University of Alaska Board of Regents FY20 Budget Presentation November 8, 2018
Overview • UA Mission • Needs of the State • Historical Context • Strategic Pathways • BOR 2040 Priorities • FY20 Operating Budget Request • Summary • Total Compensation Review • Title IX and Other Operating Costs • Strategic Investments to support UA Goals and Measures • FY20 Capital Budget Request • Next Steps • Appendix 2
UA Mission 3
UA Mission UA serves the needs of Alaska through education, research, and service on its 16 campuses and through hundreds of on-line programs and courses. • Educatio ion Delivering academic instruction, career and technical training. • Rese search Advancing innovation and discovery through academic and scientific research. • Se Servi vice Sharing knowledge to address Alaska’s community needs. 4
Needs of the State 5
Needs of the State • Health care costs (#1 in the US) • Economic development (#42 in New Economy Index in US) • Jobs (#1 in unemployment in US) • Job growth (#50 in US) • Culture of education (#50 in post-secondary participation in US) • Teachers (67% hired each year from “outside” Alaska) • Climate change (impact 2x world average) • Public safety (#49 in U.S. News public safety ranking in US, #1 concern of Alaskans) • Energy costs (#6 in US) 6
Historical Context 7
Unrestricted General Funds History (in millions of $) $3 $27 $53 $51 $61 $378 $375 $351 $325 $327 $317 FY14 FY15 FY16 FY17 FY18 FY19 Unrestricted General Funds (UGF) Cumulative Impact = $195M 8
FY18 Operating Budget Revenues and Expenditures Travel 1.9% Auxiliary Funds 5.0% Contractual Services 22.8% Restricted Funds Salaries & Benefits 20.1% 56.8% Unrestricted Funds 73.5% Commodities 6.9% Capital Outlay 4.2% Student Aid Designated 3.5% Match Funds Funds Misc. (Debt Service) 0.6% 0.8% 3.9% 9
Operating Budget Revenue by Source FY14-FY19 Projection 100% 6.0% 6.0% 6.1% 6.1% 6.3% 6.2% Other Restricted 90% 15.6% 15.7% 16.2% 15.7% 16.1% 16.6% Federal Receipts 80% 3.9% 3.8% 4.5% 4.4% 4.7% 4.6% Indirect Cost Recovery 70% 10.9% 11.5% 11.4% Auxiliary, Designated, Match, & Other 12.0% 13.6% 13.3% Unrestricted 60% 16.2% 15.6% 17.2% Student Tuition & Fees 17.8% 17.5% 17.9% 50% 40% 30% Unrestricted General Funds 47.5% 47.2% 45.0% 43.0% 42.4% 42.0% 20% 10% 0% FY14 FY15 FY16 FY17 FY18 FY19 Projection 10 * excludes UA-intra-agency receipts
Facilities & Infrastructure (Fall 2017) • Number of facilities 424 • Total gross square footage 8.2 million • Average age of facilities 33 years • Value (adjusted for inflation) $4 billion • Annual maintenance budget ($40M on-going operating $45 million funds + $5M one-time capital funds) • Annual maintenance long-term target (on-going $60 million operating funds) • Deferred maintenance/renewal & repurposing backlog $1.1 billion • DM/R&R backlog pay-down request (one-time $50 million capital funds) • DM/R&R backlog per sq ft $129/sf 11
Capital Appropriation DM/R&R History Unrestricted General Funds (in millions of $) $100 $90 $80 $70 $60 in millions of $ $50 $40 $30 $20 $10 $0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 State Appropriation UA Bonding/Reallocation UA Minimum Request 12
Strategic Pathways 13
Strategic Pathways “The University of Alaska inspires learning, and advances and disseminates knowledge through teaching, research, and public s ervice, emphasizing the North and its OUR MISSION diverse peoples." (Regents' Policy 01.01.01) Maximize value to Alaska through excellent, accessible, and cost effective higher education OBJECTIVE funded by diverse and growing revenue sources CORE PRINCIPLES Focus, Access, Diversity, Excellence, Consistency, Fiscal Sustainability STRATEGY Prepare, Restructure, Implement, Refine UA ANCHORAGE UA FAIRBANKS UA SOUTHEAST Comprehensive metropolitan university in Alaska’s Research university renowned for leadership in Arctic Comprehensive regional university focused on economic hub, with primary focus on workforce and the North, with additional focus on workforce interdisciplinary & marine-oriented programs, teacher WHO WE ARE development through its several regional community development and community and rural education education, e-Learning, and workforce development campuses Social and economic sciences, Arctic science and policy, physical, biological, and Research Interdisciplinary / environmental health policy social sciences, engineering and applied energy • Health professions • Physical, natural, and related sciences • Marine – oriented programs (including