Legislature(2001 - 2002)

02/05/2001 09:06 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
GENERAL SUBJECT(S):                                                                                                             
                       State of the University                                                                                  
                       President Mark Hamilton                                                                                  
                                                                                                                                
                          **Joint Meeting**                                                                                     
                               with the                                                                                         
                       House Finance Committee                                                                                  
                                                                                                                              
The  following overview  was  taken  in log  note  format.   Tapes  and                                                         
handouts will be on file with the Senate  Finance Committee through the                                                         
21st  Legislative   Session,   contact  465-4935.     After   the  22nd                                                         
Legislative  session they  will be  available  through the  Legislative                                                         
Library at 465-3808.                                                                                                            
                                                                                                                              
Time Meeting Convened:  9:06 AM                                                                                                 
                                                                                                                                
Tape(s):  SFC-01 # 8, Side A                                                                                                    
                                                                                                                              
                                                                                                                              
       PRESENT:                                                                                                             
                                                                                                                                
x      Senator Donley                                                                                                         
x      Senator Kelly                                                                                                          
x      Senator Austerman                                                                                                      
x      Senator Green                                                                                                          
x      Senator Hoffman                                                                                                        
x      Senator Leman                                                                                                          
x      Senator Olsen                                                                                                          
x      Senator Ward                                                                                                           
x      Senator Wilken                                                                                                         
x      Representative Mulder                                                                                                  
x      Representative Williams                                                                                                
x      Representative Bunde                                                                                                   
x      Representative Foster                                                                                                  
x      Representative Harris                                                                                                  
x      Representative Hudson                                                                                                  
x      Representative Lancaster                                                                                               
       Representative Whitaker                                                                                                
       Representative Croft                                                                                                   
x      Representative Davies                                                                                                  
x      Representative Moses                                                                                                   
                                                                                                                                
ALSO PRESENT:                                                                                                               
SENATOR RANDY PHILLIPS                                                                                                          
SENATOR GENE THERRIAULT                                                                                                         
REPRESENTATIVE SHARON CISSNA                                                                                                    
REPRESENTATIVE JOHN COGHILL, JR.                                                                                                
REPRESENTATIVE ANDREW HALCRO                                                                                                    
REPRESENTATIVE JOE HAYES                                                                                                        
REPRESENTATIVE JEANNETTE JAMES                                                                                                  
REPRESENTATIVE MARY KAPSNER                                                                                                     
REPRESENTATIVE BETH KERTTULA                                                                                                    
REPRESENTATIVE LISA MCGUIRE                                                                                                   
REPRESENTATIVE PEGGY WILSON                                                                                                   
GENERAL MARK HAMILTON, President, University of Alaska                                                                        
                                                                                                                                
LOG SPEAKER                DISCUSSION                                                                                       
0    Co-Chair Kelly        Introduction                                                                                       
     Representative        Gave President Hamilton's credentials,                                                               
    Mulder                education, assignments in the military,                                                               
                           etc.                                                                                               
44   MARK HAMILTON,        Introduced board of regents members and                                                              
     President,            members of the Alaska Coalition of Student                                                           
     University of         Leaders.                                                                                           
     Alaska                                                                                                                     
62                         Should be a great point of pride that                                                                
                           Alaska has the most assessable legislators                                                           
                           in the country.                                                                                    
71                         Two years ago, I came before you for the                                                             
                           first time, showed you that university had                                                           
                           lost the ability to contribute to its own                                                            
                           funding and to respond to the growing needs                                                          
                           of the state.                                                                                        
                           I stated that if the university had more                                                             
                           funds it would begin to bear more of the                                                             
                           costs to service the state.                                                                        
86                         1986-1989 university was able to generate                                                            
                           approximately, $5.4 million in addition to                                                           
                           general funds.                                                                                       
                           Of that, only about $100,000 was available                                                           
                           to supplement general funding.                                                                       
                           In contrast, this year, we will generate                                                             
                           $26 million, of which, as much as $5                                                                 
                           million will be available for university                                                             
                           requirements.                                                                                        
                           We have factored this into our request.                                                            
