Legislature(2015 - 2016)CAPITOL 106

03/16/2015 08:00 AM House EDUCATION

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08:01:48 AM Start
08:05:20 AM Presentation: Program Prioritization Report, University of Alaska Board of Regents
10:01:14 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Program Prioritization Report by University of TELECONFERENCED
Alaska Board of Regent Jo Heckman/Chancellor Pugh
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE EDUCATION STANDING COMMITTEE                                                                             
                         March 16, 2015                                                                                         
                           8:02 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Wes Keller, Chair                                                                                                
Representative Lora Reinbold, Vice Chair                                                                                        
Representative Jim Colver                                                                                                       
Representative Paul Seaton                                                                                                      
Representative Liz Vazquez                                                                                                      
Representative Harriet Drummond                                                                                                 
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Jonathan Kreiss-Tomkins                                                                                          
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative Tammie Wilson                                                                                                    
                                                                                                                              
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION:  PROGRAM PRIORITIZATION REPORT~ UNIVERSITY OF                                                                     
ALASKA BOARD OF REGENTS                                                                                                         
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JYOTSNA "JO" HECKMAN, President                                                                                                 
Board of Regents                                                                                                                
University of Alaska                                                                                                            
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Assisted in the presentation of the Program                                                              
Prioritization Report, and responded to committee questions.                                                                    
                                                                                                                                
COURTNEY ENRIGHT, Regent                                                                                                        
Student Board of Regents                                                                                                        
University of Alaska                                                                                                            
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Assisted in  the presentation of the Program                                                             
Prioritization Report, and responded to committee questions.                                                                    
                                                                                                                                
MICHELLE RIZK                                                                                                                   
University of Alaska Budget Office                                                                                              
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Assisted in  the presentation of the Program                                                             
Prioritization Report, and responded to committee questions.                                                                    
                                                                                                                                
JOHN PUGH, Chancellor                                                                                                           
University of Alaska Southeast                                                                                                  
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Discussed  program  prioritization at  the                                                             
University of Alaska.                                                                                                           
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
8:01:48 AM                                                                                                                    
                                                                                                                                
CHAIR WES  KELLER called the  House Education  Standing Committee                                                             
meeting to  order at 8:01 a.m.  Representatives Reinbold, Colver,                                                               
Seaton, Vazquez,  Drummond, and Keller  were present at  the call                                                               
to order.  Representative Wilson was also in attendance.                                                                        
                                                                                                                                
CHAIR KELLER introduced three University of Alaska students.                                                                    
                                                                                                                                
8:05:20 AM                                                                                                                    
                                                                                                                                
^PRESENTATION:    PROGRAM  PRIORITIZATION REPORT,  UNIVERSITY  OF                                                               
ALASKA BOARD OF REGENTS                                                                                                         
  PRESENTATION:  PROGRAM PRIORITIZATION REPORT, UNIVERSITY OF                                                               
                    ALASKA BOARD OF REGENTS                                                                                 
                                                                                                                              
CHAIR KELLER  advised that the  Board of Regents is  appointed by                                                               
the governor  and confirmed by  the legislature, and in  turn the                                                               
Board  of Regents  appoints the  President of  the University  of                                                               
Alaska  (UA).   He described  this meeting  as important  in that                                                               
there are  four regents to be  confirmed and the real  drivers is                                                               
that Alaska is in tight budget  constraints.  He said the role of                                                               
the regents  is oversight  of the  university system  and thanked                                                               
them.   Tension, he  noted, is  due to the  budget crisis  and 10                                                               
percent  decrease in  the budget  and  pointed to  the UA  budget                                                               
depicting a $53  million increase which is a  red flag especially                                                               
since  there was  clear  direction  in last  year's  budget.   He                                                               
continued  that  the   direction  was  that  the   UA  provide  a                                                               
performance matrix of  all degree programs in the  context of the                                                               
number  of students  and  costs, including  directing  the UA  to                                                               
delete  low  priority   programs.    He  pointed   out  that  the                                                               
legislature  does  not  have  control  over  line  items  of  the                                                               
University's budget as  it is the responsibility  of the regents.                                                               
He remarked  that other red  flags include: the 2008  Senate Bill                                                               
241 report on  teacher training programs in the  State of Alaska,                                                               
the legislature advised  there was not much change  in the number                                                               
of  resident teachers  in  the universities,  and  the levels  of                                                               
salaries in  that the first 60  are paid more than  the governor,                                                               
yet tuition is being raised.                                                                                                    
                                                                                                                                
8:12:39 AM                                                                                                                    
                                                                                                                                
JYOTSNA "JO" HECKMAN, President,  Board of Regents, University of                                                               
Alaska, [Available for comments]                                                                                                
                                                                                                                                
8:13:01 AM                                                                                                                    
                                                                                                                                
COURTNEY ENRIGHT,  Regent, Student  Board of  Regents, University                                                               
of Alaska, [Available for comments]                                                                                             
                                                                                                                                
8:13:26 AM                                                                                                                    
                                                                                                                                
REGENT  HECKMAN  referred  to  the  questions  contained  in  the                                                               
committee packet,  labeled "Memo to Chair  Jyostna Heckman, dated                                                               
February 26,  1015," and said  the school has  grown tremendously                                                               
since 1949.   She pointed out  that the Board of  Regents saw the                                                               
writing on  the wall  in FY14 and  explained that  the University                                                               
prepares  for the  FY16 budget  in FY14.   The  budget passed  in                                                               
January was prepared in 2014 and  submitted to OMB in the fall of                                                               
2014.   The oil prices  dropped from September to  December which                                                               
is why the budget submitted is of concern, she noted.                                                                           
                                                                                                                                
8:18:11 AM                                                                                                                    
                                                                                                                                
CHAIR KELLER asked  how the two year cycle works  with the budget                                                               
language last year, and whether it was prepared in FY14.                                                                        
                                                                                                                                