joint • Business and public policy • Arctic / Northern Studies programs with UAF) CAMPUS LEAD FOR THE • Economics • Rural development / tribal management • Teacher education (administration) STATE* • Logistics • Doctoral education • Interdisciplinary degrees/ degree completion Teaching • Project Management • Mine training • Emphasis on regional workforce priorities, e.g., • Fisheries and ocean sciences mine training • Aligned with Research and Teaching Focus Outreach • Common General Education Requirements • Alaska Native Studies • Liberal Arts and Humanities • Teacher Education • Social Sciences & Natural Sciences • Management • Nursing • Mine training COURSES / PROGRAMS AVAILABLE ACROSS • Engineering • Wide choice of non-major courses THE UNIVERSITY SYSTEM • Distance Education / E-Learning • Dual credit with K-12 • Career and Technical Education • Developmental Education * Research, teaching, and outreach at campuses other than the “lead” campus that are of high quality, cost effective, and cor e to mission, will continue to be provided. 14
BOR 2040 Priorities 15
BOR 2040 Priorities • During a strategy meeting in June 2018, the Board of Regents began to consider an ambitious, but also realistic vision for Alaska in the year 2040 and how the University could contribute to realization of that vision. • The Board’s 2040 priorities play an important role, along with our current initiatives and our 2025 plan, in development of our FY20 operating and capital budgets. • What should we do now to create the University needed to build the Alaska we want to see in 2040? 16
BOR 2040 Priorities – Strategies for FY20 Budget We will ill gr grow UA in in its its ser servic ice an and d lea leaders rship for r Ala laska by: y: Tak aking car are of of the the bas basics Gr Growin wing g our our own wn • • Campus safety and respect Construction and vocational • • Competitive and fair compensation Teachers and health care professionals • • Facility maintenance Engineers • • Efficiency / Productivity Researchers • Student recruitment, retention, and completion Leveragi Le ging par partnership ips Build Bui ldin ing g on on our our co competit itiv ive adv dvantages • • K-12 (dual enrollment, teachers, leaders) Energy • • Industry / Employers (ANCSA corporations, tribes, Climate change • health care, resource development, gas line, Indigenous studies • maritime, military) On-line courses / programs in areas of excellence • Local, state, and federal agencies (e.g., Arctic studies, project management/logistics, • International universities and NGOs Indigenous studies, Homeland Security, OneHealth) Le Leadin ing inno nnovatio ion and and creativ ivit ity Takin ing the the long ong view • • Commercialization of UA research Foster long term strategic planning • • Creating new technologies, solutions to problems Focus on quality • • Integrating traditional and new knowledge Invest in leadership 17
Goals & Measures 2017-2025 (Tentative, subject to BOR approval) 2017 2018 2019 2020 Chg. Proposed 2025 Baseline Observed Proposed Target to Target Goal 1. Contribute to Alaska’s economic development Increase STEM graduates 1,628 1,691 1,776 1,875 +99 (6%) 2,460 Increase # invention disclosures 17 34 23 25 +2 (9%) 34 2. Provide Alaska’s skilled workforce Increase % of educators hired 30% 33% 37% 43% +6% (16%) 90% Double number of health program completions 874 939 986 1,086 +100 (10%) 1,760 3. Grow our world class research Lead the world in Arctic related research 1 1 1 1 1 Increase research expenditures (1) $159m $150.7m $157.4m $168.3m +$10.9m (7%) $235m 4. Increase degree attainment Fiscal Year Student Full Time Equivalent (FTE) 18,492 17,555 18,433 19,825 +1,392 (8%) 28,526 Increase completions 4,594 4,554 4,781 5,442 +661 (14%) 10,400 5. Operate more cost effectively Decrease total cost of education (indirect and direct) per $107.3 $108.4 $103.0 $93.9 -$9.1 (-9%) $59.0 completer Increase annual completions per Full Time Equivalent (FTE) 23/100 23/100 24/100 26/100 +1.6 (6%) 35/100 Note: Information is reviewed annually as part of the President’s performance compensation (quantitative performance goals) 1. FY18 observed research expenditures has been revised to reflect final data ($149.9m to $150.7m) 18
FY20 Operating Budget Request 19
FY20 Operating Budget Request • Request Summary • Compensation Review • Title IX / Culture of Respect • Continuing Operating Costs • Strategic Investments 20
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