98                         By supporting the request for this year, we                                                          
                           believe that we could generate up to $36                                                             
                           million.                                                                                             
                           If all these restricted dollars were                                                                 
                           directly substitutable, we wouldn't have to                                                          
                           ask for more increases, but they are not.                                                          
104                        They are dependant on general funds to                                                               
                           generate them.                                                                                       
                           Important to understand this is not simply                                                           
                           a matter of leverage.                                                                                
                           Reason enrollment is up, along with                                                                  
                           tuition, federal receipts, university                                                                
                           receipts, indirect costs recovery, private                                                           
                           giving and corporate giving are because of                                                           
                           legislative increase.                                                                              
119                        Substantial increase in a tough budget year                                                          
                           You have turned the university around,                                                               
                           partially by dollars but also by your                                                                
                           encouragement.                                                                                     
128                        Enrollment up first time since 1994.                                                                 
                           This year we hired recruiters for the first                                                          
                           time ever.                                                                                         
130                        Adding of counselors and additional                                                                
                           programs.                                                                                          
                           20 percent of Alaskan high school graduates                                                          
                           leave Alaska because we don't offer them                                                             
                           the courses they want.                                                                             
138                        We used to have a six-month backlog of                                                               
                           transcripts to process.                                                                            
141                        Today that backlog is eliminated.                                                                    
                           Pride and moral is up.                                                                             
145                        Talked with and worked with teachers,                                                                
                           principals, and superintendents and asked                                                            
                           them what is our roll?                                                                               
                           We must provide the quality teachers to run                                                          
                           the quality schools.                                                                                 
                           Begun fifth year MAT program.                                                                        
                           Addressed the need for elementary                                                                    
                           educators.                                                                                           
                           Working with professionals on the ever-                                                              
                           increasing training for the needs of                                                                 
                           educators.                                                                                         
160                        Health care.                                                                                         
                           Largest growing area in the state.                                                                   
                           Last year supported the two-year registered                                                          
                           nursing program to Kodiak and Fairbanks.                                                             
                           Identified the need for dental care workers                                                          
                          and radiologists.                                                                                     
                           Asked the profession to help us prioritize.                                                          
                           Looking to offer one-year program.                                                                 
177                        Information technology.                                                                              
                           We've gone to the professionals who                                                                  
                           identified the areas of needed training.                                                             
                           Highest priority not at the degree level                                                             
                           but at the IT level.                                                                                 
                           These are high paying jobs.                                                                        
188                        Natural resources.                                                                                   
                           Alaska's future will reflect Alaska's past.                                                        
194                        Engineering.                                                                                         
                           Expanding programs in Anchorage and                                                                  
                           Fairbanks.                                                                                           
                           Commissioner Perkins, of the Department of                                                           
                           Transportation and Public Facilities, said                                                           
                           he could hire every graduate and that there                                                          
                           will even be competition.                                                                          
202                        Contractual pay raises were approved by the                                                          
                           legislature last year.                                                                             
204                        Even with increases number of faculty,                                                               
                           requesting marginally less money to meet                                                             
                           these requirements because you allowed us                                                            
                           to generate monies that we can apply.                                                              
209                        Inflation.                                                                                           
                           We are asking for less than one-half of one                                                          
                           percent of our budget base to cover just                                                             
                           the extraordinary inflation items of                                                                 
                           library and IT software licensing and                                                                
                           hardware upgrading.                                                                                
                           The rest we are able to address with money                                                           
                           that you've enabled us to generate.                                                                
215                        Important long-term efficiency called                                                                
                           convergence.                                                                                         
                           This will converge the separate pipes that                                                           
                           run video, voice and data, into one                                                                  
                           instrument that can handle all media.                                                              
222                        We are asking for funds that we will match                                                           
                           and over-match through our access to state                                                           
