Legislature(2017 - 2018)SENATE FINANCE 532
02/13/2018 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB144 | |
| Presentation: Fy19 Operating Budget Overview and Deferred Maintenance Update | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 144 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
February 13, 2018
9:04 a.m.
9:04:04 AM
CALL TO ORDER
Co-Chair Hoffman called the Senate Finance Committee
meeting to order at 9:04 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Click Bishop, Vice-Chair
Senator Peter Micciche
Senator Donny Olson
Senator Gary Stevens
Senator Natasha von Imhof
MEMBERS ABSENT
Senator Anna MacKinnon, Co-Chair
ALSO PRESENT
Jim Johnson, President, University of Alaska; Michelle
Rizk, Vice President, University Relations, University of
Alaska.
PRESENT VIA TELECONFERENCE
Scott Bell, Associate Vice-Chancellor, Facilities Services,
University of Alaska Fairbanks.
SUMMARY
SB 144 APPROP: OPERATING BUDGET/LOANS/FUNDS
SB 144 was HEARD and HELD in committee for
further consideration.
PRESENTATION: FY19 OPERATING BUDGET OVERVIEW and DEFERRED
MAINTENANCE UPDATE
SENATE BILL NO. 144
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; amending
appropriations; making supplemental appropriations;
making appropriations under art. IX, sec. 17(c),
Constitution of the State of Alaska, from the
constitutional budget reserve fund; and providing for
an effective date."
9:04:26 AM
^PRESENTATION: FY19 OPERATING BUDGET OVERVIEW and DEFERRED
MAINTENANCE UPDATE
9:05:31 AM
JIM JOHNSON, PRESIDENT, UNIVERSITY OF ALASKA, (UA)
discussed the presentation, "University of Alaska; FY 19
Operating Budget and Deferred Maintenance Overview" (copy
on file). He explained the development of the Land Grant
College and Universities in Congress under the Morrill Act
of 1862. The University of Alaska is one if the land grant
universities created by the act.
9:07:19 AM
Mr. Johnson looked at Slide 2, "University Mission":
• Education
Delivering academic instruction, career and
technical training
• Research
Advancing innovation and discovery through
academic and scientific research
• Service
Sharing knowledge to address Alaska's community
needs
9:08:59 AM
Mr. Johnson highlighted Slide 3, "Serving All Alaskans:
Three Universities - One Integrated System." The slide
showed a shape of the state, with indicators pointing to
the areas where the three universities in the UA system had
established campuses. He noted that half of the system
campuses were not accessible by land but were in the main
population centers of the state, serving the needs of
Alaska. He added that UA facilitated many research
activities across the state, as well as provided
educational services to people across the state who were
not resident in the communities highlighted on Slide 3.
9:10:21 AM
Mr. Johnson addressed Slide 4, "Legal Authority":
Alaska Constitution Article 7, 2 State University
University of Alaska is hereby established as the
state university and constituted a body corporate. It
shall have title to all real and personal property now
or hereafter set aside for or conveyed to it.
Its property shall be administered and disposed of
according to law.
Alaska Constitution Article 7, ? 3 Board of Regents
The University of Alaska shall be governed by a board
of regents. The regents shall be appointed by the
governor, subject to confirmation by a majority of the
members of the legislature in joint session. The board
shall, in accordance with law, formulate policy and
appoint the president of the university. He shall be
the executive officer of the board.
Alaska Statutes Title 14 Chapter 40 (14.40.10
14.40.817)
9:10:41 AM
Mr. Johnson displayed Slide 5, "Program Areas." The areas
were organized by the three mission priorities of
education, research, and service. The slide showed the
number of students directly served annually, nearly 30,000
in 2017. He expressed appreciation for the research
progress made in 2017 and the number of people touched by
4-H programs and practical guidance publications.
9:12:35 AM
Co-Chair Hoffman queried the impact of the two new science
buildings (Anchorage and Fairbanks) and their effect on the
university.
Mr. Johnson replied that the facilities had led to a
significant increase in student enrollment; the buildings
are aesthetically pleasing and state-of-the-art. He said
that the work being done in the facilities had benefitted
Alaskans throughout the state. He stated that engineering
would continue to be an important workforce training area
for UA and noted that collaboration within the system, in
regard to the discipline, was strong.