REGENT HECKMAN  offered, for example, this  year the instructions                                                               
for FY17  budget will be received  in May, 2015, for  approval in                                                               
June  2015.   The  statewide  university  campuses develop  their                                                               
budgets in  July, 2015,  and the  universities submit  their FY17                                                               
operating budget to the regents in  August, 2015.  As a body, the                                                               
Board  of  Regents is  very  engaged  in  the process  of  budget                                                               
preparation   and  presentment.      In  September-October,   the                                                               
operating, capital,  and capital  improvement plan  are submitted                                                               
to OMB.   In November,  she advised, the  Board of Regents  has a                                                               
final opportunity to ask questions and approve the 2017 budget.                                                                 
                                                                                                                                
CHAIR KELLER referred  to the budget language  included last year                                                               
and asked  whether it impacts  the current budget or  whether the                                                               
issue is disregarded until the next legislature.                                                                                
                                                                                                                                
8:21:57 AM                                                                                                                    
                                                                                                                                
MICHELLE  RIZK, University  of  Alaska  Budget Office,  responded                                                               
that the  budget language was  incorporated into the  FY16 budget                                                               
process.                                                                                                                        
                                                                                                                                
8:21:59 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   WILSON   referred   to   the   December   salary                                                               
adjustments after knowing oil prices  were dropping and asked why                                                               
the budget  would then come  in with  a two percent  increase for                                                               
the next three years.                                                                                                           
                                                                                                                                
REGENT HECKMAN deferred to Ms. Rizk.                                                                                            
                                                                                                                                
MS.  RIZK  assumed  this  question was  referring  to  the  union                                                               
contracts recently approved.  That  process began before December                                                               
and  the Board  of Regents  decided  to follow  through with  the                                                               
commitment of  negotiating that contract  in that  contracts were                                                               
approved for all of their unions.   Depending upon what the state                                                               
decides to  do, all of those  contracts can be dealt  with all at                                                               
once.                                                                                                                           
                                                                                                                                
REPRESENTATIVE WILSON surmised  that the UA would be  open to the                                                               
discussion  of renegotiating  all of  their contract  at a  level                                                               
better reflecting the oil prices.                                                                                               
                                                                                                                                
MS. RIZK  replied that  the UA  does not want  to be  treated any                                                               
differently than state agencies and it is open for discussion.                                                                  
                                                                                                                                
8:24:13 AM                                                                                                                    
                                                                                                                                
REGENT ENRIGHT  added that the  UA honors the needs  and concerns                                                               
of all of its  employees and prefers to deal with  an issue at an                                                               
all-union basis.                                                                                                                
                                                                                                                                
REPRESENTATIVE  WILSON pointed  out that  the UA  received higher                                                               
than most state contracts as none  of them received a two percent                                                               
increase, and  opined that students  are first and  yet increased                                                               
tuition.   She asked whether the  UA will move forward  with FY17                                                               
versus revisiting areas for which it does not have funding.                                                                     
                                                                                                                                
8:25:48 AM                                                                                                                    
                                                                                                                                
REGENT HECKMAN  responded that they  are currently  reviewing all                                                               
options are  where changes can be  made, what can be  let go, and                                                               
what can they realign to help  them make the budget decrement to.                                                               
She opined that the  UA will not move on and  advised there was a                                                               
special  budget  meeting  where  all  options  were  reviewed  as                                                               
everything  is  on  the  table.    She  said,  they  realize  the                                                               
seriousness of  this and have  been putting in time,  energy, and                                                               
effort to  do the things  necessary to meet the  budget decrement                                                               
and they have not forgotten that FY16 is in front of them.                                                                      
                                                                                                                                
8:27:43 AM                                                                                                                    
                                                                                                                                
CHAIR KELLER said  the regents have not been called  to be on the                                                               
hot seat as  their concern is the danger of  a compliant Board of                                                               
Regents.                                                                                                                        
                                                                                                                                
REGENT HECKMAN  offered that the  regents are  actively dedicated                                                               
and engaged in the administration and budget process.                                                                           
                                                                                                                                
8:29:24 AM                                                                                                                    
                                                                                                                                
CHAIR KELLER  referred to  a written  responses, page  2, wherein                                                               
Regent  Heckman  used  a  CUPA-HR in  setting  the  salaries  for                                                               
officers and senior administrators and  asked the rough number of                                                               
people included in  using this benchmark tool.   He asked whether                                                               
the Board  of Regents are  involved in addressing  the increments                                                               
that go above or beyond the CUPA-HR.                                                                                            
                                                                                                                                
8:30:58 AM                                                                                                                    
                                                                                                                                
REGENT ENRIGHT responded that there  are approximately 116 senior                                                               
administrators and officers system wide.                                                                                        
                                                                                                                                
8:31:04 AM                                                                                                                    
                                                                                                                                
MS.  RIZK added  that  the officers  of the  UA  are outlined  in                                                               
policy  and  the   Board  of  Regents  approves   each  of  those                                                               
positions.                                                                                                                      
                                                                                                                                
MS.  RIZK referred  to the  topic of  revisiting the  budget, the                                                               
Board of  Regents involvement,  and tuition  and advised  that in                                                               
September  the  Board of  Regents  did  not approve  the  tuition                                                               
increase that  administration brought forward based  on a variety                                                               
of factors,  including the financial  change for the state.   She                                                               
said  a  revised proposal  was  offered  in February  related  to                                                               
tuition and  Regent Enright could  discuss why that  decision was                                                               
made.                                                                                                                           
                                                                                                                                
8:33:06 AM                                                                                                                    
                                                                                                                                
REGENT ENRIGHT  explained that many  options were  considered and                                                               
providing affordable tuition to  students is an important mandate                                                               
and  that she  called  all 15  of  the campuses  as  to what  the                                                               
tuition  increase  would  impact.   The  responding  11  campuses                                                               
agreed with the  need to increase tuition  acknowledging there is                                                               
a  fiscal situation  with  the  UA and  Alaska  and the  February                                                               
revised  proposal  increased  tuition  more  than  the  September                                                               
original proposal, she explained.                                                                                               
                                                                                                                                
