Legislature(2003 - 2004)
03/04/2003 09:01 AM Senate FIN
| Audio | Topic |
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
JOINT MEETING
SENATE FINANCE COMMITTEE
HOUSE FINANCE COMMITTEE
March 04, 2003
9:01 AM
TAPES
SFC-03 # 14, Side A
SFC 03 # 14, Side B
CALL TO ORDER
Co-Chair Lyda Green convened the meeting at approximately 9:01 AM.
PRESENT
Senator Lyda Green, Co-Chair
Senator Gary Wilken, Co-Chair
Senator Con Bunde, Vice-Chair
Senator Ben Stevens
Senator Donny Olson
Senator Robin Taylor
Senator Lyman Hoffman
Representative Bill Williams, Co-Chair
Representative Kevin Meyer, Vice-Chair
Representative Mike Chenault
Representative Mike Hawker
Representative Eric Croft
Representative Reggie Joule
Representative Richard Foster
Also Attending: SENATOR GENE THERRIAULT; SENATOR GARY STEVENS;
SENATOR TOM WAGNER; REPRESENTATIVE NANCY DALSTROM; REPRESENTATIVE
DAVID GUTTENBERG; REPRESENTATIVE SHARON CISSNA; MARK HAMILTON,
President, University of Alaska.
Attending via Teleconference: There were no teleconference
participants.
SUMMARY INFORMATION
State of our University
Presentation by President Mark Hamilton
MARK HAMILTON, President University of Alaska presented the
following speech [Note: name spellings are not verified].
Five years ago, I came before this body and told them a story,
and it wasn't a good story. University facilities were in need
of major repair, we'd lost a third of the student body and the
tuition that they contributed. We had reductions in faculty
and staff, resulting in a loss of classes, of services, and of
stature. There was nothing the University could do to increase
its own contribution to the budget. We couldn't even keep up
with inflation in light of flat funding by the State.
I brought you a simple plan. I said first, we need to build
the talent pool with trained Alaskans. We began the Alaska
Scholars Program. That program now has more than 1,100
students from the top ten percent of our high schools'
graduating classes. It's working.
We went to work in workforce development. With your help and
our reallocation, we've invested nearly $6 million over the
last three years in vocation and workforce directed programs
aimed at keeping Alaskans in Alaskan jobs.
I'll give you a quote from Mike Powers, the head of Fairbanks
Memorial Hospital. He said, "This Spring we graduate our first
class of two-year RNs. It's a remarkable success story. These
are bright committed engaged local employees, all of whom own
houses and are part of the Fairbanks community. We've reduced
our vacancy rate by 25 percent. Last holiday season, last
December, we had 76 open shifts because we couldn't fill them
with RNs. This season, we had zero. And for that I want to say
I'm proud to be a partner with the University and I'm willing
to speak on behalf of the Hospital putting up $100,000 for the
next three years to continue to strategically address this
lack of force."
We're going to double our production of nurses by 2006, going
from 110 to 220. It's more economical for the industry and it
results in the employees being part of the community.
Enrollment this year is up 9.6 percent. There is no
demographic explanation. This is reputation.
Let me quote from Jennifer Lesh, UA Junior in Communications,
a UA scholar, a UA honor student and our Student Legislative
Affairs Coordinator. She said, "After being raised in Alaska,
I like most Alaskan students, left the State in search of a
great adventure. I've returned to attend school at the
University of Alaska-Southeast in Juneau. I feel that I have a
stronger community here and I know I'm getting a better
education here then I ever would somewhere else." She's right.
Retention rates have increased significantly. Compared to
three years ago, there are 35 percent more students enrolled
in the spring semester of their sophomore year, which is where
we take our measurement on retention. Thirty-five percent more
in three years.
Attendance by the top ten percent of high school graduates is
up 350 percent since that discussion we had five years ago.
More are coming. More are staying. It's working.
We told you we will build programs to be responsive to state
needs. Working with industry coalitions in health,
transportation, information technology, process industry,
fisheries and construction, we've developed programs for
industry training. We've expended the ATAP funding for
vocational workforce training and programs identified by the
State Department of Labor and Workforce Development as the
highest demand occupations.