                           government.                                                                                        
226                        Lena Point research facility and university                                                          
                           museum are highly leveraged.                                                                       
230                        Accountability.                                                                                      
                           Every initiative you funded last year is                                                             
                           laid out on the Internet.                                                                            
                           Keeping us on track for what we told                                                                 
                           Alaskans we would do.                                                                                
                           Accountability is more than a buzzword.                                                            
247                        Board of regents voices ring loud.                                                                 
249                        Co-Chair Donley asked a question two years                                                           
                           ago regarding disbursement of funds to                                                               
                           instruction.                                                                                         
                           The FY 00 initiatives went 100 percent to                                                            
                           instruction and instructional support.                                                               
                           Last year 76.5 percent directly to                                                                   
                           instruction and instructional support.                                                               
                           My request this year is 63 percent in that                                                           
                           instruction category.                                                                              
256                        Representative Bunde supporter of                                                                    
                           additional emphasis in two-year programs                                                             
                           and vocational technical programs.                                                                   
                           Of the FY 00 initiatives, 48.5 percent went                                                          
                          to those programs.                                                                                    
                           FY 01 32 percent plus 100 percent of "289                                                            
                           funding".                                                                                            
                           In our request, 41.8 percent goes to two-                                                            
                           year and vocational technical programs.                                                            
261                        Partnerships.                                                                                        
                           They continue to be our strength.                                                                    
                           They inform us and keep us on track.                                                               
264                        Representative Davies is a proponent of                                                              
                           research and being more responsive to the                                                            
                           state.                                                                                               
                           Last year, legislature gave university $1                                                            
                           million to compete in a program called                                                               
                           Experimental Program to Stimulate                                                                    
                           Competitive Research (EPSR).                                                                         
                           Nine states submitted programs to the                                                                
                           National Science Foundation.                                                                         
                           Alaska was overwhelming voted number one                                                             
                           submission and was funded $3.5 million per                                                           
                           year for the next three years to pursue                                                              
                           programs directly germane to Alaska.                                                                 
                           Infrastructure for exploring the special                                                           
                           requirements for roads and harbors for                                                               
                           areas with extraordinary temperature                                                                 
                           changes and seismic unstable locations.                                                              
                           Will explore engineering technologies and                                                            
                           materials.                                                                                           
                           High latitude, environments and                                                                      
                           contaminants, to trace the difficulties                                                              
                           associated with the cooling of water by                                                              
                           permafrost.                                                                                          
                           These funds allow us to expand research                                                              
                           opportunities to Anchorage and Juneau                                                                
                           campuses.                                                                                          
285                        First time since 1994 enrollment up.                                                               
287                        Highlights of outside acclaim.                                                                       
                           University of Alaska-Southeast external                                                              
                           accreditation report.                                                                                
                           Praised for attention to student support                                                             
                           and curriculum quality.                                                                            
298                        University of Alaska-Anchorage external                                                              
                           accreditation review team.                                                                           
                           Praised for expanded partnerships with                                                               
                           community.                                                                                           
                           Positive attitude of staff and students.                                                           
                           University of Alaska-Fairbanks                                                                       
                           Rifle team second consecutive national                                                               
                           championship.                                                                                        
                           Team members maintained a cumulative 3.8                                                             
                           grade point average.                                                                               
313                        Students of UAF and partners in Japan,                                                               
                           successfully launched a rocket to an                                                                 
                           altitude of 50 miles, over ten times the                                                             
                           previous high.                                                                                     
316                        Faculty.                                                                                             
                           Numerous personal awards, competitive                                                                
                           grants and publications.                                                                             
                           Expansion of IT courses and statewide                                                                
                           offerings have been a challenge and they                                                             
                           have responded.                                                                                      
                           Intensive self-development.                                                                        
323                        Number of promising economic opportunities.                                                          
                           Gas pipeline.                                                                                        