8:34:06 AM                                                                                                                    
                                                                                                                                
REGENT HECKMAN added  that during the February  board meeting not                                                               
one  student  testified  against  the tuition  increase  and  she                                                               
remarked  that the  students understand  the fiscal  situation at                                                               
the UA and "did not feel this was a big deal to them."                                                                          
                                                                                                                                
8:35:31 AM                                                                                                                    
                                                                                                                                
CHAIR  KELLER acknowledged  that each  of the  regents have  more                                                               
information  on  this  and  are  accomplished  on  the  pertinent                                                               
topics.                                                                                                                         
                                                                                                                                
8:36:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON surmised that the  Board of Regents has had                                                               
one and one-half years to generate  a budget and they will adjust                                                               
that budget based on legislative  appropriations.  The University                                                               
did not change their budget proposal  at the last minute but will                                                               
have to make changes based upon appropriations, he said.                                                                        
                                                                                                                                
MS.  RIZK pointed  out that  a challenge  is meeting  the state's                                                               
budget  guidelines  for budget  submission  in  that it  must  be                                                               
turned into  OMB when  it is  approved in  November.   During the                                                               
June meeting the  Board of Regents will  approve the distribution                                                               
of those funds by campus.                                                                                                       
                                                                                                                                
CHAIR KELLER moved to the  program prioritization issue as within                                                               
the  budget language  last  year  there was  should  have been  a                                                               
performance designator for  each degree program as  to the number                                                               
of  students, whether  employers  in Alaska  are  looking at  the                                                               
degrees,  and cutting  out  some  programs at  a  time of  budget                                                               
crisis rather than harming the  UA by performing cuts everywhere.                                                               
He  continued   that  the  language  also   required  information                                                               
regarding graduates,  what kind of  a debt load  they experienced                                                               
when leaving  the UA,  how many  went into  their field,  and how                                                               
many are working.                                                                                                               
                                                                                                                                
8:39:40 AM                                                                                                                    
                                                                                                                                
JOHN PUGH, Chancellor, University  of Alaska Southeast, described                                                               
the program  prioritization process as the  overarching strategic                                                               
priorities the Board  of Regents has adopted  in shaping Alaska's                                                               
future.    "Shaping  Alaska's Future"  and  the  goals  contained                                                               
within are the first step  in program prioritization, he offered,                                                               
and  secondly  are  the  three  accredited  public  universities:                                                               
Fairbanks, Anchorage, and  Southeast.  He explained  that as part                                                               
of Northwest  Commission accreditation, they are  required in the                                                               
process to prepare a strategic plan  and set core themes that are                                                               
the prioritization of the UA's plans.   Out of those core themes,                                                               
he noted, there  must be strategies of how to  reach those themes                                                               
and  the  specific outcomes.    He  pointed  out that  the  three                                                               
universities have gone  through the first process and  are in the                                                               
second  round each  with different  years  of that  accreditation                                                               
through  the  seven  year accreditation  process,  of  which  the                                                               
University of  Alaska Southeast (UAS) is  in its fifth year.   He                                                               
referred  to the  specific programs  under the  core themes,  for                                                               
example, students services advising is  a very important piece of                                                               
student services  in terms of  an area focused on  throughout the                                                               
system.    In  order  to improve  the  particular  outcomes  with                                                               
freshman students,  there are mandatory advising  programs across                                                               
the  system and  have seen  a significant  increase in  retention                                                               
rates as a result.   It is the plan of  the three universities to                                                               
meet  the student  as a  freshman and  provide support  services,                                                               
advising and counselling, he remarked.                                                                                          
                                                                                                                                
8:43:28 AM                                                                                                                    
                                                                                                                                
CHANCELLOR PUGH continued that the  second piece is when students                                                               
pick  a degree  program and  the focus  is on  high need  jobs in                                                               
Alaska  and most  of the  degree  programs are  connected to  the                                                               
Department of Labor's high need jobs,  of which 85 percent of UAS                                                               
graduates  are in  high  need  jobs.   UAS  has  a strong  mining                                                               
training center and both of the  mines in Juneau depend on UAS to                                                               
provide initial  training as well  as to upgrade  their workforce                                                               
in  that area.   He  explained  that the  third piece  in UAS  is                                                               
health care and the need  for jobs throughout Southeast, of which                                                               
a number of  UAS programs fit into that area.   He explained that                                                               
the UA is  informed by information from  its economic development                                                               
councils  throughout, and  the Department  of Labor,  however, it                                                               
takes  time to  respond to  emerging needs  and adjust  programs.                                                               
The  University  of  Anchorage   (UAA)  prioritized  all  of  its                                                               
programs and  have 70 programs on  the list to perform  a special                                                               
program  review  and determine  whether  the  programs should  be                                                               
deleted,  he   indicated.    Fairbanks   and  Juneau   both  have                                                               
prioritization  processes  such  as committees,  program  reviews                                                               
academically and within support  functions, for example, the Bill                                                               
Ray Center was sold in  response to Juneau's needs, together with                                                               
closure of the book store  and other actions recently occurred to                                                               
enact  efficiencies.   He put  forward that  special reviews  are                                                               
considering library  resources, which  also operates as  a public                                                               
library, and  the question of  how much  of a public  library and                                                               
academic library should UAS be  through the process of reduction.                                                               
On  the  academic side,  online  courses  are replacing  some  on                                                               
campus classes, but  it is not easy  to go through all  of the 50                                                               
programs as  UAS does not  have the  resources to review  them in                                                               
one  year, which  is the  same  for Fairbanks  and Anchorage,  he                                                               
underscored.                                                                                                                    
                                                                                                                                
