Legislature(2015 - 2016)SENATE FINANCE 532
03/24/2015 01:30 PM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing: University of Alaska Board Regents | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE FINANCE COMMITTEE
March 24, 2015
1:36 p.m.
1:36:27 PM
CALL TO ORDER
Co-Chair MacKinnon called the Senate Finance Committee
meeting to order at 1:36 p.m.
MEMBERS PRESENT
Senator Anna MacKinnon, Co-Chair
Senator Pete Kelly, Co-Chair
Senator Click Bishop
Senator Mike Dunleavy
Senator Lyman Hoffman
Senator Donny Olson
MEMBERS ABSENT
Senator Peter Micciche, Vice-Chair
ALSO PRESENT
Sheri D. Buretta, Eagle River; John Davies, Fairbanks; Lisa
M. Parker, Soldotna.
PRESENT VIA TELECONFERENCE
Andrew Treuber, Kodiak.
SUMMARY
^CONFIRMATION HEARING: UNIVERSITY OF ALASKA BOARD REGENTS
1:37:14 PM
SHERI D. BURETTA, EAGLE RIVER, shared that she had been the
chairman of the board for Chugach Alaska for seventeen
years. She attended Anchorage Community College in 1984,
before it was the University of Alaska (UA). She had
steered many of the efforts toward education, and felt that
the efforts had positively affected the shareholders and
dependents. She understood that the financial situation was
difficult, but she shared that her experience at Chugach
Alaska helped to shape her financial management practice.
She shared that the peak revenue was approximately $1.1
billion in 2009. Since then, the changes in the federal
government and the economic situation caused significant
downsizing. She shared that she had stabilized the revenue
at $600 million. She shared that there were some difficult
and challenging people, because of the significant
downsizing. She stated that Chugach Alaska experienced a
devastating bankruptcy in 1991, immediately following the
Exxon Valdez oil spill. She felt that the corporation was
diligent in its conservative approach, and she had
significant experience in managing and maintaining its
finances.
Senator Olson wondered what changes Ms. Buretta anticipated
during her proposed appointment. Ms. Buretta replied that
it was critical to create efficiencies in the UA
organization, by examining each separate functions. She
stated that she hoped to partner with the native
corporations and other businesses to invest in the
university.
Senator Dunleavy wondered if a three-year degree would help
reduce cost. Ms. Buretta replied that there should be an
examination of all possibilities.
1:43:55 PM
Senator Dunleavy shared that he had served as the president
of the Matsu Borough School District. During that time, he
instituted performance based contracts for the
superintendent. Every summer the board would outline the
goals of the upcoming year. The board had developed a
contract with a salary base, and performance step
increases. He wondered if a similar structure would be
considered for the university. Ms. Buretta replied that her
board had two tools: the budget and management bonus
incentive. She felt that performance based incentives
produced positive outcomes.
Senator Dunleavy queried three separate focuses during her
five-year tenure. Ms. Buretta replied that she wanted to
balance the budget; maintain stability, continuity, and
delivery of high level education to the students; and
examining the history of the university.
Co-Chair MacKinnon advised the committee that that under AS
14.40.150, it outlined the qualifications of the Board of
Regents and UA. She stated that board members served for
eight years.
Co-Chair MacKinnon remarked that there was a letter from
the UAA Faculty and Staff Association. She noted that they
would like experience with higher education, as evidenced
by a particular level of college graduation. Also, working
within a similar university system. She queried the
applicant's experience, and how her life related to the
university. Ms. Buretta responded that Chugach Alaska
Corporation had to pay taxes to the state, and also took
advantage of the state credit. The corporation used the
strategy of partnerships by utilizing that tax credit. She
stated that she had also served as the chair of the Alaska
Native Claims Settlement Act (ANCSA) Regional Association,
and worked to develop a resolution between the association
and the Board of Regents to focus on the Lands Claim
Settlement Act incorporation into the university.
1:50:27 PM
Co-Chair MacKinnon wondered how she would advocate for fund
requests during Alaska's current fiscal shortfall, and how
that may impact increasing tuition on the students. Ms.
Buretta responded that it was critical to outline an
approach that examined the entire university system.
Co-Chair MacKinnon looked at the letter dated March 16,
2015 (copy on file). She remarked that the UA staff was
concerned with the focus on consensus among stakeholders,
rather than administrative mandates. She asked for the
strategies to collaborate. Ms. Buretta building consensus
was extremely important on boards. She stressed that a
decision must be made, and have strong leadership.
Senator Hoffman wondered if Ms. Buretta obtained her BA and
MBA from UA. Ms. Buretta replied that she did not have a BA
or an MBA.
1:53:59 PM
AT EASE
1:54:40 PM
RECONVENED
1:55:22 PM
JOHN DAVIES, FAIRBANKS, announced his affiliations. He was
currently a member of the Fairbanks Borough Assembly, and
he was also an employee of the Cold Climate Research
Center. He had served in the state legislature from 1992 to
2002. He originally moved to Alaska in 1967 to attend
graduate school at the Geophysical Institute at UAF. He had
also been a member of the research staff at UAF, and helped
to develop the Alaska Volcano Observatory. He was also
employed for a short period of time with Department of
Natural Resources (DNR) Division of Geological and
Geophysical Surveys. He had broad experience in public
service in the state. During his time in the legislature he
served on the finance committee for six years, and the
University of Alaska subcommittee for ten years.
