With Dunleavy forcing UA into a financial emergency four years ago, more Alaska students departed for stable alternatives Outside

Gov. Mike Dunleavy began his prolonged attack on the University of Alaska four years ago, accelerating the Alaska brain drain that threatens the state’s future.

The long afterlife of what he did needs to be understood and not forgotten.

Alaskans continue to pay a steep price for Dunleavy’s needless budget cuts, vetoes and public statements disparaging Alaska’s university. He and his staff claimed repeatedly that the state was spending too much on higher education, outlining his disastrous plan in this 2019 memo, a document notable for its false and misleading claims.

He added to the damage by temporarily blocking funds to support the Alaska Performance Scholarship program. Dunleavy sent a clear message to young people—Go to school Outside.

His actions forced the UA regents to declare a financial emergency. While faculty members who had better options headed for the doors, so did prospective students.

Public opposition to his budget was apparent when 10,000 people signed the recall petition on the first day in August 2019. Dunleavy backed off just a bit—he strong-armed the University of Alaska to agree to a $70 million budget cut over three years.

Four years later and Dunleavy portrays himself as a steadfast supporter of the university, which is far from the truth.

While he likes to talk about drones and mining, he is still refusing to support the university in his budget, which is all that counts.

The university’s general fund budget eight years ago was $375 million. The UA regents are asking for $320 million for the next fiscal year, but Dunleavy has proposed $301 million.

The university is making its case to legislators for a higher budget, an effort made more difficult than it should be because the governor is on the sidelines.

UA says the money is needed to keep from falling behind.

“The proposed operating budget includes a state funding increase of $24 million (approximately 8.3%) needed to maintain stability with an additional $7.2 million needed to advance key priorities,” UA President Pat Pitney wrote to lawmakers Jan. 17.

Adjusted for inflation, state support of the university is down by about $90 million since 2015.

One sign of how Dunleavy’s approach created lasting damage is the declining number of students eligible for the Alaska Performance Scholarship who choose to attend school in Alaska.

The percentage of top students choosing to remain in Alaska and use this program—which is worth up to $4,755 a year—has been dropping since 2016, down from 39 percent to 22 percent.

A 2021 analysis found that in 2019, when Dunleavy’s attack on UA funding was just getting started, only 644 students accepted the Alaska Performance Scholarship, down from 902 three years earlier.

The study said state budget cuts, UA programs cuts and the instability of the scholarship program are factors in the decline of students taking advantage of this program.

Starting in 2019, Dunleavy began a series of attempts  to wipe out the investment fund that backs the scholarship endowment, creating real questions about whether the scholarships would survive.

Getting rid of the endowment was a central part of the Dunleavy 2019 budget.

In 2022, the Legislature approved a bill to help ensure that the scholarship endowment will survive by placing the fund to pay future benefits in a separate account.

Opposition or inaction by the governor are not the only problems with the scholarship program, however. The declining number of eligible students points to numerous problems with K-12 schools, another area in which Dunleavy is not leading the way.

The Anchorage Daily News has had good coverage of the situation.

Alaska Public Media has this report on a bill before the Legislature to try and help more students be counted as eligible for the benefit, which will improve their chances of getting more education or training.

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