8:49:23 AM                                                                                                                    
                                                                                                                                
CHANCELLOR   PUGH   continued   that  science   and   engineering                                                               
priorities are  at the University  of Alaska Fairbanks  (UAF) and                                                               
is described  as a  Research 1  University as one  of the  top 10                                                               
universities  of  its  size  in research  in  the  country,  $125                                                               
million of research  and primarily Artic research is  seen as the                                                               
top Artic research  university in the world.  He  said that rural                                                               
campuses  have  been  a  leader in  Alaska  Native  language  and                                                               
culture  programs.    The  Anchorage  campus  focused  on  health                                                               
sciences for a  number of years and most of  their resources have                                                               
gone into  developing excellent health science  programs and have                                                               
one of the  top 10 nursing programs in America  with a mixture of                                                               
e-learning and on  site supervision.  Its second focus  is in the                                                               
area of business with the  banking industry and economics, and it                                                               
has a  highly touted experimental  economics program and  a Nobel                                                               
Peace  prize winner  started the  program.   UAA has  prioritized                                                               
teacher education  as it has  the largest school district  in the                                                               
state.    He  explained  that  UAS  has  a  very  strong  teacher                                                               
education  program  with  e-learning  all over  the  state  which                                                               
includes principal and superintendent  programs.  Chancellor Pugh                                                               
advised  that UAS  has provided  undergraduate business  programs                                                               
via e-learning  for a number of  years which is quite  popular as                                                               
there  is a  high  need  for accountants  in  Alaska.   With  the                                                               
environment in  Southeast, marine  biology is  a natural  and the                                                               
most successful  program in recruiting  students from  within and                                                               
outside  Alaska.   The UAS  focuses on  each community's  need in                                                               
their workforce,  with Ketchikan  it is  marine operations  as it                                                               
has a shipyard with the ferries,  Sitka is law enforcement as the                                                               
trooper  academy  is  there,  and  Juneau  is  primarily  a  mine                                                               
training center, he explained.                                                                                                  
                                                                                                                                
8:54:16 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON  referred to the accreditation  portion and                                                               
ask   why  so   much   time  is   spent   doing  three   separate                                                               
accreditations versus one.                                                                                                      
                                                                                                                                
CHANCELLOR PUGH  explained that geography  plays a role  and each                                                               
campus  has an  independent  focus, as  well  as regional  needs,                                                               
requiring  the  accreditation  be separate.    The  accreditation                                                               
calls  Anchorage and  Juneau comprehensive  regional universities                                                               
as their purpose  is to serve the  region they are in  as well as                                                               
other areas in the state.   He offered that it would be difficult                                                               
to have a  single accredited university as,  for example, Wyoming                                                               
has  a single  university  but has  a  multiple system  including                                                               
community college and technical system throughout Wyoming.                                                                      
                                                                                                                                
8:56:19 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WILSON  said that  the  university  is meant  for                                                               
Alaska's  children to  be educated  in high  needs jobs,  and she                                                               
sees duplication  going on  not just  the three  universities but                                                               
with other parts of the  campuses and training schools outside of                                                               
the university.   She said she  is missing why there  couldn't be                                                               
one  accreditation and  focus on  each area  of education  rather                                                               
than  three, and  the difficulty  in transferring  credits within                                                               
the system.                                                                                                                     
                                                                                                                                
CHANCELLOR   PUGH   explained   that   Fairbanks   has   doctoral                                                               
programming and recently Anchorage  offers doctorate nursing, but                                                               
it  is difficult  to think  about a  doctoral university  such as                                                               
Fairbanks somehow with all of  the other 15 campuses being folded                                                               
into a  single accreditation.   He advised it not  something that                                                               
is done in the accreditation  system throughout the United States                                                               
and there  is a question as  to whether it could  be administered                                                               
in a single unit.   In 1986 the Board of  Regents decided to fold                                                               
the  community  college system  into  the  university system  and                                                               
having  been through  that process  that was  very difficult  and                                                               
took  10-15  years to  get  close  to  integrating those  in,  he                                                               
offered.                                                                                                                        
                                                                                                                                
8:59:13 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD  asked whether  digital learning  is more                                                               
or less expensive.                                                                                                              
                                                                                                                                
CHANCELLOR  PUGH responded  that  it can  be  more efficient  and                                                               
expensive, for  example, currently  there are  areas that  do not                                                               
have  bandwidth  which  enables   a  student  access  to  digital                                                               
learning.    He  explained  that   an  efficient  model  requires                                                               
enlarging classes to a significant  amount, which is what some of                                                               
the profit  making organizations universities have  done that and                                                               
it can  get to an  efficiency model,  but whether the  quality is                                                               
the same  is a question  and faculty  has been reluctant  to have                                                               
enormously large classes in the digital area.                                                                                   
                                                                                                                                
9:01:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD  advised she is not  recommending digital                                                               
learning as nothing  replaces a teacher in  a classroom; however,                                                               
the concern is UA's budget.   She described the UA system as very                                                               
top heavy on administration across  the board of the universities                                                               
and the state does not have  the $400 million to give any longer.                                                               
She asked the plan for the universities.                                                                                        
                                                                                                                                
CHANCELLOR  PUGH replied  that  starting  from Governor  Walker's                                                               
budget  to  the House  budget,  UAS  has  a budget  and  planning                                                               
committee and has been looking at  the areas to reduce or be more                                                               
efficient  such   as,  selling  three  different   buildings  and                                                               
collapsing those  to do  more with  less in  terms of  a physical                                                               
size.   He advised  that UAS  has had five  straight years  of no                                                               
utility  increases   because  the  efficiencies  work   with  its                                                               
buildings and     each building  sold allowed  UAS to  reduce its                                                               
operating cost  by $300-500 thousand.   A program  eliminate last                                                               
year  was  the UAS  pre-engineering  program  as there  were  not                                                               
enough students, which  allows people to do their  first year and                                                               
then transfer  to Anchorage  and Fairbanks,  which will  save UAS                                                               
$150,000 thousand,  the early childhood  program and  two faculty                                                               
were eliminated, and an MBA program.   He remarked the plan is to                                                               
cut programs and eliminate staff  and faculty, including a review                                                               
of  eliminating  one  Vice-Chancellor and  one  Vice-Provost,  as                                                               
statewide is looking  to reduce management, campuses  will not be                                                               
closed, but efficiencies are being pursued.                                                                                     
                                                                                                                                