Recently Commonwealth North, an Anchorage based private sector
organization, published a report on the University of Alaska
titling their report, "the University of Alaska: A Key to
Alaska's Future, A Time for All to Invest." The report is a
strong statement on the important roll of the University and
how it might play that in Alaska's social, economic and
cultural development. The Commonwealth North Group made many
recommendations for improving, enhancing; and you will find
that they are consistent with what this body has given me as
directions over the last five years.
In terms of workforce development, let me quote from Leo von
Scheben, CEO of USKH Engineers. He said, "I've gone back to
school to improve the strategic look of the company." (He's
back for a master's degree.) "Our biggest challenge has been
in the HR area, organizational development and corporate
finance. My participation on the master's program [has]
inspired others to follow my lead. USKH encourages its
employees to continue their education, and along with paying
for continuing education, we also offer our employees a
$10,000 bonus if they complete their master's degree. Bringing
the University of Alaska into my firm, has been good
business."
Now Leo's been involved in that business for more than 30
years now. I'll give you someone who's just started one,
Ginger Stock, Web Weavers. "The University of Alaska's benefit
to the business community is multi-faceted. As a UAF grad, I
received a fantastic yet affordable education. This has given
me the power to accomplish many things, including the ability
to start a successful technology business and the ability to
hire more graduates from within the UA system, who are
qualified and talented." The University of Alaska is good
business. It's working.
I told you we'd establish partnership with schools. In
collaboration with the State school board, we rebuilt the
teacher education program to require discipline-based degree
for all secondary teachers, including extensive internships.
We've expanded opportunities for high school students to take
concurrent courses, tech prep and advanced placement courses
at the University campuses in their community.
I'll give you a quote from Gerald Andrews, Training Director
of Operating Engineers, "Since implementation of the tech prep
partnerships between the University and local high schools,
many have benefited. Not only individuals are directly
benefited, we see the State benefit when skilled employees
fortify their employers' workforce. This is truly a system for
lifelong learning." He describes new programs at UAF, at
Tanana Valley College in welding and diesel, at UAA, auto
diesel an apprenticeship, in Mat-Su Borough in auto welding,
construction and school-to-apprenticeship programs.
Doug Ward, Alaska Ship and Dry Dock in Ketchikan, "Our
partnership with the University of Alaska is essential to the
development of skilled shipyard workforce in Alaska. Working
together, we're developing a workforce structure that meets
our needs and national skill standards."
I think Carl Hurford from MTA just about sums it up. He said,
"I've taught, I've hired students, and I sent employees to UA.
It's been a valuable partnership." It's working.
We said we'd establish a solid foundation within the
University again with the hiring of faculty because everything
starts with faculty. The hiring of staff, fixing of deferred
maintenance, construction of instructional facilities, library
expansions, Brooks Building renovation, Fairbanks Courthouse,
UAS classroom addition, Hutchinson Career Center, University
Center.
And finally, Proposition C: thank you for drafting that. That
approval by the voters of Alaska has enabled us to fund
maintenance and renovation projects in Bethel, Nome, Kotzebue,
Ketchikan, Sitka, Palmer, Kenai, Dillingham, Kodiak, Homer,
Valdez, Anchorage, Fairbanks and Juneau. It's working.
We told you we'd build programs of distinction. We now have
"presidents professors" Thomas Moore, environment and
mathematics, Gordon Cruise, fisheries and oceanography, Buck
Sharpton in remote sensing. This spring at UAA, we'll have Dr.
Vernon Smith. He's this year's Nobel Prize winner in
economics. And as I promised you last year, we've hired Dr.
Craig Doorman as DP research, prior director of Woods Hole.
Karen Max, Research Biologist at ABR, graduated the UAF in
1996. In discussing the University's research role, we provide
environmental consulting services [to] those who develop and
manage Alaska's natural resources, including oil and gas,
mining, timber, military, State and federal agencies and
Native corporations.
A firm was established by two UAF graduates and currently
employs 26 full time professional level scientists. Twenty of
these scientists have at least one degree from UAF.
