Legislature(2019 - 2020)UAA FINE ARTS BLDG

09/20/2019 09:00 AM STATE AFFAIRS

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Audio Topic
09:05:43 AM Start
09:07:09 AM Presentations: Stakeholder Perspectives on the Proposal to Consolidate the University of Alaska System
09:09:35 AM Restructuring the University of Alaska System
09:59:56 AM Municipality of Anchorage Perspective
10:44:55 AM Perspective of Student and Faculty Leadership
11:04:32 AM Management Risks
11:32:23 AM Accreditation and Student Success
11:46:07 AM Equity
01:03:48 PM Spending Priorities
01:19:25 PM Alternative Models
01:33:15 PM Perspective of Alumni
01:57:04 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Teleconference --
Location: University of Alaska Anchorage Fine
Arts Building ARTS 150
University of Alaska Presentation:
Restructuring the UA System - Dr.Forrest Nabors
Associate Professor, Political Science
Student/Faculty Perspective - Scott Downing,
Assoc. Professor, English; Alex Jorgensen, USUAA
Speaker of the Assembly; Clare Baldwin, USUAA
President
Municipality of Anchorage Perspective - Ethan
Berkowitz, Mayor; Felix Rivera, Meg Zaletel
Assembly Members; Dr. Mara Kimmel
Management Risks - Dr. Frank Jeffries, Professor
Emeritus, Management; LuAnn Piccard, Assoc.
Professor, Project Management; David Fitzgerald,
Professor, Info Systems & Decision Science
Accreditation/Student Success - Dr. Jennifer
Brock, Professor, Mechanical Engineering; Dr.
Maria Williams, Professor, AK Native Studies
Equity - Dr. Chad Farrell, Professor, Sociology;
Clayton Trotter, Professor of Law, Accounting
and Finance; Dr. Ian Hartman, Assoc. Professor,
History
Alternative Models - Dr. Max Kullberg, Asst.
Professor, Pharmaceutical Sciences; Dr. Joel
Potter, Asst. Professor, Philosophy; Dr. Paul
Dunscomb, Professor, History
Alumni Perspective - Lea Bouton, Stacey Lucason,
+ Michael Lowe, Miranda Strong, Jonathan Taylor TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
             SENATE STATE AFFAIRS STANDING COMMITTEE                                                                          
             UNIVERSITY OF ALASKA FINE ARTS BUILDING                                                                          
                       September 20, 2019                                                                                       
                            9:05 a.m.                                                                                           
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Mike Shower, Chair                                                                                                      
Senator John Coghill, Vice Chair                                                                                                
Senator Lora Reinbold                                                                                                           
Senator Peter Micciche via teleconference                                                                                       
Senator Scott Kawasaki via teleconference                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative Geran Tarr                                                                                                       
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATIONS: STAKEHOLDER PERSPECTIVES ON THE PROPOSAL TO                                                                      
CONSOLIDATE THE UNIVERSITY OF ALASKA SYSTEM                                                                                     
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                              
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
DR. FORREST NABORS, Associate Professor and Chair                                                                               
Department of Political Science and Chair                                                                                       
Committee on Governance and Funding Reform                                                                                      
UAA Faculty Senate                                                                                                              
University of Alaska Anchorage                                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Discussed restructuring the University of                                                                 
Alaska System.                                                                                                                  
                                                                                                                                
ETHAN BERKOWITZ, Mayor                                                                                                          
 Municipality of Anchorage                                                                                                      
 Anchorage, Alaska                                                                                                              
 POSITION STATEMENT: Offered  the perspective of  the Municipality                                                            
 of Anchorage  and how  the  relationship with  the University  of                                                              
 Alaska impacts the community.                                                                                                  
                                                                                                                                
 FELIX RIVERA, Chair                                                                                                            
 Anchorage Assembly                                                                                                             
 Municipality of Anchorage                                                                                                      
 Anchorage, Alaska                                                                                                              
 POSITION STATEMENT:  Offered  the  perspective of  the  Anchorage                                                            
 Assembly  on   the   proposal  to   consolidate   the  three   UA                                                              
 universities into a single accreditation.                                                                                      
                                                                                                                                
 MEG ZALETEL, Member                                                                                                            
 Anchorage Assembly                                                                                                             
 Municipality of Anchorage                                                                                                      
 Anchorage, Alaska                                                                                                              
 POSITION STATEMENT:  Offered  the  perspective of  the  Anchorage                                                            
 Assembly  on   the   proposal  to   consolidate   the  three   UA                                                              
 universities into a single accreditation.                                                                                      
                                                                                                                                
 DR. MARA KIMMEL, First Lady                                                                                                    
 Municipality of Anchorage                                                                                                      
 Anchorage, Alaska                                                                                                              
 POSITION STATEMENT:  Discussed  the relevance  the University  of                                                            
 Alaska Anchorage to the Municipality of Anchorage.                                                                             
                                                                                                                                
 SCOTT DOWNING, Associate Professor of English                                                                                  
 UAA (Kenai Peninsula College); President,                                                                                      
 UAA Faculty Senate                                                                                                             
 Soldotna, Alaska                                                                                                               
 POSITION   STATEMENT:  Offered   the   perspective   of   faculty                                                            
 leadership  on  the   proposal  to   consolidate  the   three  UA                                                              
 universities into a single accreditation."                                                                                     
                                                                                                                                
 ALEX JORGENSEN, Speaker of the Assembly                                                                                        
 Union of Students (USUAA)                                                                                                      
 University of Alaska Anchorage                                                                                                 
 Anchorage, Alaska                                                                                                              
 POSITION  STATEMENT:  Offered   a  student  perspective   of  the                                                            
 proposal to consolidate the  three UA universities into  a single                                                              
 accreditation."                                                                                                                
                                                                                                                                
 DR. FRANK JEFFRIES, Professor Emeritus of Management                                                                           
 College of Business and Public Policy                                                                                          
 University of Alaska Anchorage                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Offered  a management risk perspective of the                                                             
proposal to  consolidate the three UA  universities into a single                                                               
accreditation."                                                                                                                 
                                                                                                                                
LUANN PICCARD, Associate Professor and Chair                                                                                    
Project Management Department                                                                                                   
College of Engineering                                                                                                          
University of Alaska Anchorage                                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Offered  a management risk perspective of the                                                             
proposal to consolidate the University of Alaska System.                                                                        
                                                                                                                                
DAVID FITZGERALD, Professor                                                                                                     
Information Systems and Decision Sciences                                                                                       
University of Alaska Anchorage                                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Offered  a management risk perspective on the                                                             
consolidation of the University of Alaska System.                                                                               
                                                                                                                                
DR. MARIA WILLIAMS, Professor                                                                                                   
Alaska Native Studies and Music;                                                                                                
President of the UAA Senate; and Chair of Faculty Alliance                                                                      
University of Alaska Anchorage                                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Offered  her perspective on accreditation and                                                             
student success as it  relates to the proposal to consolidate the                                                               
three UA universities into a single accreditation."                                                                             
                                                                                                                                
DR. JENNIFER MCFERRAN BROCK, Professor of Mechanical Engineering                                                                
UAA College of Engineering                                                                                                      
University of Alaska Anchorage                                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Offered  her perspective on accreditation and                                                             
student success as it  relates to the proposal to consolidate the                                                               
three UA universities into a single accreditation."                                                                             
                                                                                                                                
DR CHAD FARRELL, Professor of Sociology                                                                                         
University of Alaska Anchorage                                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Discussed equity related  to the proposal to                                                             
consolidate   the   three   UA   universities   into   a   single                                                               
accreditation."                                                                                                                 
                                                                                                                                
RICHARD  CLAYTON  TROTTER,   Professor  of  Law,  Accounting  and                                                               
Finance                                                                                                                         
University of Alaska Anchorage                                                                                                  
 Anchorage, Alaska                                                                                                              
 POSITION STATEMENT:  Offered  his  perspective  on equity  as  it                                                            
 relates to the  proposal to centralize  the University  of Alaska                                                              
 System.                                                                                                                        
                                                                                                                                
 DR. IAN HARTMAN, Associate Professor                                                                                           
 UAA Department of History                                                                                                      
 University of Alaska Anchorage                                                                                                 
 Anchorage, Alaska                                                                                                              
 POSITION  STATEMENT:   Offered   his   perspective  of   spending                                                            
 priorities related to the proposal to  consolidate the University                                                              
 of Alaska System.                                                                                                              
                                                                                                                                
 DR. JOEL POTTER, Assistant Professor of Philosophy                                                                             
 University of Alaska Anchorage                                                                                                 
 Anchorage, Alaska                                                                                                              
 POSITION  STATEMENT:   Offered   his   perspective  of   spending                                                            
 priorities related to  the proposal  to consolidate the  three UA                                                              
 universities into a single accreditation.                                                                                      
                                                                                                                                
 DR. MAX KULBERG, Assistant Professor                                                                                           
 Pharmaceutical  Sciences   and  the   WWAMI  School   of  Medical                                                              
 Education                                                                                                                      
 University of Alaska Anchorage                                                                                                 
 Anchorage, Alaska                                                                                                              
 POSITION STATEMENT: Delivered testimony on alternative models.                                                               
                                                                                                                                
 DR. PAUL DUNSCOMB, Professor and Chair                                                                                         
 Department of History                                                                                                          
 University of Alaska Anchorage                                                                                                 
 Anchorage, Alaska                                                                                                              
 POSITION STATEMENT: Delivered testimony on alternative models.                                                               
                                                                                                                                
 LEA BOUTON, M.A.T., President                                                                                                  
 UAA Alumni Association Board of Directors                                                                                      
 University of Alaska Anchorage                                                                                                 
 Anchorage, Alaska                                                                                                              
 POSITION STATEMENT: As a UAA alumnus,  offered her perspective of                                                            
 the proposal  to consolidate  the  three UA  universities into  a                                                              
 single accreditation."                                                                                                         
                                                                                                                                
 MICHAEL LOWE, UAA Alumnus                                                                                                      
 Anchorage, Alaska                                                                                                              
 POSITION STATEMENT:  Offered his perspective  of the  proposal to                                                            
 consolidate   the   three   UA   universities   into   a   single                                                              
 accreditation."                                                                                                                
                                                                                                                                
STACEY LUCASON, UAA Alumnus                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Offered her  perspective of  the proposal to                                                             
consolidate   the   three   UA   universities   into   a   single                                                               
accreditation                                                                                                                   
                                                                                                                                
JONATHAN TAYLOR, UAA Alumnus                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Offered his  perspective of  the proposal to                                                             
consolidate the three UA universities into one accreditation.                                                                   
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                              
9:05:43 AM                                                                                                                    
CHAIR  MIKE  SHOWER  called  the  Senate State  Affairs  Standing                                                             
Committee meeting  to order at  9:05 a.m. Present at  the call to                                                               
order were Senators Reinbold, Coghill, and Chair Shower.                                                                        
                                                                                                                                
^Presentations:  Stakeholder  Perspectives  on  the  Proposal  to                                                               
Consolidate the University of Alaska System                                                                                     
   PRESENTATIONS: STAKEHOLDER PERSPECTIVES ON THE PROPOSAL TO                                                               
           CONSOLIDATE THE UNIVERSITY OF ALASKA SYSTEM                                                                      
                                                                                                                                
9:07:09 AM                                                                                                                    
CHAIR SHOWER  announced the business before  the committee was to                                                               
hear  presentations from  nine  perspectives on  the  proposal to                                                               
consolidate  the University  of  Alaska System.  He  advised that                                                               
this is intended  to be the first of  several meetings to start a                                                               
robust discussion of alternative paths going forward.                                                                           
                                                                                                                                
         ^Restructuring the University of Alaska System                                                                       
                                                                                                                                
CHAIR  SHOWER invited  Dr. Forrest  Nabors  to deliver  the first                                                               
presentation.                                                                                                                   
                                                                                                                                
9:09:35 AM                                                                                                                    
DR. FORREST NABORS, Associate  Professor and Chair, Department of                                                               
Political  Science,  and   Chair,  Committee  on  Governance  and                                                               
Funding  Reform,   UAA  Faculty  Senate,   University  of  Alaska                                                               
Anchorage,  discussed  restructuring  the  University  of  Alaska                                                               
System. He delivered the following prepared statement:                                                                          
                                                                                                                                
     To  the chair,  my name  is Forrest  Nabors and  I am                                                                      
     associate  professor and chair  of the  Department of                                                                      
     Political  Science.  I also  serve  as  chair  of the                                                                      
     Committee on Governance and Funding Reform of the UAA                                                                      
      Faculty Senate,  a  committee  dedicated to  studying                                                                     
      reform of our university system.                                                                                          
                                                                                                                                
      I am here  today to  request the intervention  of the                                                                     
      legislature in restructuring the University of Alaska                                                                     
      system. The structure of our system has been obsolete                                                                     
      for a long time,  is not performing  well, and cannot                                                                     
      fix itself.                                                                                                               
                                                                                                                                
      But the system is  funded by the public  treasury and                                                                     
      belongs to the people  of Alaska. You  are their duly                                                                     
      elected senators, and the Alaska  legislature has the                                                                     
      constitutional authority  to change  our system.  Our                                                                     
      system needs to be decentralized,  or in other words,                                                                     
      our three  universities ought  to have  more autonomy                                                                     
      for the improvement of higher education in Alaska and                                                                     
      for the improvement  of the financial  performance of                                                                     
      our higher education establishments.                                                                                      
                                                                                                                                
