Legislature(2019 - 2020)CAPITOL 106

01/29/2020 08:30 AM EDUCATION

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08:31:18 AM Start
08:32:00 AM the State of the University by Ua President Jim Johnsen
10:09:31 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
-- Teleconference <Listen Only> --
Joint with Senate EDC
+ Presentation: "The State of the University" by TELECONFERENCED
Jim Johnsen, UA President
**Streamed live on AKL.tv**
                    ALASKA STATE LEGISLATURE                                                                                  
                         JOINT MEETING                                                                                        
              SENATE EDUCATION STANDING COMMITTEE                                                                             
               HOUSE EDUCATION STANDING COMMITTEE                                                                             
                        January 29, 2020                                                                                        
                           8:31 a.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
SENATE EDUCATION STANDING COMMITTEE                                                                                             
                                                                                                                                
 Senator Gary Stevens, Chair                                                                                                    
 Senator Shelley Hughes, Vice Chair                                                                                             
 Senator John Coghill                                                                                                           
 Senator Mia Costello                                                                                                           
                                                                                                                                
HOUSE EDUCATION STANDING COMMITTEE                                                                                              
                                                                                                                                
 Representative Harriet Drummond, Co-Chair                                                                                      
 Representative Andi Story, Co-Chair                                                                                            
 Representative Tiffany Zulkosky                                                                                                
 Representative DeLena Johnson                                                                                                  
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
SENATE EDUCATION STANDING COMMITTEE                                                                                             
                                                                                                                                
 Senator Tom Begich                                                                                                             
                                                                                                                                
HOUSE EDUCATION STANDING COMMITTEE                                                                                              
                                                                                                                                
 Representative Grier Hopkins                                                                                                   
 Representative Chris Tuck                                                                                                      
                                                                                                                                
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION:                                                                                                                   
THE STATE OF THE UNIVERSITY BY UA PRESIDENT JIM JOHNSEN                                                                         
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JIM JOHNSEN, Ph.D., President                                                                                                   
University of Alaska                                                                                                            
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Presented on the state of the university.                                                                 
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
8:31:18 AM                                                                                                                    
CHAIR GARY  STEVENS called  the joint meeting  of the  Senate and                                                             
House  Education  Standing  Committees  to  order  at  8:31  a.m.                                                               
Present  at the  call to  order were  Senators Costello,  Hughes,                                                               
Coghill and Chair Stevens  and Representatives Zulkosky, Johnson,                                                               
and Co-Chairs Drummond and Story.                                                                                               
                                                                                                                                
^The State of the University by UA President Jim Johnsen                                                                        
    The State of the University by UA President Jim Johnsen                                                                 
                                                                                                                              
8:32:00 AM                                                                                                                    
CHAIR  STEVENS announced  the annual  presentation "The  State of                                                               
the  University"  by  University  of Alaska  (UA)  President  Jim                                                               
Johnsen.                                                                                                                        
                                                                                                                                
8:32:41 AM                                                                                                                    
JIM JOHNSEN,  Ph.D., President, University of  Alaska, Fairbanks,                                                               
Alaska,  began by  reflecting  on the  previous  year. "Yes,  the                                                               
effects of it will be long  lasting, but we're really pivoting to                                                               
the positive," he said.                                                                                                         
                                                                                                                                
PRESIDENT JOHNSEN presented the agenda for the presentation:                                                                    
     •  Introduction                                                                                                            
     •  Institutional Overview                                                                                                  
     •  Organizational & Budget Update                                                                                          
     •  Key Data                                                                                                                
     •  2020 Legislative Priorities                                                                                             
     •  Conclusion                                                                                                              
                                                                                                                                
PRESIDENT JOHNSEN said  that 2019 was a tough  year, probably the                                                               
toughest year  in the history  of the University of  Alaska (UA).                                                               
No other  state in  the last  10 years,  certainly not  since the                                                               
great recession,  so threatened  its university. That  said, with                                                               
strong leadership from the Board  of Regents, the university made                                                               
it  through  2019 and  is  here  today,  a strong  and  committed                                                               
University of  Alaska with a  relentless focus on its  mission of                                                               
teaching students,  doing research that's important  and relevant                                                               
to Alaska, and  reaching out to serve communities  all across the                                                               
state.                                                                                                                          
                                                                                                                                
PRESIDENT JOHNSEN said that this  three-part mission is every bit                                                               
as relevant today as it was  in 1862, when Abraham Lincoln signed                                                               
the Morrill Act  creating land-grant universities. UA  is a land-                                                               
grant  university  as  of 1915,  when  Congress  established  the                                                               
Alaska Agricultural College  and School of Mines.  Alaska did not                                                               
get  its proper  land grant.  Only  Delaware got  a smaller  land                                                               
grant  than Alaska.  The university  is still  working on  it and                                                               
good progress  is being made on  that front. The whole  intent of                                                               
the bill in 1862 and  the intent of land-grant universities today                                                               
is that there is no great state without a great university.                                                                     
                                                                                                                                
8:35:46 AM                                                                                                                    
SENATOR HUGHES said she had  heard of the comparison to Delaware.                                                               
She  asked  if that  is  a  percentage  of  the state  or  actual                                                               
acreage.                                                                                                                        
                                                                                                                                
8:35:57 AM                                                                                                                    
PRESIDENT JOHNSEN answered  that it is actual  acreage, so states                                                               
so small that their names have  to be written out in the Atlantic                                                               
Ocean got bigger land grants in actual acreage than Alaska.                                                                     
                                                                                                                                
PRESIDENT  JOHNSEN  displayed  a  map  on  slide  6  showing  the                                                               
university  serves  students  from   Kotzebue  to  Ketchikan  and                                                               
through  its  online  programs,   every  place  in  between.  The                                                               
University of Alaska is one  legal, financial, and constitutional                                                               
entity;  three separately  accredited universities;  13 community                                                               
campuses,  which previously  were separately  accredited and  now                                                               
are  part  of  the  accreditations  of  the  three  universities;                                                               
roughly 16,700  full-time equivalent students; and  92 percent of                                                               
the higher  education that happens  in Alaska every  year happens                                                               
at the University of Alaska.                                                                                                    
                                                                                                                                
PRESIDENT  JOHNSON   said  the   university  strives  to   be  as                                                               
affordable as it  can be and is the third  most affordable in the                                                               
United  States.  Only  46  percent of  students  have  debt  upon                                                               
graduation, the second lowest in  the country. Students' share of                                                               
the  costs at  28 percent  is the  fifth lowest  in the  country.                                                               
Eight of the 16 campuses are not  accessible by land. If a map of                                                               
Alaska were  transposed onto the  lower 48, campuses would  be in                                                               
South Carolina, Iowa,  and Oklahoma, and a  research vessel would                                                               
be operating  off the coast  of Montana. The university  serves a                                                               
big  state.  Through  its online  programs,  it  serves  students                                                               
across the country and, increasingly, international students.                                                                   
                                                                                                                                
CHAIR STEVENS asked  if the year's tuition  increase would impact                                                               
these affordability figures.                                                                                                    
                                                                                                                                
PRESIDENT  JOHNSEN  answered that  the  increase  would not.  The                                                               
university is still  quite low when compared  to the universities                                                               
of the 15  other states in the Western  Interstate Commission for                                                               
Higher Education, so UA is still competitive.                                                                                   
                                                                                                                                
8:39:39 AM                                                                                                                    
CO-CHAIR DRUMMOND referred to  President Johnsen's description of                                                               
where campuses would  be if a map of Alaska  were transposed over                                                               
the  lower  48  states  and   observed  that  the  suggestion  to                                                               
consolidate the three main campuses would not have made sense.                                                                  
                                                                                                                                
PRESIDENT  JOHNSEN  replied that  the  suggestion  was not  about                                                               
consolidating physically. Many  universities operate globally and                                                               
yet have consolidated administrations.                                                                                          
                                                                                                                                
8:40:41 AM                                                                                                                    
SENATOR COSTELLO said  that when President Johnsen  first came on                                                               
as president,  he proposed  a plan that  included a  soft landing                                                               
with the  acknowledgement that state support  would be declining.                                                               
That   plan  included   tuition   increases   and  increases   in                                                               
enrollment.  However,  from  2015  to 2019,  the  enrollment  has                                                               
dropped by  20 percent.  She asked what  specific actions  he has                                                               
taken  to increase  enrollment  at the  university  and could  he                                                               
explain the decline in enrollment.                                                                                              
                                                                                                                                