Senator Dunleavy wondered how the budget would be handled
in the least negative way. Mr. Davies responded that there
would be an examination of efficiency.
2:01:01 PM
Senator Dunleavy asked if UA should be considered one
university or three university. Mr. Davies replied that it
was one university system with three separately accredited
campuses. He felt that there should be a significant level
of collaboration between the campuses to move toward a
single entity.
Senator Dunleavy wondered if Mr. Davies was a member of the
faculty senate. Mr. Davies replied in the negative.
Senator Dunleavy queried the role of the faculty senate
within the policy perspective of UA. Mr. Davies replied
that the faculty was obviously a key element of the
university. He felt that a university must have a very long
outlook, because the programs must remain intact because of
expectation.
Senator Dunleavy noted that UA was a totally different
university at its founding. He stated that the University
of Phoenix was only an education delivery entity. He
wondered if UA could enhance its education delivery
methods. Mr. Davies responded that there was a lack of
bandwidth. He remarked that there were a large number of
courses that were delivered to the urban areas, and hoped
that the rural areas would eventually take advantage of the
services. He felt that the University of Phoenix identified
one particular niche to fill, but UA had a much more
complicated mission. He stated that UA was a university and
a community college. He remarked that the university was
required to deliver courses at a certificate level and
degree level. He stressed that UA had an obligation to
offer services to Alaskans. He felt that UA did an
appropriate job of balancing the economies of scales.
2:07:47 PM
Senator Dunleavy queried the goals during the board tenure.
Mr. Davies replied that there should be a positive outcome
after the downsizing of the university. He wanted to
achieve progress on the teacher training initiatives. He
stressed that there should be quality teachers across the
entire state.
Co-Chair MacKinnon remarked that there was often pushback
inside Alaska's media each time that a proposed president
salary increase was made public. She shared that President
Gamble had declined some bonuses, because of some perceived
public pressure. She wondered how to determine and justify
compensation for the president and chancellors. Mr. Davies
responded that the state was currently in a budget crisis,
so it was important for everyone to understand that cuts
needed to be issued. He shared that the university was in a
competitive education environment, so the salaries must
draw the best people.
Co-Chair MacKinnon asked how to reach consensus among
stakeholders. Mr. Davies echoed Ms. Buretta's comments. He
stated that it was important to approach a broad range of
stakeholders. He enjoyed working in a collaborative manner
as much as possible, but remarked that decisions must be
determined.
2:16:28 PM
AT EASE
2:17:20 PM
RECONVENED
2:17:38 PM
ANDREW TREUBER, KODIAK (via teleconference), introduced
himself.
Co-Chair MacKinnon queried his qualifications.
Mr. Treuber stated that he was an Alaska Native who had
lived in Alaska his entire life and had three children. He
had worked with the Alaska Native Tribal Health System, and
had the opportunity to travel around the state. He saw that
education was one path to enhanced conditions. He stressed
that education gave Alaskans broad options.
Co-Chair MacKinnon asked how Mr. Treuber would be an agent
for change within the UA system. Mr. Treuber replied that
he had experience working with a broad and diverse group of
leaders from across the state.
Co-Chair MacKinnon queried the requests that he may
advocate for the state. Mr. Treuber replied that he was not
in a position to describe any initial requests, but he was
optimistic for the potential within the university system.
2:24:03 PM
LISA M. PARKER, SOLDOTNA, discussed her credentials. She
spent her career engaged in public involvement and resource
development. She was first elected to public office at the
age of 19 to the Anchorage Charter Commission, which wrote
the charter unifying the greater Anchorage Area Borough and
the City of Anchorage into the Municipality of Anchorage.
She had served on the Soldotna City Council, and was
engaged with many nonprofits as a board member and raising
funds for specific projects, including the Kenai Peninsula
Food Bank and the Covenant House in Anchorage.
Senator Bishop queried the perspective on the technical
programs on the Kenai campus. Ms. Parker felt that the
community colleges were a key component to the university
and the communities.
Co-Chair MacKinnon wondered if Ms. Parker had participated
in academic research, and how would she work to represent
the needs of the current UA faculty. Ms. Parker replied
that she had worked engaging in research and collaborating
with both UA and Alaska Pacific University. She stated that
she had not specifically conducted research in higher
education.
2:29:45 PM
Co-Chair MacKinnon remarked that there were approximately
five bullet points on the letter from faculty. One issue
was experience working with large groups in the decision
making process. The university prided itself in working and
collaborating with all members of faculty and students in
the decision making processes. She queried Ms. Parker's
decision making style, and her stance on tuition increases
and salary freezes. Ms. Parker replied that she believed in
building consensus within a collaborative process. She
stressed that she did not want to isolate individuals. She
understood that there were difficult decisions regarding
salary while ensuring that the programs remained intact.
Co-Chair MacKinnon queried prioritization of current
investments in fiscal uncertainty. Ms. Parker responded
that UA would look much different in the near future. She
stated that campuses were already working to decrease some
programs.
Co-Chair MacKinnon FORWARDED the appointments of Sheri D.
Buretta, John Davis, Lisa M. Parker, and Andrew Treuber to
a Joint Session for consideration in accordance with AS
39.05.080. This did not reflect an intent by any member to
vote for or against the confirmation of the individuals
during any further sessions.
ADJOURNMENT
2:34:02 PM
The meeting was adjourned at 2:34 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 033415 University Board of Regents Resumes.pdf |
SFIN 3/24/2015 1:30:00 PM |
Confirmations 2015 |