      The Alaska  constitution in  Article VII,  Sections 2                                                                     
      and  3 assigns  governance  responsibilities  to  the                                                                     
      Board of  Regents and  executive responsibilities  to                                                                     
      the President. The constitution was ratified when the                                                                     
      University of Alaska was a university by the accepted                                                                     
      definition and had  fewer than 1,000 students  on one                                                                     
      main campus in Fairbanks. Governance by one board and                                                                     
      administration  by   one   president  are   perfectly                                                                     
      reasonable for an  institution of that size.  But the                                                                     
      university grew into  a university system  with three                                                                     
      separately accredited universities, more than a dozen                                                                     
      locations,  and  over  25,000  students,  covering  a                                                                     
      landmass  approximating  the  size   of  Mexico.  Our                                                                     
      universities  now  serve  distinct   communities  and                                                                     
      constituencies.                                                                                                           
                                                                                                                                
      The structure  of governance  and administration  has                                                                     
      not kept  up  with the  facts  on  the ground.  Other                                                                     
      systems in  other  states with  similar histories  of                                                                     
      growth    have    decentralized     governance    and                                                                     
      administration,  giving  more  autonomy  or  outright                                                                     
      independence to their constituent  institutions, even                                                                     
      those states  with  similar provisions  like ours  in                                                                     
      their constitutions. Those  states recognized,  as we                                                                     
      encourage you to recognize, that  no matter how well-                                                                     
      meaning or talented our Regents and President may be,                                                                     
      the university system has grown  beyond their ability                                                                     
      to govern and administer the whole of it directly.                                                                        
                                                                                                                                
     Now  our Regents  and President  are  considering the                                                                      
     consolidation of the  whole system into the so-called                                                                      
     "New UA," to re-create  the University of Alaska as a                                                                      
     single,   accredited  university   and  to   end  the                                                                      
     existence  of   UAF,  UAA,  and   UAS  as  separately                                                                      
     accredited universities.  The control  of the Regents                                                                      
     and the  President over the  constituent parts of the                                                                      
     university system would be increased.                                                                                      
                                                                                                                                
     This is moving  in the opposite direction that reform                                                                      
     should  go.  The  administrative  bureaucracy  should                                                                      
     adapt to  the growth and maturity  of our constituent                                                                      
     institutions; growth should not be undone to adapt to                                                                      
     an obsolete administrative bureaucracy.                                                                                    
                                                                                                                                
     It  is  said that  we,  the  faculty,  are  afraid of                                                                      
     change. But  it is the bureaucracy  that is afraid of                                                                      
     change, not  us. They are  trying to take  us back to                                                                      
     the  1970s before  the  universities  were separately                                                                      
     accredited.  We want  change; we  want our  system of                                                                      
     governance and  administration to adapt  to reality -                                                                      
     that   we   are   three   comprehensive,   accredited                                                                      
     universities  that have matured  and grown,  and that                                                                      
     deserve more autonomy.                                                                                                     
                                                                                                                                
     9:13:15 AM                                                                                                               
     It is  also said  that the university  system will be                                                                      
     more   financially   efficient   as   a   result   of                                                                      
     consolidating  the  whole system.  But  the financial                                                                      
     performance  of  the  university  system  under  this                                                                      
     structure   of  governance  and   administration  has                                                                      
     produced poor results.                                                                                                     
                                                                                                                                
     Despite  years  of  oil  wealth  and  a rising  stock                                                                      
     market, our endowment  is around $200M, less than one                                                                      
     fourth of  the system's annual  budget, and one fifth                                                                      
     of our $1B deferred maintenance bill for buildings in                                                                      
     need of  repair. In  other words,  posterity was left                                                                      
     with a small endowment and a massive bill.                                                                                 
                                                                                                                                
     Also,  the  university  system  depends  to  a higher                                                                      
     degree  on  state  appropriations  than  almost every                                                                      
     public system of higher education in America. We have                                                                      
     compared the costs  of our statewide office to others                                                                      
     and have not found a single central office in America                                                                      
      that employs and spends  more on a per  student basis                                                                     
      than ours.                                                                                                                
                                                                                                                                
      Given this performance,  I ask you: Is  it believable                                                                     
      that the "New  UA" under  the unchanged  structure of                                                                     
      governance  and   administration  will   deliver  the                                                                     
      promised financial efficiencies?                                                                                          
                                                                                                                                
      The disagreement  between advocates  of consolidation                                                                     
      and  decentralization   turns   on  one   fundamental                                                                     
      question: Who can make more  informed decisions about                                                                     
      programs,   services,    costs   and    new   revenue                                                                     
      opportunities? Bureaucrats removed  from the delivery                                                                     
      of higher  education?  Or the  leaders  of our  three                                                                     
      universities   who   know   their   communities   and                                                                     
      constituencies best?                                                                                                      
                                                                                                                                
      The premise of  our American system of  government in                                                                     
      this country  is  that  whenever possible,  decisions                                                                     
      should be driven down as far as possible to the local                                                                     
      level, where decisions are better informed. We reject                                                                     
      central planning in principle for this reason. If you                                                                     
      move responsibility and authority from  the center to                                                                     
      the universities,  you will  see improved  management                                                                     
      and  you  will  see  costs  and  revenues  come  into                                                                     
      balance.                                                                                                                  
      Education and research will improve.                                                                                      
                                                                                                                                
      The high dependency of the university system on state                                                                     
      appropriations currently is the price that the public                                                                     
      treasury is paying for the  inefficiencies of central                                                                     
      planning.  The   proposed   "New   UA"  follows   the                                                                     
      fallacious logic of central planning.                                                                                     
                                                                                                                                
      One argument advanced by the statewide office is that                                                                     
      the "New UA" will eliminate duplicate programs, as if                                                                     
      the state only needs one program of each type. On the                                                                     
      contrary,  if  external  funding   for  research  and                                                                     
      tuition dollars can profitably  support many programs                                                                     
      of one  type, and  none  of another  type, the  three                                                                     
      universities should  each offer the  one and  none of                                                                     
      the other. The  three universities should  offer what                                                                     
      their respective communities demand.                                                                                      
                                                                                                                                
      9:16:12 AM                                                                                                              
      By allowing the  universities to decide how  to serve                                                                     
      the needs of their respective communities, our system                                                                     
     will  serve  the   state  of  Alaska  best.  That  is                                                                      
     strategic. Central planners are not omniscient. Their                                                                      
     perception of what the state needs from all the parts                                                                      
     of the  university system  is more  fallible than the                                                                      
     collective   perceptions   of   those   who  directly                                                                      
     administer each university.                                                                                                
                                                                                                                                
     Another argument for the "New UA" is that it will end                                                                      
     unhealthy competition among the universities. This is                                                                      
     a classic  case of bureaucrats  promising to fix what                                                                      
     they have broken. The centrally planned system is the                                                                      
     cause of  unhealthy competition that  has existed for                                                                      
     years. They and  not the senior administrators of our                                                                      
     universities have the  power to decide which programs                                                                      
     shall live or die on our campuses. When the president                                                                      
     publicly and repeatedly  announces that he intends to                                                                      
     eliminate  duplicate  programs  on our  universities,                                                                      
     faculty and  staff associated with  those programs in                                                                      
     each university  of course wonder  which of them will                                                                      
     be left and which will be cut.                                                                                             
                                                                                                                                
     If the  universities have more  freedom to administer                                                                      
     their  own  affairs, they  will  shape  themselves in                                                                      
     response to the  unique demands of their communities.                                                                      
     Their   differences  will   complement   each  other.                                                                      
     Competition will  become healthy. On  their own, they                                                                      
     will each  double down  on their  unique strengths to                                                                      
     secure new revenues, and abandon programs that do not                                                                      
     play to their strengths.                                                                                                   
                                                                                                                                
     By decentralizing the system, the expensive statewide                                                                      
     office may be cut. But the cost of that office to the                                                                      
     whole  system is  more than  what  we can  measure by                                                                      
     their   annual,  direct   expenditures,   which  have                                                                      
     amounted to more than $50M per year.                                                                                       
                                                                                                                                
     My colleagues and I  who have been studying reform of                                                                      
     the UA  system have  spoken at length  to current and                                                                      
     former  administrators of UAA.  We have  learned from                                                                      
     them that the  statewide office adds little value and                                                                      
     in fact, their unnecessary and frequent interventions                                                                      
     in  the  administration of  UAA  costs  an inordinate                                                                      
     amount   of  their   valuable  management   time  and                                                                      
     interferes with good  decision-making. The heavy hand                                                                      
     of  statewide  constrains  and  therefore  wastes the                                                                      
     talents of the administrators of our universities. In                                                                      
     addition,   the    statewide   office   charges   the                                                                      
      universities tens of millions of dollars for services                                                                     
      that they impose on the universities.  In sum, if the                                                                     
      statewide  office  and  its  budget  were  eliminated                                                                     
      completely, the universities  and the  system overall                                                                     
      would gain.                                                                                                               
                                                                                                                                
      There is  a reason why  you and  the public  have not                                                                     
      heard this perspective directly  from the chancellors                                                                     
      or   administrators  of   our   three   universities.                                                                     
      Statewide officials order  them to keep  their candid                                                                     
      views to themselves. We have seen orders of this kind                                                                     
      in  writing,  and   we  have  also   seen  reminders,                                                                     
      accompanying those orders, that they may be fired at-                                                                     
      will if they do not keep silent.                                                                                          
                                                                                                                                
      9:19:11 AM                                                                                                              
      That is why faculty, students,  staff and alumni have                                                                     
      been anxious to be heard,  and why we appreciate this                                                                     
      hearing now. We  know that the  senior administrators                                                                     
      of UAA, whom we  support, cannot speak  freely, so we                                                                     
      must speak for them.                                                                                                      
                                                                                                                                
      Hence, our state government and  our Board of Regents                                                                     
      have not been fully informed. To partly rectify this,                                                                     
      I  encourage  legislative  committees   that  address                                                                     
      higher education  to compel  formal testimony  of the                                                                     
      senior administrators  from  our three  universities,                                                                     
      which will protect them from  employment risk. Then I                                                                     
      suggest that you ask them pointed questions about the                                                                     
      performance of the current structure of UA governance                                                                     
      and administration. Don't  take our word for  it; ask                                                                     
      them in a formal hearing like this.                                                                                       
                                                                                                                                
      It has been  said that the  views of the  UAA faculty                                                                     
      represent only one viewpoint among  many. That is not                                                                     
      true. At  UAA an  overwhelming  majority of  surveyed                                                                     
      faculty and  staff  oppose  the  "New UA"  and  favor                                                                     
      greater   autonomy.   Increasingly    and   publicly,                                                                     
      students, alumni and  our community are  adopting our                                                                     
      position. Many of  us favor independence from  UA. We                                                                     
      fully  support   our   university's   administration.                                                                     
      Recently, the UAA Faculty Senate  passed a resolution                                                                     
      affirming our confidence in Chancellor Cathy Sandeen.                                                                     
      We are united.                                                                                                            
                                                                                                                                
      9:20:46 AM                                                                                                              
     Decentralization is  not a new  concept. The idea was                                                                      
     invoked by  Clark Kerr,  the famous  president of the                                                                      
     University of  California system, who  led the reform                                                                      
     that I am  proposing today. Their state constitution,                                                                      
     like ours, assigned  the same authority to a Board of                                                                      
     Regents and President in 1879, when the University of                                                                      
     California,  like the University  of Alaska  in 1956,                                                                      
     was one campus with  a few students. By the 1950s and                                                                      
     1960s  the  system  had  grown,  and the  constituent                                                                      
     universities  clamored  for  greater  autonomy. Their                                                                      
     Board of Regents, at  Clark Kerr's urging, gave it to                                                                      
     them.                                                                                                                      
                                                                                                                                
     9:21:18 AM                                                                                                               
     Their  Board   enacted  policies   that  divided  and                                                                      
     decentralized  authority between  themselves  and the                                                                      
     universities.   Today   the   chancellors   of  their                                                                      
     universities  have  final authority  on  most crucial                                                                      
     matters.  Their Board  retains  control  over general                                                                      
     policy and  government compliance. Their universities                                                                      
     have  their  own  endowments,  managed  by  their own                                                                      
     foundations with their  own boards of trustees. Those                                                                      
     boards     also     were     permitted     governance                                                                      
     responsibilities over  their respective universities.                                                                      
     As  a result,  UCLA, UC  Berkeley,  UC Davis,  UC San                                                                      
     Diego and others thrived.                                                                                                  
                                                                                                                                
     Unfortunately, the Board of Regents of the University                                                                      
     of Alaska  is not inclined to  do what the California                                                                      
     Regents   did.    Therefore,   we    look   to   your                                                                      
     constitutional authority to decentralize our system.                                                                       
                                                                                                                                
     Many of  us believe that the  best path forward would                                                                      
     be to break UAF, UAA and UAS out of the UA system for                                                                      
     the good of all three. Sentiment for the independence                                                                      
     of  UAA  as Alaska  State  University  is  strong and                                                                      
     growing.                                                                                                                   
                                                                                                                                