PRESIDENT JOHNSEN  responded that  his presentation would  have a                                                               
lot of  information about that. The  university enrollment peaked                                                               
in 2011  and has  declined every year  since. There  are multiple                                                               
factors. The first  is that Alaska, unlike  virtually every other                                                               
state, is what he would  refer to as a high-income, low-education                                                               
state.  An abnormally  large number  of jobs  in Alaska  that pay                                                               
very well do not require  postsecondary education. Alaska has the                                                               
lowest college-going rate in America  and has had for many years.                                                               
The budget  cuts starting in  2015 certainly do not  help because                                                               
the  university  had  had  to cut  many  academic  programs.  The                                                               
university has 1,727  fewer faculty and staff due  to budget cuts                                                               
than in  2015. Another factor  is the general,  national downward                                                               
trend in enrollment. There are  both Alaskan factors and national                                                               
factors. He acknowledged that it is very concerning.                                                                            
                                                                                                                                
PRESIDENT  JOHNSEN   said  that  steps  were   taken  to  address                                                               
declining  enrollment.  One  is  increasing  funding  for  middle                                                               
college  programs, so  that  there is  dual  enrollment for  high                                                               
school students.  Every year that  he has been at  the university                                                               
it has  cut deeper  in order to  invest in  strategic priorities,                                                               
including enrollment priorities. One  of the five strategic goals                                                               
of  the  Board  of  Regents is  education  attainment,  which  is                                                               
enrollment   and   completion.   The  university   has   invested                                                               
disproportionately  into that  area. A  couple of  weeks ago  the                                                               
three universities laid out  enrollment strategies for increasing                                                               
recruitment and  attainment of students. The  university has made                                                               
specific investments to develop  programs suited to the military.                                                               
Alaska leads  the country  in the  percentage of  population with                                                               
some college and no degree. Those  students are not going to quit                                                               
their  jobs and  go  to  campuses full  time.  As  a result,  the                                                               
university invested  in online programs  and today has  more than                                                               
30 completely  online programs,  ranging from  Master of  Arts in                                                               
Teaching to  psychology, to  business, and the  list goes  on and                                                               
on.                                                                                                                             
                                                                                                                                
8:44:26 AM                                                                                                                    
PRESIDENT JOHNSEN  said that one  of the challenges,  although he                                                               
does not have  data to prove this, is  that people's expectations                                                               
of   how   technology   will  mediate   their   experience   with                                                               
organizations  have   increased  in  terms  of   convenience  and                                                               
smoothness. The university has not  made the necessary investment                                                               
in its  systems. The enterprise  software system is 25  years old                                                               
with a design  life of 12 years. The university  is cumbersome to                                                               
deal  with  and  that  has  to be  changed.  People  have  become                                                               
accustomed  to  doing  all  kinds  of  things  on  phones.  Until                                                               
students  can  register and  do  more  a  lot more  processes  on                                                               
phones,  the   university  will   continue  to   have  enrollment                                                               
challenges.  The university  is  doing many  things  and he  will                                                               
outline more  in the presentation,  but the decline  started well                                                               
before  the budget  cuts.  It  is a  national  condition and  the                                                               
university is doing all it can about its number one priority.                                                                   
                                                                                                                                
CHAIR   STEVENS  asked   President  Johnsen   to  introduce   his                                                               
colleagues in the audience.                                                                                                     
                                                                                                                                
PRESIDENT  JOHNSEN pointed  out  University  of Alaska  Southeast                                                               
Chancellor Rick  Caulfield, Executive Dean of  the Alaska College                                                               
of  Education   Steve  Atwater,  Vice  President   of  University                                                               
Relations  and   Chief  Strategy,  Planning  and   Budget  Office                                                               
Michelle  Rizk,  and  Associate   Vice  President  of  Government                                                               
Relations Miles  Baker. He  noted that  student interns  with the                                                               
Senator  Ted Stevens  Legislative  Internship  Program were  also                                                               
present.                                                                                                                        
                                                                                                                                
8:46:40 AM                                                                                                                    
CO-CHAIR  STORY asked  if there  were  any areas  or programs  of                                                               
growth,  which programs  were  at capacity  or  had high  student                                                               
interest.                                                                                                                       
                                                                                                                                
PRESIDENT JOHNSEN answered clearly  nursing and other health care                                                               
professions  are  growing  areas.  The  university  has  invested                                                               
differentially  there.  Even though  there  were  deep cuts  last                                                               
year, a  million dollars of  base recurring funding was  added to                                                               
the health programs at UAA  (University of Alaska Anchorage). The                                                               
engineering programs  at both UAA  and UAF (University  of Alaska                                                               
Fairbanks)  are strong  and growing.  The  Homeland Security  and                                                               
Emergency Management Program is off the charts and booming.                                                                     
                                                                                                                                
PRESIDENT JOHNSEN  continued with  the presentation and  said the                                                               
organizational structure of the  university has not changed since                                                               
1987, which  is one legal,  constitutional, and  financial entity                                                               
and three  accredited universities.  In the  late 80s  the system                                                               
consolidated 11 separate community  colleges, which had their own                                                               
accreditations. The system office  supports the Board of Regents,                                                               
provides  cost effective  system-wide services,  and focuses  the                                                               
universities  on  Alaska's  statewide priorities.  The  statewide                                                               
office is 5.5 percent of the university's budget.                                                                               
                                                                                                                                
8:49:26 AM                                                                                                                    
PRESIDENT JOHNSEN presented Strategic  Pathways on slide 9, which                                                               
is a living  matrix or framework for the university.  It lays out                                                               
the  tension,   but  hopefully  balanced   relationship,  between                                                               
oneness and  threeness. In  terms of oneness,  there is  a common                                                               
mission, objective,  core principles,  and strategy. In  terms of                                                               
threeness,  each  of  the  three  universities  has  a  different                                                               
mission. They  overlap with  each other,  but they  have distinct                                                               
missions.  All three  universities are  open admission,  and they                                                               
all have  a community  college mission. That  is rare  across the                                                               
country. There  are big  upsides to that.  He commends  those who                                                               
made that decision  in the late 80s. It has  increased access for                                                               
students through  the community colleges to  the universities and                                                               
on.  Finally, there  are  courses,  programs, and  administrative                                                               
processes that are in common  and becoming more common across the                                                               
university system since the university  went through the pathways                                                               
process. Some examples are  common general education requirements                                                               
(GERs) and common course transfer--every  credit transfers in the                                                               
system.  Engineering,  for example,  now  has  a common  advisory                                                               
council  between the  two schools  of  engineering and  extensive                                                               
course sharing. The  math departments at UAA and  UAF have common                                                               
course numbers.  Juneau has fisheries and  ocean science faculty.                                                               
Nursing  faculty for  UAA are  in  Ketchikan, Fairbanks,  Juneau,                                                               
Kodiak, and all  across the state. There are  specialties at each                                                               
university and a great deal that is shared among the three                                                                      
universities.                                                                                                                   
                                                                                                                                
PRESIDENT JOHNSEN presented slide 10, Did You Know?                                                                             
                                                                                                                                
   • UA operates more campuses per  capita than  any other                                                                      
     state university                                                                                                           
   o 1,282   miles  between   our  Ketchikan   and  Kotzebue                                                                    
     campuses                                                                                                                   
   • Alaska's large size and low  population density  mean                                                                      
     higher costs                                                                                                               
   • Only system in the country  that combines  land-grant                                                                      
        institution, regional universities and community                                                                        
     colleges                                                                                                                   
   o Hawaii is  one system,  but with  separately accredited                                                                    
     community campuses                                                                                                         
   • Unlike other states, UA's community  campuses do  not                                                                      
     all receive local government funding                                                                                       
   o Valdez,   Kodiak  and   the  Kenai   Peninsula  Borough                                                                    
      contribute  but not through property or other taxes                                                                       
     as is typical nationally                                                                                                   
   • Our three accredited universities - UAF, UAA and UAS -                                                                     
       are not easily compared to each other due to their                                                                       
     fundamentally different missions                                                                                           
   • On average, every $1 the  state  invests in  research                                                                      
     generates $6 in nonstate revenue                                                                                           
                                                                                                                                
PRESIDENT JOHNSEN continued with Did You Know? on slide 11.                                                                     
                                                                                                                                
   • UA is an open-access, open-enrollment  post-secondary                                                                      
     institution                                                                                                                
   • General Education   Requirements  (GER)   are   fully                                                                      
       transferable across the system  students can take                                                                        
     them from any campus                                                                                                       
   • Community campuses are  local "nodes"  for  statewide                                                                      
     program delivery                                                                                                           
   • Students may be enrolled in courses or  programs from                                                                      
     multiple campuses                                                                                                          
   • In Fall 2018, cross-enrollment  by university  ranged                                                                      
     from 22% to 44%                                                                                                            
   • 10% of our students are dual enrolled                                                                                      
                                                                                                                                
