Legislature(1997 - 1998)

03/26/1997 09:06 AM Senate HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
   JOINT SENATE AND HOUSE HEALTH, EDUCATION AND SOCIAL SERVICES                
                             COMMITTEE                                         
                          March 26, 1997                                       
                             9:06 a.m.                                         
                                                                               
 SENATE MEMBERS PRESENT                                                        
                                                                               
 Senator Gary Wilken, Chairman                                                 
 Senator Loren Leman, Vice Chairman                                            
 Senator Lyda Green                                                            
 Senator Jerry Ward                                                            
 Senator Johnny Ellis                                                          
                                                                               
 HOUSE MEMBERS PRESENT                                                         
                                                                               
 Representative Con Bunde, Chairman                                            
 Representative Joe Green, Vice-Chairman                                       
 Representative Fred Dyson                                                     
 Representative Brian Porter                                                   
 Representative Tom Brice                                                      
 Representative J. Allen Kemplen                                               
                                                                               
 HOUSE MEMBERS ABSENT                                                          
                                                                               
 Representative Al Vezey                                                       
                                                                               
 COMMITTEE CALENDAR                                                            
                                                                               
 UNIVERSITY OF ALASKA BOARD OF REGENTS                                         
                                                                               
 WITNESS REGISTER                                                              
                                                                               
 Dr. Jerome Komisar, President                                                 
 University of Alaska                                                          
 P.O. Box 755000                                                               
 Fairbanks, AK 99775                                                           
                                                                               
 Sharon Gagnon                                                                 
 Board of Regents                                                              
 University of Alaska                                                          
 7001 Tree Top Circle                                                          
 Anchorage, AK 99516                                                           
                                                                               
 Chancy Croft                                                                  
 Board of Regents                                                              
 University of Alaska                                                          
 738 H Street                                                                  
 Anchorage, AK 99501                                                           
                                                                               
 R. Danforth Ogg                                                               
 Board of Regents                                                              
 University of Alaska                                                          
 P.O. Box 2754                                                                 
 Kodiak, AK 99615                                                              
                                                                               
 Wendy Redman, Vice President                                                  
 Statewide University System                                                   
 University of Alaska                                                          
 P.O. Box 755000                                                               
 Fairbanks, AK 99775                                                           
                                                                               
 ACTION NARRATIVE                                                              
 TAPE 97-34, SIDE A                                                            
 Number 001                                                                    
                                                                               
 CHAIRMAN WILKEN called the joint meeting of the Senate and House              
 Health, Education and Social Services Committees to order at 9:06             
 a.m.  He welcomed Jerome Komisar, President of the University of              
 Alaska, and three regents of the university to the meeting and                
 announced the purpose of the meeting was to have a dialogue with              
 the University of Alaska Board of Regents.                                    
                                                                               
 Number 040                                                                    
                                                                               
 SHARON GAGNON, Board of Regents, University of Alaska, said there             
 have been reports that legislators are unclear about the goals of             
 the university, the planning that is taking place, and its vision             
 for the future.  She said planning for the university is a dynamic            
 process; it is never static, but has to have a flexible structure             
 to it because conditions change, and expectations, however well               
 founded, are not always realized.  The university plans have to be            
 attached, very closely, to the educational and economic realities,            
 both of which change constantly in an ever-changing world.  Also,             
 there is a difference between planning and creating a plan which              
 satisfies everyone's special concern of special interests.                    
                                                                               
 Ms. Gagnon related that the current basis for planning in the                 
 university includes the following elements:                                   
                                                                               
 (1)  The university is a comprehensive, multi-mission statewide               
 system with strong regional presences in Anchorage, Fairbanks and             
 Juneau;                                                                       
                                                                               
 (2)  The university is accessible to all Alaskans;                            
                                                                               
 (3)  The university must deliver high quality instruction, research           
 and public service;                                                           
                                                                               
