Legislature(1999 - 2000)
02/19/1999 09:15 AM Senate FIN
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SENATE FINANCE COMMITTEE
LOGNOTES
February, 19, 1999
GENERAL SUBJECT(S): State of the University
Joint Meeting between the Senate Finance Committee and the House
Finance Committee
The following overview was taken in log note format. Tapes and
handouts will be on file with the Senate Finance Committee through the
21st Legislative Session, contact 465-2618. After the 21st
Legislative session they will be available through the Legislative
Library at 465-3808.
Time Meeting Convened: 8:45 AM
Tape(s): SFC-99 # 32, Side A & B
PRESENT:
Senator P. Kelly
Senator Parnell, Chaired
the Meeting
Senator Green
Senator Torgerson
Senator Phillips
Senator Donley
Senator Leman
Senator Wilken
Senator Adams was not
present
ALSO PRESENT:
Senator Johnny Ellis;
Representative Gene Therriault;
Representative Alan Austerman;
Representative Gary Davis;
Representative John Davies;
Representative Con Bunde;
Representative Ben Grussendorf;
Representative Carl Moses;
Representative Mary Kapsner;
Representative Tom Brice;
Representative John Coghill, Jr.;
Representative Joe Green;
Representative Eric Croft;
Representative Andrew Halcro;
Representative Lisa Murkowski;
Mike Burns, President, University of Alaska Board of Regents;
Brian Rogers, Member, University of Alaska Board of Regents;
Elsa Demeksa, Member, University of Alaska Board of Regents;
Chancy Croft, Member, University of Alaska Board of Regents;
Dan Ogg, Member, University of Alaska Board of Regents;
Joe Thomas, Member, University of Alaska Board of Regents;
Mary Jane Fate, Member, University of Alaska Board of Regents;
Mark Hamilton, President, University Of Alaska;
Wendy Redmond, Vice President of University Relations, University of
Alaska;
Ann Ringstad, Director, Government Relations, University of Alaska;
David Teal, Director, Division of Legislative Finance;
Tammy Stromberg, Fiscal Analyst, Division of Legislative Finance.
LOG
SPEAKER
DISCUSSION
Tape: SFC - 99 #32, Side A 9:15 am
Co-Chair Sean
Parnell
Introduction
We want to spotlight the University of
Alaska this year.
MARK HAMILTON
President, University of Alaska.
Introduce Board of Regents
MIKE BURNS
President University of Alaska Board of
Regents.
Introduce other Board of Regents members
present: Brian Rogers, Elsa Demeksa, Chancy
Croft, Dan Ogg, Joe Thomas, Mary Jane Fate.
Mark Hamilton
We are dead last in the retention of our
college bound students. We only have 40
percent
This represents a significant migration of
our young people.
Speak to loss of population of ages 20-30.
These are the people that give us new
ideas. It is a natural resource issue.
This is a state institution. It ought to be
responsive to the needs of our state.
I'm asking for $16.3 million for the next 3
years.
This represents 1% of real growth.
Graph: Putting UA on Track
In the early 1990s we were told we had to
start pulling our weight, I'm going to show
you how we did that.
FY 90-FY96 was the Revenue Alignment period
List areas of changed revenues and the
amounts.
That totaled $12.1 million per year, which
was only enough to barely subsist.
Since 1990 we had to reduce full time
teacher staff by 200 - in the entire
decade, total staff reductions equals about
1000 employees.
FY96-FY99 was the Reduction period. (list
areas of amounts of further reductions and
those amounts)
Total revenue was only $5.5 million during
this time period.
University of Alaska has to function, bills
have to be paid. So we came to this body
We want to mortgage our human resources.
RIP. Good news is it raised some money
We encouraged employees to retire and we
did not replace them. Bad management move.
We have fewer professors to go out and get
grants. Also grants are based on our
investments of teachers, labs etc.
This desperation act of reduction is a one-
time act and a very bad deal.
Talk about the vision for a real
opportunity for an aerospace.
I appreciate your expression of your vision
and your enthusiasm. We in the Legislature
also have a challenge. For us to meet your
vision, it's going to be a bigger
challenge.
Senator Loren Leman
Refer to someone from Texas who advised,
the first thing you do when asked for more
money is you don't give it to them but make
them work better with their money.
It is important that a university have a
relationship with industry.
What have we received for Alaska out of the
investment into research?
Research should result somehow into more
money.
Vast majority of research done in AK is not
industrial related. We have the
opportunity to do industry with an
aerospace facility.
Mark Hamilton
We detail the need to hire the faculty to
develop the curriculum to attract the
students who will in turn generate the
revenues.
In your first discussion about Alaska being
dead last in retention of college age
people. I think you are painting a blacker
picture and we can't do anything about
that. In Washington state I could go to
any number of state colleges. Here there
is only one choice. Most of Alaskans are
immigrants to the state and our children
will also have some of that wanderlust. I
have a friend who requires his kids to go
Outside for school so they can experience
the Lower 48.
Bunde
Refer to taxing.
We need to expand that 20 percent figure.
We can do that by hiring more faculty,
becoming more user friendly, etc.