                           Expansion of railroad.                                                                               
                           Will insist that fiber optic cable be                                                                
                           included.                                                                                          
331                        Compare to 1880's railroad and telegraph                                                             
                           connection between east and western United                                                           
                           States.                                                                                            
337                        Many people not interested in growth.                                                                
                           The answer is to train Alaskans to take the                                                          
                           key jobs.                                                                                          
343                        We can't wait for the big projects to come                                                           
                           to us, by then the good jobs are taken and                                                           
                           infrastructure is overwhelmed and built                                                              
                           reactively.                                                                                        
348                        Some legislatures already addressing the                                                             
                           capital needs.                                                                                       
                           This work should be done before the                                                                  
                           competition and high prices of the boom.                                                           
353                        University stands ready to participate and                                                           
                           inform in these key deliberations.                                                                 
355                        Quote from Mike Burns, chairman of Board of                                                          
                           Regents, "Higher education yields                                                                    
                           prosperity, but it also opens doors of                                                               
                           learning, imagination, and understanding.                                                            
                           To give us the chance to know more and do                                                            
                           more, to better comprehend our own lives                                                             
                           and our neighbors."                                                                                
358                        Challenging story "what is rich?" asked a                                                            
                           successful merchant banker of the Persian                                                            
                           Gulf. "Rich is education, expertise,                                                                 
                           technology. Rich is knowing. We have money,                                                          
                           yes, but we are not rich. We are like the                                                            
                           child who inherits money from a father he                                                            
                           never knew. He was not brought up to spend                                                           
                           it. He has it in his hands. He does not                                                              
                           know how to use it. If you do not know how                                                           
                           to spend money, you are not rich. We are                                                             
                           not rich." "Are you rich if your children                                                            
                           go elsewhere to school?"                                                                           
372                        If you make this university strong you will                                                          
                           be rich.                                                                                           
375 Co-Chair Kelly         Introduce later arriving legislators                                                               
377 Senator Leman          Last year additional funding was given and                                                           
                           there were five areas we wanted to respond                                                           
                           to.                                                                                                  
                           Logistics, vocational education, nursing                                                             
                           and other health care, teacher training and                                                          
                           arctic and mining engineering.                                                                       
                           I didn't hear about logistics and working                                                            
                          with the military.                                                                                  
387 President Hamilton     Remarkable, set up masters degree program                                                            
                           Next level to train material handlers,                                                               
                           accountants, shippers, etc.                                                                          
                           Been to Hawaii twice, Pacific command looks                                                          
                           at Alaska as their center for global                                                                 
                          logistics support.                                                                                    
                           UPS and Federal Express have as well for                                                             
                           their commercial operations.                                                                         
                           That program is well ahead of expectations.                                                        
399 Senator Leman          Ask student leaders in audience if                                                                   
                           attending using the Alaska scholars program                                                        
403                        Two in this group.                                                                                   
                           How is the program working in this past                                                              
                           year?                                                                                              
404 President Hamilton     Remarkable number given the year, don't                                                              
                           have exact numbers.                                                                                  
                           Not going to be 109 percent like last year.                                                        
408 Senator Leman          Partnerships.                                                                                      
                           Elmer Rasmussen left money to university.                                                            
                           Can you give us numbers of investments from                                                          
                           business and individuals?                                                                          
413 President Hamilton     Final Rasmussen gift total exceeds $20                                                               
                           million.                                                                                             
                           Designated to specific projects as he                                                                
                           specified.                                                                                           
                           Received approximately $2.5 million from                                                             
                           Phillips/BP as an annual commitment,                                                                 
                           dependent on oil prices.                                                                             
                           We allocated broadly to make sure                                                                    
                           university is able to participate in                                                                 
                           exploration of economic development                                                                  
                           opportunities in the state.                                                                        
424 Representative         Give more about how scholars program is                                                              
     Davies                doing.                                                                                               
                           Funding out of land grant earnings. How                                                              
                           long can you continue to do that?                                                                  
428 President Hamilton     We're attracting about 40 percent of the                                                             