 (4)  The university must serve the state and the citizens; and                
                                                                               
 (5)  The university must be efficient in its use of resources, and            
 to be so must work as one unified system and seek innovative ways             
 to deliver its program such as through partnerships, distance                 
 delivery and consolidated programs.                                           
                                                                               
 The planning required to put these goals into effect takes place on           
 the major administrative unit level (MAU), which is Anchorage,                
 Fairbanks and Juneau, as well on the statewide level.  The Board of           
 Regents is involved at each level and has final approval of any               
 plans.                                                                        
                                                                               
 Ms. Gagnon said each MAU has undertaken strategic planning which              
 reflects the goals, as described, and which targets the areas in              
 which each of these campuses believes it has its strengths and                
 needs to serve the state.  In preparing these plans, each MAU                 
 included faculty, staff, students and the community and very                  
 enthusiastically identified directions into the next century.                 
 These plans were then presented to the Board of Regents and                   
 approved.                                                                     
                                                                               
 Strategic planning such as this sets the goals, but a different               
 kind of planning was necessary to address the realities of                    
 declining revenues and growing student and state needs.  The Board            
 of Regents, on the recommendation of President Komisar, directed              
 the university to undertake a different kind of planning called               
 "program assessment."  The success of the plan relied on the                  
 assumption that the university would find considerable outside                
 funding through sponsored research, fund raising, resource                    
 management, tuition increases, and that there would be an increase            
 of 1 percent each year from the state's general fund.                         
                                                                               
 Ms. Gagnon pointed out that the university has succeeded in raising           
 outside funds and in raising tuitions significantly, but funds from           
 the state general fund have not increased and, as a result, what              
 was viewed as a reallocation of funds has become a system for                 
 cutting.  A number of schools and departments have been                       
 consolidated and administrative costs have been reduced, but areas            
 as defined as necessary to the students and state are not growing             
 and are eroding.                                                              
                                                                               
 Ms. Gagnon said program assessment reductions were scheduled over             
 a three-year period and are monitored by the Board of Regents.  She           
 directed attention to a program assessment document tracking its              
 progression through the first two years and into the third year.              
                                                                               
 Ms. Gagnon informed the committee that another type of planning has           
 been occurring systemwide.  For example, the board recognized its             
 responsibility to plan for diminished state revenues so it                    
 identified fixed costs which must be met such as operation,                   
 maintenance and salaries, and it has adopted policies which require           
 the campuses to dedicate a percentage of their budgets to prevent             
 future deferred maintenance.  She referenced a chart which she said           
 shows  the effect that this defacto planning has on funding for               
 programs at the university and at the MAU's.  The board also                  
 adopted a multitude of policies which identify and contain costs,             
 and the board planned for future growth by adopting in 1993 a six-            
 year capital plan.  However, she pointed out that the plan probably           
 won't come to fruition because the funds have not been available.             
                                                                               
 In approving its annual budget, Ms. Gagnon said the board has                 
 shifted resources throughout the system to the areas which data               
 indicate are underfunded, but with no incremental funding coming              
 from the state, the reallocation has often resulted only in cuts in           
 one area and no new money in the regions of the state, such as the            
 Anchorage MAU which has experienced rapid growth.                             
                                                                               
 Ms. Gagnon said the board has voted to reactivate its planning and            
 development committee, which she will chair, to review the planning           
 that has taken place to date, and, if necessary, go to a new level            
 of system-wide review and planning.   Some of the issues that will            
 be under consideration by the committee consist of:  administrative           
 structure and costs; community college and vocational education               
 missions; quality of the student experience and student retention;            
 quality of the academic program; the relationship of the university           
 to Alaska's primary needs; prioritization of programs within the              
 university; allocation of resources across the system and delivery            
 of mission; centralization and decentralization of operations;                
 stabilization and growth of the university's endowment; and                   
 relationship between capital and academic planning.                           
                                                                               
