Legislature(2025 - 2026)ADAMS 519
03/18/2025 01:30 PM House FINANCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| Presentation: University of Alaska System Deferred Maintenance and Capital Requests | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 54 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
March 18, 2025
1:38 p.m.
1:38:48 PM
CALL TO ORDER
Co-Chair Schrage called the House Finance Committee meeting
to order at 1:38 p.m.
MEMBERS PRESENT
Representative Neal Foster, Co-Chair
Representative Andy Josephson, Co-Chair
Representative Calvin Schrage, Co-Chair
Representative Jamie Allard
Representative Jeremy Bynum
Representative Alyse Galvin
Representative Sara Hannan
Representative Nellie Unangiq Jimmie
Representative DeLena Johnson
Representative Will Stapp
Representative Frank Tomaszewski
MEMBERS ABSENT
None
ALSO PRESENT
Chad Hutchison, State Director, Government Relations,
University of Alaska.
PRESENT VIA TELECONFERENCE
Alesia Kruckenberg, Director of Strategy Planning and
Budget, University of Alaska; Christopher McConnell,
Facilities Director, University of Alaska Anchorage;
Cameron Wohlford, Facility Services, University of Alaska
Fairbanks; Nathan Leigh, Facilities Director, University of
Alaska Southeast; Bradley Moran, Dean of the College of
Fisheries and Ocean Studies, University of Alaska
Fairbanks; Anupma Prakash, Provost and Executive Vice
Chancellor, University of Alaska Fairbanks.
SUMMARY
HB 54 APPROP: CAPITAL/SUPPLEMENTAL/FUNDS
HB 54 was HEARD and HELD in committee for further
consideration.
PRESENTATION: UNIVERSITY OF ALASKA SYSTEM DEFERRED
MAINTENANCE and CAPITAL REQUESTS
Co-Chair Schrage reviewed the meeting agenda.
^PRESENTATION: UNIVERSITY OF ALASKA SYSTEM DEFERRED
MAINTENANCE and CAPITAL REQUESTS
1:39:56 PM
CHAD HUTCHISON, STATE DIRECTOR, GOVERNMENT RELATIONS,
UNIVERSITY OF ALASKA, reviewed individuals from the
University of Alaska (UA) available online. He introduced a
PowerPoint presentation titled "University of Alaska:
Empower Alaska: Deferred Maintenance and Priority Capital
Budget Requests" dated March 18, 2025 (copy on file). He
provided an overview of the presentation on slide 2. He
pointed to a separate backup document in members' packets
titled "University of Alaska Deferred Maintenance (DM) and
Modernization Working List of Projects" (copy on file).
1:43:57 PM
Representative Hannan asked about the list of projects, and
stated that she wanted to know how long each project had
been on the list. She wondered whether the list was
comprehensive.
Mr. Hutchison answered that some of the projects were
requested year after year.
Representative Hannan asked how the deferred maintenance
list differed from the capital request.
Mr. Hutchison responded that capital requests pertained to
projects that brought a value to Alaska and would help with
enrollment.
Representative Hannan wondered whether deferred maintenance
was included in capital budget requests.
Mr. Hutchison responded affirmatively.
Representative Galvin remarked that the Office of
Management and Budget (OMB) had reference a higher number
of buildings that what was shown in the current day's
presentation.
Mr. Hutchison replied that the current sheet was strictly
deferred maintenance, and the difference in number would be
explained in the presentation.
1:47:46 PM
Mr. Hutchison reviewed an introduction of the presentation
on slide 3. He stated that deferred maintenance was one of
the most important things considered by the Board of
Regents. He explained that the university had received an
average of $17.2 million in state funding.
1:50:13 PM
Representative Hannan referenced the bullet about $17.2
million on slide 3, and wondered whether that referred to
the capital or operating budget.
Mr. Hutchison replied that it was in the capital budget.
Co-Chair Schrage asked if that was net of vetoes.
Mr. Hutchison replied affirmatively.
Mr. Hutchison turned to slide 4 titled "UA Facility
Profile." He explained the details of how the accounting
was performed for each facility.
Representative Stapp asked if there was a current asset
valuation of the properties shown on slide 4.