                           top ten-percent of the state.                                                                        
                           After spring enrollment, 550 of Alaska's                                                             
                           brightest students go to the University of                                                           
                           Alaska.                                                                                              
                           Using money from the natural resources                                                               
                           fund, we will go broke next year.                                                                    
                           Not worried since we will pull out all the                                                           
                           stops for such a valuable program.                                                                   
                           Will come to this body for funds next year.                                                          
                           We are only state that offers neither                                                                
                           needs-based nor merits-based scholarships.                                                           
                           Not the first time had bright students, but                                                          
                           once you reach a certain density, it                                                                 
                           changes the atmosphere.                                                                              
                           Source of advertisement as the numbers                                                               
                           grow.                                                                                                
                           Will see more student leaders.                                                                       
                           Will see more graduates - 80 percent of our                                                          
                           graduates stay in the state.                                                                       
457 Representative         How do numbers compare to previous year for                                                          
    Mulder                attracting and retaining those scholars                                                             
461 President Hamilton     Got about 270 scholars the first time,                                                               
                           about 350 the second time, against the same                                                          
                           base of about 750 in the top ten-percent.                                                            
                           Retention far exceeds the retention of the                                                           
                           student body as a whole, in the low 70's.                                                            
                           Difficult to compare that number across the                                                          
                           country since such a unique program.                                                                 
                           We have baseline going higher.                                                                     
473 Representative         In budget request focus on not only on                                                               
     Mulder                recruiters but also counselors.                                                                    
476 President Hamilton     Prior presidents, in decisions to adjust                                                             
                           for budget reductions eliminated these                                                               
                           positions.                                                                                           
                           In efforts to retain programs, we mortgaged                                                        
                           our future.                                                                                          
                           We are just catching up.                                                                             
                           Only had this money since July, what's                                                               
                           happened is not the result of recruiters                                                             
                           and counselors, but because the legislature                                                          
                           gave a vote of confidence.                                                                           
                           People like to ride with a winner.                                                                   
                           Will get better.                                                                                   
501 Co-Chair Kelly         Status on deferred maintenance and the                                                               
                           appropriations that have not yet been                                                                
                           spent.                                                                                             
502 President Hamilton     No capital planners in the system, used to                                                           
                           be nine employees including an architect,                                                            
                           long lost to staff reductions.                                                                       
                           We put together a team to address these                                                              
                           issues.                                                                                              
                           Senator Wilken asked for full accounting of                                                          
                           this and we prepared a document.                                                                     
                           Part of the problem is with timing.                                                                  
                           When renovate a major classroom, where do                                                            
                           those classes meet?                                                                                  
                           When renovate a dorm, have to know where to                                                          
                          put those people.                                                                                   
516 Senator Wilken         By constitution, legislature allocates lump                                                          
                           sum of money, which the board of regents                                                             
                           then determines how it should be spent.                                                            
521 President Hamilton     Idea of formula considered by many states.                                                           
                           Very complex and difficult.                                                                          
                           We explored, and learned that the way funds                                                          
                           are distributed is a wash.                                                                           
                           Heard suggestions on student head count or                                                           
                           course hours.                                                                                        
                           Each campus is important.                                                                            
                           Academic jump balls.                                                                                 
                           Identify, programs succeed or fail on their                                                          
                           own merits, no matter what campus initiated                                                          
                           it.                                                                                                
                           SFC-01 # 8,  Side B 9:53 AM                                                                        
550 President Hamilton     Don't think formulas work.                                                                           
                           Reward the program that serves the state.                                                          
547 Senator Hoffman        Didn't mention rural campuses.                                                                     
540 President Hamilton     Mat-Su $600,000 federal grant for small                                                              
                           business development programs.                                                                       
                           Chukchi derived from legislative intent to                                                           
                           get with local school districts and                                                                  
                           chambers of commerce, technology center and                                                          
                           your campus and decide how to do most                                                                
                           efficient presentation of courses.                                                                   
                           This has attracted Native corporation, Red                                                           
                           Dog Mine and generated 450 additional                                                                