9:15:12 AM
Vice-Chair Bishop wondered whether the 11,000 youth,
engaged in the 4-H programs, were tracked to determine how
many graduated from high school and enter into
postsecondary education.
Mr. Johnson said he would get back to the committee with
the information. He speculated that that high school and
college graduation rates would be high among the group.
9:15:54 AM
Vice-Chair Bishop spoke of the direct benefits to the state
of encouraging vocational and technical educational
opportunities for students. He noted that the Northwest
Arctic and Bering Strait school districts had fully
embraced technical education programs and had seen high
school graduation rates raise from 68 percent to 82
percent.
9:16:39 AM
Mr. Johnson noted the breakdown in percentages of UA
operating budget spending: 72 percent went to education, 20
percent to research, and 8 percent to service. He said that
the share of the total budget that came from undesignated
general funds was approximately one-third general funds. He
related that the University was able to leverage the
state's investment in other funds for the University.
9:17:15 AM
Mr. Johnson highlighted Slide 6, "State Operating Budget
Trend." The slide contained a bar graph of unrestricted
general fund history in millions. He noted that the chart
showed a $61 million reduction, year-over-year, which
cumulatively totaled $145 million. The reduction had
resulted in a significant impact in UA operations. He
pointed out that the Board of Regents request for FY 18 was
$341 million (10 percent below the operating budget
approved in FY 14); the Governor's FY 18 request was $317
million.
9:18:14 AM
Mr. Johnson addressed Slide 7, "Workforce Reductions FY15-
FY18":
Headcount
? 1,183 fewer employees than three years ago.
? Largest reductions have occurred at Statewide
Administration and in administrative and academic
leadership positions on campus.
? Statewide headcount has been reduced by 36
percent compared to a 14 percent reduction for
the entire UA system.
Funding
? UGF funding of the System Office (Statewide)
has been reduced by $11 million, or 37 percent
compared to a 14 percent reduction for the entire
UA system.
9:19:11 AM
Mr. Johnson looked at Slide 8, "Program Reductions FY15-
FY18":
Over 50 academic programs suspended or eliminated
Academic/Job Training Programs Impacted:
Discontinued
? GC Clinical Social Work Practice (UAA)
? PhD Clinical-Community Psychology (UAF)
? BA and BBA Economics (UAF)
AAS Apprenticeship Technology (UAS)
? Certificate Automotive Technology (UAS)
? Associate of Business (UAS)
Suspended
? MS Applied Environmental Science and Tech
(UAA)
? MS Engineering Management (UAA)
? MS Science Management (UAA)
? AAS Computer Info and Office Systems (UAA)
? BA Philosophy (UAF)
? MS Resource Economics (UAF)
? BA and BS Sociology (UAF)
Strategic Pathways Implementations:
? Three schools of management consolidating to
two.
? Leveraging purchasing to reduce cost.
University procurement offices organized under a
single procurement officer's leadership.
? Streamlining and automating administrative
processes and systems.
Mr. Johnson lamented that programs of strong interest and
significant enrollment were being considered for
discontinuation or suspension due to lack of funding.
Mr. Johnson addressed Slide 9, "Strategic Pathways." He
relayed that the slide showed several examples of decisions
that had been taken coming out of the process. He related
that three schools of management had been reduced to two,
purchasing and procurement had been consolidated,
administrative processes had been streamlined, and one
College of Education now existed with faculty in Anchorage
and Fairbanks, but one administrative structure.
9:21:06 AM
Senator Stevens probed the changes to the College of
Education and the impact that those changes would have on
the educating of teachers in the state.
Mr. Johnson replied that he would address the changes
further into the presentation.
9:21:38 AM
He noted that the top section of slide 9 outlined the
objective of the UA system, which covered all areas. He
stated that the bottom represented the foundations. He
stated that the three universities: UAS, UA, and UAF were
the pillars of the university system. He stated that the
goal was to bring together the benefits of one UA system,
and the benefits of three distinctive Universities, with
the support of the community college mission across the
state. He believed that the slide successfully communicated
the similarities and the specialized area of the parts of
the UA system. He shared that over 100 options had been
generated by the previously mentioned committees that were
now in the process of being implemented or were in the
process of implementation.