 The regents have put in place an ad hoc committee to review the               
 three schools of education in the system to determine how their               
 programs can be consolidated to deliver an excellent teacher                  
 education program throughout the state.  The Professional                     
 Educators' Coordinating Committee, which is made up of university             
 school of education representatives with additional representation            
 from the State Board of Education and from communities, will be               
 working with the ad hoc committee to develop a program responsive             
 to the needs of the state.                                                    
                                                                               
 Ms. Gagnon distributed a U.S. map to committee members showing the            
 percentage of increase or decrease in state funding for                       
 universities.  It shows that Alaska is one of six states which has            
 experienced a decrease in funding.  She noted other states, much              
 less wealthy than Alaska, have chosen not to cut higher education             
 but to increase its funding.  The board hopes for an increased                
 commitment from the state of Alaska to its university and                     
 recognition that cutting government and cutting education are two             
 different actions with different effects.                                     
                                                                               
 In her closing remarks, Ms. Gagnon pointed out that the university            
 is bringing in over half of its own budget so it is contributing to           
 the state not only in human resources but in real dollars.  The               
 university is making important linkages between Alaska and the rest           
 of the nation, as well as the Pacific Rim.  She said it is an asset           
 for the state which should be developed and expanding, and cutting            
 this budget is not good planning.                                             
                                                                               
 Number 245                                                                    
                                                                               
 CHANCY CROFT, Board of Regents, University of Alaska, said he would           
 discuss a few of the specific programs that are taking place within           
 the university system.                                                        
                                                                               
 Mr. Croft noted the University of Alaska Fairbanks math department            
 has been a perennial powerhouse at national competitions beating              
 such presumed excellent universities as Harvard and Stanford.  Not            
 only did they win first place, but for the first time in the                  
 history of the competition an all-female team from the University             
 of Alaska Fairbanks won first place.                                          
                                                                               
 Turning to the Juneau campus, Mr. Croft said it offers a bachelor             
 of business administration which is available to any student at any           
 place in the state.  All upper division courses are required for              
 the bachelor degrees and they are offered via distance technology.            
 Despite the flat funding that the university has had for 10 years             
 from the Legislature, the Juneau campus has been able to expand the           
 educational opportunities to all Alaskans.                                    
                                                                               
 Mr. Croft related that through a partnership the Bethel campus has            
 with the Lower Kuskokwim School District, there are now over 70               
 certified teachers in that region who were born and raised in that            
 region.  For the first time in the state's history, instead of                
 every teacher having a different cultural background than the                 
 students being taught, they have 70 teachers who were born and                
 raised in that district.                                                      
                                                                               
 The Ketchikan campus has the only computer-based radar observer               
 program in the state.  It is serving as a pilot site for the                  
 Northwest Merchant Training School.  The program is Coast Guard               
 approved and its instructors are masters in the Alaska Marine                 
 Highway System.  It is planned to offer training that will meet the           
 new regulation for all ship officers.  A Wrangell Narrows piloting            
 class was recently provided for members of the Coast Guard Cutter             
 Storis.                                                                       
                                                                               
 The Bristol Bay Campus has a very active adult basic education                
 program which was formed 15 years ago as a consortium between the             
 regions four school districts and the campus.  It receives not only           
 support from those school districts but from the Lake & Peninsula             
 School District who donates the use of a contract plane to fly                
 people around to four or five different villages in that region to            
 provide adult basic education.                                                
                                                                               
 In Nome, the university has a computer program in accounting taught           
 by the director of the Nome campus, and because it is done by                 
 distance delivery, students as far away as Wrangell, Tok, Dot Lake,           
 Kotzebue, Healy, Dillingham, and Dutch Harbor have participated in            
 the course.                                                                   
                                                                               
 This spring at the Sitka campus 11 former mill workers in Wrangell            
 will be awarded the University of Alaska associate degree in                  
 business administration and in health information management, all             
 entirely learned through a distance education program conducted by            
 the Sitka campus.                                                             
                                                                               