                           student credit hours in technical field.                                                           
528                        Great beauty in community campuses is in                                                             
                           their ability to react to local needs.                                                               
                           Kodiak response to two-year technology                                                             
                           program in fisheries and aerospace is full                                                           
                           and continue to be asked for additional                                                              
                           courses                                                                                            
522 Senator Hoffman        How many rural campuses have you attended                                                            
                           since becoming president?                                                                          
520 President Hamilton     All of them.                                                                                       
519 Representative         Bring students from Outside?                                                                       
     Lancaster                                                                                                                  
517 President Hamilton     Not much, out of state is a particular                                                               
                           challenge, we do attract, up significantly                                                           
                           in Fairbanks.                                                                                        
                           Attracted by quality of programs.                                                                    
                           Recruiting needs to be focused.                                                                      
                           Pool shrinks quickly.                                                                                
                           85 percent of high school graduates go to                                                            
                           college within 250 miles of their home.                                                              
                           We concentrate from within the state first.                                                          
                           No better place to recruit than a high                                                               
                           school                                                                                               
                           Advertisements on the internet are of some                                                           
                           value                                                                                                
                           Advertisements as a whole are very                                                                   
                           expensive.                                                                                           
                           Need to understand the market before we go                                                           
                           after it.                                                                                          
497 Representative         Interested in percentage of college-bound                                                            
     Hudson                graduates who choose Alaska.                                                                       
492 President Hamilton     Was one of the missions and measures agreed                                                          
                           upon.                                                                                                
                           We now know that we capture 22 percent of                                                            
                           high school graduates.                                                                               
                           Depends on what percentage of high school                                                            
                           graduates actually go to college, we have                                                            
                           low percentage in Alaska.                                                                            
                           We actually capture higher percentage of                                                             
                           small pool.                                                                                          
                           Quality schools initiative should improve                                                            
                           this.                                                                                              
476 Senator Ward           Five years ago my first meeting with                                                                 
                           university, I was told they were having                                                              
                           troubles with ability of new students.                                                               
                           That led to exit exam.                                                                               
                           High number of high school graduates unable                                                          
                           to perform.                                                                                          
                           Has that improved?                                                                                 
464 President Hamilton     Significant number of high school graduates                                                          
                           must take remedial courses.                                                                          
                           There has been a reduction in the number of                                                          
                           remedial courses being taken, don't know                                                             
                           the cause.                                                                                           
                           We can track percentage of incoming Alaska                                                           
                           high school graduates taking remedial                                                                
                           courses.                                                                                             
                           The symptom exists.                                                                                
444 Senator Ward           Would be interested land grant what is the                                                           
                           status.                                                                                            
439 President Hamilton     Status of additional land grant funds to                                                             
                           the University?                                                                                    
438 Senator Ward                                                                                                              
437 President Hamilton     Lands bill passed last year, important step                                                          
                           forward in the amount of land.                                                                       
                           Of the land that we have, current value in                                                           
                           trust fund is $112 million.                                                                          
                           Frees for distribution each year, after                                                              
                           inflation proofing $5 million.                                                                       
                           Small amount compared to other land grant                                                            
                           institutions.                                                                                        
                           US Senator Frank Murkowski refers to the                                                             
                           University of Alaska as a land grant                                                                 
                           institution with no land.                                                                            
                           Possible federal land grant.                                                                         
                           When talk about land selections, after                                                               
                           litigations, bids, litigations, etc. 15-20                                                           
                           years before begin to produce.                                                                       
                           Important for next generation, but does not                                                          
                           apply to short or mid term needs.                                                                  
417 Senator Ward           1992 tried to give land to university, if                                                            
                           so, it would be better off today.                                                                  
413 Co-Chair Kelly         Thank President Hamilton                                                                             
                           Will keep your comments in mind                                                                    
408                        Adjourn 10:08 AM                                                                                   
                                                                                                                                

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