9:23:42 AM
Mr. Johnson emphasized the importance of common
administrative systems within the UA system to manage the
increase in online course enrollment. He admitted that
there were continuing struggles surrounding information
access to rural parts of the state but that improvements
were being made.
9:24:25 AM
Co-Chair Hoffman asked for information about the Alaska
Native Science and Engineering Program (ANSEP).
Mr. Johnson responded that the program was thriving and
innovating. He shared that the program reached out to rural
Alaska and provided intense and deep learning experiences
for rural Alaskan youth, through high school and college.
The University facilitated significant support and
internship opportunities for participants. He beamed that
the success rates were tremendous. He noted that the budget
proposal included a line to support the creation of an
acceleration high school in Anchorage that would serve
urban Alaskans.
9:25:51 AM
Co-Chair Hoffman agreed that the program was successful. He
wondered whether other states were looking at the program
in the state as a measurement of success.
Mr. Johnson replied that other states were looking to
Alaska when crafting similar programs. He added that the
National Science Foundation had provided grant support to
the program, which had also attracted private support
because of its effectiveness.
9:26:36 AM
Senator von Imhof understood that the University traveled
to communities throughout the state to talk to communities
about the program. She wondered about discussions
surrounding doing a high school residential program on the
campus in an effort to prepare kids for the program.
Mr. Johnson shared that a residential program was not in
the works, nor a high school program per se, but was
looking to support high school kids by providing university
course work to those students who were interested. He said
that the University was working with the Department of
Education and Early Development on the program and with
private sector support.
9:28:03 AM
Senator von Imhof hoped that more could be shared about the
program.
Mr. Johnson explained that there would be a specific
location near the UA campus where high school students
would go to attend classes though the day. He offered to
provide the committee with a summary of the program.
9:29:11 AM
Mr. Johnson discussed Slide 10, "Building a Culture of
Education":
Alaska is a land of great wealth
? natural resources
? environment
? global location
? diverse, rich cultures
? adventurous people
? growing Alaska Native corporations and tribal
organizations
? opportunity to create a sustainable future for
generations to come
Mr. Johnson opined the tremendous challenges faced by the
state in the realm of education, particularly the challenge
of education attainment. He lamented that the state has low
high school graduation rates (47th in the country) and a
low college going rate (50th in the country).
9:30:28 AM
Co-Chair Hoffman asked whether the low college rate
included in-state and out-of-state college students.
Mr. Johnson replied that the statistics included both
groups.
9:30:30 AM
Mr. Johnson continued to discuss Slide 10:
There is no single organization in Alaska better
poised to solve Alaska's problems and pursue its
opportunities than the University of Alaska
? mission
? assets
? record of success
? public support
? partnerships
? plan
? commitment
Our state faces very serious challenges
? vast geography and a small population
? low educational attainment
? health disparities
? critical workforce gaps
? narrow economic base
? high costs in such areas as health care,
facilities, energy, and telecommunications
? fiscal uncertainty at state level and recent,
severe budget cuts to UA (cumulative $145M, FY14-
FY18)
UA is a prime investment in the capabilities and the
ideas to propel Alaska forward
? top quality courses and programs in high demand
fields, including extensive offerings in the
social sciences, humanities, and the arts
? high powered research into issues relevant to
Alaska and the world
? inspiring and transformational role in our
students' lives
? critical role of public and community service
Mr. Johnson asserted that by increasing education
attainment would bend the cost curve on healthcare costs,
public safety, and many other aspects of Alaskan life. He
believed that the University had demonstrated the ability
to make tough choices and were tying themselves directly to
the needs of the state.
9:31:52 AM
Mr. Johnson highlighted Slide 11, "Strategic Objectives":
Drive Economic Development
? Provide a Skilled Alaskan Workforce
? Grow UA's World Class Research
? Increase Degree Attainment
? Operate More Cost Effectively
9:32:18 AM
Mr. Johnson looked at Slide 12, "Goals and Measures 2018-
2025." The slide defined the two ways in which progress
would be tracked toward each strategic objective. He
believed that the goals were ambitious, yet achievable, and
would move the University in the right direction. He
relayed that part of the strategy was Alaska Native Science
and Engineering Program (ANSEP), which was a key part of
the system's proposed increase in Science, Technology,
Engineering, and Math (STEM)graduates. He related that the
increase in the number of invention disclosures was a
predicate to creation of new companies that would be based
on intellectual property developed by UA faculty students
and staff.