9:04:47 AM                                                                                                                    
                                                                                                                                
REGENT HECKMAN added that a  single answer will not suffice, they                                                               
are  re-allocating   resources,  space  utilization,   long  term                                                               
facility  management, controlling  energy  expense, system  level                                                               
collaborations, reviewing  programs and positions,  enrolling and                                                               
retaining  more students,  commercialization  as at  UAA and  UAF                                                               
campuses  have increased  research which  could provide  economic                                                               
value  from the  university's  intellectual  properties with  new                                                               
inventions  and  patents  that  could  be  leveraged  through  to                                                               
provide  some benefit  to the  university as  well as  the state.                                                               
She stated that many avenues  exist and each is being scrutinized                                                               
while preserving the  core quality of the university  so when the                                                               
budget deficit is  over the UA will emerge with  something it can                                                               
hang  onto  and   maintain  a  high  quality   university.    The                                                               
University of Alaska  understands this is a  2016-2019 issue, she                                                               
said.                                                                                                                           
                                                                                                                                
CHAIR  KELLER commented  that the  Board of  Regents are  charged                                                               
with making prioritizations, and the  choices cannot be easy.  He                                                               
expressed that the point of this  meeting is whether the state is                                                               
receiving "the bang  for the buck" and the Board  of Regents must                                                               
have the answer.                                                                                                                
                                                                                                                                
9:09:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COLVER referred to  the committee handout, page 2,                                                               
labeled "UNIVERSITY  OF ALASKA  FAIRBANKS PRIORITIES  and PROGRAM                                                               
REVIEWS," in which  there are a number of  career pathways slated                                                               
to be  cut where  there is  a high demand  in the  private sector                                                               
such as,  dental assistant, dental hygiene,  drafting technology,                                                               
and instrumentation  technology.   He offered  concern as  to how                                                               
the UA will provide for the  high demand career pathways if it is                                                               
reducing these  programs.   He asked  whether other  programs are                                                               
offered in these disciplines.                                                                                                   
                                                                                                                                
REGENT HECKMAN explained that the  program reviews and priorities                                                               
are continuing and  there is a process  of programing elimination                                                               
or deletion.   The Program Reviewing Committee has  a certain set                                                               
of criteria that  puts these programs on a review  list and it is                                                               
unknown whether they will be  deleted, the decision is made based                                                               
upon  the number  of students  in the  program, faculty  that can                                                               
teach those programs,  or interest in the program.   She said the                                                               
regents  review  it  through its  Academic  and  Student  Affairs                                                               
Committee and  offer a  deletion of the  program.   Currently the                                                               
programs mentioned  are on  the program review  list but  it does                                                               
not mean that they are going to be deleted or eliminated.                                                                       
                                                                                                                                
9:11:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COLVER asked  whether  the UAF  campus would  get                                                               
back  to  the committee  on  this  assessment including  how  the                                                               
career  pathways   will  be  filled   as  these  are   job  ready                                                               
disciplines  with jobs  in high  demand.   He described  that the                                                               
mission  is to  offer  programs  for students  so  they can  move                                                               
directly into a job.                                                                                                            
                                                                                                                                
9:12:39 AM                                                                                                                    
                                                                                                                                
CHANCELLOR PUGH advised that the  3 campuses operate together and                                                               
each deletion  goes through that  and reviews what is  offered at                                                               
other  campuses.   For example,  the dental  hygiene program  has                                                               
been offered for  many years in the Anchorage area,  and the goal                                                               
is to determine whether a class  can be offered at one campus and                                                               
serve the state, he explained.   The programs that require hands-                                                               
on experience are  hard to do except at a  local area, especially                                                               
given the geographic size of the state, he emphasized.                                                                          
                                                                                                                                
REPRESENTATIVE COLVER observed that  CAD drafters can work online                                                               
as the  demand in the industry  is high, and he  looks forward to                                                               
the response.                                                                                                                   
                                                                                                                                
9:14:36 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD noted  that the  University of  Alaska's                                                               
budget is approaching  $1 billion and asked "where  does the buck                                                               
stop," with the president and  chancellors or stop with the Board                                                               
of Regents.  She expressed that  during the past two years a plan                                                               
was  requested, and  stated there  were seven  silos where  money                                                               
went and she had recommended one  to offer more flexibility so UA                                                               
could put a plan in place.                                                                                                      
                                                                                                                                
She pointed out  that UA is a land-grant  college that apparently                                                               
did not  receive all the  land, but with the  land it has  how it                                                               
could be  monetized and more self-sufficient.   President Patrick                                                               
Gamble  previously  testified  that   his  number  one  issue  is                                                               
personnel costs in order for  the university to become more self-                                                               
sufficient and she  requested a plan to  address personnel costs.                                                               
She opined to keep as many  faculty that are teaching classes and                                                               
eliminating  unnecessary  administration.   She  inquired  as  to                                                               
whether Eagle River is an official  campus but heard it is in the                                                               
black as  it uses the high  school, the parking lots  are already                                                               
cleared,  and the  lights and  building are  already there.   She                                                               
questioned why  this model is  not being used in  outlying areas.                                                               
She requested information as to why  a travel freeze has not been                                                               
implemented.                                                                                                                    
                                                                                                                                