PRESIDENT JOHNSEN noted that dual enrolled means students are                                                                   
high school students enrolled at the university, and the                                                                        
university wants to increase that number.                                                                                       
                                                                                                                                
PRESIDENT JOHNSEN  presented a chart  on slide 12 showing  how UA                                                               
compares to  other land-grant institutions. Alaska  received only                                                               
25 percent of the land that it  was due and is still owed 360,000                                                               
acres. The  reason why  has a  long history  that began  over 100                                                               
years ago. The university is  working closely with the governor's                                                               
office,  the  federal  delegation,  and  the  Department  of  the                                                               
Interior  to remedy  this problem.  The  university is  confident                                                               
that, if it  is successful with the issue soon,  that it will see                                                               
benefits  in  10-20  years.  The   single  biggest  recipient  of                                                               
proceeds  from  land  development  now  is  the  Alaska  Scholars                                                               
program, the tuition  scholarship for Alaska's top  10 percent of                                                               
high school  graduates every  year. The  university is  tying its                                                               
land-grant mission  right to its single  most important priority,                                                               
students.                                                                                                                       
                                                                                                                                
8:56:02 AM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
8:56:08 AM                                                                                                                    
CHAIR STEVENS reconvened the meeting.                                                                                           
                                                                                                                                
8:56:53 AM                                                                                                                    
PRESIDENT JOHNSEN  noted again  that the  university had  a rough                                                               
year  in  2019  but is  back  up  in  Fiscal  Year 2020  and  the                                                               
legislature has been  supportive. The Board of  Regents has taken                                                               
the helm  and done  great coming  out of  a tumultuous  time. The                                                               
road ahead is  bumpy, but the board has made  positive and strong                                                               
decisions  on behalf  of the  university,  including signing  the                                                               
three-year  compact agreement  with the  governor. The  agreement                                                               
still has reductions to come,  but they are manageable. The board                                                               
terminated its  declaration of financial exigency,  which was the                                                               
only responsible choice  to make when the  university was looking                                                               
at  a  41 percent  in-year  budget  reduction.  In light  of  the                                                               
compact   agreement,  the   board  appropriately   withdrew  that                                                               
declaration.                                                                                                                    
                                                                                                                                
PRESIDENT JOHNSEN said  the board has also taken  steps to review                                                               
concerns  raised  by the  Northwest  Commission  on Colleges  and                                                               
Universities     (NWCCU),     which    provides     institutional                                                               
accreditation, so good progress is  being made on that front. The                                                               
board has  ceased consideration of  a single  accreditation until                                                               
UAF completes  its accreditation  process in 2021.  The committee                                                               
has  a report  from the  board about  that. The  board governance                                                               
committee is commencing a policy audit.                                                                                         
                                                                                                                                
PRESIDENT JOHNSON said  the board did decide  to increase tuition                                                               
5 percent  for the next  academic year, Academic Year  2021, with                                                               
the proviso that  $1.5 million be allocated to  financial aid for                                                               
needy students.                                                                                                                 
                                                                                                                                
CHAIR  STEVENS asked  for an  update about  accreditation status.                                                               
Legislators were  shocked at  the loss  of the  accreditation for                                                               
the  education  program  in  Anchorage.  He  asked  if  there  is                                                               
anything on the horizon that legislators should be aware of.                                                                    
                                                                                                                                
9:00:26 AM                                                                                                                    
PRESIDENT JOHNSEN replied that the  university has taken steps to                                                               
stay  aware of  all of  that.  The Academic  and Student  Affairs                                                               
Committee receives a report on  accreditation status at every one                                                               
of its meetings. In terms  of programmatic accreditation, such as                                                               
engineering, business,  and teacher education, the  university is                                                               
in   good   shape  in   all   those   areas.  For   institutional                                                               
accreditation, UAS  just got a shiny  reaccreditation for another                                                               
seven years.  UAA got reaccredited last  year with commendations.                                                               
UAF is going through the  reaccreditation process now, which will                                                               
conclude in  2021. The  site visit from  the outside  peer review                                                               
team  will  be this  fall.  All  three universities  have  strong                                                               
institutional accreditation today, and  he is confident that will                                                               
be the case next year as well.                                                                                                  
                                                                                                                                
CHAIR  STEVENS asked  how  many  programmatic accreditations  the                                                               
university has.                                                                                                                 
                                                                                                                                
PRESIDENT JOHNSEN answered that he  would have to get the answer.                                                               
It is dozens,  certainly. Some are legally mandated,  such as for                                                               
teacher   education  and   nursing.  Some   are  best   practice.                                                               
Graduating from a  school that is not  ABET-accredited will raise                                                               
eyebrows. Some are for quality  and competitive purposes, such as                                                               
for the business schools.                                                                                                       
                                                                                                                                
9:02:18 AM                                                                                                                    
PRESIDENT JOHNSEN presented the  details of the three-year budget                                                               
compact,  the agreement  reached between  the board  and Governor                                                               
Dunleavy  on  August  13.  Six  weeks  prior,  on  June  28,  the                                                               
governor's  announcement of  his veto  created real  turmoil. The                                                               
vetoes not  only included the  operating budget, but  $12 million                                                               
for the  Alaska Performance Scholarships,  mere weeks  before the                                                               
academic year, and  $6 million in the Alaska  Education Grant. He                                                               
said,  "These are  scholarships  and grants  that these  students                                                               
worked for,  and prepared for,  and qualified  for. So, it  was a                                                               
very tumultuous time, but once  the compact agreement was signed,                                                               
then a breath, and "moving"  forward. We still have reductions to                                                               
take. They will be difficult, no  question about it. I would note                                                               
that  if the  veto  had stayed  in effect  and  lasted for  three                                                               
years, the cumulative hit to  the university would have been $405                                                               
million. By  virtue of the agreement  that we were able  to reach                                                               
with the  governor, that cumulative reduction  is $145 [million].                                                               
Still very  serious, but  not nearly as  devastating as  the $405                                                               
million number."                                                                                                                
                                                                                                                                
CHAIR  STEVENS said,  "So, Dr.  Johnsen, I  want you  to help  me                                                               
understand this.  The legislature writes  the budget. We  are the                                                               
only  ones who  write  a budget.  And the  governor  has made  an                                                               
agreement with you.  I assume what he is saying  is that if there                                                               
is anything different  than what you've agreed to,  he would veto                                                               
that. How else is the governor controlling years in the future?"                                                                
                                                                                                                                
PRESIDENT  JOHNSEN replied  that the  governor did  not say  what                                                               
Senator   Stevens  just   said,   but  the   university  has   an                                                               
understanding with the  governor and the Board  of Regents abided                                                               
by that  understanding when  it submitted  its FY  2021 operating                                                               
budget  to him  in the  fall. That  is the  operating budget  the                                                               
governor transmitted to the legislature in December.                                                                            
                                                                                                                                
9:04:31 AM                                                                                                                    
CHAIR STEVENS said  he appreciated the position  that Dr. Johnsen                                                               
was put in,  but he wanted to make it  clear that the legislature                                                               
writes the budget.                                                                                                              
                                                                                                                                
SENATOR HUGHES  asked about the  figures in the second  bullet on                                                               
slide 15:                                                                                                                       
                                                                                                                                
   • $70M (22%) reduction over 3-Yrs versus single-year cut of                                                                  
     $134M (41%                                                                                                                 
        o FY20 $302M (Down $25M or 7.6% from FY19)                                                                              
        o FY21 $277M (Down $25M or 8.3% from FY20)                                                                              
        o FY22 $257M (Down $20M or 7.2% from FY21)                                                                              
                                                                                                                                
SENATOR HUGHES  commented that they  were in comparison  to state                                                               
funding. She asked  for the figures in comparison  to the overall                                                               
university   budget,  since   the  university   receives  federal                                                               
funding, tuition, etc.                                                                                                          
                                                                                                                                
9:05:00 AM                                                                                                                    
PRESIDENT   JOHNSEN   replied   those  are   elsewhere   in   the                                                               
presentation,  but  those  percentages are  of  the  university's                                                               
total actual FY19, which was  $818,000,000. These reductions come                                                               
off  the  UGF  [unrestricted  general   funds]  portion.  She  is                                                               
correct.  There  is  tuition  and  other  revenue  sources.  That                                                               
presentation about revenue was made  to the Finance Committee. It                                                               
is  definitely  a smaller  percentage.  A  ballpark figure  could                                                               
discount this  by two-thirds. Three  hundred is about a  third of                                                               
the total budget. Much of  that budget is restricted. The state's                                                               
UGF is not restricted. Tuition is  not restricted, but all of the                                                               
research money is restricted for  this specific contract that the                                                               
university is working on.                                                                                                       
                                                                                                                                