And finally in the area of research, GCI has made a gift to
the University of bandwidth in the form of access to OC3
connectivity. This gift would retail for about $4.5 million a
year.
Finally, I said we would diversify our funding base so that we
were less dependent on State funds. Since 1999, private
contributions and scholarships have gone up 77 percent.
Contributions to the foundation, which in the four years prior
to my talking to you averaged $6 million a year, have averaged
in the five years hence, $16 million a year. We're looking for
land, State and federal, and we continue to seek opportunities
to pass a bill in those areas. Our current land grant now
generates about $2 to $2.5 million, all of which and more is
consumed by the scholars program.
Federal funds are up 100 percent in the last five years.
Tuition revenues up 20 percent. This year, out of $35 million
request, the University can pick up $22 million. Ten years
ago, the State paid 60 cents on the dollar of University
needs. Today they pay 40 cents with the University picking up
60 cents on the dollar. It's working.
So that was the plan and those are the results thus far. Some
of you should be very proud. Some of you in this room were
here to listen to that plan: now Senators Bunde and
Therriault, as well as Senators Wilken and Green, as well as
Representatives Williams, Foster and Moses. As though you
needed another reason at that time, oil was $9 a barrel. But
you took a chance. You took a gamble or a bet and you invested
in the University. What you're seeing today is a result of
that foresight and a result of that gutsy call. There are a
dozen opinions on how to improve our State's economy, but only
60 votes count. And in 1999, a majority of those votes said
let's go forward. You alone are responsible for the remarkable
progress of your University.
Let's take a look at the FY 2000 [FY 04] budget. The
University is seeking a modest general fund increase this
year. It's less than we have requested during my tenure. Some
of those reasons have already been covered: the University is
able to generate a larger share of its own general fund
support. This year we'll fund nearly 60 percent with asking
the State for 41. We only ask for what we can effectively
accomplish. As I've told you in the past, if I can't spend it
responsibly, I won't ask for it. Budget request is presented
in two major categories: there's salary maintenance and fixed
cost, and there's program enhancement.
The University will fund 48 percent of the total salary
maintenance and fixed cost with non-general fund revenue. That
is compared with the ability to fund only 20 percent of it in
FY 00. In our salary request, non-general funds support has
grown from 13 percent in [FY] 00 to 35 percent today. The
general fund request for meeting State needs represents only
$3.5 million in general funds but it will leverage nearly $13
million in additional non-general fund receipts. Funding in
this category, for example is $500 toward our doubling of our
nurses. That's matched by $1.1 million from industry. Funding
for enhancing student services, including establishment of a
portal to deliver most student services via the Web. And
expansion of research capacity, including biomedical programs
at UAA and resource related research at UAF, all of which will
generate about $7 million in non-general funds.
In the capital budget side, and I know we'll have an
opportunity to come back to you regarding the capital, let me
just briefly touch on this piece. Our request includes $42
million of GF and $108 million in receipt authority. Projects
funded through general funds include maintenance, repair,
renovation, instructional equipment and additionally $2
million for TVC courthouse, $9 million for Lena Point, $3.4
million for Phase II of the University Center. And we'll come
back next year with a plan for new science facilities that
receive funding for phase I through the bond proposition. We
understand we're going to need on-going funding to maintain
our building infrastructure.
So it's working and it's time.
[The year] 2009 is where we've set the University's next
strategic goal. 2009 will be the 50th anniversary of
statehood, the golden anniversary. At the University, we think
it's time for the gold rush. But this time, less rush more
gold. Less rush: we've got 2,000 days, that's about as long as
it took to execute the Apollo moon landing project. It's more
time than it took to build the pipeline. It's more time than
it took to prosecute World War II. 2,000 days, plenty of time.
We think there's more gold, that that's a fitting metaphor for
the richness of Alaska.
Our governor has committed his Administration's effort to
development in all areas: oil and gas and tourism, business
and industry, fisheries and mining. With that sort of
leadership, it's incumbent on the University to develop even
better coordination between business, science, and engineering
schools and the community. The University was charged with
exactly that mission by the task force directed by this body -
SJR 44 - to look at research and the research agenda in
Alaska. This was a farsighted tasking. It directs the
University to align its research priorities with the needs of
the State. And by this we will continue to discover the gaps
in applied research that will enable us to have the best
chance to move Alaska toward its golden future.