Mr. Hutchison deferred to the budget director online.
1:52:40 PM
ALESIA KRUCKENBERG, DIRECTOR OF STRATEGY PLANNING AND
BUDGET, UNIVERSITY OF ALASKA (via teleconference), answered
that they were using the replacement value of the
facilities, but there had been no external valuation..
Representative Stapp asked about the two new buildings.
Ms. Kruckenberg replied that there were four new buildings.
1:54:47 PM
Mr. Hutchison addressed the deferred maintenance project
costs on slide 5. He explained that methods associated with
deferred maintenance. He moved to slide 6 and discussed the
capital budget DM and R&R funding history in unrestricted
general funds (UGF) and backlog. The $35 million request
had been prepared the past fall // the equivalency of
Representative Stapp's bill // never materialized.
1:57:44 PM
Representative Bynum appreciated the graph on slide 6. He
asked if the information was available by location.
Mr. Hutchison answered that the information pertaining to
different locations was available online.
Co-Chair Schrage asked for the information to come to his
office for dissemination.
Representative Tomaszewski noted that the over 200
buildings included buildings in Nome and other locations.
Mr. Hutchison agreed.
Representative Hannan asked what the deal was when a deal
had been struck with the board of regents.
2:00:17 PM
Ms. Kruckenberg believed at the time there had been a
modest agreement about the capital funding. The university
received the $5 million, and did get funding through the
compact period. She stressed that there was not anything
that was directly binding when it came to the capital
budget.
Representative Hannan asked about the request during the
compact. She asked if there was a $50 million request.
Ms. Kruckenberg replied in the affirmative.
Co-Chair Schrage asked how full the buildings were and if
there was room for consolidation or leasing.
Mr. Hutchison answered that there was not a recurring
analysis of the components of leasing or consolidation.
2:02:40 PM
Mr. Hutchison turned to slide 7 pertaining to the
University of Alaska Anchorage. He asked a colleague to
present the next portion of the presentation.
CHRISTOPHER MCCONNELL, FACILITIES DIRECTOR, UNIVERSITY OF
ALASKA ANCHORAGE (via teleconference), addressed slide 8
titled "UAA DM Project Prioritization
2:06:02 PM
Mr. McConnell addressed images on slide 9. the last photo
was of a mechanical system in the stairwell of the social
sciences building, and it remarked that it was in dire need
of repair.
2:09:51 PM
Mr. Hutchison noted that it was the number one UA priority.
Mr. McConnell moved to slide 10, and highlighted the water
infiltration issue in the building.
2:11:47 PM
Representative Hannan noted that the request for the
residential buildings was $3 million. She noted the
information that there was a $90 million deferred
maintenance backlog. She was confused about how the two
related to one another. She wondered if it was putting a
"band aid" on a building that should be replaced.
Mr. McConnell answered that the $3 million was targeting
the worst, most critical, or at risk. He explained that,
absent another type of investment, they would continue to
need to invest in existing buildings.
Representative Hannan stated that if the request said roof
and a price to keep something functional, she urged using
clearer simpler language.
Mr. McConnell agreed.
Representative Bynum appreciated the information in the
slides. The bottom line was the committee was being told
there was $1 billion in backlog deferred maintenance. He
noted that the university was asking the legislature to
fund the projects, but he was not seeing a plan as to how
to sustainably do it. He understood the need but did not
understand how to have a sustainable system. The
legislature's overall role in sustaining the system. He did
not see that in the presentation. He saw crisis.
Mr. Hutchison replied that the presentation showed the most
critical needs of the university.
2:19:28 PM
Mr. McConnell turned to slides 11 and 12, which highlighted
the university's most urgent needs.
2:22:23 PM
Mr. Hutchison noted that the item on slide 13 was the 7th
overall priority.
Mr. McConnell reviewed slide 13 pertaining to $4 million
for the UAA social sciences building energy performance
upgrades.
2:23:57 PM
Mr. Hutchison noted that slide 14 showed the 9th overall
priority request for slightly over $847,000.
Mr. McConnell reviewed slide 14.
Representative Stapp observed there were far fewer students
enrolled in the UA system in the past ten years but far
more facilities. He wondered at what point they would
reduce the number of facilities. He asked if they were
looking at selling or leasing any of the facilities.