SENATOR  HUGHES said  the  size  of the  cuts  was misleading  to                                                               
people. In relation to state funding,  they are what they are. In                                                               
relation to the overall budget, it was different.                                                                               
                                                                                                                                
PRESIDENT   JOHNSEN  added   that  the   compact  agreement   has                                                               
commitments   made   by  the   governor   to   pursue  a   single                                                               
appropriation.  Last  year the  university  moved  from a  single                                                               
appropriation to  two appropriations. The governor  has committed                                                               
to  moving back  to a  single  appropriation and  to support  the                                                               
Alaska  Education  Grant,  the  performance  scholarships,  WWAMI                                                               
funding,   dual-enrollment   initiatives,  and   the   land-grant                                                               
initiative.  Of  course,  the university  is  seeking  additional                                                               
cost-savings  and   revenue  enhancement  initiatives,   such  as                                                               
tuition,  philanthropy,   and  additional  research   grants  and                                                               
contracts.                                                                                                                      
                                                                                                                                
9:07:01 AM                                                                                                                    
PRESIDENT  JOHNSEN  presented  slide  16,  a  chart  showing  the                                                               
funding history of  UGF only. The red  [representing cuts] begins                                                               
in 2015,  a modest  amount, and  continues out  to FY22.  So, the                                                               
chart not  only includes  a backward look,  but the  current year                                                               
and subsequent years of the compact agreement.                                                                                  
                                                                                                                                
PRESIDENT  JOHNSEN moved  on  to the  topic  of accreditation  on                                                               
slide 17.  He noted  the NWCCU accredits  all public  and private                                                               
higher education institutions in the Pacific Northwest.                                                                         
                                                                                                                                
   • UA  universities    receive    their    institutional                                                                      
         accreditation from the Northwest Commission on                                                                         
     Colleges and Universities (NWCCU)                                                                                          
   • Board took a number of steps in consideration of                                                                           
      legislative intent to move to a single institutional                                                                      
     accreditation                                                                                                              
   • Board directed UA president to develop plan for                                                                            
     evaluating options                                                                                                         
   • Convened group of state leaders for advice                                                                                 
   • Held workshops across the system and provided                                                                              
     opportunities for input from faculty, staff, students                                                                      
     and the public                                                                                                             
   • Conducted extensive public opinion survey ~ 3,900                                                                          
     participants                                                                                                               
   o Even split between those favoring "uniqueness" and                                                                         
     those favoring "integration"                                                                                               
   • Established working group to engage NWCCU and U.S.                                                                         
     Dept. of Education on issues and timelines                                                                                 
   • On Oct 7, after full consideration, Board ceased                                                                           
       consideration of a single accreditation until UAF                                                                        
     secures its NWCCU accreditation renewal in 2021                                                                            
   • All three universities (including community campuses)                                                                      
     are fully accredited                                                                                                       
                                                                                                                                
9:09:06 AM                                                                                                                    
PRESIDENT JOHNSEN  said the  Board of  Regents directed  that the                                                               
universities conduct  academic program reviews.  Chancellors will                                                               
provide  recommendations to  the  president regarding  reduction,                                                               
consolidation, or  discontinuation of  any programs on  March 23.                                                               
Then  the  Student and  Academic  Affairs  Committee will  review                                                               
those from  a statewide perspective.  In June 2020, the  Board of                                                               
Regents will decide  what programs to continue  and what programs                                                               
to reduce  or discontinue.  Some of the  cost savings  from those                                                               
reviews  will  take  effect  next  fiscal  year,  FY21.  However,                                                               
because  of  teach  out  responsibilities,  a  mandate  from  the                                                               
accreditors,  and  faculty  notice   requirements,  much  of  the                                                               
savings may not be accomplished until FY22.                                                                                     
                                                                                                                                
CO-CHAIR STORY  asked when job  trends and  workforce development                                                               
needs are looked at during the academic program reviews.                                                                        
                                                                                                                                
PRESIDENT JOHNSEN replied  that is one of  the criteria specified                                                               
by  the  Board   of  Regents  policy  for   the  evaluation.  The                                                               
chancellors and  their teams will  be looking at  those criteria,                                                               
in addition  to cost, demand, faculty,  technology opportunities,                                                               
etc. Workforce  demand is a  key criterion. At the  regent level,                                                               
they will  be looking  through the lenses  of the  five strategic                                                               
goals:  contribute  to  Alaska's  economic  development,  provide                                                               
Alaska  with  a  skilled workforce,  grow  world-class  research,                                                               
increase degree attainment, and operate more cost effectively.                                                                  
                                                                                                                                
PRESIDENT  JOHNSEN said  there are  many ways  of looking  at the                                                               
negative impacts  of the budget cuts.  Slide 21 is a  short list.                                                               
Enrollment is definitely another negative impact.                                                                               
                                                                                                                                
   • Student support and administrative services have borne                                                                     
     large share of $76M reduction over last 6 years                                                                            
   o HR and procurement restructuring and integration                                                                           
   o Head   count   reductions    due   to   attrition   and                                                                    
     terminations                                                                                                               
   o KUAC Radio/TV Base Funding Reduction                                                                                       
   o Fairbanks Administrative Services Building Sale                                                                            
   o Chugach Eagle River Building Lease Non-Renewal                                                                             
   o Kenai Peninsula College Residential Housing Paused                                                                         
   • $45M additional    reduction   over    FY21-22   will                                                                      
     necessitate significant impacts to academic programs                                                                       
   • Universities aggressively working to achieve FY20 cuts                                                                     
      while conducting academic and administrative program                                                                      
     reviews                                                                                                                    
                                                                                                                                
CHAIR STEVENS asked President Johnsen  to comment on why there is                                                               
no Kenai  Peninsula College dorm.  He remembers that  a dormitory                                                               
there was sought after for years.                                                                                               
                                                                                                                                
9:12:45 AM                                                                                                                    
PRESIDENT JOHNSEN responded  that it is a  beautiful facility. It                                                               
is underutilized  because of  enrollment declines.  Several dorms                                                               
at  UAF have  also been  closed, or  paused because  they can  be                                                               
reopened,  in light  of enrollment  declines. This  is a  natural                                                               
effect  of enrollment  decline. When  the university  must reduce                                                               
cost of operation, that is one way to do it.                                                                                    
                                                                                                                                
9:13:21 AM                                                                                                                    
SENATOR  COSTELLO  said  slide  21,  Budget  Impacts,  is  really                                                               
looking at  the university's involvement  with the state  and the                                                               
state's contribution to its university,  but again, she wanted to                                                               
bring  up   that  the  university   has  a  role   in  increasing                                                               
enrollment.  Part of  his plan  was to  increase enrollment,  but                                                               
instead it  is declining. She  asked if he is  surveying students                                                               
about why they are leaving.                                                                                                     
                                                                                                                                
PRESIDENT  JOHNSEN   responded  that   everybody's  job   at  the                                                               
university  is enrollment.  The university  does survey  students                                                               
periodically to  find out what is  going on and why  they are not                                                               
returning  or  coming,  and  their   perceptions  of  cost.  Many                                                               
students  are  the  first  person  in their  families  to  go  to                                                               
college, so  there are challenges financially.  Most students are                                                               
part-time across  the UA  system. That  is consistent  across the                                                               
campuses. The average  student is not 18, 19, or  20. The average                                                               
student is  26 or  27 with  at least  one job  and people  in the                                                               
family.  Financially, those  are big  issues for  the university.                                                               
Availability  of programs  based on  students' time  schedule and                                                               
life events are  major factors. He can provide  copies of surveys                                                               
to the committee.  Those have been conducted  statewide, and each                                                               
university, because of the keen  interest in enrollment, conducts                                                               
its own data  analysis. Data from those reviews  was presented to                                                               
the Board of Regents in January.                                                                                                
                                                                                                                                
SENATOR COSTELLO answered  that she would be  interested in those                                                               
reviews.  She asked  if  he  had anything  to  share about  those                                                               
results. She  further asked if  he had identified the  number one                                                               
reason students are not enrolling or staying.                                                                                   
                                                                                                                                
PRESIDENT JOHNSEN  replied that  a big  factor recently  was that                                                               
news  of severe  budget  reductions was  very negative,  although                                                               
that does  not explain  the decline from  2011 through  2015 when                                                               
budgets   were  going   up.  And   the  threat   to  state-funded                                                               
scholarship programs, the Alaska  Education Grant and Performance                                                               
Scholarship, did  not help communicate  to Alaskan  students that                                                               
the university is strong with a certain future.                                                                                 
                                                                                                                                