     The  main  obstacle  to  accomplishing  this  is  the                                                                      
     question  whether the  constitution permits  a public                                                                      
     institution of higher  education to exist independent                                                                      
     of UA.  Exhibit A,  which is  appended to  my written                                                                      
     statement,   shows   that   the   delegates   to  the                                                                      
     constitutional  convention divided on  this question,                                                                      
     and the courts never ruled on it.                                                                                          
                                                                                                                                
     9:22:47 AM                                                                                                               
      While I am in  favor of testing the  question whether                                                                     
      the system  can  be broken  up,  I  recognize a  more                                                                     
      prudent, intermediary step.                                                                                               
                                                                                                                                
      There is solid constitutional ground, affirmed by the                                                                     
      Supreme Court  of  Alaska, for  you  to redefine  the                                                                     
      responsibilities of the Board of Regents by statute.                                                                      
                                                                                                                                
      Article VII, sections 2 & 3 qualify the fiduciary and                                                                     
      governance responsibilities  of the Board  of Regents                                                                     
      by the phrases "according to  law" and "in accordance                                                                     
      with law." You  are the authors  of the law.  You, by                                                                     
      statute, can regulate those responsibilities. You can                                                                     
      give us our  own board  of trustees,  final authority                                                                     
      over programs and services, our own endowment managed                                                                     
      by our own foundation, and limit the responsibilities                                                                     
      of the  Board of  Regents to  compliance and  general                                                                     
      policy.  You   can  make   the  chancellors   of  our                                                                     
      universities accountable to their  boards of trustees                                                                     
      only.                                                                                                                     
                                                                                                                                
      Mr. Chairman, let this be done  and you will not only                                                                     
      save  but will  also  revivify  higher  education  in                                                                     
      Alaska for generations  to come.  This path  leads to                                                                     
      improved   governance,    administration,    improved                                                                     
      financial performance  and  to  better education  and                                                                     
      research. This will best serve the state of Alaska.                                                                       
                                                                                                                                
      Nabors, Exhibit A                                                                                                     
                                                                                                                                
      The Constitution of the State  of Alaska, Article VII                                                                     
      - Health, Education and Welfare                                                                                           
                                                                                                                                
      Sec. 1. Public Education                                                                                                  
      The legislature  shall by  general law  establish and                                                                     
      maintain a  system  of  public  schools open  to  all                                                                     
      children of  the  State  and  may provide  for  other                                                                 
      public  educational   institutions.(1)  Schools   and                                                                 
      institutions  so  established  shall   be  free  from                                                                     
      sectarian control. No money shall be paid from public                                                                     
      funds for  the  direct benefit  of  any religious  of                                                                     
      other private educational institution.                                                                                    
                                                                                                                                
      Sec. 2. State University                                                                                                  
      The University of Alaska is hereby established as the                                                                     
      state university and constituted a body corporate. It                                                                     
      shall have title  to all  real and  personal property                                                                     
     now or hereafter set aside for or conveyed to it. Its                                                                  
     property  shall  be   administered  and  disposed  of                                                                  
     according to law.(2)                                                                                                   
                                                                                                                                
     Sec. 3. Board of Regents                                                                                                   
     The University of Alaska shall be governed by a board                                                                      
     of  regents. The  regents shall  be appointed  by the                                                                      
     governor,  subject to confirmation  by a  majority of                                                                      
     the members of  the legislature in joint session. The                                                                      
     board  shall,  in  accordance  with law,(3) formulate                                                                  
     policy and  appoint the president  of the university.                                                                      
     He shall be the executive officer of the board.                                                                            
                                                                                                                                
     Notes:                                                                                                                     
                                                                                                                                
     1.   Delegates to the state constitutional convention                                                                      
     in 1955-6 disagree  as to whether the legislature can                                                                      
     create  a  new state  university,  separate  from the                                                                      
     University  of Alaska.  Delegate  Dorothy  Awes whose                                                                      
     committee wrote section  1 explains, "For instance, a                                                                      
     state university..." (1531-2), when giving an example                                                                      
     of  what  is   meant  by  "other  public  educational                                                                      
     institutions."  But  Delegate  Victor  Rivers,  whose                                                                      
     committee   wrote   sections   2   and   3  explains,                                                                      
     "...constitutionally  the University of  Alaska shall                                                                      
     be the  only state  university in  Alaska" (p. 2792).                                                                      
     The courts have not ruled on the question whether the                                                                      
     legislature  can create  a state  university separate                                                                      
     from  the University  of Alaska, although  once, they                                                                      
     came  close  in  McAlpine  v.  University  of  Alaska                                                                      
     (1988).                                                                                                                    
                                                                                                                                
     2.   Hence,   the   legislature   may   regulate  the                                                                      
     administration and  disposition of property titled to                                                                      
     the University  of Alaska. In  McAlpine v. University                                                                      
     of Alaska the  Supreme Court of Alaska supported this                                                                      
     interpretation  in  a ruling  against  a  transfer of                                                                      
     property from UA, not because it is unconstitutional,                                                                      
     but because  transfers of  property have  to take the                                                                      
     legislative form of an appropriation. Especially, see                                                                      
     p. 90-1.                                                                                                                   
                                                                                                                                
   3. Hence, the authority of the Board  of Regents can be                                                                      
     adjusted by the legislature.                                                                                               
                                                                                                                                
9:24:18 AM                                                                                                                    
 SENATOR  COGHILL  asked  if  he  and  the  other  presenters  had                                                              
 specific  recommendations  or  were  more  generally  asking  for                                                              
 authority to make each of the three universities autonomous.                                                                   
                                                                                                                                
 9:24:50 AM                                                                                                                   
 DR. NABORS  said the Faculty  Senate has  been under  pressure to                                                              
 respond to the proposal to create the "new  UA" and the threat of                                                              
 consolidation,   so  their   efforts   have   been   focused   on                                                              
 counterposing  that  proposal. He  stated  that  there  are  many                                                              
 models, but his preference is Alaska  State University. He opined                                                              
 that the steps  to a clear  constitutional authority would  be to                                                              
 divide  the  Board  of  Regents'   responsibilities,  essentially                                                              
 delegate them by statute. He  said there has been no  vote on the                                                              
 preferred model because the  focus has been to stop  the "new UA"                                                              
 which he believes would be a disaster for UAF, UAA, and UAS.                                                                   
                                                                                                                                
 9:25:00 AM                                                                                                                   
 SENATOR KAWASAKI joined the meeting via teleconference.                                                                        
                                                                                                                                
 9:26:08 AM                                                                                                                   
 SENATOR COGHILL  said by  default the  question is  more for  the                                                              
 Board of Regents,  but his voice will  be very important  in this                                                              
 discussion. He noted that  Dr. Nabors outlined very  clearly that                                                              
 he is  not interested  in consolidation.  He said  he would  meet                                                              
 with the Board of Regents to discuss the  plan to consolidate. He                                                              
 stated that the legislature must figure out  what that would look                                                              
 like statutorily and  as more testimony  is heard today,  he will                                                              
 watch for that process.                                                                                                        
                                                                                                                                
 9:27:06 AM                                                                                                                   
 DR. NABORS  suggested that it  might be  helpful to  separate the                                                              
 question into  two parts.  He asked  what is  expedient, what  is                                                              
 good policy, what is constitutional, and what  is best for higher                                                              
 education. He  encouraged  everyone to  separate those  questions                                                              
 and to  ask,  "what  ought  we do"  and  "what  can we  do"  with                                                              
 constitutional authority. He  encouraged the legislature  to take                                                              
 note of Article VII, Sections 2 and 3,  where it says, "according                                                              
 to law" and "in accordance with law"  because the legislature has                                                              
 a   constitutional   authority   and   duty    to   qualify   the                                                              
 responsibilities of  the Board  of  Regents. He  opined that  the                                                              
 duty does fall on the legislature.                                                                                             
                                                                                                                                
 9:28:21 AM                                                                                                                   
 SENATOR  COGHILL  said   the  question   on  how  to   deal  with                                                              
 constitutional authority as it pertains to  the university system                                                              
 has been a  long-standing question.  He said  Alaska has  a small                                                              
 population and that even  though the university system  is spread                                                              
out, it is still a  relatively small enterprise. He said he still                                                               
needs to be convinced that  autonomy would work but he is open to                                                               
more discussion. He acknowledged  that his main prejudice is that                                                               
Alaska is still a small state.                                                                                                  
                                                                                                                                
DR. NABORS  challenged the statement  that a  state or individual                                                               
university must  be large to  have its own board.  He pointed out                                                               
that every  public university  system in the  United States began                                                               
small  with a  handful of  students, a  board, and  president. He                                                               
highlighted  that  many  small  public  colleges  have their  own                                                               
board.  He emphasized  that responsibilities  need to  be divided                                                               
saying that  he would  appeal to  the theory behind  the American                                                               
principle  of  federalism. "We  believe  that  people  can govern                                                               
themselves." He  offered his belief  that UAA  is certainly large                                                               
enough to  have its own board  of trustees. He  said that if they                                                               
were to  draw upon  people from the  communities of  UAA and UAF,                                                               
there would  be a group  of people who  could provide outstanding                                                               
governance,   could   make   deals   that   would   bolster   the                                                               
universities'  finances, and  work with  the chancellors  to make                                                               
sound  cost   cutting  measures.  That   isn't  possible  without                                                               
individual boards                                                                                                               
                                                                                                                                
9:31:42 AM                                                                                                                    
SENATOR  COGHILL said  he  appreciates the  dialogue  but worries                                                               
that it  would create  bigger problems  if the  university system                                                               
operated with individual boards  and each came to the legislature                                                               
separately for a variety of support.                                                                                            
                                                                                                                                
9:32:33 AM                                                                                                                    
DR. NABORS admitted that he  did not know what burdens this would                                                               
place on  the legislature  but said he  believes it  is a problem                                                               
worthy  of  consideration.  He said  it  might  be  hard  for the                                                               
legislature to imagine  what a drag the  current system is on the                                                               
universities,  but the faculty  clearly sees  how it  impacts the                                                               
performance  of  the  overall  system.  He  stated  that  if  the                                                               
universities  are unshackled  and have  their own  governance and                                                               
administration,  there  may  be  a  tradeoff  and the  individual                                                               
universities  may  inherit  some  new responsibilities,  but  the                                                               
gains will be considerable and worth the trouble.                                                                               
                                                                                                                                
DR. NABORS emphasized  that his comments were  not intended to be                                                               
disrespectful.  He  was  here  today  because  he  loves UAA  and                                                               
believes it  could grow into  a great public  university if given                                                               
the  chance.  He  suggested  that  the legislature  might  better                                                               
understand the  respective universities  if it had  a more direct                                                               
connection with each one.                                                                                                       
                                                                                                                                
 9:34:42 AM                                                                                                                   
 SENATOR REINBOLD  said she  appreciates  the perspective  because                                                              
 she has been  intrigued by the  idea of consolidation.  She asked                                                              
 what three things  drive up costs  in the university  system, and                                                              
 what three changes could help reduce costs.                                                                                    
                                                                                                                                
 DR. NABORS  replied that  he was  not an  accountant, but  he was                                                              
 proposing  a   different  model   which  would  change   economic                                                              
 behavior.  He   stated  that   to  forecast   the  finances   for                                                              
 decentralization,  one  would have  to  consider  the  change  in                                                              
 economic behavior.  He  added that  people  act differently  when                                                              
 they  have  responsibility  and  can  make  their  own  decisions                                                              
 concerning their  finances. He  highlighted that  the way  to put                                                              
 together a forecasted  model for what a  decentralized university                                                              
 would cost, you must take  into account that the  entire model is                                                              
 different.                                                                                                                     
                                                                                                                                
 DR. NABORS offered  his belief that  UA statewide is  the biggest                                                              
 drag on the system.  It is not just  that it spends its  share of                                                              
 the UGF appropriation,  but that it  also takes $38  million from                                                              
 the universities' budgets  collectively. He pointed out  that the                                                              
 higher education budget  subcommittees have never been  asked how                                                              
 much money is taken out of the universities'  budgets or how many                                                              
 of its  expenses  are moved  into  the  universities' budgets  in                                                              
 order to claim a cut.  He said statewide ought to be  asked a lot                                                              
 of questions about how  it handles finances.  For  example, it is                                                              
 frustrating  to  know   that  UA  statewide  doesn't   teach  any                                                              
 students, but  it receives  four times  what the  UAA College  of                                                              
 Arts  and Science  receives  to  educate  the  largest  share  of                                                              
 students in the state of Alaska.                                                                                               
                                                                                                                                
 9:39:31 AM                                                                                                                   
 DR. NABORS said decentralization  of the university  would change                                                              
 the economic behavior and bring it in  line with the marketplace.                                                              
 He opined that  if the  universities are  more exposed  to market                                                              
 pressures, the less  efficient programs  would be cut.  This will                                                              
 also allow the universities to pursue  new revenue opportunities.                                                              
 He suggested, for example, working with  Providence Health Center                                                              
 not only to  build the number  of health professionals  in Alaska                                                              
 but also  to  generate more  revenue to  create  a better  health                                                              
 program. However,  administrators  do not  have  the latitude  to                                                              
 make those  kinds of  decisions under  the current structure.  He                                                              
 apologized for not having  a ready list of what  drives costs and                                                              
 what would reduce costs for the university system.                                                                             
                                                                                                                                