That future will be built by building the talent pool, by
establishing a solid foundation, by discovering our
enterprises of distinction and by broadening our funding base.
If that sounds familiar, that's exactly the plan I brought you
five years ago for your University. It will work. But some
things must change. Dependency on the federal government must
lessen and must consider sustainability. Dependence on
"earmarks" must lessen. Need that encouragement to develop, in
terms of eliminating regulatory hurdles and increasing
financial incentives. And frankly, selfishness must decrease.
We citizens must ask "What are we willing to give up to build
a golden Alaska?" I'm easy. I have three children, two of
which are graduates of the University and two grandchildren
here in the State. You can do anything you need to to make
their future as exciting as the one I felt when I first saw
this great State for the first time in 1988.
Now individually, I know you have to make your own choices,
but as a community, as a State, I wish we'd stop talking about
the graying workforce and stop talking about retirement. All
of us are needed to go forward to 2009.
Your University's are much more than training for jobs,
although we do that very well. We take seriously our
responsibility to provide our students with a quality
education that serves as a foundation for all of their
responsibilities as community members and leaders. As a
reminder of that, I'm going to end with experts from a poem
about an old king talking to his old crew about one last
voyage. You will recognize Alfred Lord Tennison's Ulysses.
The lights begin to twinkle from the rocks:
The long day wanes: the slow moon climbs: the deep
Moans round with many voices.
Come, my friends,
'Tis not too late to seek a newer world.
…
Tho' much is taken, much abides; and tho'
We are not now that strength which in old days
Moved earth and heaven; that which we are, we are;
One equal temper of heroic hearts,
Made weak by time and fate, but strong in will
To strive, to seek, to find, and not to yield.
North to the Future.
Senator Hoffman requested the President's address of the following
legislative session contain updates of the status of rural
campuses, as the President has asserted these campuses are an
integral part of the University system. Senator Hoffman also
requested information on the record of success of rural campuses,
and whether progress is occurring as rapidly as with the main
campuses. He specifically requested the status of retention at
these campuses, stating the goal should establish retention rates
similar to the main campuses. He asserted that the University must
provide higher education and standards for all areas of the State
not just main campuses. He noted he has requested this information
every year and would like the President's address to include the
topic of rural campuses.
President Hamilton acknowledged that Senator Hoffman has asked
these questions each year. President Hamilton replied that in FY
03, 13 percent of total enrollment is Alaska Natives, which
represents almost a 1,000-student increase since 1999. While the
student body as a whole has increased 7.7 percent, he noted the
number of students reporting themselves as Alaska Natives has
increased 27 percent, almost four times the total amount. He
furthered that 19 percent of participants in the Alaska Scholars
program report themselves as Alaska Native. He spoke of difficulty
in accounting the retention rate based on ethnicity, although he
understood Alaska Natives "have not faired as well" as the total
student population in retention rates. He stated that retention at
rural campuses is also difficult to achieve because, "typically"
individuals attend "episodically". He asserted that students would
attest to whether the University "has a good product", and cited
the 27 percent enrollment increase in the number of Alaska Natives.
SENATOR GARY STEVENS asked how K-12 students are being prepared for
higher education.
President Hamilton spoke of two measurements, the first being the
statistic that 40 percent of students entering college take a
remedial course. He stated this is the same for University of
Alaska students. However, he noted that Alaskan college students
take between one and one half years and two years of remedial
courses. He commented that "a lot can be done in that time". He
posed the question as to whether the University should undertake
the roll of providing extensive remedial education and surmised
that the policy is to meet the educational needs of Alaskans. He
asserted that the averages could "soar" if the University admitted
only qualified students, and that retention and graduation rates
would also increase.