9:16:51 AM                                                                                                                    
SENATOR COSTELLO said the declines  in enrollment preceded budget                                                               
challenges.  She   is  looking   forward  to  hearing   what  the                                                               
university is doing proactively to attract more students.                                                                       
                                                                                                                                
SENATOR  HUGHES  said that  the  loss  of accreditation  for  the                                                               
teaching  program in  Anchorage  impacted credibility.  Regarding                                                               
the Chugiak Eagle River building  lease nonrenewal, she noted the                                                               
middle  college met  there  and she  assumed,  and the  president                                                               
affirmed, that the Anchorage School  District had taken over that                                                               
space and  the middle  college was  still meeting  there. Senator                                                               
Stevens  has been  interested in  middle college  being expanded.                                                               
She was amazed  that one in 10 students is  a high school student                                                               
in middle  college programs. There  is potential to  expand that.                                                               
She remembered  from a report that  it was cheaper for  a student                                                               
to go  through the middle  college program  than to stay  in high                                                               
school.  That could  be  a  win-win. She  loved  that the  middle                                                               
college  program  has students  who  might  not otherwise  go  to                                                               
university  after graduation.  She would  think that  to increase                                                               
enrollment  the  university should  be  going  after high  school                                                               
students  and working  with districts  to  expand middle  college                                                               
programs.  She asked  if he  has an  aggressive plan  to increase                                                               
middle college enrollment.                                                                                                      
                                                                                                                                
PRESIDENT  JOHNSEN  said  yes  and   again  yes.  The  university                                                               
testified at  a legislative hearing  that fall on  middle college                                                               
programs.  There  is  one  at  Mat-Su  College.  They  have  been                                                               
expanded at the UAA campus. It  was just announced last week that                                                               
a middle  college high school  will be  standing up this  fall at                                                               
the UAF  campus. In  addition, the  university has  established a                                                               
virtual middle  college high  school with  agreements with  31 of                                                               
the 54  school districts, so  those students have access  to dual                                                               
enrollment opportunities.  It is  absolutely a high  priority for                                                               
the  university. The  target is  20  percent. Colorado  is at  20                                                               
percent,  so   that  is  reasonable   in  Alaska.   Besides  dual                                                               
enrollment,  there  are  outreach  programs  like  ANSEP  [Alaska                                                               
Native Science  and Engineering Program], an  outreach program to                                                               
K-12.  Despite  budget   cuts  for  the  last   five  years,  the                                                               
university has invested differentially in ANSEP.                                                                                
                                                                                                                                
PRESIDENT  JOHNSEN  added  that  twice  as  many  middle  college                                                               
completers come to  UA for university than is  the average. Those                                                               
students come with  30 semester credit hours, which is  a year of                                                               
college. They require zero remedial  education and the university                                                               
tuition is less than the  Base Student Allocation that the school                                                               
district gets for each student.                                                                                                 
                                                                                                                                
9:21:07 AM                                                                                                                    
SENATOR  HUGHES asked  if there  is any  way the  legislature can                                                               
help with  virtual education. She  was excited to hear  about the                                                               
agreement  with  31  school  districts  for  the  virtual  middle                                                               
college.  She has  been promoting  virtual education,  especially                                                               
for students  who are located where  they cannot be on  a campus.                                                               
She is  trying to keep tabs  on the technology that  can increase                                                               
the speed and  access for students in remote parts  of the state.                                                               
Things  are  changing  rapidly  and  evolving  in  the  world  of                                                               
technology. Having access  to things that kids really  want to do                                                               
and study throughout  the state is a game changer  for the future                                                               
of those students.                                                                                                              
                                                                                                                                
PRESIDENT  JOHNSEN  observed that  in  addition  to those  middle                                                               
college  and  dual  enrollment   programs,  Rural  Alaska  Honors                                                               
Institute  (RAHI) and  ANSEP are  programs that  reach into  high                                                               
school  to  generate  enrollment,  which is  really  a  means  to                                                               
another  end,  the success  of  those  students in  building  the                                                               
state's  future and  economy.  There are  more  than 30  complete                                                               
online degree programs. He did  not think the university has done                                                               
a  good job  as it  needs to  do in  telling its  story, so  more                                                               
marketing  and recruiting  will  be  done to  tell  a good  story                                                               
throughout Alaska.                                                                                                              
                                                                                                                                
SENATOR HUGHES  said she hoped  that marketing  includes reaching                                                               
out to students for the middle college program.                                                                                 
                                                                                                                                
PRESIDENT  JOHNSEN  replied that  the  university  wants to  work                                                               
closely  with legislators  on  legislation.  Senator Stevens  has                                                               
sponsored a  bill to  expand middle  college and  dual enrollment                                                               
opportunities throughout  the state. The university  stands ready                                                               
to  work   with  legislators  on  that   important  and  exciting                                                               
initiative for Alaska.                                                                                                          
                                                                                                                                
CHAIR STEVENS said the committee  has been holding hearings on SB
6, the  reading program. It is  very expensive, but if  the state                                                               
is  going to  make improvement  in children's  reading abilities,                                                               
the state has to move ahead with  it. Alaska is the lowest of all                                                               
the states right  now, but the department plans include  up to 40                                                               
reading teachers.  The state need assistance  from the university                                                               
to make sure those folks are available here in Alaska.                                                                          
                                                                                                                                
PRESIDENT  JOHNSEN shared  that is  why he  was pleased  that the                                                               
Executive Dean  of the Alaska  College of Education was  there at                                                               
the hearing. He is keenly interested in that and working with K-                                                                
12 leadership. Tim  Parker [president of NEA-Alaska],  one of the                                                               
state's  important education  leaders,  is also  working on  that                                                               
priority.                                                                                                                       
                                                                                                                                
9:25:18 AM                                                                                                                    
REPRESENTATIVE STORY  opined that the  legislature has a  role in                                                               
showing strong support for the  university and the brain power in                                                               
the state.  Through her conversations  with high  school students                                                               
in Juneau, she knows that the  budget cuts and the possibility of                                                               
scholarships not  being funded impacted their  decision last year                                                               
about  where  to  go  to   college.  The  takeaway  is  that  the                                                               
legislature's  commitment  and  what   it  appropriates  for  the                                                               
universities should be strong. When  the university is conducting                                                               
its academic  program review, she  hopes the university  comes to                                                               
the legislature  about any needs  because legislators want  to be                                                               
responsive.                                                                                                                     
                                                                                                                                
PRESIDENT  JOHNSEN continued  with a  graph on  slide 24  showing                                                               
enrollment trends since 2010. Enrollment  ticked up a bit in 2011                                                               
but  has slid  fairly continuously  since then  for a  29 percent                                                               
reduction  over the  entire  period  systemwide. UAA's  reduction                                                               
rate  was  28  percent,  UAF  26 percent,  and  UAS  37  percent.                                                               
Factors, which he discussed earlier  in the presentation, include                                                               
these:  Alaska  has had  the  highest  unemployment rate  in  the                                                               
country  for some  years. Budget  reductions,  not initially  but                                                               
subsequently. Population  loss. The Fairbanks  Borough population                                                               
has been  declining since 2011.  The economy has  high-wage, low-                                                               
education types of jobs. Regarding  technology, the state has not                                                               
made  the  investments  it  needs to  make  in  transforming  the                                                               
student experience at UA to  match the level of expectations that                                                               
students thinking of going to  UA or another university have, or,                                                               
the much larger  number of students who are not  going to college                                                               
anywhere. That is  the biggest concern from  his standpoint: what                                                               
is  the state  building in  term of  the state's  future and  the                                                               
knowledge economy.                                                                                                              
                                                                                                                                
9:28:49 AM                                                                                                                    
PRESIDENT JOHNSEN presented  a table on slide  25 showing tuition                                                               
rates over time. The table  reflects the 5 percent increase since                                                               
Academic  Year  (AY)  17, the  difference  between  graduate  and                                                               
undergraduate  tuition,  and   resident  and  nonresident  rates.                                                               
Roughly 10  percent of students  are nonresidents.  In additional                                                               
to  the other  planning work  this spring,  the chancellors,  and                                                               
universities,  in  conjunction  with student  organizations,  are                                                               
evaluating  the possibility  of  differential  tuition among  the                                                               
universities and differential tuition  between the university and                                                               
community campuses. They  will be looking at  whether fees should                                                               
be consolidated  or continue  to be  separated and  whether there                                                               
are ways that  tuition can be increased but aid  can be increased                                                               
at the  same time so that  the net impact on  the average student                                                               
is minimized, if  not eliminated. They will look  at whether they                                                               
can  drive  enrollment as  a  result  of  those options.  So,  in                                                               
addition to the program review coming  to the Board of Regents in                                                               
June, there will also be a tuition review.                                                                                      
                                                                                                                                