 9:42:05 AM                                                                                                                   
CHAIR SHOWER asked how  the local university administrators could                                                               
be  given  more  latitude   while  staying  within  the  existing                                                               
statutory and constitutional framework.                                                                                         
                                                                                                                                
DR. NABORS  responded that the  Alaska Supreme  Court decided two                                                               
important cases that control  the question. The first one was the                                                               
University  of  Alaska  v.  National  Aircraft Leasing  in  1975.                                                               
Justice Dimond  wrote the majority  opinion and  said, "the board                                                               
of regents  is expressly  subject" (Alaska  Constitution, Article                                                               
VII,  Section 2&3)  to  the legislative  authority.  Judge Dimond                                                               
gave examples  of how the Board  of Regents is  controlled by the                                                               
legislature.                                                                                                                    
                                                                                                                                
The second  case was  McAlpine v.  University of Alaska  in 1988.                                                               
That  case  favored  the  constitutionality  of  having  separate                                                               
institutions  of  higher education  coexisting  with  UA. Justice                                                               
Moore  reviewed  the   proposed  ballot  initiative  to  separate                                                               
community  colleges   from  the  University   of  Alaska  system,                                                               
transfer the  properties to  the new proposed  community college,                                                               
and  specify the  amount of  property transferred.  Justice Moore                                                               
removed the  third sentence of the  ballot initiative because the                                                               
part that would determine  the amount of property transferred did                                                               
not  follow   the  proper  legislative  form   according  to  the                                                               
constitution.    The    constitution    clearly    states    that                                                               
appropriations  must be made  by the  legislature, not  by ballot                                                               
initiative.                                                                                                                     
                                                                                                                                
DR. NABORS highlighted  that this means  the legislature has very                                                               
broad  constitutional authority  to both  regulate  the fiduciary                                                               
and  governance responsibilities  of the  board  and to  create a                                                               
separate institution  of higher education that  is outside the UA                                                               
system.  He  pointed out  that  Delegate  Victor  Rivers authored                                                               
Sections 2  and 3 of Article  VII which states  that there may be                                                               
new  extensions of  the University  of Alaska,  but only  if they                                                               
fall  under the  UA system.  However,  according to  Dorothy Awes                                                               
(the author of Section  1 that refers to other public educational                                                               
institutions) the  legislature has the authority  to separate the                                                               
three  universities   and  create   them  as   entirely  separate                                                               
entities.                                                                                                                       
                                                                                                                                
9:48:42 AM                                                                                                                    
DR. NABORS acknowledged  that Rivers and  Awes disagree with each                                                               
other but  pointed out that the  1988 case came  down in favor of                                                               
the constitutionality  of a  separate system of  higher education                                                               
coexisting with  the University  of Alaska.  He said he  does not                                                               
understand  why many  legislators believe  that the  authority of                                                               
the  Board  of   Regents  is  absolute  when   the  text  of  the                                                               
 constitution and the decision of the  Alaska Supreme Court states                                                              
 otherwise. He opined that  the university system must  be brought                                                              
 back to account  to the public,  the stakeholders and  the owners                                                              
 of the UA system.  Currently it is insulated  from accountability                                                              
 to the people of Alaska through the legislature.                                                                               
                                                                                                                                
 9:49:57 AM                                                                                                                   
 CHAIR  SHOWER  noted  that  Senator  Reinbold   had  a  few  more                                                              
 questions.                                                                                                                     
                                                                                                                                
 SENATOR REINBOLD said she wanted to return to  the topic of WWAMI                                                              
 and why a proposal to Providence has not been made.                                                                            
                                                                                                                                
 DR. NABORS  stated  that  he  did  not  refer to  WWAMI  but  his                                                              
 colleague Max Kullberg, a  professor in the program,  could speak                                                              
 later to that.                                                                                                                 
                                                                                                                                
 He said  his  background  in business  tells  him  that there  is                                                              
 opportunity if the  university collaborates with  Providence, but                                                              
 he understands  those  deals cannot  be  made  under the  current                                                              
 structure. He  opined that  if the  local administration  had the                                                              
 latitude to make those deals, it could stabilize UAA finances.                                                                 
                                                                                                                                
 SENATOR REINBOLD  suggested that  his idea  could be  expanded to                                                              
 include  the  Alaska  Regional  and  the  Alaska  Native  Medical                                                              
 Center.                                                                                                                        
                                                                                                                                
 She reflected that in some  of the hearings she has  been part of                                                              
 she heard  people  say  their  buildings are  underutilized.  One                                                              
 exception to that is Chugiak High School  in Eagle River...(Audio                                                              
 unclear). She  said  it seems  like the  second  thing to  reduce                                                              
 costs would  be  to decrease  administration  by eliminating  the                                                              
 statewide system. The  third thing that  drives costs up  are the                                                              
 union contracts. She asked him to comment on those points.                                                                     
                                                                                                                                
 DR. NABORS  said  he favors  fiscal  responsibility and  dislikes                                                              
 waste.  He   opined   that  something   should   be  done   about                                                              
 underutilized space, but that was not  his day-to-day concern. He                                                              
 said he cannot speak to union contracts as he is not involved.                                                                 
                                                                                                                                
 9:54:08 AM                                                                                                                   
 SENATOR REINBOLD asked if he supported the  model of auditing and                                                              
 prioritizing  programs   and  if  any   of  that   was  currently                                                              
 happening.                                                                                                                     
                                                                                                                                
 DR. NABORS said  he supports  fiscal responsibility  and believes                                                              
 all good administrators should pay attention to  costs as well as                                                              
what should  be eliminated. He  stated that the  real question to                                                               
ask is  who should  do the auditing.  He said  he strongly favors                                                               
the  local  universities  overseeing  the  auditing  process  and                                                               
making decisions  about programs,  not from  the top.  He said he                                                               
doesn't  understand  why the  president  of  the  university said                                                               
there is no  need for three departments  of political science and                                                               
three universities.  He described  that as  a myopic  approach of                                                               
reviewing programs  to decide  what to keep  and what  to cut. He                                                               
said his  request is  to decentralize  the universities,  so they                                                               
are  subject to  market forces  and more  likely to  induce cuts.                                                               
Reviewing  costs and  programs should  be  an ongoing  process as                                                               
well as  investing in  programs that  will generate  more tuition                                                               
dollars and research funds.                                                                                                     
                                                                                                                                
9:57:21 AM                                                                                                                    
CHAIR SHOWER thanked Dr. Nabors and welcomed Mayor Berkowitz.                                                                   
                                                                                                                                
He recognized that Representative Geran Tarr was in attendance.                                                                 
                                                                                                                                
             ^Municipality of Anchorage Perspective                                                                           
                                                                                                                                
9:59:56 AM                                                                                                                    
ETHAN  BERKOWITZ, Mayor,  Municipality  of  Anchorage, Anchorage,                                                               
Alaska, asked  the committee to  consider three  points since the                                                               
legislature  has  fiscal oversight  over  the  university. First,                                                               
look at the economic  impacts the university has on the community                                                               
at  large.  He noted  how  the  number  of  students and  faculty                                                               
influences things  like the housing market  and local businesses.                                                               
Second, look  at the  role the  university has in  recruiting and                                                               
the inducements it  offers to retain people  in the community. He                                                               
opined  that  if  a  budget  was  structured  solely  on  current                                                               
conditions without regard to  what would happen in the future, it                                                               
would  inhibit  the  ability  to  have  a better  future.  Third,                                                               
consider the  role the university  has with  the city's identity.                                                               
He cited the  Sea Wolves and how the  relationship with the green                                                               
and gold  is an  important part. The  community is  proud of what                                                               
the  university does.  He  asked  the   committee  to contemplate                                                               
those three criteria as it moves forward.                                                                                       
                                                                                                                                
MAYOR BERKOWITZ  said there are  things a municipality  can do in                                                               
conjunction with  the university  to manage the  fiscal situation                                                               
in ways  that are prudent for  both entities. He  noted that this                                                               
extends beyond  the municipality  to the  state as well.  He said                                                               
the  municipality  and   legislature  work  together  to  provide                                                               
services and infrastructure  to the same constituencies. He asked                                                               
the legislature  give thought to  how the municipality  can be of                                                               
 assistance  in terms  of  services  that  are  required  for  the                                                              
 university to deliver its profit.                                                                                              
                                                                                                                                
 10:04:25 AM                                                                                                                  
 FELIX  RIVERA,   Chair,  Anchorage   Assembly,  Municipality   of                                                              
 Anchorage, Anchorage, Alaska,  said the assembly is  keenly aware                                                              
 of how important the  university is to the community.  UAA staff,                                                              
 students,  and  alumni   serve  voluntarily  on  the   dozens  of                                                              
 municipal boards and commissions.  He added that UAA  also played                                                              
 a key role  in making the  Welcoming Anchorage  movement possible                                                              
 by gathering and analyzing  data which showed Anchorage  has some                                                              
 of the  most diverse  schools in  the country.  UAA students  and                                                              
 faculty assisted in the creation of  the Anchorage Climate Action                                                              
 Plan which  was  a  guide  to  mitigate the  effects  of  climate                                                              
 change. He said UAA students have served  as interns for assembly                                                              
 members, providing  research  that  has  led to  positive  policy                                                              
 change. UAA also has an  important role on the  economy, not only                                                              
 by  educating  future   business  leaders  but  students   add  a                                                              
 significant stimulus to  Anchorage's economy. He stated  that the                                                              
 university  is  an  invaluable  institution   that  enriches  the                                                              
 municipality.                                                                                                                  
                                                                                                                                
 He  said this  knowledge  and  foresight  inspired  him  and  his                                                              
 colleague, Meg Zaletel,  to lead the  charge for the  assembly to                                                              
 engage in this issue. That took place in three ways:                                                                           
                                                                                                                                
        o The assembly encouraged the Board of Regents to engage                                                                
           in a thorough vetting process of the options and to                                                                  
           engage in a dialogue with the governing structures of                                                                
           the three universities.                                                                                              
        o A town hall meeting was hosted to address the                                                                         
           community's concerns and to further educate the                                                                      
           community at large.                                                                                                  
        o The assembly crafted a formal resolution to offer                                                                     
           guidance  to  the  Board  of  Regents.  The  resolution                                                              
           provided two  suggestions to  the regents:  to vet  all                                                              
           options  presented  to them  and  to  ensure  a  proper                                                              
           engagement of all community stakeholders.                                                                            
                                                                                                                                
 10:07:46 AM                                                                                                                  
 MR.  RIVERA  highlighted  that  funding  and  guidance  from  the                                                              
 legislature plays a key  role in this discussion  and he commends                                                              
 the members engaging in today's discussion.                                                                                    
                                                                                                                                
 10:08:04 AM                                                                                                                  
 MEG  ZALETEL,   member,  Anchorage   Assembly,  Municipality   of                                                              
 Anchorage,  Anchorage,  Alaska,  stated  that  UAA  is  a  unique                                                              
institution  within the  University  of Alaska  system.  The core                                                               
theme  of  UAA  is  commitment  to  instruction  at a  number  of                                                               
academic levels,  successful students regardless  of their higher                                                               
education  goals,   and  service   to  the  diverse   people  and                                                               
communities   of  the   state.  She   noted  that   UAA  provides                                                               
educational opportunity  to students  who may not  have access to                                                               
higher  education. Some  30-35 percent  of  UAA students  are the                                                               
first  in their  family  to attend  college. She  noted  that the                                                               
average  age  of UAA  students  is  28 years  old  and  that most                                                               
students take nine credits  or less. She opined that the assembly                                                               
must advocate  to keep this  unique and  valuable institution for                                                               
the community, city, and  state. She said the economic effects of                                                               
consolidating  the  university  system  to  a  single  accredited                                                               
university  would be  significant  to Anchorage.  There  would be                                                               
ripple  effects   within  the  economy   from  decreased  student                                                               
enrollment and  job losses. She added  that beyond economics, the                                                               
first  generation, non-traditional  and part-time  students would                                                               
not  have the  opportunities they  have  now. The  uncertainty of                                                               
UA's  status has  taken its  toll and  enrollment is  down almost                                                               
1900 students.                                                                                                                  
                                                                                                                                
She said  the other option  proposed by the  UA chancellors, many                                                               
faculty, alumni,  and students is a  consortium model. This model                                                               
would allow  UAA to maintain  local control over  its mission and                                                               
how it  operates as a  university while  still collaborating with                                                               
the University  of Alaska Fairbanks  (UFF) and  the University of                                                               
Alaska Southeast (UAS).                                                                                                         
                                                                                                                                
MS. ZALETEL stated that it  is the assembly's hope that the Board                                                               
of Regents receives lots  of input from all stakeholders and that                                                               
the communities  of Alaska  reach out  to one  another concerning                                                               
the options  and potential impacts  this could  have locally. She                                                               
opined that the  concerns of UAA and UAF  are similar and that it                                                               
would  be   beneficial  to  convene  and   discuss  the  concerns                                                               
collaboratively.                                                                                                                
                                                                                                                                
She said the  impact of restructuring  the university system will                                                               
be felt widely so now is  the time to speak up to ensure there is                                                               
a robust university system moving forward.                                                                                      
                                                                                                                                
10:11:07 AM                                                                                                                   
DR.  MARA   KIMMEL,  First   Lady,  Municipality   of  Anchorage,                                                               
Anchorage, Alaska   said that  as a former faculty  member, not a                                                               
day goes by that she  doesn't run into one of her students. These                                                               
alumni students  are impacting  the longevity  and sustainability                                                               
of the community.                                                                                                               
                                                                                                                                