President Hamilton relayed the instance in the first year of the
Alaska Scholars Program in which eight students from the Bethel
area attended the University, but all failed out after the first
semester. He expressed that rather than accepting their failures,
he offered to let these students attend classes at rural campuses
and retain their scholarships. He reported that three of those
students obtained associates degrees in three years. He asserted,
"You can fix it-there's no doubt" although he qualified it is
difficult and expensive. He admitted that it would be preferable if
high school graduates entered the University prepared for college
level courses. However, he remarked, "you have charged me with
'meet them where they are, teach them til they get what they want."
Representative Williams asked if the proposed University budget
includes funds for salary increases that might be negotiated as
bargaining unit contracts are renewed.
President Hamilton affirmed that a "modest" increase "in keeping
with the existing collective bargaining agreement" is included.
Senator Bunde supported the open admissions policy, as it is "right
for Alaska". He mentioned $20 million in relation to the high
school qualifying examinations.
President Hamilton stated he would research the matter.
Senator Bunde commented on students' concern about the cost of
tuition. He asked the percentage Alaska students are contributing
to the actual cost of their education, and a comparison to other
universities.
President Hamilton estimated that University of Alaska tuition
covers 40 percent of instruction, compared to 60 percent
nationally. He stated that the University of Alaska is increasing
tuition costs, commenting that five years prior tuition was not
increased because "we had nothing to offer."
Senator Bunde asked the percentage of Alaska high school graduates
continuing to college compared to the national average. He also
wanted to know the percentage of Alaskans who attend college obtain
a degree.
President Hamilton answered that Alaska, with 40 percent of high
school graduates who attend college, is second only to the State of
Nevada. He noted the high salaries paid in the gaming industry as
the reason many Nevada high school graduates do not obtain college
educations. He did not have statistics of the percentage of degrees
earned. He cautioned that any such statistics would be "grossly
skewed" due to the number of students attending community colleges
and because the entire University has open admissions. He stated
this information would be beneficial but should not be used for
comparison against other universities.
Representative Meyer asked the percentage of alumni contribution
compared to other colleges.
President Hamilton replied that alumni contributions are greatly
improving but are "not fabulous as yet". He qualified that within
the last 18 months, the University hired development officers
utilizing a grant from the Rasmussen foundation although before
this, the University had no formal method for soliciting
contributions. He informed that when he began serving as the
University president, the University Foundation received
approximately $6 million annually in contributions, and in the five
years since, has received $16 million. He pointed out the majority
of these funds were from public institutions. He compared the
national average of 12 percent of college alumni contributions to
four percent for University of Alaska alumni.
Co-Chair Green told of efforts in the Mat-Su to establish a program
to provide needed nursing training and that two institutions in the
area are looking outside of the State for assistance. She preferred
an expansion at the local University campus to incorporate such a
program.
Co-Chair Green then spoke of a "drive afoot" in some election
districts to improve vocational technical programs at the high
school and college levels. She opined this is successful at some
University campuses and asked if the witness envisions expanding
the program statewide. If so, she wanted to know if the programs
should receive partial funding from the local campuses.
President Hamilton reminded that the Legislature is "the limiting
factor." He explained that the number of industries that want the
University to be involved in providing workforce training far
exceeds the University's capacity to do so. He detailed the process
in determining the highest demands utilizing Department of Labor
and Workforce Development statistics coupled with industries'
willingness to contribute. He also pointed out the cost to educate
a nurse is three and one-half times the amount required to graduate
an anthropologist. He stressed the importance to health care to
provide trained nurses but qualified that the use of funds for this
purpose disproportionately eliminates funding for other programs.
He noted that community contribution has made the nursing training
more possible and he supported continued efforts.
Senator Taylor asserted that several communities provide financial
support for the rural campuses located in the area. He listed
Ketchikan, Sitka and Kodiak as providing over 30 percent of the
operating expenses of the local campuses. He asked the percentage
contributed by the communities of Juneau, Anchorage and Fairbanks
for the respective campuses in these towns.
President Hamilton answered the three communities currently
contribute no funds for this purpose.
Senator Taylor suggested a portion of the requested budget increase
could be provided from these communities.