 Mr. Croft said the distance education program offered by the Sitka            
 campus is a good example of having been able to accomplish this               
 despite the fact that for 10 years there has been no significant              
 increase in the general funding from the university.  More than               
 half of the money that operates the Sitka campus comes from non               
 general fund sources.  He said not only do you have a university              
 that has made a tremendous effort to define where it is going and             
 what it wants to be, but no longer does the state of Alaska provide           
 at least half of the funds to operate this university.                        
                                                                               
 Mr. Croft pointed out that on a percentage basis, fewer students in           
 Alaska go on to higher education than almost any other state; less            
 than 40 percent of the high school graduates go on to higher                  
 education.  Alaska also has the lowest percentage of the college              
 graduates that go on to higher education within their state.                  
                                                                               
 Mr. Croft said not only does the university get less than half of             
 its appropriation for operating from the general fund, but now that           
 is against a backdrop in which people have paid lip service to the            
 number one priority of the state, being education.   In the last 10           
 years, funding for the public school foundation has increased $120            
 million while at the same time funding for higher education has               
 remained flat.  He asserted that there has not been a balanced                
 approach to education in the state of Alaska .                                
                                                                               
 Mr. Croft noted that upwards to half of the entering freshman at              
 the university are unable to compete in beginning English and math            
 courses, and they are having to spend an increasing amount of their           
 resources on remedial and developmental education.  He suggested if           
 the public school foundation program is to be amended, to consider            
 funding for a program that brings people with a high school degree            
 up to actual performance at that level.                                       
                                                                               
 Concluding his remarks, Mr. Croft noted that the University of                
 Alaska Anchorage gets no support from the municipality or the                 
 school district in Anchorage, and he suggested maybe amendments to            
 the Municipal Revenue Sharing Program are in order to encourage               
 that.                                                                         
                                                                               
 Number 405                                                                    
                                                                               
 REPRESENTATIVE GREEN commented that it seems to him that remedial             
 English would not be a university function, and he suggested that             
 perhaps we're trying to educate people that are not college                   
 material.                                                                     
                                                                               
 MR. CROFT said Alaska is part of a national phenomenon in which a             
 lot of people are now going back to school.  They are going back to           
 school because they may have had some learning disability that                
 wasn't recognized, or they may need the additional education for              
 employment, etc.  Whatever the cause, the university is getting               
 people with a high school degree that can't do their program, and             
 they know that with remedial or developmental education they often            
 can go on.  These individuals might not end up with a doctorate in            
 business administration, but they can end up with an associate                
 degree that considerably increases their employability.                       
                                                                               
 DR. KOMISAR agreed that a lot of these people are taking programs             
 that do not end up in a baccalaureate degree.  He said there are              
 hardly any jobs left that pay reasonable salaries in our economy              
 that don't entail some postsecondary education.                               
                                                                               
 REPRESENTATIVE GREEN questioned if it wasn't a mistake years ago to           
 eliminate the community colleges, and he wondered if this state               
 might be heading in the wrong direction if we're trying to get                
 funding for a university, in the true sense of the word a truly               
 higher education level, than there are markets for in the state.              
 He thinks the market for the graduates would be more in the trade             
 school level.                                                                 
                                                                               
 MS. GAGNON answered that when that decision was made in 1987 the              
 idea was that the university would continue to serve the community            
 college mission.  The greatest category of degrees that she sees              
 awarded at commencements are in the associate level, so she                   
 believes the people are coming to what was the community college              
 and achieving their goals.  She added that it is an unusual                   
 configuration to have the two merged, but it was done to save                 
 administrative costs, and she thinks it is working as well as it              
 can.                                                                          
                                                                               
                                                                               
 MR. CROFT stressed that despite all they are doing with                       
 partnerships, municipal participation and private funds they don't            
 have enough resources to offer more associate degrees than other              
 states of a comparable population.                                            
                                                                               
 Number 489                                                                    
                                                                               
 WENDY REDMAN, Vice President, Statewide University System,                    
 University of Alaska, said the community colleges continue to                 
 exist,  but there have been problems and there continues to be                
 problems in terms of being able to identify those programs to the             
 public.  She pointed out that the majority of the adult vocational            
 education in the state is done by the University of Alaska.                   
                                                                               