9:33:42 AM
Co-Chair Hoffman queried the benefit to the state of past
invention disclosure.
Mr. Johnson referred to the antioxidant quality of wild
Alaskan blueberries, which was much higher than standard,
commercial blueberries. He provided the example that there
had been a company formed by a faculty member that was
focusing on concentration of the high oxidant values found
in Alaskan blueberries. He said that the list was long and
included pavement technologies.
9:34:44 AM
Mr. Johnson continued to discuss Slide 12. He stated that
the University would continue to prepare the workforce in
many areas of the state. He relayed that over 60 percent of
the University's graduates were in high demand workforce
areas. He explained that the system was looking to triple
the percentage of the teachers trained and hired in the
state, as well as double the number of healthcare program
completions. He said that improvements were being made and
that positions were increasing in healthcare programs at
UAA, which was the systems lead campus for health programs.
He said that the University would work with school
districts across the state in the effort to lessen turnover
rates and bring down the number of positions that would
ultimately need to be filled. He related that the
University's focus would strongly be in postbaccalaureate
preparation programs, master's degree and certificate
programs, geared toward people that already possessed a
baccalaureate degree. He stated that a key focus would be
an increase in the preparation of rural and Alaskan Native
residents for the programs in an effort to bring down the
turnover rate.
9:37:32 AM
Senator Stevens believed that decreasing outside hire for
teachers form 70 percent to 10 percent would result in
enormous savings for school districts and would benefit all
of Alaska.
Mr. Johnson replied that the recent estimate of $20 million
was what school districts across the state spent yearly on
recruiting costs for new teachers, alone. He asserted that
bringing in mora Alaska teachers would decrease that figure
and would increase continuity of teachers in classrooms.
9:38:35 AM
Senator Olson queried the figure of what schools paid out
for recruitment efforts.
Mr. Johnson responded that a recent Institute of Social and
Economic Research (ISER) study estimated that $20 million,
per year, was spent by the 54 school districts in Alaska
for teacher recruitment costs.
9:39:12 AM
Vice-Chair Bishop pointed out to the committee that there
was currently an advertisement for teachers in rural Alaska
in Alaska Airlines Magazine.
9:39:25 AM
Mr. Johnson continued to discuss slide 12. He appreciated
the committee's interest in the preparation of teachers in
the state. He segued into number 3 on Slide 12, which
highlighted that Alaska was a world leader in Arctic
related research. He explained that the research was
measured by publications in academic journals and citations
in academic papers. He shared that growth in world class
research had multiple benefits: the ability to recruit and
retain top-notch faculty, researchers, and graduate
students from across the world and Alaska; the financial
benefit of between $4 and $6 for every $1 of invested UGF;
the enhancement of quality in classroom instruction and
increased undergraduate research opportunities with top-
notch faculties. He stressed that the work done was
directly tied to the issues that were important to
Alaskans. He said that research expenditures were projected
to increase at the rate of 5 percent, per year. He stated
that the University was being strategic about its areas of
emphasis as it looked to the federal government for
research support, in the health sector in particular.
Mr. Johnson spoke to number 4 on slide 12, "Increase
Education Attainment." He said that this was the heart of
the plan adopted by the Board of Regents. The two elements
of the plan were to increase enrollment and the rate of
graduation. He admitted that the 50 percent increase
reflected on the line was ambitious but that it had
happened in other states, and in 1975, 6.3 percent of
Alaskans were students at UA. He asserted that using those
comparative and longitudinal benchmarks made the enrollment
goal of 45,000 by 2025, achievable. He admitted that the
goal would require funding.
9:44:00 AM
Vice-Chair Bishop asked whether the target of 45,000 by
2025 could be done with existing brick and mortar capacity.
Mr. Johnson replied that the brick and mortar capacity of
UA could withstand growth for a few years, but online
learning would play a part in servicing increased
enrollment. He understood the importance of hands-on
learning but believed that majority of the enrollees would
be taking online courses. He spoke to hybrid courses;
hybrid courses involved students learning in a classroom,
while other students dialed in online from across the
state. He hoped that broadband connectivity to rural
communities continued to expand and that completions within
the system continued to increase.
