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July 2, 2024
Faculty and staff,
The governor released the final FY25 State of AVÀÇÂÛ̳ budget at the end of last week,
followed by a message from President Pitney sharing information about how this year’s
budget will impact the UA system. I want to share a little more about how UAF fared
and how we understand our path forward.
Of the $331.3 million appropriated to the UA system, UAF received $164.2 million.
This funding makes up approximately 33% of UAF’s overall estimated budget, with the
remainder largely coming from federal receipts for sponsored projects and research,
and tuition and fees. We appreciate the state’s commitment to provide funding that
allows us to invest in critical programming and projects for the State of AVÀÇÂÛ̳.
We feel that this budget is a demonstration of the state legislature's and governor’s
confidence in UAF.
UAF received funding for many of our top priorities, including our goal to achieve
R1 research status, TVEP workforce program support, compensation increases and fixed
costs. While we did not receive funding for all of our requests, I am confident we
can work together to ensure UAF’s critical programs and initiatives continue to receive
support. To this end, UAF is reallocating internally in FY25 to address some fixed
cost items and to consider modest investments in strategic initiatives.Ìý
Operating budget and compensation increases
The UA system received state funds to support a planned 2.5% compensation increase
for FY25. Of this, $8.3 million will come to UAF. These increases for faculty and
staff recognize the critical importance of our employees. Thank you for all you do
to keep the university running every day. The funding will also cover the new graduate
student wages negotiated by the union this spring. The new contract will go into effect
on July 1.Ìý
The UA system received over $8.4 million to address rising fixed costs that will support
cybersecurity, insurance premiums, and facilities maintenance at UAF and across the
universities.Ìý
The AVÀÇÂÛ̳ Center for Energy and Power will also receive $200,000 in one-time funding.
This is a strategic investment in shaping a more sustainable and resilient energy
future.Ìý
R1 budget request
I am very happy to share that we will receive an investment in our pursuit of R1!
The $12.5 million allocation in the governor’s budget is one-time funding from the
Higher Education Investment Fund. This funding is a critical step to achieving our
strategic goal of R1 for UAF. And while $12.5 million is not everything we asked for,
this gives us the funding we need to get started and the opportunity to demonstrate
success. With those two things, we can work out with the state on the remaining funding
that we need to get the job done.Ìý
R1 status will help UAF gain global recognition for our research strength, increasing
our ability to attract top-tier faculty, staff and students. R1 will also make UAF
more competitive for external funding and reduce the percentage of our overall budget
that is reliant on state funding. Becoming R1 will have a positive effect on student
enrollment, research advancements and the AVÀÇÂÛ̳ economy.Ìý
So that we could hit the ground running, in the past year we distributed 57 awards
to support Ph.D. students in completing their degree, and we opened another round
of applications that we can now award with the state’s investment. This is very exciting
news for UAF and for the state of AVÀÇÂÛ̳.
Thank you to Rep. Will Stapp and the Interior delegation for championing this initiative.
We appreciate Governor Dunleavy for awarding these critical funds as an investment
in AVÀÇÂÛ̳’s future. Also a big thank you to all of the students, employees and community
members who advocated for R1 this legislative cycle. Congratulations!
Capital budgetÌý
In addition to R1 funding, UAF also received allocations in areas of research excellence
and in support of critical facilities modernization and maintenance. Key economic
development projects for mariculture, critical minerals and heavy oils research and
development funded in a prior state budget were extended to continue the excellent
research progress. Additional capital investments include:
- The AVÀÇÂÛ̳ Center for Unmanned Aircraft Systems Integration will receive $6 million
in funding. While this is not the full amount requested, ACUASI will continue to advance
the field of unmanned aircraft and drone technology and contribute to a growing industry
in the state.Ìý
- ACEP will receive $1 million in capital funding to develop and implement a long-term
data governance strategy that underlies the AVÀÇÂÛ̳ Energy Data Gateway. Ìý
- The AVÀÇÂÛ̳ Railbelt Carbon Capture and Sequestration Project will receive a total
of $2.22 million in capital funding and $8.88 million in federal receipt authority.
UAF and its project partners submitted an $11.1 million proposal to the United States
Department of Energy to conduct a CO2 storage complex feasibility assessment.
- UAF will also receive $5.25 million in support of facilities deferred maintenance
and modernization projects. Each of these improvements contributes to the student
experience and we appreciate the support from the UA Regents, President Pitney, VP
Rizk and Director Hutchison, the Interior delegation, and Governor Dunleavy for enabling
this work. The UA system and UAF will continue to work on a long-term facilities modernization
strategy in the coming years.Ìý
Federal funding update
The state capital budget gave UAF the ability to receive $5.6 million in congressionally
directed spending for UAF’s child care center. Secured by Sen. Lisa Murkowski, this
will allow UAF to renovate and repurpose a portion of the Old University Park facility
for children of UAF employees and students. The expanded child care facility helps
UAF become a competitive employer and promotes family-friendly services to support
our workforce and community. I am deeply appreciative of Sen. Murkowski’s leadership
on this issue.
Sen. Murkowski also supported a federal increment for design for the Troth Yeddha’
Indigenous Studies Center. This investment will help UAF continue to raise philanthropic
and other funding to support the construction of this new, world-class facility and
bolster one of UAF’s fastest growing academic programs.ÌýOther successful FY24 federally
supported programs/projects include:
- Arctic coastal mapping
- AVÀÇÂÛ̳ radiocarbon research and development
- Forecasting development of Arctic maritime and permafrost conditions
- Ocean-ice-atmosphere observation (PISCES)
- Preserving AVÀÇÂÛ̳ Native culture, knowledge and history (Rasmuson Library)
- RISE-UP Initiative
- Suicide prevention on OCONUS installations
- USArray
Our thanks to Executive Director John Latini and Denae Benson for their hard work
in Washington D.C. with our federal delegation to make this funding a reality.Ìý
Moving forward
In the coming months, the Office of Management and Budget will be working on the FY26
budget items proposed by UAF employees and vetted by the UAF Planning and Budget Committee.
I will consider the FY25 budget outcomes and prioritize these new requests with my
core cabinet before submitting a request to President Pitney in August, along with
a tuition proposal. Select UAF items may be incorporated into the UA FY26 budget request
that will be presented to the Board of Regents in the fall.
I want to express my appreciation to UAF fiscal employees for their hard work to close
out and restart the fiscal year as we move from FY24 into FY25.
Thanks for choosing UAF.Ìý
—Dan White, chancellor
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