President Hamilton understood the premise and informed that he has
studied the matter of consolidating the four-year university system
with the community college programs. He commented that this
consolidation is a financially "wise decision". However, he opined
that a consequence was the loss of "community" in the community
campuses, which is partially reflected in the higher tuition costs
for community college courses. He qualified that tuition is lower
than the national average, but higher at the rural campuses than at
the three main campuses. He informed that tuition costs at rural
campuses are not even higher because of community contributions.
Senator Bunde noted that the per-student expense at some rural
campuses is $50,000, while the cost at the University of Alaska-
Anchorage is approximately $15,000 per student. He expressed that
greater community support should be provided.
President Hamilton agreed that some campuses do incur higher
expenses. However, he stressed that all community campuses except
University of Alaska-Fairbanks, Anchorage and Juneau, receive one-
eighth of the University budget, comprise one-quarter of student
credit hours and one-third of the University's "head count". He
furthered these rural campuses provide 100 percent of the
postsecondary educational opportunities. He remarked that the rural
campuses are "a wonderful investment" and asserted that no benefit
would result from identifying campuses with the highest per student
expense.
Senator Olson referenced the health care delivery system and the
nursing shortage that exists statewide and nationwide. He expressed
concern that the Native health corporation in his district
attempted to establish a nursing training program but was unable to
secure a commitment from the University of Alaska for assistance
before the year 2007. As a result, he informed that the corporation
contracted with an educational institution in the State of Utah to
address the shortfall in the meantime. He asked the mechanisms
undertaken by the University of Alaska to prevent the need for out-
of-state procurement.
President Hamilton commented that the nursing issue utilizes as
much of his time and attention as any other issue in the State. He
stressed that the University is acting as quickly as possible in
offering nursing training programs in communities outside of
Anchorage. He emphasized the limited number of qualified
instructors and available certified clinical experiences. He
explained that all students must undertake their clinical training
in Anchorage, as this is the only city in Alaska with the ability
to provide these experiences.
SFC 03 # 14, Side B 09:48 AM
President Hamilton expounded that a summer nursing training program
was instituted at the University of Alaska-Anchorage for the first
time because of competition for the clinical experiences. He
asserted that this problem could not be solved with money alone, or
he would have requested additional funding for this purpose. He
understood the legislators' frustration.
Co-Chair Wilken recalled one of the five "verticals" the witness
posed to the Committee in his first presentation five years prior
was intent to produce more teachers for Alaska's K-12 school
system. Co-Chair Wilken remarked that this need is apparent daily.
He referenced other committee hearings regarding appointees to the
University of Alaska Board of Regents, noting Cynthia Henry is one
appointee. He informed that Ms. Henry "brings to the Regents a
breath of experience and knowledge in regard to K-12 that has
probably never been on the Regents before. She's a teacher; she's
an involved parent; six years elected to the school board; is now
on the [Fairbanks North Star] Borough assembly, and now will be a
Regent." He related that he requested Ms. Henry to serve as "the K-
12 liaison" with the Regents to assist the University to "fill this
critical need that's going to become more and more evident as more
and more accountability is heaped upon the K-12 community." He
requested President Hamilton utilize Ms. Henry's expertise to
improve the number and quality of K-12 teachers graduating from the
University of Alaska.
President Hamilton assured he would.
Senator Bunde furthered the shortage of qualified teachers and
nurses should be focused upon. He requested a comparison of
academic scholarships to athletic scholarships and the graduation
rates of both. He indicated that a majority of members of the
University hockey teams are from Canada.
President Hamilton answered he would provide this information. He
commented, "I think you're going to be surprised. …If there's going
to be an insinuation in that somehow the hockey team or Canadians
are dumb, I think that you'll discover … [the] grade point average
on our teams are much higher than the student body." He qualified
that he would expect students receiving academic scholarships to
graduate at a higher rate, and pointed out this is the case, as the
graduation rate of this group is 70 percent. He emphasized,
"Excellent programs reach that kind of level." He spoke of Alaska
Native students participating in a science and engineering program
at the University of Alaska-Anchorage "retain at 70-some percent."
Senator Bunde clarified that he did not infer that athletes are
unintelligent, but rather his point pertained to athletes who "play
out their eligibility" then withdraw from the University.
President Hamilton agreed, "That's probably so."