PRESIDENT   JOHNSEN  added   that  while   UA  tuition   is  very                                                               
competitive  compared  to  other public  universities,  community                                                               
campus tuition is high compared  to community colleges across the                                                               
country. The chancellors want to  bring that tuition down as they                                                               
make  sure the  university tuition  is competitive  and maintains                                                               
affordability  through   increased  provisions   for  needs-based                                                               
financial aid.                                                                                                                  
                                                                                                                                
PRESIDENT JOHNSEN  presented the chart  on slide 27,  which looks                                                               
at enrollment and  tuition back to FY07. The  enrollment shown is                                                               
full-time equivalent.  The amount  shown is for  tuition revenue,                                                               
so the  rate times the  enrollment. The chart shows  that through                                                               
modest  tuition increases  over  time, tuition  revenue has  been                                                               
maintained in the face of enrollment decline.                                                                                   
                                                                                                                                
PRESIDENT JOHNSEN presented  Key Data: Workforce on  slide 28 and                                                               
noted  that UA  has 1,727  fewer employees  than five  years ago.                                                               
These are  not position  counts. These  are individuals  who, for                                                               
whatever reason, are  no longer at the  university. That includes                                                               
involuntary   layoffs,  terminations,   end   of  contract,   and                                                               
voluntary departures.                                                                                                           
                                                                                                                                
SENATOR  COSTELLO  shared  that  she had  spoken  with  President                                                               
Johnsen  before  the  meeting about  the  faculty  turnover.  The                                                               
Chronicle  of  Higher  Education's  annual  survey  on  the  best                                                               
colleges to  work for show  a 12.3  percent turnover at  UAA. She                                                               
asked President Johnsen to respond to that.                                                                                     
                                                                                                                                
PRESIDENT  JOHNSEN  pulled up  slide  29  that looks  at  average                                                               
annual  turnover rate  from 2015  to 2020.  The faculty  turnover                                                               
rate  across the  UA system  is 11  percent over  that time.  The                                                               
overall  turnover rate,  both voluntary  and  involuntary, is  14                                                               
percent. The turnover  rate that is most  concerning is voluntary                                                               
turnover. Certainly, the budget  forces involuntary turnover. But                                                               
it is concerning  when people opt to leave when  they do not have                                                               
to. That is why the  university looked at voluntary turnover from                                                               
2015 to 2019, which is shown  on slide 30. The voluntary turnover                                                               
rate is 11.1  percent. The category Pursuing  Other Employment at                                                               
2.3  percent is  the lowest  out of  three categories,  including                                                               
Retirement and Other, for turnover.  Out of administration staff,                                                               
and faculty,  faculty has the  lowest percentage for  turnover at                                                               
7.8  percent.  Administration is  the  highest  at 13.5  percent.                                                               
Pursuing Other Employment at 2.3  percent is most concerning. The                                                               
university does  not like this, but  he does not think  it is out                                                               
of the norm for turnover rates.                                                                                                 
                                                                                                                                
9:34:19 AM                                                                                                                    
SENATOR COSTELLO  disagreed and stated  that it was in  excess of                                                               
anything  that  would  be considered  normal.  The  Chronicle  of                                                               
Higher Education's  annual survey  on the  best colleges  to work                                                               
for  show  that  between  2014  and  2018,  the  average  faculty                                                               
turnover is  4.8 percent. At  UAA the faculty turnover  rate 12.3                                                               
percent, at UAF it is 11 percent,  and at UAS it is 7.25 percent.                                                               
The elephant  in the room is  faculty morale and why  faculty are                                                               
not staying at  the university. The quality of  faculty and staff                                                               
is  integral to  the  programs that  are offered.  Representative                                                               
Story  indicated  how  important  that is  to  attract  students.                                                               
Senator  Costello   sees  these  problems  as   interrelated.  An                                                               
explanation is owed the Alaska  public and the Alaska Legislature                                                               
as to why  this turnover rate is so exceedingly  high compared to                                                               
similar universities across the country.                                                                                        
                                                                                                                                
PRESIDENT  JOHNSEN  said that  answer  number  one is  slide  16,                                                               
Funding History and  Projection. There is no  other university in                                                               
the country that has taken reductions  like the ones UA has taken                                                               
over the  last six years. It  would be interesting to  compare UA                                                               
to  other universities  that  have gotten  their  budgets cut  as                                                               
deeply as UA  has. Number two, he would like  to break down those                                                               
numbers.  His   team  can  look  at   voluntary  and  involuntary                                                               
reductions. He does not believe  that another university has laid                                                               
off  as  many  people  as  UA   has  had  to  because  of  budget                                                               
reductions, over 20 percent of  faculty and staff. With such huge                                                               
numbers of  reductions, there are  going to be  morale challenges                                                               
and  turnover,  whether  voluntary  or  involuntary.  Again,  the                                                               
voluntary  turnover  concerns  the   university  the  most.  More                                                               
detailed and full information can  be provided. This analysis was                                                               
just  done and  presented to  the Board  of Regents  in the  last                                                               
couple of weeks.                                                                                                                
                                                                                                                                
SENATOR COSTELLO  asked if faculty  are surveyed when  they leave                                                               
and  if they  cited the  budget as  their number  one reason  for                                                               
leaving the university.                                                                                                         
                                                                                                                                
PRESIDENT JOHNSEN  answered exit surveys are  completed. He would                                                               
follow up with additional detail.                                                                                               
                                                                                                                                
SENATOR  COSTELLO replied  that she  looked forward  to receiving                                                               
that information.                                                                                                               
                                                                                                                                
9:37:50 AM                                                                                                                    
SENATOR HUGHES asked  of the 21 percent over the  last five years                                                               
who  have been  laid off,  more  than 1,700  employees, how  many                                                               
would be  administration vs.  instruction and  what is  the ratio                                                               
now of  administration vs.  instruction. Although  people bristle                                                               
when she  brings this  up, there was  U.S. census  data comparing                                                               
apples to  apples with Alaska's  K-12 system, and Alaska  had the                                                               
highest percentage  spent on administration vs.  instruction. She                                                               
was wondering what  the UA ratio is and how  that compares across                                                               
the nation.                                                                                                                     
                                                                                                                                
PRESIDENT JOHNSEN  replied that  he could give  her some  of that                                                               
information as early as the  afternoon. Information on reductions                                                               
by group--instructional,  administration, part time,  full time--                                                               
and by university  over time was presented recently  to the Board                                                               
of Regents. Some analyses were  done comparing UA to other states                                                               
in  terms of  administration and  instruction. The  university is                                                               
continuing  to  do  that  research this  spring,  but  Alaska  is                                                               
unique.  There are  no other  university systems  structured like                                                               
Alaska's. There  are no UAA's  across the country  with community                                                               
colleges  mixed in.  The comparisons  to UAA  are often  Portland                                                               
State, San  Jose State,  Boise State,  metropolitan comprehensive                                                               
universities.  None  of  those   three  have  built-in  community                                                               
colleges. When  UAF is compared  to other  research universities,                                                               
none  of them  include community  colleges. It  makes comparisons                                                               
challenging,  but  nonetheless  the   university  is  doing  that                                                               
analysis this spring.                                                                                                           
                                                                                                                                
SENATOR  HUGHES  asked if  he  had  the  breakdown of  the  1,727                                                               
employees   that  were   no  longer   with   the  university   by                                                               
administration vs.  instruction. Anecdotally,  and it  relates to                                                               
the question  of morale,  she had heard  from professors  who had                                                               
the  sense  that  the  first  to  go  were  the  ones  doing  the                                                               
instruction, not the administration.                                                                                            
                                                                                                                                
PRESIDENT  JOHNSEN   said  absolutely,  he  could   provide  that                                                               
information since  it was  just provided  it to  the board  a few                                                               
weeks ago.                                                                                                                      
                                                                                                                                
SENATOR HUGHES said, "I would just  say I am surprised you cannot                                                               
just say that. That's a pretty basic thing."                                                                                    
                                                                                                                                