If I believed in the braindrain theory, the
University of Alaska should fire me today.
I refuse to believe that what is presently,
is what should be in the future.
Mark Hamilton
20% The university is required to mail a
federal 1098T-tax form to everyone who paid
for some form of tuition at the university.
Last year we sent out 63,000 of these
forms. That's Alaskans who paid some sort
of tuition for some class in the last year.
Some of our kids are missing out on
opportunity.
Refer to the comment made by Senator Loren
Leman regarding the University of Texas.
Texas was going through the same oil prices
crisis during the early 1990s that we were.
What they decided was to invest more in
their universities.
Senator Pete Kelly
For six months on the job I commend you on
your knowledge of the university.
Senator John
Torgerson
What are you plans to turn around the
migration of students leaving the state?
In discussions I've had with parents whose
children decided to leave the state for
their higher education I was never told it
was because of bad classes. Its "My
daughter called the registrars office and
was on hold for so long and then got the
wrong answer." Refer to another university
that claims to have one administrator for
every student. That's service.
The ultimate financial crisis was in the
1930s. In 1930 General McCarther had his
entire armed forces cut. In response he
then increased education as an investment.
During an Anchorage caucus meeting, the
Anchorage school board wanted an increase
in funding. We asked them what they would
produce for the money. I ask you the same
question.
Co-Chair Sean
Parnell
Fair question. We looked at where the
trends are. We need to talk to people to
find where the areas are. We already have
a list of areas, health care. How do you
get there, you rebuild the instruments.
I'm going to hire the teachers to set the
curriculum and get he ball rolling. Those
will in turn raise more fed receipts,
attract more students and raise more
student fees.
Mark Hamilton
I don't think the University of Alaska has
done well at selling itself. There is a
poor interrelationship with K-12 education.
Second, no matter what we do if we invest
in the university we have to take from
other agencies to give to you. If we don't
invest in ourselves what will the
infrastructure be in AK in the next ten
years, it will affect the tax base in AK.
Austerman
We have not sold ourselves very well.
Especially in the relationship with
education of K-12. In Maryland most
teachers teaching K-12 graduated from a
Maryland university. This contributes to
the braindrain. We have not done our job
in being involved in K-12 education.
Mark Hamilton
Yesterday in a House Oil and Gas Committee
meeting, Representative Tom Brice asked BP
what was the biggest investment that should
be made. The president said the University
of Alaska. Can you tell me where you've
been working with industry
Davies
List of every degree and category that we
teach. The University of Alaska served the
state well in incubating the world trade
industry.
Mark Hamilton
Relating to question what would you do with
money if you had it. The former UA
president did a study on how to spend the
money. Found that a formula method was the
best. Would you follow or alter that
formula? It has also been suggested that
the student loan program be limited to
Alaskan schools. How do you feel about
that concept?
Bunde
Regarding the Student loan program, the
University of Alaska would benefit by some
sort of bias. However there are other
factors involved that you are privy to that
I don't know about.
Mark Hamilton
Don't think a "dollars per student" formula
is the best way to do it.
Tape: SFC - 99 #32, Side B 10:35 AM
U of A - Anchorage feels that the 1980s
should have been the time of greatest
increase into their campus. It's not
right. Money shouldn't go to geographic
region. It should go to areas where it can
be of the greatest service.
I've heard Wes Hamilton speak on selling
yourselves. Address selling yourselves and
how you would go about it.
Senator Gary Wilken
Selling yourselves. First thing you do is
tell the students you want them to come to
your school. We have a natural resource
fund partialed out. We need to bring it
together. We now offer a scholarship for
all students who graduate in the top 10-
percent of their high school class. This
money can be spent on books, housing,
tuition, or however they choose. For those
with wanderlust, we will hold that money
for them when they leave. When they decide
the Lower 48 isn't the land of milk and
honey, and they want to come back, the
money is waiting for them.
Mark Hamilton
(Refer to money that is appropriated for
teaching purposes but instead gets
redirected to research projects. Comments
about faculty more interested in research
and the view that teaching is something
that just gets in their way of research.)
Senator Dave Donley
Will have to explore the data but your
thesis is correct. We're not going to put
money into research that could be used for
teaching.
Mark Hamilton
Refer to Texas. We need to focus on how we
get there. They have a great relationship
with the U of Texas.
Senator Loren Leman
We've been sitting thought many overviews.
Maybe we will come up with something.
Austerman
Regarding trying to attract students. The
University of Alaska has told us at various
meetings and with the press present, that
the facilities are in disrepair. That same
message went to out to potential students.
Now that you have that money, how will you
get the message out to students that they
can get a good education at the University
of Alaska?
Therriault
Never assume all who went before you were
fools.
Mark Hamilton
Reasonable people made hard decisions.
This is not a university in disrepair. It
has been held together by dedicated faculty
and staff. This institution can go forward.
I don't envy your job.
University of Alaska is not just another
problem; it is part of the answer.
Adjourn 10:08 am
Co-Chair Sean
Parnell
SENATE FINANCE COMMITTEE
LOG NOTES
2/19/99
Page 7
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