Senator G. Stevens stressed the importance of consistency across
the University system. He asked if similar graduation requirements
apply to each campus.
President Hamilton spoke to a "long lasting urban legend" that
credits are not transferable between University of Alaska campuses.
He corrected, "Any credit earned in the University of Alaska system
is transferable to any other unit of the University of Alaska
system." He emphasized that requirements for each degree program
differ and that some courses do not meet the requirement for
certain degrees. He gave examples of "English for engineers" and
"math for poets" that would not apply to other degree programs,
although the credits would be transferable.
Senator G. Stevens countered that in 1975 a Speech 111 course taken
at the Kodiak Community College was not transferable to the
University of Alaska-Fairbanks. He stressed that if the University
system is "one university" the course should transfer regardless of
the degree program.
President Hamilton assured that such a course is currently
transferable.
REPRESENTATIVE SHARON CISSNA expressed a need for advanced degrees
at the Anchorage campus in the health care field.
President Hamilton told of efforts to offer joint doctorate degrees
in conjunction with the University of Alaska-Fairbanks. However he
expressed that the Anchorage campus would not become a PhD granting
institution, as the Fairbanks campus is adequate for a state with a
population of 600,000. He remarked that the demand for doctorate
degrees is minimal in comparison to the demand for other programs
in the curriculum.
Senator Taylor pointed out the listing of new capital projects
includes $9,585,000 scheduled for a fisheries and ocean science
facility in Juneau. He asserted that he has been lobbying for such
facility to be constructed in Sitka or Ketchikan and that both
communities would contribute over 30 percent of the operating
expenses. He challenged that before the capital funds for a Juneau
facility are appropriated, the City and Borough of Juneau should
contribute. He recommended this project should be open to bidding
by all three communities.
Co-Chair Wilken referenced the aforementioned handout, noting the
Legislature has increased the general fund appropriation to the
University by $55 million, or 24.5 percent, since FY 99. He
furthered that President Hamilton has utilized that $55 million and
to leverage $193 million from other sources as promised. Co-Chair
Wilken asserted, "That's economic development" and he thanked
President Hamilton.
Senator Hoffman referenced 17 goals listed in the handout, and
pointed out that none directly relate to rural campuses nor provide
accountability of efforts to support the rural campuses. He
expressed his primary interest in graduating students who attend
rural campuses. He also wanted accounting of the number of Alaska
Native students who attend the urban campuses and graduate compared
to non-Native students. He acknowledged that the statistics
provided by the University are favorable; however in speaking with
Native students he has surmised that rural students are "being left
behind." He asserted this much change and it must be ensured that
all Alaskans are benefiting from the expansion of the University
system.
Representative Croft reaffirmed Co-Chair Wilken's comments and
opined, "It's an impressive record and I hope we can keep the
momentum going." He expressed concern over the difficulty in
providing funding increases in addition to amounts proposed in the
governor's budget request. He asked the commitment President
Hamilton has received from Governor Frank Murkowski with regard to
funding for the University.
President Hamilton referenced the Governor's campaign commitment to
increased funding for the University of Alaska a minimum of five
percent over his four-year term of office. President Hamilton
informed this commitment was a result of a discussion whereby
candidate Murkowski asked the absolute minimum amount the
University would require to "move forward". President Hamilton
relayed his response was one-percent above the higher education
price index, which calculates to approximately five percent
annually.
Representative Croft asked if this increase is reflected in the
University's proposed budget detailed in the handout.
President Hamilton answered is it not, as this budget was prepared
before a new governor was elected. He remarked, "I made the budget
based on the needs of the State and how much we could pay and how
much we could successfully execute." He furthered that the budget
"represents a reality, not a number".
Representative Croft pointed out the proposed budget contains a six
to seven percent increase.
President Hamilton asserted, "The momentum killer is to not to give
the University some sort of real growth numbers." He reminded that
no funding increases were provided for ten years and consequences
resulted.
Co-Chair Green commented that as finance committee members "we must
view everything across the table and across the board and try to do
the right thing for all parties in turn."
ADJOURNMENT
Co-Chair Lyda Green adjourned the meeting at 10:07 AM
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