Mr. Hutchison responded affirmatively.
2:28:40 PM
Representative Bynum asked if the university had a facility
cost per student based on program and location. /
Mr. McConnell did not have the information.
Ms. Kruckenberg answered that the university had looked at
it in the past. She could find the reports but did not know
when they had been updated.
Representative Bynum asked if the information could be
provided to the co-chair.
Co-Chair Schrage agreed.
Representative Galvin asked for a definition of the term
TPC
Mr. Hutchison answered it stood for total project cost.
Representative Allard spoke about when the university
closed the Eagle River campus. She recalled the community
had been upset, but there was a cost. She asked about the
cost savings and the cost for bringing it back.
2:31:54 PM
Mr. McConnell responded that he could follow up with an
answer.
Representative Allard appreciated it. She noted it was a
population of about 50,000 people. She was interested to
know if it could be a defining factor to bring more
individuals back into the university system.
Representative Galvin appreciated the information. She
noted Chancellor Sean Parnell had sat down with the
Anchorage delegation the previous year.
2:34:19 PM
Mr. Hutchison advanced to slide 15 for the University of
Alaska Fairbanks (UAF) portion of the presentation. He
asked a colleague to present on the slides section.
CAMERON WOHLFORD, FACILITY SERVICES, UNIVERSITY OF ALASKA
FAIRBANKS (via teleconference), discussed slide 16, which
showed how deferred maintenance impacted student outcomes.
2:38:45 PM
Representative Bynum asked if the philosophy related to
assessment and planning was unique to UAF or the entire
system.
Mr. Wohlford answered that they were consistent across all
three campuses.
Representative Tomaszewski asked for a copy of the
evaluation techniques.
Mr. Wohlford replied that he would follow up.
2:40:46 PM
Mr. Hutchison moved to slide 17 pertaining to the
university's second overall priority of $12 million for a
critical roof and envelope renewal.
Representative Hannan noted they were three distinct
buildings. She asked for the individual project costs.
Mr. Wohlford replied that it was a $12 million request. He
moved to slide 18, and the deferred maintenance request
pertaining to that building.
2:45:58 PM
Representative Hannan referenced the Cutler Complex where
roof replacements had been done, and wondered whether it
was a capital request.
Mr. Wohlford answered that they had completed three of the
six projects.
Representative Stapp looked at the university park image on
slide 18, and did not recall the specific maintenance need.
He thought the building had been built by the school
district.
Mr. Wohlford replied in the affirmative.
2:49:29 PM
Representative Stapp wondered whether there had been
conversations with the Fairbanks Northstar Borough about
partnering for the childcare facility.
Mr. Wohlford replied affirmatively.
Representative Stapp did not believe they had talked about
having enough money for a roof at the childcare facility.
Mr. Wohlford believed the project had been on the deferred
maintenance list for a long time.
Mr. Hutchison addressed the slide 19 request for the
Kuskokwim Campus renewal in the amount of $1.8 million.
Mr. Wohlford moved to slide 20 and addressed a request for
the UAF student health safety and success in the amount of
$10.5 million.
2:59:15 PM
NATHAN LEIGH, FACILITIES DIRECTOR, UNIVERSITY OF ALASKA
SOUTHEAST (via teleconference), addressed slide 23 "UAS DM
Project Prioritization." He moved to slide 24 a request of
$3.25 million for UAS Juneau campus renewal of utilities,
mechanical, roofing and safety improvements.
Mr. Hutchison noted that the Ketchikan campus renewal of
building envelope and mechanical systems in the amount of
$820,000 was the university's sixth overall priority on
slide 26
3:02:39 PM
Mr. Hutchison relayed that the item on slide 28 was the
university's 12th overall priority in the amount of
$820,000 for the Sitka campus window replacement and
mechanical system modernization.
3:05:42 PM
Representative Allard asked if the legislature were the
only entity that could help the university in order to fix
all of the deferred maintenance. She asked if there were
other funds apart from state funds.
Mr. Leigh replied that the university received a certain
amount for operations and maintenance from general funds,
but when it was over $50,000 to $100,000 it took up the
entire budget.