9:46:22 AM
Senator Stevens believed the University was on the right
track for completions. He concurred that many people were
taking classes online from out-of-state.
Mr. Johnson replied that 400 non-Alaskans were taking
online programs at UA, 6,000 Alaskans were taking online
classes, he added that the University had benefitted from
private funding to increase the marketing of its programs
but believed that the campaign should be increased.
9:47:32 AM
Senator von Imhof mentioned the federal government program,
E-Rate, which offered eligible schools and libraries in the
United States affordable telecommunications and internet
access. She believed that match was 7 to 1 to expand
broadband into smaller communities. She asked whether the
University would be willing to contribute to the state's
portion of the E-Rate match.
Mr. Johnson responded that the University was already
paying for connectivity to campuses and that the payments
being made were going to commercial bandwidth providers,
which he believed were benefitting from the E-Rate
subsidies. He offered to provide further detail at a later
date.
9:49:17 AM
Mr. Johnson continued to discuss slide 12. He admitted that
the goals listed under number 5 were ambitious but
represented the hopeful outcome of the increased enrollment
and increased revenue generated by research. He stated that
the administration was working closely with all campuses to
ensure that all of the numbers align. He said that each
campus was expected to take on the responsibility of
meeting the numbers in their particular field of expertise.
9:51:00 AM
Co-Chair Hoffman appreciated that the goals provided in the
presentation were ambitious.
9:51:23 AM
Mr. Johnson addressed slide 13, "FY 19 Operating Budget."
The slide provided a breakdown in spending of the FY 18
Operating Budget. He said that no compensation increases
had been proposed for FY 19. He noted that University
employees did not enjoy salary step increases. He lamented
that staff was being "poached" by other states. Fixed Cost
Increased totaled $9.7 million and Strategic Investments by
Objective totaled $14.7 million.
9:53:41 AM
Co-Chair Hoffman queried how the new facility providing
energy for the Fairbanks campus effected utility costs.
Mr. Johnson replied that the utility costs reflected on the
slide were primarily focused on the Anchorage campus. He
said that the new facility at Fairbanks would provide heat
and power.
9:54:21 AM
Mr. Johnson continued to discuss Slide 13. He noted that
the largest component in funding strategic investments was
in the area of increased educational and degree attainment.
9:55:43 AM
Co-Chair Hoffman queried whether the strategic investments
were listed in priority order.
Mr. Johnson replied that they were all top priority. He
added that increased enrollment and completion were at the
heart of the investments.
9:56:28 AM
Mr. Johnson discussed Slide 14, "Budget Structural
Changes":
• K-12 Outreach and Mining and Petroleum Training
Service (MAPTS) moved from Statewide to campuses;
student facing functions belong at the campus level
• University of Alaska Foundation secures and stewards
philanthropic support to separate allocation
• $3.9 Mill 25 PFT/1 PPT
• Education Trust manages Alaska College Savings
Program to separate allocation
• $1.5 Mill 7 PFT
9:58:18 AM
Senator Stevens mentioned that many universities around the
world were facing concerns over changes income tax
reporting. He wondered whether the changes would impact UA
funds.
Mr. Johnson replied that the major impact on the larger
endowments was that they would be taxed per student. He
said that UA did not enjoy the benefit of a big endowment
and would not be subject to the per student tax. He shared
that the increase in the standard deduction could have an
impact on charitable donations.
9:59:42 AM
Mr. Johnson displayed Slide 15, "FY19 Fixed Cost
Increases":
? $3.7 Mill Facilities Maintenance
Annual upkeep necessary to slow accumulation of
deferred maintenance backlog; reduce risk of
localized mission failure
? $3.1 Mill Utility Costs
Electricity, natural gas rate increases; coal
transport and ash disposal
? $2.1 Mill UAF Engineering Building
Incremental operational costs necessary to bring
the new engineering building online
? $0.9 Mill Electronic Library Resources
Licensing renewals, subscriptions for online
scientific, academic, and other education and
research data
10:00:17 AM
Mr. Johnson highlighted Slide 16, "Healthcare Management":
? University shares plan costs with employees
UA covers 82 percent of "net plan costs",
employees cover 18 percent
FY17 UA had favorable experience on large claims
(over $100k) which are typically plan cost
drivers
? Healthy Roads 3rd party Wellness Program
Provider
Outcomes and incentives based program
Biometric screenings; early detection; life-style
challenges; nutrition and diet programs
10:01:16 AM
Mr. Johnson looked at Slide 17, "Healthcare Management."