9:16:33 AM                                                                                                                    
                                                                                                                                
REGENT  HECKMAN advised  that the  buck stops  with the  Board of                                                               
Regents,  as holders  of the  oversight responsibility,  and they                                                               
run the  University of Alaska  through President Gamble.   He, in                                                               
turn, manages  and runs  the university  for the  regents through                                                               
oversight  of the  3  campuses and  other  smaller campuses,  she                                                               
explained.   The buck stops  with the Board of  Regents regarding                                                               
the budget  and during the June  meeting is advised of  the final                                                               
numbers from the  legislature, it then appropriates  the money to                                                               
different  campuses in  whatever proportions  necessary for  each                                                               
administrative unit.   She said  that during their  recent budget                                                               
meeting  they considered  reducing the  number of  administrative                                                               
positions and reviewed different models  within the UA system and                                                               
separately accredited  universities and  how many people  does it                                                               
take to run that  model.  She pointed out that  the UA system has                                                               
some research faculty that brings in  funds that goes to the type                                                               
of research they perform and  are self-sufficient for themselves,                                                               
the programs, and  their staff.  She indicated  that programs not                                                               
on the  program review list will  retain the faculty if  it is in                                                               
the university's  best interest  in that their  goal is  to right                                                               
size  the university  system and  retain the  high quality,  high                                                               
performance, and  high demand programs.   She explained  that the                                                               
purpose of the  program prioritization and review  is to consider                                                               
what can  be carried by  specific campuses as the  university can                                                               
no longer  respond to every need  in every area, as  was once the                                                               
effort.   Programs  are being  consolidated and  focused on  by a                                                               
single  campus.   She said  she could  not answer  Representative                                                               
Reinbold's question regarding Eagle River.                                                                                      
                                                                                                                                
9:20:31 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD asked  what the  university can  do with                                                               
the land it does have to monetize  it and move forward to be more                                                               
self-sufficient.                                                                                                                
                                                                                                                                
REGENT  HECKMAN answered  that the  university  has a  facilities                                                               
plan  and did  not  know if  it  had  a land  plan,  but she  can                                                               
definitely review it and get back to her.                                                                                       
                                                                                                                                
9:21:16 AM                                                                                                                    
                                                                                                                                
MS.  RIZK  referred  to  the   sovereign  plan  President  Gamble                                                               
discussed last year with Representative  Reinbold related to land                                                               
and there  is draft  legislation for  the land  grant equivalency                                                               
that does  look at land for  the University of Alaska  and how to                                                               
receive additional revenue through that process into the future.                                                                
                                                                                                                                
CHANCELLOR PUGH said  there is an annual land  grant program that                                                               
reviews what  is being sold and  leased, but the problem  is that                                                               
the university doesn't  have many acres and opined  that the land                                                               
office  in recent  years  has  done an  excellent  job trying  to                                                               
develop the  lands it  does have.   He offered  that in  the past                                                               
their  focus  has  been  timber  cutting plans  that  is  not  an                                                               
enormous amount of  money and noted the natural  resource plan is                                                               
$200  million   and  spins  off   each  year  somewhere   in  the                                                               
neighborhood  of  $8-10 million  which  is  used for  the  Alaska                                                               
scholars program and land grant research pieces.                                                                                
                                                                                                                                
9:23:12 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   REINBOLD   continued  to   request   information                                                               
regarding  the Eagle  River campus,  the number  of acres  in the                                                               
UA's possession, and a travel freeze.                                                                                           
                                                                                                                                
MS. RIZK responded that a  travel freeze has not been implemented                                                               
but  is  "getting   chilled  very  quickly"  as   last  year  the                                                               
legislature  reduced travel  by  over $1  million  and the  total                                                               
travel  budget   is  approximately  $20  million,   and  half  is                                                               
restricted  travel  meaning  it  comes  from  federal  researcher                                                               
performing   research.     Through   the   reductions  from   the                                                               
legislature   they   have   focused  on   reducing   travel   and                                                               
implementing audio  conferencing, the Board of  Regent trips have                                                               
much  limited  staff,  and legislative  meetings  to  the  degree                                                               
possible  are pairing  them  together, but  travel  has not  been                                                               
frozen.   They  have athletic  teams required  to travel  and are                                                               
reviewing that  issue but it will  take time to determine  how to                                                               
do things differently as they cannot do an all-out freeze.                                                                      
                                                                                                                                
CHANCELLOR PUGH  advised the number  of acres including  the plan                                                               
for disposal will be provided.                                                                                                  
                                                                                                                                
9:25:36 AM                                                                                                                    
                                                                                                                                
CHAIR KELLER offered that if  the witnesses have further input to                                                               
answer  various questions  to please  send it  to him  before the                                                               
confirmation hearings.                                                                                                          
                                                                                                                                
9:26:01 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VAZQUEZ requested a report  on the acres of lands,                                                               
how they are broken down, the  plan for use and monetization, and                                                               
the person primarily responsible.   She offered that Stanford has                                                               
been  successful with  property monetization  and mentioned  that                                                               
the American  Public University is  a small  institution compared                                                               
to  the University  of Alaska  system which  quite aggressive  in                                                               
monetizing  the little  land they  own.   She recalled  that over                                                               
$300  million  was  allocated  for  a power  plant  for  UAF  and                                                               
requested the status of the power plant.                                                                                        
                                                                                                                                
MS. RIZK responded she would provide a written response.                                                                        
                                                                                                                                
9:28:19 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VAZQUEZ  referred to a line  indicating the mental                                                               
health authority funds and asked what the funds are used for.                                                                   
                                                                                                                                
CHANCELLOR  PUGH replied  [technical difficulties]  the authority                                                               
often  times  matches  program funding  at  the  university,  for                                                               
example, the  mental health trust  authority was  very interested                                                               
in getting UA's doctorate in  psychology started in the state and                                                               
match the program before that,  and other programs for disability                                                               
services  and other  areas in  the  mental health  services.   He                                                               
explained that early  on the mental health trust  was involved in                                                               
the development of masters in social  work, and in any given year                                                               
there  will be  2-3 items  in the  university's budget  including                                                               
mental health trust funds as matching.                                                                                          
                                                                                                                                
