Responding to financial crisis, University of Alaska floats proposals to merge, integrate more services
Within the next two weeks, the University of Alaska will consider some major and minor structural changes to deal with a financial crisis exacerbated by Gov. Mike Dunleavy’s vetoes and the COVID-19 pandemic.
Leading the list floated by UA President Jim Johnsen are options such as merging the University of Alaska Southeast with Anchorage or Fairbanks or merging the community campuses into the Juneau university.
Other proposals include standardizing the definition of a “course hour” at either 50 minutes or 60 minutes, which would make it easier for students anywhere to take courses at all UA campuses, and consolidating general education requirements. Those changes are steps toward greater standardization.
Finally, information technology services will be reviewed for consolidation statewide or divided among the universities.
In a letter Thursday, Johnsen said the audit committee asked that options about university transformation be presented in early June because of the budget crisis. The university predicts a shortfall of $41 million to $66 million by the end of fiscal year 2022.
If the regents decide to use $25 million in one-time funds, the shortfall could range from $14 million to $40 million. The three universities have said they can cut $26 million in fiscal year 2022, but they have yet to identify exactly what would be eliminated. If those cuts don’t happen, the gap would be in the $40 million range, assuming the use of $25 million in one-time funds.
“I do not plan to make recommendations on these options to the board during its meeting, June 4-5. Rather, I will present the results of our preliminary reviews and take direction from the Board on any further consideration,” the UA president wrote.
The options to be looked at in the next three weeks are in bold in the graphic below. There wouldn’t be a great deal of immediate savings from those actions. The options that are not in bold, which would be reviewed in the months ahead, are more far-reaching, such as consolidating “duplicative academic units.”