9:41:21 AM                                                                                                                    
PRESIDENT JOHNSEN  replied, "Administration is the  highest loss,                                                               
Senator,  by far.  Statewide administration  has taken  cuts more                                                               
than double the  average across the university system.  We try to                                                               
protect faculty as  much as we can. A lot  of our adjunct faculty                                                               
have been  laid off."  The regular faculty  have picked  up those                                                               
courses and  increased their instructional workload  as a result.                                                               
The  university has  the complete  breakdown,  but it  is over  a                                                               
five-year  period by  three universities  by several  categories,                                                               
administration, faculty,  and staff,  fulltime and part  time. It                                                               
is on a piece  of paper with 30 or 40 numbers,  but he can assure                                                               
her that administration has borne  the brunt of reductions, which                                                               
is  not to  say  that  faculty have  not.  The budget  reductions                                                               
cannot be done just with administration.                                                                                        
                                                                                                                                
CO-CHAIR  STORY  stated that  she  would  appreciate seeing  that                                                               
information also.  She noted  that it is  hard to  do comparisons                                                               
and  mentioned  the  national studies  that  Senator  Hughes  had                                                               
referred  to  regarding  51  percent of  funding  going  to  K-12                                                               
instruction. At a  presentation that Senator Hughes  was also at,                                                               
staff presented  76 percent as  the amount going  to instruction.                                                               
The national  studies did  not include  paraeducators who  are in                                                               
the  classrooms  as  part  of daily  instruction.  She  was  just                                                               
pointing  out  that different  numbers  are  cited for  different                                                               
things. It is important to look  at those figures while trying to                                                               
get the local information.                                                                                                      
                                                                                                                                
PRESIDENT JOHNSEN  continued with Key Data:  Teacher education on                                                               
slide  31, which  showed  teacher  education program  completions                                                               
over the  last three years  at the three  universities, FY17-F19.                                                               
This was  prior to  the accreditation  issue at  UAA. Completions                                                               
are down  27 percent  at UAA  and 16 percent  at UAF  during this                                                               
period and  are essentially flat  at UAS. These  are completions,                                                               
so decisions  students made that  resulted in these  numbers were                                                               
made at a  minimum of one to  four or five years  prior. That was                                                               
well before any  accreditation concerns. This can  be ascribed in                                                               
large part to budget challenges  and budget decisions made at the                                                               
universities because of state budget cuts.                                                                                      
                                                                                                                                
CHAIR STEVENS observed  that this is an issue  the legislature is                                                               
concerned about. The  state needs more teachers in  Alaska. It is                                                               
hard  to find  teachers  Outside  willing to  come  to Alaska  as                                                               
teaching has  become more competitive throughout  the country. He                                                               
suggested that perhaps at a  later date the joint committee could                                                               
go into more detail about this issue.                                                                                           
                                                                                                                                
PRESIDENT  JOHNSEN  said he  appreciated  that.  This is  a  huge                                                               
issue.  The Academic  and Student  Affairs  Committee is  focused                                                               
like a laser  beam on this issue. Under the  leadership of Regent                                                               
Karen  Perdue,  Executive Dean  Atwater,  and  Vice President  of                                                               
Academic  Affairs   President  Paul  Layer,  reports   are  being                                                               
prepared  as  they  speak.  This   is  a  top  priority  for  the                                                               
university. The  university would  be happy  to return  and share                                                               
the analysis  of what  has happened  and a  summary of  the steps                                                               
being taken to address this critical priority for Alaska.                                                                       
                                                                                                                                
9:45:24 AM                                                                                                                    
CO-CHAIR  STORY said  she  hoped that  the  report would  include                                                               
information  about  cohorts,  such  as how  many  stay  with  the                                                               
program and reasons for exiting if they do not stay.                                                                            
                                                                                                                                
PRESIDENT JOHNSEN  responded that he  saw that data in  the draft                                                               
report, so the committee will see that.                                                                                         
                                                                                                                                
PRESIDENT  JOHNSEN presented  a chart  showing education  program                                                               
enrollment  by university  on slide  32.  The enrollment  decline                                                               
happened  before the  loss of  accreditation at  UAA. It  is very                                                               
concerning; hence  the laser focus  that the board and  the three                                                               
universities have  taken on  teacher education.  Many initiatives                                                               
are under  way to address  this issue. One is  recruiting current                                                               
students  who might  want  to become  teachers  for the  one-year                                                               
Master of  Arts in Teaching program  that is online. That  is the                                                               
fastest, single way  to train a teacher.  Educators Rising, which                                                               
reaches into junior high school  to recruit students, is in about                                                               
30 school districts.  The university has short-,  mid-, and long-                                                               
term strategies to turn this around.                                                                                            
                                                                                                                                
PRESIDENT JOHNSEN said  that UAF and UAS stepped  in very quickly                                                               
to deal  with the  accreditation challenge  so that  students who                                                               
were seniors  in UAA's  initial licensure  programs were  able to                                                               
complete the  programs. The  two accredited  programs at  UAF and                                                               
UAS have  a stepped  up presence in  Southcentral Alaska.  He has                                                               
reallocated funding for  UAF and UAS for  increased marketing and                                                               
recruiting efforts in Southcentral Alaska.                                                                                      
                                                                                                                                
9:48:00 AM                                                                                                                    
CHAIR STEVENS asked  whether he planned to  attempt to reaccredit                                                               
UAA or  did he  plan on  the other institutions  to pick  up that                                                               
loss.                                                                                                                           
                                                                                                                                
PRESIDENT JOHNSEN responded  that the plan is to  continue to use                                                               
UAF and  UAS to meet the  needs for teachers in  Southcentral for                                                               
those initial  licensure programs,  just as  UAA meets  the needs                                                               
for nurses across Alaska. The  university can meet this need with                                                               
technology and  the physical presence  of faculty and  staff from                                                               
other  universities. The  board  grappled with  the challenge  of                                                               
reaccreditation,  which  is a  minimum  of  a three-year  period.                                                               
During  that period,  UA could  not  ensure UAA  students in  the                                                               
program  a  certain path  to  licensure  from an  accredited  and                                                               
approved program, so  the board decided to continue  a model like                                                               
UAA's nursing program.                                                                                                          
                                                                                                                                
CHAIR  STEVENS  asked  if faculty  and  administrators  from  the                                                               
education department in Fairbanks would be in Anchorage.                                                                        
                                                                                                                                
PRESIDENT JOHNSEN answered yes.                                                                                                 
                                                                                                                                
CHAIR STEVENS  noted that the  state was grappling with  the loss                                                               
of  accreditation,  but the  main  point  is that  students  find                                                               
access  to  programs. He  asked  if  enrollment  at UAF  and  UAS                                                               
increased because they picked up students from the UAA program.                                                                 
                                                                                                                                
PRESIDENT JOHNSEN responded  that was part of it, but  not all of                                                               
it. The  university is starting to  see the fruit of  emphasis on                                                               
teacher education and outreach programs on UA campuses and K-12.                                                                
                                                                                                                                
9:50:19 AM                                                                                                                    
SENATOR  COSTELLO asked  if the  students in  the program  at UAA                                                               
changed their degree aspirations.                                                                                               
                                                                                                                                
PRESIDENT JOHNSEN  replied that  that detailed  information could                                                               
be  provided at  the  follow-up committee  meeting. Her  question                                                               
will be answered  student by student. The  university knows which                                                               
students left for another university  outside of Alaska, how many                                                               
went to  UAF, how many  went to UAS, how  many stayed at  UAA and                                                               
changed majors. All that data will be included in the report.                                                                   
                                                                                                                                
CHAIR STEVENS  said that the  meeting would be scheduled  as soon                                                               
as possible.                                                                                                                    
                                                                                                                                
SENATOR HUGHES noted that since  the legislature is talking about                                                               
a serious investment in reading, she  would like to know if there                                                               
have been  discussions and plans  for adjusting  teacher training                                                               
in  how  to  teach reading  using  evidence-based,  science-based                                                               
methods as  opposed to something  like whole language,  which has                                                               
been  problematic, so  that the  legislators  know that  teachers                                                               
coming  out of  the  program  will be  ready  to  hit the  ground                                                               
running. [SB  6, Alaska Reads  Act] is going to  provide coaching                                                               
and professional  development for the  teachers who did  not have                                                               
that kind  of training. At the  meeting, she would like  to learn                                                               
what he will  be doing about preparing teachers to  teach kids to                                                               
read in a different kind of way.                                                                                                
                                                                                                                                
9:52:12 AM                                                                                                                    
CHAIR STEVENS added that, as  Senator Hughes mentioned, it is not                                                               
just  about  new  teachers  but  also  helping  teachers  in  the                                                               
district get up to speed as well.                                                                                               
                                                                                                                                
PRESIDENT JOHNSEN  continued to  slide 33, K-12  Bridge Programs,                                                               
to  review the  university's  outreach  programs. The  university                                                               
must keep  the pipeline going all  the way from K-12  through the                                                               
university and community colleges and workforce.                                                                                
                                                                                                                                