 DR.  KIMMEL  said  she  has  worked   with  multiple  initiatives                                                              
 including  the Welcoming  Anchorage  Initiative  and  the  Alaska                                                              
 Resilience Initiative (ARI) to promote  workforce development and                                                              
 economic opportunities for  all community residents.  She pointed                                                              
 out  that  neither  of  the  initiatives   could  not  have  been                                                              
 accomplished without the  help of UAA  faculty and  students. She                                                              
 emphasized that the city could only  address these major concerns                                                              
 because of the volunteer  labor through the faculty  research and                                                              
 student work. The cost  efficiencies that it enables  the city to                                                              
 exercise by not  expending scarce resources  on human  capital is                                                              
 vital.                                                                                                                         
                                                                                                                                
 10:14:07 AM                                                                                                                  
 DR. KIMMEL highlighted that  the university has been  critical to                                                              
 the residents of the municipality. Her children  have been to the                                                              
 university as  middle school  and  high school  students to  take                                                              
 advantage of the many opportunities the  university provides such                                                              
 as summer  camp, singing  lessons,  or using  the library.  "This                                                              
 university is such a  critical part of our  city's infrastructure                                                              
 and it is  such a critical  institution in  creating partnerships                                                              
 that really make Anchorage  a vibrant and vital city  and a place                                                              
 that people want to  come." She said  Alaska does not have  a lot                                                              
 of institutions  due  to its  small population,  but  what it  is                                                              
 lacking  in  numbers, it  is  made  up  for  through  the  strong                                                              
 partnerships of those various institutions.  The institutions all                                                              
 rely on  one another.  She said  to cripple  one of the  partners                                                              
 would  impact  the  city   and  its  ability  to   address  major                                                              
 challenges.                                                                                                                    
                                                                                                                                
 DR. KIMMEL urged  the committee members  to contemplate  the role                                                              
 all the institutions  play in  their respective  communities. She                                                              
 said it  is  important for  the  three  universities to  maintain                                                              
 autonomy  and  accreditation.   The  universities   work  closely                                                              
 together, and  they all  need  to be  vibrant to  respond to  the                                                              
 residents they serve.                                                                                                          
                                                                                                                                
 10:17:06 AM                                                                                                                  
 CHAIR SHOWER assured the presenters that  the legislature was not                                                              
 interested in doing away  with the university, but  that this was                                                              
 an effort to make the system more efficient.                                                                                   
                                                                                                                                
 10:18:08 AM                                                                                                                  
 MAYOR BERKOWITZ  summarized several  points. He  opined that  the                                                              
 restructuring  effort  should  be  a  collaborative  process.  He                                                              
 advised the members  to move slowly  in decision  making. Lastly,                                                              
 he said he would like  a clear idea or vision  for the university                                                              
before any restructuring takes place. He emphasized he is not in                                                                
favor of consolidation.                                                                                                         
                                                                                                                                
SENATOR SHOWER said the intent is to have that discussion before                                                                
making any decisions. He would like all voices to be heard and                                                                  
to be a part of the greater debate.                                                                                             
                                                                                                                                
10:19:38 AM                                                                                                                   
At ease                                                                                                                         
                                                                                                                                
10:44:47 AM                                                                                                                   
CHAIR SHOWER reconvened the meeting and welcomed the next                                                                       
presenter.                                                                                                                      
                                                                                                                                
         ^Perspective of Student and Faculty Leadership                                                                       
                                                                                                                                
10:44:55 AM                                                                                                                   
SCOTT DOWNING, Associate Professor of English, UAA Kenai                                                                        
Peninsula College; President, UAA Faculty Senate, delivered the                                                                 
following prepared statement:                                                                                                   
                                                                                                                                
     To  the  chair,  my name  is  Scott  Downing.  I  am an                                                                    
     Associate   Professor  of   English   at   UAA's  Kenai                                                                    
     Peninsula  College  campus  and  I  currently serve  as                                                                    
     president of the UAA Faculty Senate.                                                                                       
                                                                                                                                
     I'm here today to  emphasize the importance of faculty,                                                                    
     faculty  perspectives, and  faculty  governance  in the                                                                    
     life  and  success of  UAA  as  we consider  structural                                                                    
     changes in the UA system.                                                                                                  
                                                                                                                                
     Faculty   embody   the  mission   and   values   of  an                                                                    
     institution through  their responsibility for programs,                                                                    
     curriculum,  teaching, research,  and  academic policy.                                                                    
     The Faculty  Senate serves as the  collective voice for                                                                    
     that   work.   Universities   are  incredibly   complex                                                                    
     institutions that must  serve the needs of the students                                                                    
     and communities with which they are connected.                                                                             
                                                                                                                                
     They must remain true  to their mission as evaluated by                                                                    
     accrediting bodies. Those  accrediting bodies' (ours is                                                                    
     the NWCCU)  ensures the degrees  students are receiving                                                                    
     have  value  to  the  employers  and  the  public.  The                                                                    
     existence   of   an    institution   depends   on   its                                                                    
     accreditation.                                                                                                             
                                                                                                                                
      Faculty MUST  BE deeply  involved in the  accreditation                                                                   
      process   to   ensure   that   the   requirements   for                                                                   
      accreditation  are  being  met.  Administrators,  while                                                                   
      often well- meaning,  cannot know all  the consequences                                                                   
      of their decisions, and that is  why accrediting bodies                                                                   
      REQUIRE the input of faculty in the process.                                                                              
                                                                                                                                
      There continues to be an absence  of meaningful faculty                                                                   
      involvement in  far reaching  decisions, including  the                                                                   
      discussion   of   single   accreditation    and   other                                                                   
      structural options.  There has  also been a  widespread                                                                   
      failure   to   use   cost   benefit   analysis   before                                                                   
      recommending major  structural  change  and a  lack  of                                                                   
      transparency surrounding those decisions.                                                                                 
                                                                                                                                
      In the last  four years, there  have been no  less than                                                                   
      15 resolutions and memos from Faculty  Alliance and UAA                                                                   
      Faculty Senate asking  President Johnsen  and Statewide                                                                   
      Administration  to  include  more   meaningful  faculty                                                                   
      involvement in decision making and  to provide detailed                                                                   
      cost benefit analyses on these decisions.                                                                                 
                                                                                                                                
      These  resolutions   have  questioned   a  variety   of                                                                   
      strategic initiatives  that  have  been pushed  forward                                                                   
      without cost  benefit analysis  and without  meaningful                                                                   
      faculty involvement.                                                                                                      
                                                                                                                                
      The  University   of   Alaska   College  of   Education                                                                   
      situation is one  example. In Dec. 2016,  the president                                                                   
      recommended the Board of Regents  approve consolidation                                                                   
      of the UAF, UAA, and UAS Colleges  of Education under a                                                                   
      single accredited college.                                                                                                
                                                                                                                                
      10:47:20 AM                                                                                                             
      This decision  was pushed  forward without  the support                                                                   
      of the  faculty and  ignored their  concerns about  its                                                                   
      effect on accreditation.                                                                                                  
                                                                                                                                
      Nine months later, in a report on  the progress of that                                                                   
      effort, President Johnsen stated that  "we have learned                                                                   
      that there  are  significant uncertainties  that  could                                                                   
      possibly impact UAS' institutional accreditation."                                                                        
                                                                                                                                
      In the  report,  the president  also  noted that  NWCCU                                                                   
      President Susan Ellman  had concerns about  the request                                                                   
      saying  it   would  be   "challenging  because   it  is                                                                   
      unprecedented in  her long  experience  at NWCCU".  She                                                                   
     went  on  to characterize  the  request  as  "much more                                                                    
     complex than  the NWCCU is accustomed  to reviewing due                                                                    
     to the  number of  institutions involved  and the major                                                                    
     scale  and  implications  of  the  change." Those  same                                                                    
     concerns had  been raised  by the faculty.  This is but                                                                    
     one example  of the  importance of  in-depth meaningful                                                                    
     faculty  involvement  in  discussing structural  change                                                                    
     BEFORE it moves forward.                                                                                                   
                                                                                                                                
     Recent  efforts to conduct  academic review  across the                                                                    
     Statewide  system moves  important decisions  away from                                                                    
     those program  faculty who are best  able to assess and                                                                    
     evaluate  those  decisions.  In  a  larger  sense,  the                                                                    
     current  Statewide structure  undermines  the effective                                                                    
     involvement  of faculty  at the  three  universities in                                                                    
     important decisions.                                                                                                       
                                                                                                                                
     Faculty  governance through  the Faculty  Senate serves                                                                    
     as the  means to share faculty  perspectives. It is not                                                                    
     the opinion  of an individual  administrator or faculty                                                                    
     member. It  encompasses the wisdom of  the faculty as a                                                                    
     whole.  It   helps  protect   accreditation  through  a                                                                    
     continuous  process of the  assessment of  learning. It                                                                    
     helps   ensure  our   students   and   communities  are                                                                    
     effectively   served.   Faculty   governance   is   the                                                                    
     collective voice  of the values of  UAA, and, now, more                                                                    
     than ever, it is imperative that it be heard.                                                                              
                                                                                                                                
10:49:29 AM                                                                                                                   
CHAIR SHOWER said  he imagines that if  there were three separate                                                               
universities  with  their own  accreditation  and  programs, that                                                               
would allow the universities to make autonomous decisions.                                                                      
                                                                                                                                
MR.  DOWNING replied  yes;  if one  program was  lost  then there                                                               
would  potentially  be a  similar  program at  one  of  the other                                                               
universities.                                                                                                                   
                                                                                                                                
CHAIR SHOWER asked about weaknesses with separate accreditation.                                                                
                                                                                                                                
MR.  DOWNING  replied  that  he  does  not  see  weaknesses  with                                                               
decentralization  but rather  strengths.  The  universities could                                                               
tailor programs to best  serve their community and students which                                                               
would be difficult if there was a single accreditation system.                                                                  
                                                                                                                                
10:50:44 AM                                                                                                                   
 ALEX JORGENSEN, Speaker of the Assembly, Union of Students                                                                     
 (USUAA) University of Alaska Anchorage paraphrased the following                                                               
 prepared statement:                                                                                                            
                                                                                                                                
      To the chair, my  name is Alex Jorgensen, and  I am a                                                                     
      senior at UAA, with  a major in political  science. I                                                                     
      have been part of student government  since coming to                                                                     
      UAA and  currently serve  as Speaker  of the  student                                                                     
      Assembly.                                                                                                                 
                                                                                                                                
      When providing  formal  testimony, I  always try  and                                                                     
      stick to the  facts. I  firmly believe  that combined                                                                     
      with  logic,  the  facts  always   lead  to  rational                                                                     
      decision-making. However,  in the  situation we  find                                                                     
      ourselves in,  I  see no  more pertinent  information                                                                     
      than the current feelings of the student body.                                                                            
                                                                                                                                
      Over the past four years, I have  grown to love every                                                                     
      single aspect of  UAA. From its diverse  community to                                                                     
      its open-access  mission,  UAA  has become  a  second                                                                     
      home.  During  my   tenure  here  at  UAA,   we  have                                                                     
      experienced some significant setbacks, from declining                                                                     
      state   support,  to   the   loss   of   programmatic                                                                     
      accreditation  for our  initial  licensure  programs.                                                                     
      Despite these  challenges, our  current situation  is                                                                     
      something different. I  am fearful for the  future of                                                                     
      my institution.                                                                                                           
                                                                                                                                
      Ever  since February  12th,  2019,  students  in  the                                                                     
      University of Alaska system have  been sent a crystal                                                                     
      clear  message;  that  we  are  not  important.  When                                                                     
      governor Dunleavy announced a  $135 million reduction                                                                     
      to the university,  we were  told our future  was not                                                                     
      important. When we  lost scholarships that  we earned                                                                     
      through hard work and a rigorous  curriculum, we were                                                                     
      told that the work  we do for our communities  is not                                                                     
      important.                                                                                                                
      When the legislature  failed to override  the vetoes,                                                                     
      we were  told that  we  were simply  not valuable  or                                                                     
      worthy  of  Alaska's  investment.   These  were  hard                                                                     
      messages that we received.                                                                                                
                                                                                                                                
      The pending decision by the Board  to consolidate UAA                                                                     
      into "One UA" amplifies that pain. Students feel that                                                                     
      this  "one  university"  is  being  shoved  down  our                                                                     
      throats.  At  the   same  time  that   the  statewide                                                                     
      administration  was  forcing us  to  accept  the  one                                                                     
     university  model as  reality, statewide  was telling                                                                      
     the world  that the  student body  was being actively                                                                      
     engaged in the process. We were not.                                                                                       
                                                                                                                                
     Working  groups  were  established  the  week  before                                                                      
     classes  to begin  the process  of  consolidating the                                                                      
     eight  academic  colleges.  Were  student  governance                                                                      
     groups  consulted   on  including   students  in  the                                                                      
     process? No. We were barely even on campus.                                                                                
                                                                                                                                
     10:54:24 AM                                                                                                              
     We were  sent a weekly email,  and the administration                                                                      
     did have one or  two conversations with a few members                                                                      
     from student governance  groups. On this basis can it                                                                      
     be said that  the administration is actively engaging                                                                      
     the more than  25,000 students across the system? The                                                                      
     answer is an unequivocal NO!                                                                                               
                                                                                                                                