 Number 515                                                                    
                                                                               
 REPRESENTATIVE DYSON asked if there was anything the Legislature              
 can do to help the university gain more income from university-               
 owned or controlled lands that are not being used for educational             
 purposes.                                                                     
                                                                               
 MS. GAGNON replied that the regents are putting a considerable                
 effort in trying to increase the endowment of the university, and             
 one way to do that is to increase their land grant.   Legislation             
 doing so has passed the Legislature twice in recent history, but              
 was vetoed by the governor.                                                   
                                                                               
 MS. REDMAN added that other than giving the university an                     
 appropriate level of base funding, she thinks the Legislature has             
 been very responsive to the university's needs.                               
                                                                               
 MS. GAGNON said the efforts made in finding more creative ways to             
 fund deferred maintenance and fund student housing have been very             
 helpful.  She also informed the committee that Senator Murkowski is           
 working on getting a federal land grant to set aside additional               
 federal land for the University of Alaska, which may have a                   
 matching provision for the state.                                             
                                                                               
 MR. CROFT noted the House proposal cuts the university budget by $2           
 million and the Senate cap cuts it $4 million, and he pointed out             
 that there is nothing in there for deferred maintenance, and the              
 university's deferred maintenance obligation right now is more than           
 $100 million.                                                                 
                                                                               
 TAPE 97-34, SIDE B                                                            
 Number 585                                                                    
                                                                               
 SENATOR WARD asked how many communities participate in the sharing            
 of the operation of their campuses, and how many students that                
 involved,                                                                     
                                                                               
 MR. CROFT related there are six communities that share in the                 
 operating expenses of their campuses, but he did not know how many            
 students that involved.                                                       
                                                                               
 SENATOR WARD asked if the Board of Regents has looked at an overall           
 plan to someday scaling back on the outlying campuses and having              
 just two or three campuses.                                                   
                                                                               
 MS. GAGNON said the packet the members will get contains a report             
 on program assessment and it shows that reductions did occur,                 
 especially in administrative costs, and there are more that can be            
 made.  This is compensated through the increase of distance                   
 delivery so that those campuses have better access than ever to the           
 total program without the addition of faculty and administration.             
                                                                               
 DR. KOMISAR commented that in most states there is a very broad               
 spectrum of institutions all across the states that offer services            
 in trying to reach the high proportion of the population.  An                 
 analysis was completed recently on the university's key campuses,             
 as well all of their extended campuses, looking at what proportion            
 of the population cannot get to one of their campuses.  Even with             
 the extended campuses it turns out that over 30 percent of the                
 total population of the state can't come to the campuses now.  If             
 that was cut back further, it would simply be adding to the number            
 of people that will not have access to the job training programs              
 that are so necessary, the introductory educational programs that             
 can lead them on to a baccalaureate degree, etc.  He added that the           
 university tries to serve these people through distance education             
 means, and they are trying to increase that capacity to reach                 
 people all across the state.                                                  
                                                                               
 MR. CROFT said the state of Alaska set up a single statewide                  
 institution for higher education in the entire state, and he                  
 doesn't think the Board of Regents would ever adopt a policy nor              
 could it adopt a policy that they were going to deliberately deny             
 educational opportunities to a significant portion of the                     
 population.  He noted there has already been one such lawsuit at              
 the K-12 level and it was found to be unconstitutional.                       
                                                                               
 Number 522                                                                    
                                                                               
 REPRESENTATIVE BUNDE asked which programs have been consolidated              
 and which ones are getting to the point of being phased out, as               
 well as the impact on the various campuses with the student growth            
 leveling off.  He also asked for comments on a House bill that has            
 been introduced that would provide bonding for a UAA library, as              
 well if the regents have considered entrance requirements for the             
 university.  Because House members had to leave the meeting for a             
 floor session, he said answers to these questions could be                    
 submitted in writing.                                                         
                                                                               