The slide depicted a line graph that illustrated the annual
health insurance employer contribution rates per employee
through FY 25.
10:02:02 AM
Mr. Johnson addressed slide 18, "Healthcare Management." He
relayed that the University attempted to keep healthcare
costs down by responsibly managing costs, conducting
research into health, and training an Alaskan workforce for
high demand healthcare jobs in the state. He noted that the
employee cost had been increasing due to general health
care inflation and from spreading the cost out over fewer
people.
10:02:41 AM
Mr. Johnson highlighted Slide 19, "Travel Management":
? Travel costs reduced by 28 percent ($6.3 mill) FY14-
FY17
? New travel management system being implemented
live in early FY19
Concur, a leading travel technology provider
selected through RFP process
? Major overhaul streamlined regulations, process
efficiencies, new booking tool, automated expense
reporting, better user and administrator experience
? Working closely with State to implement similar
programs, leverage negotiated discounts, and to
implement Leg Audit travel recommendations
? Using Corporate Travel Management (CTM) booking
tool, the same as the State of Alaska
10:03:34 AM
Mr. Johnson discussed Slide 20, "Labor Contracts." He
related that UA had 6 employee groups, 5 represented by
collective bargaining, and 1 unrepresented. He noted that
each unit was described on the slide next to the contract
terms and number of employees. He noted that for many years
discussions had been ongoing with two of the faculty units
of which recent resolution had been accomplished.
10:04:56 AM
Co-Chair Hoffman asked how the service provided in
Fairbanks by the Fairbanks Firefighters Union differed from
the service provided for coverage in Anchorage.
Mr. Johnson responded that the Fairbanks fire station was a
University operated station; UAA did not have its own fire
service and depended on the municipality for service in the
event of a fire.
10:05:53 AM
Mr. Johnson highlighted Slide 21, "Other Legislative
Priorities":
? Extend Education Tax Credit
o Expires December 2018
o UA receives 40 percent of contributions
o Represents $4-$5 Mill in annual revenue to UA
o Simple concept complicated statute
? Protecting Higher Education Fund
o less than $18 Million Annual Draw
.notdef Alaska Performance Scholarship (less than
$12M)
.notdef Alaska Education Grant (less than $6M)
o Non-designated appropriations depleting fund
10:08:33 AM
Co-Chair Hoffman queried the drop-out rate of the Alaska
Performance Scholarship Program recipients.
Mr. Johnson agreed to provide that information at a later
date.
10:08:57 AM
Senator Stevens requested the drop-out rate for students
that received needs-based scholarships.
Mr. Johnson agreed to provide that information at a later
date.
10:09:14 AM
Mr. Johnson looked at Slide 22, "Land Grant Deficit":
Only Delaware received a smaller public land grant
than Alaska
? UA received approx. 110,000 acres
? UA land deficit is approx. 360,000 acres
? Working with Congressional Delegation and DNR
on federal legislative solution
Mr. Johnson noted that the University was active in
developing its lands and working with state and federal
agencies to increase activity. He said that proceeds from
land activity and development went to fund the Alaska
Scholars program.
10:11:04 AM
Co-Chair Hoffman queried what consideration had been given
to changing the State Constitution to allow for more land
to be granted to the University.
Mr. Johnson replied that nothing much had been done on the
issue.
10:11:52 AM
MICHELLE RIZK, VICE PRESIDENT, UNIVERSITY RELATIONS,
UNIVERSITY OF ALASKA, addressed slide 24, "UA Facilities
Profile":
? University currently spends $35-$45 million annually
to maintain its facilities
? The Board of Regents has set a long-term target of
$60 million for annual maintenance, the amount
necessary to keep the deferred maintenance backlog
from growing.
10:14:12 AM
Ms. Rizk highlighted Slide 25, "State GF Received for DM."
10:14:59 AM
Ms. Rizk looked at Slide 26, "Facilities Funding":
Operating Budget funds:
Operations (utilities, custodial, insurance,
etc.)