     The  conduct  of the  administration  on  this matter                                                                      
     sends  us a  clear message  yet  again, that  we, the                                                                      
     primary  stakeholders  of  this  university, are  not                                                                      
     important. This has been the entire tune of this top-                                                                      
     down centralization approach from President Johnsen.                                                                       
                                                                                                                                
     Because students aren't  involved, because we are not                                                                      
     a part  of the process, it  is leading to devastating                                                                      
     consequences    one of those being  the loss of open-                                                                      
     access admissions policies.  As many of you may know,                                                                      
     UAA is  the only fully open-access  university in the                                                                      
     state. The  majority of our bachelor  programs do not                                                                      
     require  selective admissions.  Now,  why do  we have                                                                      
     that? Why is  open access necessary? Because EVERYONE                                                                      
     deserves  an opportunity  at  higher  education. That                                                                      
     student who barely made it through high school with a                                                                      
     1.5 GPA because  they had a rough  home life. Yes, he                                                                      
     or she deserves a chance at higher education.                                                                              
                                                                                                                                
MR.  JORGENSEN added  that  a 2014  report looked  at  what would                                                               
happen if UAA changed its  admission policy to match that of UAF.                                                               
The report  analyzed the  previous six years  at UAA  and how the                                                               
number of graduates would  change in that period if the admission                                                               
policy  changed.  He  highlighted   that  the  study  showed  525                                                               
students  would not have  had the  opportunity to  graduate under                                                               
new  admission  policies.  He  emphasized  that  UAA's  admission                                                               
policy is not  better, it is simply different  and meant to serve                                                               
the community of  Southcentral Alaska. He said  80 percent of UAA                                                               
students work  full time and  half of them care  for a dependent,                                                               
 making UAA  uniquely different  than UAF  and UAS.  He asked  why                                                              
 risk  losing  the  only  open  access  university  in  Alaska  by                                                              
 consolidation.                                                                                                                 
                                                                                                                                
 MR. JORGENSEN continued to paraphrase his prepared statement:                                                                  
                                                                                                                                
      UAA has  developed  systems and  support networks  to                                                                     
      give students like this  a chance. They  may take, 6,                                                                     
      7, or even 8 years to graduate,  but they get the job                                                                     
      done.  UAA  graduates  students  who   would  not  be                                                                     
      successful   in  any   other   traditional   academic                                                                     
      institution.                                                                                                              
                                                                                                                                
      10:57:15 AM                                                                                                             
      A  few  weeks ago  when  I  was  in  a  meeting  with                                                                     
      President Johnsen, I explained to  him the importance                                                                     
      of open enrollment to our students  and the Anchorage                                                                     
      community to  which  he  replied:  "we will  have  to                                                                     
      balance  the  enrolment  policies  if  we  choose  to                                                                     
      consolidate." I'm  sorry, this  just doesn't  cut it.                                                                     
      You are either  open enrolment,  or you are  not. You                                                                     
      either provide access to higher education for ALL, or                                                                     
      you don't.  There  is  no in-between.  This  top-down                                                                     
      centralization  approach   is  putting   pathways  to                                                                     
      education for generations of students in jeopardy.                                                                        
                                                                                                                                
 MR.  JORGENSEN   said  that   faculty,  students,   stakeholders,                                                              
 legislators, and  President Johnsen  all want  the same  thing; a                                                              
 university system that fulfills the needs  of higher education in                                                              
 Alaska. However, he opined  that if the process  does not involve                                                              
 the primary  stakeholders, the  students, they  will never  reach                                                              
 the best  outcome.  When students  feel  ownership  of their  own                                                              
 institution, they will be more successful.                                                                                     
                                                                                                                                
 MR. JORGENSEN said his intention today was  to share how students                                                              
 have felt throughout this process although  it really hasn't been                                                              
 a  process.  It's  more   an  unequivocal  statement   about  the                                                              
 direction the university is taking.                                                                                            
                                                                                                                                
 10:59:31 AM                                                                                                                  
 CHAIR SHOWER  emphasized that  the  university is  there for  the                                                              
 students,  and hearing  his  perspective  is  important  to  this                                                              
 process. He  said he  hopes this  provides that  voice on  how to                                                              
 structure the system moving forward.                                                                                           
                                                                                                                                
 11:00:13 AM                                                                                                                  
SENATOR  REINBOLD talked  about the  importance of  the student's                                                               
perspective  and   about  student   scholarships  and  university                                                               
funding.                                                                                                                        
                                                                                                                                
MR. JORGENSEN  said what  most students  see is that  they aren't                                                               
valued,  even  though they  are.  That  unintentional  message is                                                               
impacting  enrollment which  is down 12.4  percent this  year. He                                                               
pointed out that UAA positively impacts the Alaskan economy.                                                                    
                                                                                                                                
CHAIR SHOWER  said one  of the  goals is  to find ways  to reduce                                                               
costs.  He added  that  it would  be  a  good thing  to  have the                                                               
university system less reliant on state funding.                                                                                
                                                                                                                                
CHAIR SHOWER welcomed Dr. Frank Jeffries.                                                                                       
                                                                                                                                
                        ^Management Risks                                                                                     
                                                                                                                                
11:04:32 AM                                                                                                                   
DR. FRANK JEFFRIES, Professor  Emeritus of Management, College of                                                               
Business  and  Public  Policy,  University  of Alaska  Anchorage,                                                               
Anchorage, Alaska, delivered the following prepared statement:                                                                  
                                                                                                                                
     To  the chair,  my  name is  Frank  Jeffries, retired                                                                      
     Emeritus Professor  of Management for  the College of                                                                      
     Business  and  Public  Policy  (CBPP).  I  served  as                                                                      
     Associate Dean for  Academics and Department Chair of                                                                      
     Management in  the CBPP as well. I  spent 20 years in                                                                      
     private  industry, the  last  9 as  a  senior product                                                                      
     marketing manager in high tech. I have also served on                                                                      
     boards of directors and have consulted for many major                                                                      
     companies in Alaska.                                                                                                       
                                                                                                                                
     I want  to make three points  today. First leadership                                                                      
     of the University of Alaska System is earning failing                                                                      
     grades   on  two   critical   management  performance                                                                      
     indicators  severely limiting  their ability  to lead                                                                      
     change;  second, there  is  solid  objective evidence                                                                      
     that  consolidation  of  colleges  will  not  achieve                                                                      
     savings; and  third, decentralization or independence                                                                      
     for   UAA,   UAF,   and   UAS   will   support   both                                                                      
     intrapreneurship   and   entrepreneurship   that   is                                                                      
     currently stifled by the central administration.                                                                           
                                                                                                                                
     The  President of  Statewide has  had three  years to                                                                      
     perform  and  build support  for  his  leadership and                                                                      
     goals. A primary indicator of support for a leader is                                                                      
     the morale of the group they lead. In 2016 83% of the                                                                      
      faculty and 75% staff who responded to the respective                                                                     
      surveys  at  UAA  said  their   morale  had  declined                                                                     
      (sources of all data  used are noted  in the attached                                                                     
      appendix). Results reported  this year show  that the                                                                     
      numbers have improved but are  still terrible. In the                                                                     
      current surveys  67% of  the faculty  and 49%  of the                                                                     
      staff say that morale has declined  in the last year.                                                                     
      Going from bad to worse is not an improvement.                                                                            
                                                                                                                                
      A known effect  of low morale is  increased intention                                                                     
      to  leave   one's  current   employment  and   it  is                                                                     
      prevalent. Currently 27% of the  staff have indicated                                                                     
      they actively  seeking a  job outside  the university                                                                     
      and in 2016 41% of the faculty  were looking, up from                                                                     
      25% in 2013. Given these numbers,  if the turnover of                                                                     
      faculty is less  than 10%  it would be  shocking. The                                                                     
      normal turnover  for a  well-run university  is about                                                                     
      4.7% according to the Chronicle of Higher Education.                                                                      
                                                                                                                                
      The numbers of faculty and  staff who report actively                                                                     
      looking for work would be a red  flag to any well-run                                                                     
      organization. By any objective  measure these numbers                                                                     
      on morale,  and so  many employees  looking  for work                                                                     
      outside the  university, indicate  a lack  of support                                                                     
      for  the  UA   administration  leadership   and  this                                                                     
      hamstrings their ability to effectively lead change.                                                                      
                                                                                                                                
      11:06:44 AM                                                                                                             
      It is not surprising  that morale is  low because the                                                                     
      management style  of  the  central administration  is                                                                     
      command and control,  contrary to  recommendations by                                                                     
      outside consultants.  We  are reminded  on a  regular                                                                     
      basis that the  Constitution of  the State  of Alaska                                                                     
      gives the president the power  to fire administrators                                                                     
      at will and  that he  has authority to  structure the                                                                     
      system any way  he chooses.  This is contrary  to the                                                                     
      management style that is most effective in knowledge-                                                                     
      based operations.  Participative  management is  what                                                                     
      works. Ironically,  that  is  what shared  governance                                                                     
      promotes.                                                                                                                 
                                                                                                                                
      Morale would improve if there were true participative                                                                     
      management because  of  what  creates a  motivational                                                                     
      climate  in  organizations  populated  with  educated                                                                     
      career professionals. What these  employees thrive on                                                                     
      is a workplace  that provides three  things; mastery,                                                                     
      autonomy, and purpose.  Mastery is present  since the                                                                     
     professionals  at  the university  are  very  good at                                                                      
     their jobs and  are always improving. Autonomy is low                                                                      
     because of the  management style preferred by the top                                                                      
     administration,  the resulting  lack of  freedom, and                                                                      
     the climate of fear it creates. Purpose, in the local                                                                      
     sense, is strong  because the three universities have                                                                      
     missions   appropriate    to   their   location   and                                                                      
     stakeholders.  Purpose, in the  global sense,  is not                                                                      
     strong because it is not clear at all what the vision                                                                      
     is for  the system  overall. Morale  will not improve                                                                      
     unless autonomy improves.                                                                                                  
                                                                                                                                
     There  was a  push to  consolidate operations  of the                                                                      
     three  main  campuses   under  a  centralized  model.                                                                      
     Thankfully,  the   Board  of   Regents  has  recently                                                                      
     indicated  willingness  to  at  least consider  other                                                                      
     approaches. This is good because consolidation is not                                                                      
     likely at all to yield the savings expected.                                                                               
                                                                                                                                
     11:08:39 AM                                                                                                              
     For example,  in 2016 at the request  of the Board of                                                                      
     Regents, Daniel M.  White, then UA Vice President for                                                                      
     Academic Affairs and  Research, produced report dated                                                                      
     October  31, 2016  titled: "Cost/Benefit  Analysis of                                                                      
     Eliminating the UAF  School of Management (SOM) Dean"                                                                      
     analyzed  the  effect of  consolidating  the  SOM and                                                                      
     CBPP. It stated that going to a consolidated business                                                                      
     college  combining the  SOM  and CBPP  would increase                                                                      
     costs   and  reduce   effectiveness   while  creating                                                                      
     significant risks to local support and put the recent                                                                      
     gains achieved  by the SOM  at risk. The  Dean of the                                                                      
     SOM is credited  with making huge gains in enrollment                                                                      
     and revenue  and Vice  President White  said: "All of                                                                      
     this would not be possible without an autonomous dean                                                                      
     and  dedicated  leadership  team  and  staff  who are                                                                      
     located  at UAF"  (p.12  of the  report).  The report                                                                      
     concludes  that both  the  SOM and  CBPP  have unique                                                                      
     strengths and  that they are  beneficial to the state                                                                      
     as independent entities.                                                                                                   
                                                                                                                                
     As noted  in the report  mentioned above, independent                                                                      
     colleges linked to their community can do things that                                                                      
     benefit  stakeholders.   For  example:  while  I  was                                                                      
     Associate Dean for Academics for CBPP we investigated                                                                      
     the  potential for  developing  local  management and                                                                      
     executive training delivered by faculty from CBPP and                                                                      
     visiting instructors. After extensive research of the                                                                      
      competing offerings  from other  universities  in the                                                                     
      market a business plan was created. There is a market                                                                     
      for  this type  of  training  locally  and  the  only                                                                     
      options available to  businesses, both then  and now,                                                                     
      are to  use the  limited services  available locally,                                                                     
      provide training internally, or  send their employees                                                                     
      outside  with  the  attendant  costs  of  travel  and                                                                     
      lodging in addition to the cost of the seminars.                                                                          
                                                                                                                                
      11:10:15 AM                                                                                                             
      As  a businessman  the  benefits  of  local  training                                                                     
      seminars are glaringly obvious. The cost is lower and                                                                     
      teams of  employees  can receive  the same  training.                                                                     
      This creates a shared experience  making it easier to                                                                     
      have  a  positive   impact  on  performance   of  the                                                                     
      participants and for it  to spread to  others at work                                                                     
      as they share  their new  knowledge. In  other words,                                                                     
      local training will give them a lot more bang for the                                                                     
      buck.                                                                                                                     
                                                                                                                                