CO-CHAIR STORY  related a story  of efforts by the  Juneau School                                                               
District Board  of Education to  increase the number  of students                                                               
qualifying  for the  Alaska Performance  Scholarship. By  working                                                               
with  counselors, the  board increased  the number  from only  24                                                               
percent of  high school  students qualifying  to 34  percent. She                                                               
suggested other districts could work  on increasing the number of                                                               
students who qualify for the  Alaska Performance Scholarship. She                                                               
also  suggested  finding  ways for  counselors  to  increase  the                                                               
number of  students completing the  Free Application  for Federal                                                               
Student Aid (FAFSA) because many  kids find they are eligible for                                                               
federal aid if they complete the FAFSA.                                                                                         
                                                                                                                                
PRESIDENT  JOHNSEN  said  that   he  absolutely  agrees  and  the                                                               
university  would   be  talking  to  the   Alaska  Commission  on                                                               
Postsecondary  Education  (ACPE)  about  the  Alaska  Performance                                                               
Scholarship (APS).  The APS has  made a positive  difference, but                                                               
one  challenge  is   that  students  do  not   find  their  final                                                               
eligibility until  after graduation from high  school. Oftentimes                                                               
that is way after they  have made their decisions. The university                                                               
needs to coordinate with ACPE  about when the university wants to                                                               
recruit  students.   Alaska  ranks   last  in  the   country  for                                                               
completion of FAFSA.  The three universities and  K-12 are trying                                                               
to raise  the completion rate  because it directly  correlates to                                                               
federal grants and  loans. Another driver of going  to college is                                                               
financial  literacy.  Those  students   who  have  received  some                                                               
financial literacy are  more inclined to go to school,  so UA has                                                               
created  an online  financial literacy  course. Embedded  in that                                                               
course is FAFSA completion.                                                                                                     
                                                                                                                                
9:57:17 AM                                                                                                                    
PRESIDENT JOHNSEN  continued to  legislative priorities  on slide                                                               
15.  The   operating  budget  is  consistent   with  the  compact                                                               
agreement.   For  the   capital   budget,   the  university   has                                                               
consistently  proposed   this  level  of  support   for  deferred                                                               
maintenance.  The  governor's  budget did  not  include  deferred                                                               
maintenance,  and the  university has  asked for  some money  for                                                               
deferred  maintenance  in  the  governor's  amended  budget.  The                                                               
governor  did  include $2.5  million  for  the Alaska  Earthquake                                                               
Center for purchase  of seismic sensors across the  state. As the                                                               
nation's,   arguably  the   world's,   most  seismically   active                                                               
location,  this  is  important  and  the  governor's  support  is                                                               
appreciated. The  university has close  to $300 million  of debt.                                                               
The  annual payment  is $28  million, so  the university  will be                                                               
working on various options about how to relieve that debt.                                                                      
                                                                                                                                
CHAIR STEVENS  pointed out $50  million for  deferred maintenance                                                               
for a  backlog of $1.2 billion  is great but not  enough to solve                                                               
the problem.  He asked  if any  structures are  in danger  of not                                                               
being useable.                                                                                                                  
                                                                                                                                
PRESIDENT JOHNSEN  responded that they  are not in danger  of not                                                               
being  usable  but of  questionable  utility  going forward.  The                                                               
university  is knocking  buildings  down,  when the  cost-benefit                                                               
analysis  says  the  building cannot  be  renovated  and  selling                                                               
buildings. The modeled number to  stay even with the $1.2 billion                                                               
backlog  is  $60 million  a  year,  and  the university  has  not                                                               
received  that  for  many  years. Frankly,  at  this  point,  the                                                               
university  is reallocating  about $35  million a  year of  other                                                               
funds  to keep  things  up  so that  all  life-safety issues  are                                                               
addressed. That  is not something the  university compromises on,                                                               
but  the  oldest  public  buildings   in  Alaska  are  university                                                               
buildings.                                                                                                                      
                                                                                                                                
10:00:17 AM                                                                                                                   
SENATOR  HUGHES shared  that  she  was pleased  to  see that  the                                                               
governor included  money for the  USArray. She has  been fighting                                                               
for  that  since  the  Parnell  administration.  The  window  was                                                               
closing  for  that. The  National  Science  Foundation put  these                                                               
monitors  in and  they would  get pulled  and lost  [without that                                                               
funding].                                                                                                                       
                                                                                                                                
SENATOR COSTELLO asked how many  buildings the university manages                                                               
and if the  committee could get the list  of deferred maintenance                                                               
projects.                                                                                                                       
                                                                                                                                
PRESIDENT JOHNSEN  answered that  it is  just over  400 buildings                                                               
and he would provide the  detail to the committee. He appreciated                                                               
Senator Hughes'  comments about the  USArray. This  commitment on                                                               
the university's  part will strengthen its  partnership with NOAA                                                               
and  the  United State  Geological  Survey  and allow  additional                                                               
funded research. It is very positive.                                                                                           
                                                                                                                                
PRESIDENT  JOHNSEN   presented  slide  36  on   2020  legislative                                                               
priorities.  This  is  the  year  for  the  Technical  Vocational                                                               
Education Program (TVEP) reauthorization.  TVEP is funded through                                                               
unemployment  insurance payroll  deductions.  A  portion of  that                                                               
goes into TVEP, which has been very successful over the years.                                                                  
                                                                                                                                
PRESIDENT  JOHNSEN said  the Alaska  Higher Education  Investment                                                               
Fund  for the  Alaska Performance  Scholarship, Alaska  Education                                                               
Grant, and WWAMI Medical School  Program is managed by ACPE. Last                                                               
year these were  vetoed but were reinstated. Part  of the compact                                                               
agreement with the  governor is that they would  continue, so the                                                               
university   would  appreciate   support   for   that  from   the                                                               
legislature as well.                                                                                                            
                                                                                                                                
SENATOR HUGHES shared that she  had been alarmed when she learned                                                               
at a national  conference that across the country,  60 percent of                                                               
high school  graduates need remedial  coursework in  college. She                                                               
would  like  to know  if  any  students  who receive  the  Alaska                                                               
Performance Scholarship need any remedial coursework.                                                                           
                                                                                                                                
10:03:55 AM                                                                                                                   
PRESIDENT JOHNSEN replied that ACPE  has a newly available report                                                               
that he could  provide to her. One of the  tremendous benefits of                                                               
APS is  that it does  reduce that.  The university is  very happy                                                               
with the  results of its own  initiatives to reduce the  need for                                                               
developmental educational.                                                                                                      
                                                                                                                                
PRESIDENT JOHNSEN presented the graphic  UA:Your Way on slide 37.                                                               
The university  did a lot  of vision work  a few years  ago about                                                               
what does  the university want to  be as of 2040.  The university                                                               
went through the process unconstrained  by any thoughts of budget                                                               
and asked questions such as "What  if we found out where the king                                                               
salmon are  going, what if we  could figure out how  to get heavy                                                               
oil out of Prudhoe Bay, what if,  why not." It was a powerful and                                                               
inspirational  process.  A web  site  reflects  all of  that  and                                                               
provides an  opportunity to envision  how to create  a university                                                               
and how to create a state.                                                                                                      
                                                                                                                                
10:07:16 AM                                                                                                                   
CHAIR STEVENS  asked for  his thoughts  on adjusting  the tuition                                                               
for university and community college campuses.                                                                                  
                                                                                                                                
PRESIDENT JOHNSEN  responded that  community campuses offer  a 25                                                               
percent  discount  for  certain  occupational  endorsements.  The                                                               
university reallocates  to fund  those and  makes whole  the lost                                                               
tuition  for  those campuses  that  provide  the discount.  Often                                                               
those students are the most  price sensitive, so the discount can                                                               
increase enrollment in those programs.  The university works with                                                               
employers  because  many of  those  degree  programs are  feeding                                                               
employers.  The  university  has  great  relationships  with  the                                                               
mining  industry, health  care,  and others.  The opportunity  is                                                               
there to  step up that  relationship even more so  that employers                                                               
are  participating in  directly in  some of  the costs  that meet                                                               
their  workforce   needs.  The  university  can   talk  to  local                                                               
governments  about advantages  of community  campuses. The  Kenai                                                               
Peninsula  Borough kicks  in over  $700,000 a  year to  its local                                                               
campus. Valdez and Kodiak also contribute to their campuses.                                                                    
                                                                                                                                
10:09:31 AM                                                                                                                   
There being  no further business  to come before  the committees,                                                               
Chair Stevens  adjourned the  House Education  Standing Committee                                                               
and the Senate Education Standing Committee at 10:09 a.m.