9:29:13 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  VAZQUEZ  asked  for  a  breakdown  by  geographic                                                               
location of the  administrators and staff, as well  as a specific                                                               
detailed   breakdown  of   travel   expenditures,  a   geographic                                                               
breakdown  of the  areas of  majors  and minors  offered in  each                                                               
campus, including  student enrollment for  the past two  years in                                                               
each of the programs by geographic location.                                                                                    
                                                                                                                                
MS.  RIZK  advised that  the  university  has over  500  programs                                                               
across  the system  from certificate  up  to PhD  levels and  was                                                               
trying to decide how best to  give it to the committee without 35                                                               
pages worth of data.                                                                                                            
                                                                                                                                
REPRESENTATIVE  VAZQUEZ indicated  with regard  to the  Anchorage                                                               
campus  she suggested  an Attachment  A with  a list  of all  the                                                               
majors and minors and other certification programs.                                                                             
                                                                                                                                
CHAIR  KELLER  explained  that   online  the  university  has  an                                                               
organization chart for all three campuses.                                                                                      
                                                                                                                                
9:31:52 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON stated the report  can be 35 pages in order                                                               
for the  legislature to  understand what is  happening in  all of                                                               
the campuses, and it could be offered digitally.                                                                                
                                                                                                                                
CHAIR KELLER  responded that  the legislature  can come  back and                                                               
revisit these  issues at  a later  time as  the Board  of Regents                                                               
will be here for confirmation and the upcoming bill.                                                                            
                                                                                                                                
9:33:14 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON   pointed  out  that  the   details  being                                                               
requested may  be included  in the  resources available,  such as                                                               
"Shaping  Alaska's  Future."    He  suggested  a  honing  of  the                                                               
questions being posed.                                                                                                          
                                                                                                                                
CHAIR  KELLER   said  that  the  committee   is  asking  specific                                                               
questions  and  if  the  information  is  contained  in  "Shaping                                                               
Alaska's Future" to make reference to it.                                                                                       
                                                                                                                                
9:35:07 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON  reviewed the  need for information  on the                                                               
individual campus programs.                                                                                                     
                                                                                                                                
CHAIR  KELLER pointed  out  that the  broad  question is  whether                                                               
programs are effective.                                                                                                         
                                                                                                                                
9:37:45 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DRUMMOND indicated  she was  not sure  she wanted                                                               
all that level of detail  particularly since the legislature does                                                               
not have  line item veto  authority.  She referred  to Chancellor                                                               
Pugh's statement that the UAS  campus cut early childhood masters                                                               
degrees and,  in that she  does not  agree with the  House budget                                                               
eliminating all  early childhood programs from  the Department of                                                               
Education, asked  how the university  would handle such  a signal                                                               
from  the legislature  in that  it is  choosing to  eliminate all                                                               
early childhood programs in light  of two early childhood masters                                                               
programs at UAA and UAF.                                                                                                        
                                                                                                                                
CHANCELLOR  PUGH  replied  that  years  ago  UAS  reviewed  early                                                               
childhood programs because districts  were not hiring people with                                                               
early  childhood degrees  as they  were not  required, therefore,                                                               
students wouldn't  go into those  programs because  they couldn't                                                               
get jobs  when they graduated.   He said the outcome  will depend                                                               
upon  the   student  body  and   whether  districts   are  hiring                                                               
graduates.   In  the  event districts  decide  to hire  teachers,                                                               
particularly PreK-3,  the university  will continue  the programs                                                               
as  long as  the numbers  are there.   He  advised that  when the                                                               
districts decided  to not hire  individuals with  early childhood                                                               
education they  changed the program  to include PreK-5  with some                                                               
early childhood courses in order for  people to be [indisc.].  He                                                               
opined  that  he   looks  at  the  market   and  determines  what                                                               
principals  and  superintendents  are  looking for  in  terms  of                                                               
hiring individuals which drives the  programs offered.  Which, he                                                               
remarked, is  true of any decisions  made to make shifts  in that                                                               
prioritization  at the  state  level does  shift  the economy  of                                                               
districts and  the market  and UA  responds to  that market.   He                                                               
would like  UAS to  respond more  quickly as  it is  smaller with                                                               
fewer layers  to go through but  it is getting better  at turning                                                               
faster, he related.                                                                                                             
                                                                                                                                
9:41:19 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON pointed  out that  the committee  received                                                               
presentations from each of the  three universities, and using UAF                                                               
as  an  example,   has  42  programs  they   are  evaluating  for                                                               
elimination.   Yet, he pointed  out, the committee request  is to                                                               
receive a  report regarding all  of the programs  offered thereby                                                               
not relying upon their expertise  to have identified 42 programs.                                                               
He  opined that  the committee  is requesting  the university  to                                                               
give  the  committee a  digital  dump  of  all the  courses  they                                                               
operate,  but he  was not  sure why  because they  were asked  to                                                               
prioritize  and complied,  and now  the committee  is questioning                                                               
its prioritization.   He  asked whether  the committee  is asking                                                               
the  UA  to   have  some  different  parameter   under  which  to                                                               
prioritize  the   42  masters   and  certificated   programs  and                                                               
Bachelors  of  Art,  Bachelors  of  Science  programs  should  be                                                               
evaluated.   He then questioned  the appropriateness  and whether                                                               
the  committee  should  delve  into  the  detail  that  has  been                                                               
entrusted to the Board of  Regents as the university came forward                                                               
with prioritizing programs as was requested.                                                                                    
                                                                                                                                