      We got support from the leadership  locally at UAA to                                                                     
      set up a  non-profit corporation. This  was necessary                                                                     
      since the university is not  structured to market and                                                                     
      operate this  type  of business.  We established  the                                                                     
      corporation, the Business Enterprise Institute (BEI),                                                                     
      however, it never got off the  ground. The central UA                                                                     
      administration imposed a  30% overhead  tax, required                                                                     
      approval control  of  virtually  every decision,  and                                                                     
      refused to let  the institute  operate independently.                                                                     
      Ultimately the  BEI was  taken from  CBPP and  is now                                                                     
      part of UA Corporate Programs.                                                                                            
                                                                                                                                
      A recent example  of lost  opportunity is  a contract                                                                     
      that could have been handled by an independent BEI. A                                                                     
      potential client had a need for extensive negotiation                                                                     
      training and coaching and the BEI was contacted about                                                                     
      it. While they could have  helped facilitate securing                                                                     
      the  deal, they  were  not  able  to  compensate  the                                                                     
      consultants employed above about $80  an hour because                                                                     
      of  UA  policy.  This  is  about  25%  of  the  usual                                                                     
      compensation for this work. The net result is no deal                                                                     
      and no revenue.                                                                                                           
                                                                                                                                
      This  is  a prime  example  of  how  the  UA  stifles                                                                     
      innovation and entrepreneurship  at UAA.  While there                                                                     
      is a market for this kind of  training in Alaska, and                                                                     
      Anchorage  specifically,  we  were   not  allowed  to                                                                     
     develop it.  This is the  way it is now  and has been                                                                      
     for the entire time I have been affiliated with UAA.                                                                       
                                                                                                                                
     My job as a Product Marketing Manager was to identify                                                                      
     needs and  develop products to fill  those needs at a                                                                      
     profit. What  I learned from  this experience is that                                                                      
     the tools I had  from private industry were not going                                                                      
     to be  effectively applied to benefit  UAA as long as                                                                      
     the central administration  had approval authority of                                                                      
     this sort of entrepreneurial initiative.                                                                                   
                                                                                                                                
     If UAA  was independent this  and other opportunities                                                                      
     to  serve  the community  and  diversify  its revenue                                                                      
     stream would be possible to develop. As it stands now                                                                      
     UA is  a stumbling  block preventing entrepreneurship                                                                      
     and    innovation.    Decentralizing    or   becoming                                                                      
     independent  would allow  UAA, UAF,  and UAS  to take                                                                      
     advantage  of opportunities  and become  even greater                                                                      
     universities that they have the potential to become.                                                                       
                                                                                                                                
                            Appendix                                                                                            
                                                                                                                                
     UAA Staff Survey results for FY 19, slide 15                                                                               
     (Includes FY 17 and 18):                                                                                                   
     https://drive.google.com/file/d/0B_kfzxlMcO5ZaVplQlBB                                                                      
     dXYzaGlSM2hqTlVBVWVQS31FZ3Q4/view                                                                                          
                                                                                                                                
     Faculty Morale 2018 survey results on pp. 31-38:                                                                           
     https:www.uaa.alaska.edu/about/governance/faculty-                                                                         
     senate/_documents/1FS_Agend_September2018.pdf                                                                              
     One School One Dean Memo                                                                                                   
     https://www.uaa.alaska.edu/about/governance/faculty-                                                                       
     sentate/_documents/JJ-                                                                                                     
     ManagementOneDeanOneSchoolMemo_10-31-16.pdf                                                                                
                                                                                                                                
     All other resources are electronic or hard copy and                                                                        
     will be made available on request:                                                                                         
     Faculty_Morale_Survey_Final_Report2016.pdf p.1                                                                             
     UAA Restructure Survey Questions and Results2019.doc,                                                                      
     Question 5, p. 4                                                                                                           
     UAA Staff Council Report2019.pdf, p.1                                                                                      
                                                                                                                                
11:12:47 AM                                                                                                                   
CHAIR SHOWER welcomed LuAnn Piccard.                                                                                            
                                                                                                                                
11:12:55 AM                                                                                                                   
 LUANN PICCARD, Associate Professor and  Chair, Project Management                                                              
 Department,  College   of  Engineering,   University  of   Alaska                                                              
 Anchorage, Anchorage,  Alaska, delivered  the following  prepared                                                              
 statement:                                                                                                                     
                                                                                                                                
      To  the  Chair,  we  welcome   you  and  your  Senate                                                                     
      colleagues to UAA.  We are grateful for  your service                                                                     
      to our state. It  is fitting that today's  meeting is                                                                     
      in a place where beautiful music  is made. Each of us                                                                     
      is capable of producing a wonderful solo performance.                                                                     
      However, when we come together  combining our diverse                                                                     
      strengths, we  are  a  unified orchestra  that  makes                                                                     
      great accomplishments possible.                                                                                           
                                                                                                                                
      Many  see  the  current  university  situation  as  a                                                                     
      "problem to  be solved".  I  see it  as a  tremendous                                                                     
      opportunity  to  leverage great  ideas  to  create  a                                                                     
      positive legacy for  future generations.  Change does                                                                     
      not scare me. It inspires and drives me. I believe in                                                                     
      possibilities and that change empowers people to make                                                                     
      ideas a reality.                                                                                                          
                                                                                                                                
      11:12:56 AM                                                                                                             
      My name is LuAnn Piccard. I am an associate professor                                                                     
      and chair  for the  Project Management  Department in                                                                     
      the College  of  Engineering  at  UAA. We  have  been                                                                     
      continuously accredited  by PMI-GAC  since 2007,  and                                                                     
      were one of the first 13 universities in the world to                                                                     
      earn this  status.  For  the past  13  years, I  have                                                                     
      served project  management  students, companies,  and                                                                     
      communities  across  Alaska  and  around  the  world.                                                                     
      Students are  at the  heart of  everything we  do. We                                                                 
      have pioneered the use of real-time distance delivery                                                                     
      to  serve working  professional  students  no  matter                                                                     
      where they live and work inside or outside of Alaska.                                                                     
      Graduates of our Project Management program are CEOs,                                                                     
      COOs,  Portfolio   Managers,  and   Project  Managers                                                                     
      representing every business sector in Alaska.                                                                             
                                                                                                                                
      Size matters,  but  scale and  leverage matter  more.                                                                     
      Since 2004, we have graduated  100s of students whose                                                                     
      work positively  impacts  100,000s  of people  across                                                                     
      Alaska and our nation on a  daily basis. This program                                                                     
      is just one of  many that drive value  and innovation                                                                     
      by working directly with our  stakeholders to advance                                                                     
      and transform our state. We are proud to be Rooted in                                                                 
      Alaska and Relevant to the World.                                                                                     
                                                                                                                              
     11:14:52 AM                                                                                                            
     I  also  serve on  the  12-member  Project Management                                                                      
     Institute  Board  of Directors.  PMI  is  one  of the                                                                      
     world's  largest  professional  associations, serving                                                                      
     over 1.8M members  and credential holders in over 190                                                                      
     countries around the  world. That someone from Alaska                                                                      
     was  elected to  serve on  PMIs board  recognizes the                                                                      
     quality and importance of Alaska's project management                                                                      
     to the global profession.                                                                                                  
                                                                                                                                
     Prior to joining UAA's faculty, I had a proud 22-year                                                                      
     career  with Hewlett Packard.  I graduated  from East                                                                      
     High  here  in   Anchorage  then  earned  engineering                                                                      
     degrees from Stanford  University. My first job at HP                                                                      
     was designing fiber optic transmitters and receivers.                                                                      
     My  last assignment  was  Vice President  and General                                                                      
     Manager for  a $500M business  unit responsible for a                                                                      
     broad  portfolio  of  telecommunication  products and                                                                      
     solutions  developed for  and delivered  to customers                                                                      
     globally.  In  2005,   my  husband  and  I  left  our                                                                      
     executive positions and  returned to my home state of                                                                      
     Alaska  to raise  our daughter  closer to  family. We                                                                      
     both joined the UAA College of Engineering faculty to                                                                      
     help  grow  engineers  and  future  leaders  here  in                                                                      
     Alaska.                                                                                                                    
                                                                                                                                
     11:16:10 AM                                                                                                              
     During    my   career,    I    led    several   major                                                                      
     transformational efforts and was responsible for over                                                                      
     10  mergers and  acquisitions. The  sad fact  is that                                                                      
     most  of  these  transformations  and mergers  looked                                                                      
     great  on  paper,  but  none  produced  the value  or                                                                  
     realized   the   synergies   for   which   they  were                                                                      
     undertaken. In almost every case, value was destroyed                                                                  
     rather than gained  because we did not invest time to                                                                  
     assess    the    integration    process   robustlyin                                                                       
     particular, we  did not fully  analyze management and                                                                      
     organizational   capacity    for   change,   cultural                                                                      
     challenges, how the  work would be done at all levels                                                                      
     of the  organization, an honest  accounting of costs,                                                                      
     and active risk management.                                                                                                
                                                                                                                                
     11:17:07 AM                                                                                                              
     Three areas should be carefully considered:                                                                                
   1. 70-85% of Transformations and Mergers Fail                                                                              
   a. Transformations  and mergers happen  through people,                                                                    
      not mandates. According  to McKinsey and Co.,  70% of                                                                   
      organizational transformations fail  to achieve their                                                                     
      objectives. The  three  primary reasons  representing                                                                     
      72% of  causes  are: employee  resistance to  change,                                                                     
      management  behavior does  not  support  change,  and                                                                     
      inadequate resources  or  budget. Without  engagement                                                                     
      with  and buy  in  from  the  people  most  impacted,                                                                     
      failure is almost guaranteed.                                                                                             
   b.  Cost  cutting is  not  a  strategy.  Transformations                                                                   
      require   investments  in   people   and   resources.                                                                   
      Transformations  rarely  produce   returns  within  3                                                                     
      years, if ever.  Attempting to transform or  merge an                                                                     
      organization while  making  significant  cuts to  the                                                                     
      people  and  resources  necessary  to  implement  the                                                                     
      change is  unlikely  to  produce lasting,  beneficial                                                                     
      outcomes.                                                                                                                 
   •      At HP, we spent over $150M on a new Enterprise                                                                        
      Resource Planning system intended to integrate siloed                                                                     
      systems and transform  business processes  across the                                                                     
      organization. Although senior executives  and outside                                                                     
      consultants sold a good story, we failed to produce a                                                                     
      realistic estimate of the time  required by people in                                                                     
      the organization  to develop  and implement  detailed                                                                     
      plans   and    the    investments   for    continuous                                                                     
      communication, engagement  and  training of  impacted                                                                     
      personnel.                                                                                                                
   c.  Wishful  thinking  is  not  a  strategy.  PowerPoint                                                                   
      slides and  spreadsheets  do not  constitute a  plan.                                                                   
      According  to  KPMG  and  other  experts,  70-85%  of                                                                     
      mergers fail  due to culture  and lack  of sufficient                                                                     
      planning for and investment in integration.                                                                               
   •      Although we are all part of the University of                                                                         
      Alaska, each of  our campuses has unique  and vibrant                                                                     
      cultures  that  have  evolved  in  concert  with  the                                                                     
      communities and people  served. Under  which existing                                                                     
      culture would all  three universities be  expected to                                                                     
      merge? What  would a  One UA  culture feel  like? How                                                                     
      would  a  common   UA  culture   add  value   to  our                                                                     
      stakeholders?                                                                                                             
   •      Substantial   evidence   shows    that   people                                                                       
      conducting   the   initial   "due    diligence"   for                                                                     
      transformations and mergers are overly optimistic. In                                                                     
      their zeal  to  push  through the  transformation  or                                                                     
      merger, they gloss over risks and concerns. Realistic                                                                     
      plans  and  risk  management   approaches  should  be                                                                     
      developed in partnership  with people closest  to the                                                                     
      work. For example, there is no evidence of a detailed                                                                     
     transformation  and  risk  management  plan  for  the                                                                      
     merger of  the three Colleges  of Education. Had that                                                                      
     been  in  place,  accreditation  loss  may  have been                                                                      
     avoided.  If  we   were  unsuccessful  managing  that                                                                      
     merger,  I  am  skeptical  that  we can  successfully                                                                      
     merge.                                                                                                                     
                                                                                                                                
