,481.5 (7,786.5) 13,290.5 5,504.0 (24,696.0) FY15 Operating Budget 393,932.6 549,908.0 943,840.6 368,826.6 549,036.5 917,863.1 (24,696.0) % Chg. FY14-FY15 Operating Budget 4.6% 2.6% 3.5% -2.1% 2.5% 0.60% (1) Contract under negotiation during FY15 budget development (2) HB266 Sec.23 fuel trigger mechanism funding authorizes up to $4.9 million (18% of $27 million). (3) FY11 General Obligation Bond Project (4) One-time item, funding in FY15 only. The Capitol Report April 25, 2014 The Capitol Report By Chris Christensen, Associate Vice President, State Relations End of Session Status Ninety-five days after it began, the Second Session of the 28th Alaska State Legislature adjourned on April 25th. This was five days later than planned. In a year with a $2.3 billion budget deficit caused by declining oil production and lower oil prices, UA’s operating budget was reduced but it received a larger than expected capital budget. We now await the governor’s action on legislation and on the FY15 operating and capital budgets. Once a bill has passed the legislature and is sent to the governor, he must sign it or veto it within 15 days if the legislature is in session (not counting Sundays) or within 20 days if the legislature is not in session (not counting Sundays). In the case of a budget bill, the governor may veto any individual appropriation contained in the bill; he is not limited to vetoing the bill in its entirety. Typically, the legislature does not actually send the budget bills to the governor for signature or veto immediately after passage. Instead, the bills are held for a period of time, sometimes for more than a month. This delay allows the Office of Management and Budget and other agencies extra time to review and recommend items for signature or veto. UA had some significant disappointments in a difficult year, but we also had some major successes, thanks in large part to the advocacy efforts of UA supporters throughout the state. UA advocates came out in large numbers at all public hearings on the operating and capital budgets, as well as on certain other bills like SB 176 (guns on campus). If you testified or sent messages in favor of the university, thank you! The following is a summary of legislative actions this year. Details of the FY15 Operating Budget and the FY15 Capital Budget can be found by clicking on the links. FY15 Operating Budget Gov. Parnell took the first step to implement a reduction in state spending when he announced his FY15 budgets on December 12. His operating and capital budgets proposed that the state spend 18.4 percent less in general fund dollars than current year spending. For the UA operating budget, the governor proposed a $14.9 million reduction from the current year’s funding level, but he also proposed adding $5.3 million to partially cover new expenses, such as the employee pay raises and operating costs for new buildings that are due to open this year. UA’s net cut in the governor’s proposed operating budget was $9.6 million below the FY14 level. ( www.alaska.edu/files/state/FY15-Budget-Data-Summary- Final.pdf ) The House and the Senate decided that the governor’s proposal, as stringent as it was, didn’t cut enough from agency operations. So, they cut even more. After the House and the Senate passed their respective versions of the operating budget, a conference committee made up of three member of each body met to reach a compromise on the differences between the two versions. Conference Committee members this session included: . Sen. Pete Kelly (Senate Finance Committee Co-Chair) . Sen. Kevin Meyer (Senate Finance Committee Co-Chair) . Sen. Lyman Hoffman (Senate Finance Committee Member/Minority Caucus) . Rep. Alan Austerman (House Finance Committee Co-Chair) . Rep. Bill Stoltze (House Finance Committee Co-Chair) . Rep. Les Gara (House Finance Committee Member/Minority Caucus) Once the conference committee reached an agreement, the House and the Senate voted to adopt the compromise budget on the 90th day of the session. This compromise is the version that will be sent to the governor. The FY15 state budget for all-agency operations that was approved by the House and Senate is about $50 million less than the FY14 budget. You may recall that the FY14 all-agency operating budget was also about $50 million less than the FY13 budget. This downward trend will continue next year and into the foreseeable future. The operating budget is contained in two bills, CCS HB 266 and CCS HB 267, which can be found here: http://www.legis.state.ak.us/basis/get_bill.asp?bill=HB%20266&session=28http://www.legis.state.ak .us/basis/get_bill.asp?bill=HB%20267&session=28 Unfortunately, UA’s operating budget was decreased from its FY14 budget. The legislature approved a UA operating budget for FY15 that has a 2 percent reduction from the FY14 budget in unrestricted general funds. The budget included an unallocated reduction of $15.9 million, a 12.5 percent travel expenditure reduction, and about $8.34 million in increased funding for fixed cost increases like new building operating costs and salary and benefit increases. The budget includes the following reductions, increases for fixed costs, and increases for high demand program initiatives: Reductions that were made: . Unallocated General Funding Reduction - $15.9 million .
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