Representative Allard asked if any other funds the
university received.
Mr. Hutchison deferred the question to Ms. Kruckenberg.
3:08:25 PM
Representative Allard gave an example. She stated that if
her tires needed to be replaced or she could pay the
mortgage. She thought the maintenance sounded to be pretty
"god awful" at present.
Co-Chair Schrage remarked that sometimes the university
would redirect operating maintenance dollars.
Ms. Kruckenberg replied that each year the university was
directed to spend a minimal amount of its current resources
and stressed that part of the board policy to put money
towards facilities.
3:11:02 PM
Representative Allard appreciated the answer. She asked if
the same funds were used to reallocate to, for example, a
new student center.
Ms. Kruckenberg answered that each university had to weigh
the urgency severity and impact of how funds were allocated
and how they prioritized the funds was an individual
university process
Representative Allard was concerned that the buildings went
so far that there was no choice.
3:12:40 PM
Mr. Hutchison asked about his preference going forward with
the presentation.
Co-Chair Schrage noted that Representative Johnson joined
the meeting.
Mr. Hutchison provided an outline of priority capital
budget requests on slide 30.
Co-Chair Schrage asked Mr. Hutchison to hit the highlights.
He was concerned about the time remaining.
3:16:20 PM
Representative Galvin asked whether the $85.3 million of
federal grants were already pledged for the center, and
whether the funds had been frozen from federal regulations.
BRADLEY MORAN, DEAN OF THE COLLEGE OF FISHERIES AND OCEAN
STUDIES, UNIVERSITY OF ALASKA FAIRBANKS (via
teleconference), answered that the proposal was still
pending.
Representative Johnson looked at slide 30, and wondered how
an "indigenous gathering space" differed from other spaces.
Mr. Hutchison answered that it was a student facing
gathering space, and was working with private funders with
regional Native corporations.
Representative Johnson asked if it were something that
everyone would use.
Mr. Hutchison answered that everyone had the opportunity to
use it.
Representative Johnson was wondering if they were talking
about deferred maintenance.
3:20:30 PM
Representative Johnson would like to point out that the
buildings required deferred maintenance.
Mr. Hutchison addressed slides 31 and 32, and how they
related to the mariculture industry.
3:23:19 PM
Mr. Hutchison turned to slide 34 pertaining to receipt
authority. He addressed the UAF R1 strategy continuity on
slide 35.
Representative Galvin had not seen the plan associated with
meeting the R1 goal, and she asked for detail.
Representative Galvin asked if it meant there needed to be
70 students obtaining the degree each year.
Mr. Hutchison deferred to a colleague.
ANUPMA PRAKASH, PROVOST AND EXECUTIVE VICE CHANCELLOR,
UNIVERSITY OF ALASKA FAIRBANKS (via teleconference),
responded that there needed to be 70 graduates per year.
Co-Chair Schrage asked if 70 graduates per year were a
requirement under the request.
Ms. Prakash replied affirmatively.
Representative Galvin asked out of the 107 students how
many were expected to graduate in the current year.
Ms. Prakash responded that it was just shy of the 70
student average.
3:29:26 PM
Mr. Hutchison addressed a $14 million request to continue
developing a drone economy Alaska. Slide 37 showed a $6.5
million request pertaining to AI. Slide 38 included a $10
million request for the Alaska Center for Energy and Power.
3:31:25 PM
Co-Chair Schrage thanked Mr. Hutchison and his colleagues
for the presentation.
Co-Chair Schrage reviewed the schedule for the following
day.
ADJOURNMENT
3:31:55 PM
The meeting was adjourned at 3:31 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| UA DM FY26 DM Priority List 3 10 2025.pdf |
HFIN 3/18/2025 1:30:00 PM |
|
| UA HFIN DM & Capital Presentation 03.18.25.pptx.pdf |
HFIN 3/18/2025 1:30:00 PM |
HB 54 |
| DOT -HFIN Overview 2-25 Responses 031825.pdf |
HFIN 3/18/2025 1:30:00 PM |
HB 53 |
| Monthly Enplaned Passengers.pdf |
HFIN 3/18/2025 1:30:00 PM |
HB 53 |