CHAIR KELLER  responded that the  documents do not make  sense to                                                               
him as he  does not see a real prioritization  and his suspicions                                                               
are  that the  product  is  not yet  completed,  although it  was                                                               
requested a year  ago.  He said he heard  that UAA eliminated its                                                               
Masters  of  Chemistry degree  and  can't  imagine it  not  being                                                               
hugely employable.                                                                                                              
                                                                                                                                
REPRESENTATIVE SEATON replied that  Chair Keller's response gives                                                               
the university definition to the question.                                                                                      
                                                                                                                                
CHAIR KELLER  reiterated that the  context of this meeting  is to                                                               
call attention  to whether programs  are needed or not,  which is                                                               
the  responsibility of  the Board  of  Regents more  so than  the                                                               
responsibility of the legislature.   He explained the legislature                                                               
wants to find comfort in the actions of the Board of Regents.                                                                   
                                                                                                                                
9:46:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WILSON said  that  the university  is looking  at                                                               
their  own programs  within their  own system  and not  tasked to                                                               
review the  world and  a consideration  may be  to allocate  in a                                                               
different method  to the university  system.  She  questioned the                                                               
duplication with state funding, not  just the university but with                                                               
training schools,  K-12 programs  and whether programs  should be                                                               
combined.    She expressed  concern  that  9.2 million  has  been                                                               
provided to build a locker  room so these individual expenditures                                                               
are questionable and confidence  must be provided through further                                                               
information.  She said her desire  is to understand the basics of                                                               
what the  university is  offering and  possibly send  students to                                                               
other universities to help finish  their degrees versus trying to                                                               
do it with just that amount.   The legislature is tasked with the                                                               
bigger picture  of what else is  going on in the  state and asked                                                               
whether the  state is interfering with  private training schools.                                                               
She  described  the  information  the  committee  is  seeking  as                                                               
invaluable.                                                                                                                     
                                                                                                                                
9:50:14 AM                                                                                                                    
                                                                                                                                
CHANCELLOR PUGH  answered that  he does  not object  to preparing                                                               
programs  by   geographic  location   and  enrollments,   but  an                                                               
important  perspective   is  what  the  campuses   at  Sitka  and                                                               
Ketchikan  do  for  their  communities,  surrounding  areas,  and                                                               
workforce  is amazing.   Within  the university  system there  is                                                               
quite a  bit of  distance education, for  example, within  UAS 53                                                               
percent of its headcount and close  to 50 percent of credit hours                                                               
are e-learning  credit hours and  there are individuals  all over                                                               
the  state  taking  courses.    He said  that  you  will  see  in                                                               
enrollments isn't  necessarily in that region  because the entire                                                               
state is being  served as UAS has 129 programs  that are distance                                                               
delivered in  the University  of Alaska system.   He  referred to                                                               
the  students that  earlier identified  themselves and  commented                                                               
that this  is Spring  Break and  they took their  time off  to be                                                               
down here to put a face on  the University of Alaska.  He advised                                                               
that Alaska is  the only state where the student  regent has full                                                               
powers so the students have a voice.                                                                                            
                                                                                                                                
9:52:51 AM                                                                                                                    
                                                                                                                                
MS. RIZK  wrapped-up with comments  for continued success  of the                                                               
university.   She said  that transfer issues  are a  priority for                                                               
the  Board of  Regents and  to send  all constituent  comments to                                                               
her.  She added that transfers  do not count toward the degree as                                                               
it is considered an elective.                                                                                                   
                                                                                                                                
9:54:04 AM                                                                                                                    
                                                                                                                                
REGENT HECKMAN  pointed out  that there  are 54  school districts                                                               
and are  challenged with whether  the students are  college ready                                                               
and  if  the students  are  not  college  ready they  spend  time                                                               
getting them college ready and  are chastised because it took six                                                               
years for them  to graduate.  Open admission is  part of a larger                                                               
discussion, but the  issue of duplication of  programs is exactly                                                               
what  the prioritization  process will  address thereby  creating                                                               
efficiency in the system.   She commented that the university has                                                               
title  to  approximately  145,600   acres  of  land,  educational                                                               
property is  approximately 12,000 acres, and  investment property                                                               
is approximately 133,000 acres.   She commented that in two years                                                               
UA  will celebrate  its 100th  birthday, and  it is  important to                                                               
keep it strong into the future.   She reported in 2014 there were                                                               
a record number  of degree certificates and licensures  with a 31                                                               
percent  increase in  annual awards  compared to  2010, and  more                                                               
high  demand  job  areas  degrees  awarded.    For  example,  she                                                               
remarked,   UAA  awarded   180  plus   Baccalaureate  Engineering                                                               
degrees,  approximately  1,000  degree  certificates  in  health,                                                               
occupational  endorsements   in  health  related   programs,  and                                                               
approximately  550   degree  certificates  and   endorsements  in                                                               
teacher education programs.                                                                                                     
                                                                                                                                
9:58:20 AM                                                                                                                    
                                                                                                                                
REGENT HECKMAN continued that the  university has expanded the e-                                                               
learning  course  delivery to  129  programs  and would  like  to                                                               
provide as  many offerings  as possible.   Many programs  are 100                                                               
percent available by e-learning with  a 38 percent increase in e-                                                               
learning  credits, and  approximately one-third  of the  students                                                               
are   enrolled  through   e-learning   environment  at   multiple                                                               
campuses,  she explained.   When  discussing  Alaska schools  and                                                               
private  industry, the  university  is increasing  Alaska-related                                                               
research and intellectual  property.  She advised the  goal is to                                                               
remove  all  barriers to  student  success  and provide  seamless                                                               
learning opportunities.                                                                                                         
                                                                                                                                
10:01:14 AM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Education Standing Committee meeting was adjourned at 10:01 a.m.                                                                

Document Name Date/Time Subjects
Response to Rep Keller.pdf HEDC 3/16/2015 8:00:00 AM
University of Alaska Response to Prioritization
KELLER Memo University of Alaska.doc HEDC 3/16/2015 8:00:00 AM