 MR. CROFT responded it is an open admissions university, but                  
 students are assessed to get into a degree.  However, programs at             
 the vocational tech level do not require an initial assessment.               
                                                                               
 Number 493                                                                    
                                                                               
 REPRESENTATIVE KEMPLEN said that as an alumnus of the University of           
 Alaska, one of the weaknesses he has seen with the system is its              
 weak connection with business.  He suggested that with the                    
 development of value-added products that are specific to the                  
 state's sub-arctic and arctic environment, that is really where the           
 university system should be applying its knowledge.                           
                                                                               
 Number 458                                                                    
                                                                               
 SENATOR LEMAN voiced his concern that something must be wrong at              
 the high school level, or even before, if students are entering the           
 university system who are not prepared.                                       
                                                                               
 MS. GAGNON said in the past there were jobs students could go to              
 even if they did or did complete high school, but now the training            
 and preparation is so important for any job so they need the                  
 postsecondary education.                                                      
                                                                               
 MR. CROFT pointed out that less than half of the university's                 
 students are in the 18 to 25 traditional age group.                           
                                                                               
 DR. KOMISAR said there was national concern about how to guarantee            
 that when a student arrives at college he is ready to do the work.            
 There is now a movement to monitor the heads of the higher                    
 education systems around the country and to do two things:  one is            
 to raise the standards in the high schools to make sure that                  
 students that do get their degrees have these sets of                         
 accomplishments, and then to get the entrance requirements of the             
 university at the same point so that you have a tradition at a very           
 high level.                                                                   
                                                                               
 MR. CROFT related that the Board of Regents has a subcommittee that           
 meets periodically with a subcommittee of the State Board of                  
 Education, and that is one of the items that has been discussed.              
                                                                               
 Number 376                                                                    
                                                                               
 SENATOR LEMAN commented that he supported previous legislation for            
 land grants because he believes that Alaska's resources should be             
 put in the hands of the people who will use them for the benefit of           
 the people of this state even though it may be 10 to 15 years                 
 before a benefit from it is seen, but the state's future will be              
 better.  He sees a need to move ahead with a land grant in a way              
 that can be very productive.                                                  
                                                                               
 Number 356                                                                    
                                                                               
 CHAIRMAN WILKEN said he came to the Legislature with the                      
 predisposition that everybody knows and appreciates a university as           
 he does, but in the 12 weeks he has been in Juneau, he has been               
 surprised and distressed that there are people in the Legislature             
 that don't have that appreciation.  He said what that tells him is            
 that the Legislature and the university have to engender some                 
 trust, and he suggested that this kind of meeting and discussion              
 needs to be held more than once a year.                                       
                                                                               
 Number 300                                                                    
                                                                               
 DR. R. DANFORTH OGG, Board of Regents, University of Alaska, said             
 that in the four years that he has been on the Board of Regents the           
 dialogue between the regents and the Legislature has not taken                
 place, and he is a firm believer that the university needs to have            
 a good picture for the Legislature to look it and one that they can           
 understand.  He said it is geometric; once the door is opened and             
 the first step is taken, the increase is incredible.  Once that               
 language barrier is eliminated, it will result in a program  for              
 the future of the state of Alaska and its economy where the                   
 university becomes an important part financially.  Dr. Ogg said the           
 university has an obligation to educate the people of Alaska for              
 the future, and, as regents, they have an obligation to express to            
 the Legislature if they are able to do that or not.                           
                                                                               
 In closing Dr. Ogg said the university has had 10 years of flat               
 funding, and he believes that if the funding goes down this year,             
 the repercussions from that over the next couple of years will be             
 severely felt by the public.  He concluded that if you fail to                
 educate, you lose your future.                                                
                                                                               
 Number 267                                                                    
                                                                               
 MS. GAGNON expressed her appreciation to the committee for meeting            
 with the Board of Regents, and concluded it was good meeting and a            
 good exchange.                                                                
                                                                               
 There being no further business to come before the committee, the             
 meeting adjourned at 10:25 a.m.                                               

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