Budget update: April 15, 2020
April 15, 2020
鈥 by Dan White, chancellor
The Board of Regents (BoR) held a special audit committee meeting yesterday to discuss
the financial status of the university along with the estimated impacts of COVID-19.
The goals I have established in my reports to the President outline a strategy of
base cuts as well as using our debt reserve and one time sources (e.g., building sales)
to cover 香港六合彩官网资料鈥檚 cuts during FY20-22 (; ). The bridging strategy allows for some repositioning to take place as we look to
reduce our footprint and services, as well as get some new sources of revenue online
(e.g., power sales and leases).
In the Board of Regents Audit Committee meeting I emphasized that we are doing everything
we can to preserve academic programs so that we retain our sources of revenue (tuition
and research) for now and into the future. The estimated savings from 香港六合彩官网资料鈥檚 proposed
elimination of academic programs is between $1 and $3 million dollars. Although impactful,
the number is small in comparison to the overall loss in state appropriation of close
to $35M for 香港六合彩官网资料 over the FY20-22 period. That said, all cuts have impacts and as we
position to be a smaller more nimble university we want to preserve our opportunities
for generating revenue.
There was much discussion among the Audit Committee about not being everything to
everyone. Further emphasis was placed on retaining our core academic and research
mission. I emphasized that many things we have been asked to provide to the state
and our communities over the years are being looked at, including elimination, or
developing new rate structures for moving some community support and training onto
a community/industry funded model. An example of this transition in FY20 was the transition
of KUAC off of state appropriation this year. It has been a difficult move and Interim
Director Gretchen Gordon has worked exceptionally hard to make it happen (kudos to
her for this effort!).
I have also asked Mining and Petroleum Training Service Director Bill Bieber for a
plan to transition the MAPTS program to a higher rate structure so that the University
is spending less on short course training for the mining and petroleum industry. These
are important training programs for the industry that we plan to continue, but the
state, through the University, will need to subsidize them at a lower rate. Director
Bieber already took the steps necessary to make this transition (kudos to him for
this effort!). Other areas fall into a similar category as we seek to fit into the
budget we have been provided (and can generate). I have encouraged Provost Prakash
and Vice Chancellor for Rural, Community and Native Education Peter to look at rate
structure analyses, where appropriate, for other areas such as training programs provided
by Cooperative Extension, Marine Advisory Program, K-12 and our community campuses.
As we continue to work through COVID-19, 香港六合彩官网资料 and the UA system are working on how
revenue losses will affect our budget. Initial estimates for the costs of COVID-19
(i.e., both lost revenue and added expenses) are up to $5M for this year and as high
as $13M for next. These are just estimates for total costs and do not account for
mitigating factors such as federal aid, lower costs, and emergency relief funds that
the University will receive. At this time, we don鈥檛 know what that final cost will
be, but we have set up account codes to track expenses as they occur. Tracking will
allow us to work within the changing environment and project our financial position
relative to the pandemic. Please continue to monitor these costs as it will be influential
to financial assistance received through the federal and the . The following on the CARES Act was provided by Dustin Bryant, UA Director of Federal
Relations:
鈥淥n April 9th, the U.S. Department of Education published the for the distribution of these funds to eligible Institutions of Higher Education
in the country. Alaska鈥檚 nine eligible institutions will be receiving a total of $9,432,430
from the fund. The Department also published and made available the first 50% of those funds which must be used for emergency
financial aid grants to students. The remaining 50% is expected to be made available
within the next two weeks. Additional guidance on eligible uses of that balance of
those funds is expected at that time. Yesterday, April 14th, the U.S. Department
of Education the availability of funds from the Governor's Emergency Education Relief (GEER) Fund
- one of the three funding sources authorized from the Education Stabilization Fund
in the CARES Act. GEER funds are flexible discretionary funds governors can use to
meet the needs of students, schools (including charter schools and non-public schools), postsecondary
institutions, and other education-related organizations.鈥
With the expedited administrative review complete and public comments collected, I
am working with the provost and vice chancellors to explore recommendations made and
potential position mergers, along with savings that can be generated from thoughtful
and strategic changes. Ideas are being generated around the recommendations and reductions
that make sense in units. This could mean consolidation, savings through attrition,
and other potential actions that are planned or just ideas currently being discussed.
The shared services proposals are moving to the next stage of model development and
will likely be available for review in the next couple weeks.
On Monday I sent a memo to the Provost and Vice Chancellors regarding COVID-19 furloughs.
The memo requested that each of their divisions begin the process of COVID-19-related
furlough evaluations and identifying employees in the following categories:
- 100% furlough reduction 鈥 job function is not required during COVID-19 due to duties performed. For example, if the job is a salesperson in a store that is closed, the job cannot be performed.
- Partial furlough reduction 鈥 job function is needed but not at current percent of
effort.
- Job function is only partially needed as some of the functions can be performed remotely but in-person functions cannot be performed during COVID-19.
- Job function timeframe is shortened due to COVID-19. For example, the entire contract period does not need to be performed in the summer because summer programs will not be in person.
I also asked that if and when possible, in lieu of furlough, a person鈥檚 job may be shifted to other work that is in high demand during COVID-19. I鈥檓 hopeful that this will be possible for some positions but recognize that not all positions will fit into this category. I encourage you to work with your supervisor to explore this option. Please also note that given the rapidly changing COVID-19 environment, furloughs can be lifted at any point in time as work becomes available.
My thanks to the 香港六合彩官网资料 community for being nimble and attentive to student, faculty and staff needs during this time of change. I continue to be optimistic about our ability to grow enrollment and other revenues. Our university is changing, but I see bright spots all around that reassure me that out of our realignment, good things await.
Thank you for choosing 香港六合彩官网资料. Be well.