Preventive maintenance
Reactive maintenance (Repair)
Small scale renewals, and repurposing
Capital Budget funds:
Major capital investment
Deferred maintenance and large scale renewals and
repurposing
Ms. Rizk discussed Slide 27, "Facilities Stewardship":
? Maintenance preventive maintenance and repair to
keep a facility in its current condition
? Renewal - scheduled replacement or restoration of
components that have exceeded their service life
? Repair - restoration of facility components to
operational conditions
? Repurposing renovating space to meet current needs
? Deferred facilities stewardship activities not
performed when scheduled, thus delayed to a future
period
10:16:16 AM
Ms. Rizk looked at Slide 28, "Prioritization":
Facilities Councils Focused on:
? Operating Cost Reductions
? Preventive Maintenance
? Reducing Deferred Maintenance, Renewal and
Repurposing Backlog
? Reducing Off-Campus Leases
Net lease space reduced by 23 percent
(166,700 gsf)
? Space Utilization Efficiencies
Owned facilities reduced by 148,000 gsf
10:17:00 AM
Senator von Imhof // Ms. Rizk //
10:17:27 AM
Mr. Johnson furthered that //
10:17:46 AM
Senator von Imhof // Ms. Rizk replied that it depended the
//
10:18:33 AM
Senator von Imhof // Ms. Rizk stated that //
10:19:31 AM
Ms. Rizk looked at Slide 29, "Prioritization":
? Facilities stewardship is prioritized by the
following criteria:
Safety, regulatory and code requirements
Programmatic mission requirements
Energy and other operating cost savings
opportunities
System or component reliability and remaining
operational life
Appearance
? UA continues to explore ways to reduce facilities
footprint and long-term operating costs
10:20:26 AM
Ms. Rizk looked at Slide 30, "UAF Heat and Power Plant":
? Replaces 54-year old Atkinson coal plant
? Project on track; testing likely in March
? Planned operational in November
? Cost $248 Mill:
o $90.5 Mill state funding
o $87.5 Mill Municipal Bond Bank loan to UA
o $70.0 Mill UA revenue bonds
? $7 Mill DM still remain on remaining facility and
$14 Mill in DM on heat/power distribution system
10:21:21 AM
Senator von Imhof remarked that // Mr. Johnson replied that
//
10:22:36 AM
SCOTT BELL, ASSOCIATE VICE-CHANCELLOR, FACILITIES SERVICES,
UNIVERSITY OF ALASKA FAIRBANKS (via teleconference),
10:23:12 AM
Senator von Imhof // Mr. Bell replied that //
10:23:45 AM
Senator Stevens // Mr. Bell replied that //
10:24:29 AM
Vice-Chair Bishop // Mr. Johnson replied //
10:25:16 AM
Ms. Rizk furthered //
10:26:05 AM
Vice-Chair Bishop //
10:26:23 AM
Co-Chair Hoffman queried closing comments.
10:26:29 AM
Mr. Johnson stated that //
10:27:04 AM
Co-Chair Hoffman //
10:27:18 AM
Vice-Chair Bishop looked at page 13, and increasing of the
workforce. He stated that //
10:29:02 AM
Senator Stevens // Mr. Johnson replied that //
10:29:59 AM
Senator Stevens //
10:30:18 AM
Co-Chair Hoffman discussed housekeeping.
SB 144 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
10:30:43 AM
The meeting was adjourned at 10:30 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 021318 FY18 UA Captal Budget Distribution Plan.pdf |
SFIN 2/13/2018 9:00:00 AM |
SB 140 |
| 021318 FY19 UA Capital Budget Request.pdf |
SFIN 2/13/2018 9:00:00 AM |
SB 140 |
| 021318 FY18 Budget Reduction Impacts Summary.pdf |
SFIN 2/13/2018 9:00:00 AM |
SB 144 |
| 021318 UA Property for Sale Report.pdf |
SFIN 2/13/2018 9:00:00 AM |
SB 144 |
| 021318 UAF Combined Heat Power Update.pdf |
SFIN 2/13/2018 9:00:00 AM |
SB 144 |
| 021318 UA FY19 SFC Overview Final.pdf |
SFIN 2/13/2018 9:00:00 AM |
SB 144 |