   2. Centralization  rarely   reduces   costs   and   can                                                                    
     negatively impact customer- centricity                                                                                   
   a.    Centralization rarely  reduces costs.  Unless the                                                                      
     work  is fundamentally  re-  engineered  or automated                                                                      
     (meaning  major resource  and time  investments), the                                                                      
     work still needs to get done and the associated costs                                                                      
     don't  go away.  Most of  the  time, costs  are moved                                                                      
     around  in   an  on-going  shell   game  or  existing                                                                      
     resources are expected  to shoulder the burden on top                                                                      
     of   their  existing   workloads.  For   example,  UA                                                                      
     Statewide  IT   recently  reported  significant  cost                                                                      
     savings. However, reports analyzed show that the work                                                                      
     did not actually go away, the costs were just shifted                                                                      
     to   UAF.  If   academic  programs   (e.g.  Business,                                                                      
     Education    and   Engineering)    have   centralized                                                                      
     leadership  in  one  location  but  are delivered  on                                                                      
     multiple  campuses,   local  leadership  and  student                                                                      
     support   service  positions   are   still  required.                                                                      
     Centralization  may   yield  small  savings  in  some                                                                      
     functional   areas,   but  responsiveness   generally                                                                      
     suffers  since   there  are   limited  local  support                                                                      
     resources.  In  a  centralized  model  some  of those                                                                      
     administrative costs  could actually  increase due to                                                                      
     added bureaucracy.                                                                                                         
   b.    Successful organizations  seek a  balance between                                                                      
     centralization   and  decentralization.   At   HP  we                                                                      
     benefitted  from   preserving  that  dynamic  tension                                                                      
     because it  fostered evidence-based collaboration and                                                                      
     generated    well-aligned,     incremental    changes                                                                      
     reflecting the current  reality. We consolidated some                                                                      
     generic  and "back  office" processes  that benefited                                                                      
     from scale.  However, we  decentralized processes and                                                                      
     people retained and adopted some common processes. We                                                                      
     decentralized  activities   customer  engagement  and                                                                      
     rather than customer focused some shared services and                                                                      
     adopted common processes but most were. We retained a                                                                      
     minimal level of  overhead so more resources could be                                                                      
      invested locally on behalf of customers.                                                                                  
   c.    Successful  organizations  understand where  value                                                                     
      is  created   and   delivered   and   how  to   drive                                                                     
      organizational  effectiveness.   HP   was  a   highly                                                                     
      respected   innovation   leader   because   we   used                                                                     
      decentralization  to  drive  invention  and  customer                                                                     
      loyalty.  Where   innovation,   resources  and   best                                                                     
      practices could  be leveraged,  we had  mechanisms to                                                                     
      share with other organizations. Bill Hewlett and Dave                                                                     
      Packard's "management by  wandering around"  became a                                                                     
      respected and widely  adopted leadership  model. They                                                                     
      sought out innovation  where it was  happening rather                                                                     
      than controlling  it  from above.  They encouraged  a                                                                     
      customer   centric  culture   and   supported   local                                                                     
      decision-making  autonomy.  Within   the  university,                                                                     
      primary value is delivered through faculty, research,                                                                     
      student centric  programs. In  order for  programs to                                                                     
      innovate and meet  local needs, they must  retain the                                                                     
      ability to engage with stakeholders directly.                                                                             
                                                                                                                                
      11:20:31 AM                                                                                                             
      I heard a great example of  customer centric innovation                                                                   
      at UAS. Instructors preload assignments  on tablets for                                                                   
      students going  out on ship-based  s for  extended work                                                                   
      assignments  or field  activities.  This  approach  was                                                                   
      developed  based on  a  deep  understanding  of  unique                                                                   
      student needs  in that  region. It  is doubtful  that a                                                                   
      centralized organization outside  of Juneau  would have                                                                   
      this level of insight.                                                                                                    
                                                                                                                                
 MRS. PICCARD added that colleagues at  UAF deliver world renowned                                                              
 Arctic research and community  service. She said UAA  is Alaska's                                                              
 urban campus and it benefits from close  relationships with large                                                              
 local   and   global   businesses,    organizations,   healthcare                                                              
 institutions, and investors.  These relationships  drive creation                                                              
 of intellectual  property, generate  growing applied  research to                                                              
 address social,  technical and  business challenges,  and provide                                                              
 professional development at  scale. She noted that  investment in                                                              
 these areas  has the potential  to reduce  the amount  of general                                                              
 funds from the state and increase self-sufficiency.                                                                            
                                                                                                                                
 MRS. PICCARD continued her prepared remarks.                                                                                   
                                                                                                                                
   3. is our duty of care as leaders  to demand and support                                                                   
      objective and comprehensive analysis. The Hippocratic                                                                   
      Oath says, "First do no harm." It is our duty of care                                                                     
      to accurately  diagnose and  evaluate options  before                                                                     
     major surgery is done.                                                                                                     
                                                                                                                                
     The best structural  option for the university system                                                                      
     has yet to be  discovered. I believe a great solution                                                                      
     would emerge if our  UAA, UAF and UAS chancellors and                                                                      
     other key  leaders were invited  to participate. They                                                                      
     have a  wealth of experience  and tremendous hands-on                                                                      
     experience  meeting  student and  community  needs. I                                                                      
     urge you  to insist on a  comprehensive and objective                                                                      
     evaluation of all  relevant options using transparent                                                                      
     criteria  and  including  the  active  engagement  of                                                                      
     experts and impacted  stakeholder communities. We are                                                                      
     not a "One size  fits all" state, and we are not best                                                                      
     served by a "One size fits all" university.                                                                                
                                                                                                                                
11:22:42 AM                                                                                                                   
CHAIR SHOWER welcomed Professor David Fitzgerald.                                                                               
                                                                                                                                
11:23:00 AM                                                                                                                   
DAVID FITZGERALD, Professor, Information Systems and Decision                                                                   
Sciences, University of Alaska Anchorage, Anchorage, Alaska,                                                                    
delivered the following prepared statement:                                                                                     
                                                                                                                                
     To  the Chair,  I  am Dave  Fitzgerald,  Professor of                                                                      
     Information  Systems  and  Decision  Sciences  in the                                                                      
     College  of  Business  and  Public  Policy,  where we                                                                      
     educate students in  data analysis and evidence-based                                                                      
     decision-making for businesses.                                                                                            
                                                                                                                                
     Prior to joining UAA in 2002, I spent twenty years in                                                                      
     private businesses in  Anchorage working in the field                                                                      
     of Information Technology. As a faculty member I have                                                                      
     held many  faculty governance positions.  I served as                                                                      
     President  of the  Faculty Senate  during the  2016                                                                        
     2017 academic year.                                                                                                        
                                                                                                                                
     When it  comes to  making informed  decisions, shared                                                                      
     governance  lies  at the  heart  of  both  a well-run                                                                      
     business  and a successful  university. As  a project                                                                      
     manager  and  a department  director  in  the private                                                                      
     sector,  I valued  and included  the  perspectives of                                                                      
     employees for  designing and  maintaining any system,                                                                      
     as they are the ones who know first-hand how a system                                                                      
     is supposed to function and the probable consequences                                                                      
     of policy changes.                                                                                                         
                                                                                                                                
      University Board  of Regents  policy likewise  values                                                                     
      both input and  participation of faculty,  staff, and                                                                     
      students because  their involvement  leads to  better                                                                     
      decisions.  Regents   policy  (P03.01.010.   Faculty,                                                                     
      Staff,  and Student  Governance)  specifies  in  part                                                                     
      that:                                                                                                                     
                                                                                                                                
           The  opportunity  for  faculty,   staff,  and                                                                        
           students to participate in  the governance of                                                                        
           the university is important  to its effective                                                                        
           operation.    The    board    intends    that                                                                        
           participation of  those groups in  university                                                                        
           governance  be  an   integral  part   of  the                                                                        
           university  community's  culture;   and  that                                                                        
           they are to provide an  effective opportunity                                                                        
           to  play   a  meaningful   role  in   matters                                                                        
           affecting  their welfare;  and  to  represent                                                                        
           their   viewpoints   on    regents'   policy,                                                                        
           university  regulation,  and   other  matters                                                                        
           affecting the interests of the university;                                                                           
                                                                                                                                
      11:24:56 AM                                                                                                             
      Regrettably,  President Johnsen's  interpretation  of                                                                     
      that  policy   differs   significantly  from   shared                                                                     
      governance bodies. His  style of command  and control                                                                     
      management is  counter-  productive  in a  knowledge-                                                                     
      driven  organization.   This  top-down   approach  to                                                                     
      decision making stifles innovation  and creativity as                                                                     
      it ignores  input  from  those  who work  across  the                                                                     
      system  and  share  a   commitment  to  institutional                                                                     
      effectiveness and efficiency.                                                                                             
                                                                                                                                
      The fiscal challenges we  face today are  not new. In                                                                     
      2016,  President  Johnsen   created  a   plan  called                                                                     
      Strategic  Pathways,   intended  to   address  fiscal                                                                     
      challenges   while  maintaining   quality   programs.                                                                     
      However, from the perspective of the students, staff,                                                                     
      and faculty, Strategic  Pathways did not  achieve its                                                                     
      goal  because  the   effort  did  not   follow  basic                                                                     
      principles of sound decision-making  which would have                                                                     
      invited  shared governance  throughout  the  process.                                                                     
      None of the areas of inquiry included a business plan                                                                     
      to reduce  costs  while sustaining  quality. Not  one                                                                     
      credible report  documenting  cost  reduction can  be                                                                     
      directly attributable to  Strategic Pathways  nor any                                                                     
      credible increase in quality of outcomes.                                                                                 
                                                                                                                                
     11:26:10 AM                                                                                                              
     With  the exception  of one  faculty member  per team                                                                      
     selected  by faculty,  the  president  handpicked the                                                                      
     members of  all Strategic  Pathways committees; those                                                                      
     who  either shared  his views  or would  not question                                                                      
     them.                                                                                                                      
                                                                                                                                
     He  discouraged  recommendations  from  the  pathways                                                                      
     committees by  limiting feedback to  pros and cons on                                                                      
     options  of  his  choosing.  Consequently,  his  pre-                                                                      
     selected options carried  the most weight and limited                                                                      
     the exchange of divergent ideas.                                                                                           
                                                                                                                                
     When  it became  apparent to  the faculty  that their                                                                      
     voice was being  ignored, all three universities sent                                                                      
     resolutions   condemning   the   Strategic   Pathways                                                                      
     process. When  these were ignored,  in February 2017,                                                                      
     UAA  sent  to the  Board  of Regents,  a  Vote  of No                                                                      
     Confidence  in the  leadership of  President Johnsen.                                                                      
     This  was followed  the next  month by  a Vote  of No                                                                      
     Confidence by the  UAF faculty. Both were disregarded                                                                      
     by the Board of Regents.                                                                                                   
                                                                                                                                
     Today,  we  find ourselves  in  a  similar situation.                                                                      
     President Johnsen  is advancing his  proposal for one                                                                      
     statewide university with  no business plan, and with                                                                      
     no   meaningful  input   from  faculty,   staff,  and                                                                      
     students. To date,  he has prohibited the chancellors                                                                      
     from advancing  any alternatives  to his  vision, and                                                                      
     has required that  they support his. This summer, the                                                                      
     chancellors were able to present one alternative, the                                                                      
     Consortium  Model,  to  the  Board  of Regents,  only                                                                      
     because  the Board of  Regents specifically  asked to                                                                      
     hear from them  directly, which they have rarely done                                                                      
     in the past.                                                                                                               
                                                                                                                                
     Businesses and universities  are complex systems, and                                                                      
     I thank  the committee for inviting  input from those                                                                      
     who  share   a  commitment  to   reducing  costs  and                                                                      
     providing quality education to the state of Alaska.                                                                        
                                                                                                                                
11:28:08 AM                                                                                                                   
SENATOR REINBOLD said this has been very enlightening. She                                                                      
thanked the professors individually for their input and                                                                         
transparency on this issue.                                                                                                     
                                                                                                                                
 There needs to be a  way forward to solve this  fiscal problem by                                                              
 using  the   resources   at  hand,   she   said.  She   expressed                                                              
 appreciation that  the  presenters were  fighting  for what  they                                                              
 believe in and for offering sustainable goals.                                                                                 
                                                                                                                                
 MRS. PICCARD said give us a chance to help.                                                                                    
                                                                                                                                
 CHAIR SHOWER said it's interesting that all the speakers have                                                                  
 business experience which breaks the paradigm.                                                                                 
                                                                                                                                
 He welcomed the next presenter.                                                                                                
                                                                                                                                
               ^Accreditation and Student Success                                                                             
                                                                                                                                
 11:32:23 AM                                                                                                                  
 DR. MARIA WILLIAMS, Professor, Alaska Native Studies and Music;                                                                
 President of  the UAA  Senate; and  Chair of Faculty  Alliance,                                                                
 University of  Alaska Anchorage,  Anchorage, Alaska,  delivered                                                                
 the following prepared statement:                                                                                              
                                                                                                                                
      To the  chair,  my name  is Maria  Williams.  I am  a                                                                     
      professor in  Alaska Native Studies  and Music.  I am                                                                     
      past President of the UAA Senate and current Chair of                                                                     
      Faculty  Alliance,  which  consists  of  the  faculty                                                                     
      senate leaders  of  UAA, UAF  and  UAS.  I have  been                                                                     
      teaching at UAA since 2011.                                                                                               
                                                                                                                                
      Senator Shower, welcome and thank you for having your                                                                     
      legislative hearing  on the UAA  Campus! ARTS  150 is                                                                     
      the Music Department's main  performance hall. Having                                                                     
      you all here  on our campus  opens doors, and I  am a                                                                     
      supporter of 'opening doors.'                                                                                             
                                                                                                                                
      Last year, I served  as President of the  UAA Faculty                                                                     
      Senate. I  know that  a  great many  of our  faculty,                                                                     
      students, staff and  administration are  grateful for                                                                     
      your presence here today on our campus. For years our                                                                     
      faculty have felt  frustrated and ignored.  Thank you                                                                     
      for coming and listening to our testimony.                                                                                
                                                                                                                                
      11:33:17 AM                                                                                                             
      I will be addressing  the topic of  accreditation and                                                                     
      how it relates to the Universities'  mission, and how                                                                     
      a consolidated  University  re-structure will  impact                                                                     
      and  affect  the  mission  and  thus,  accreditation.                                                                     
      First,  just a  few  basic  facts.  Accreditation  is                                                                     
      absolutely  essential to  any  university     without                                                                     
     accreditation   our  degrees   would   be  worthless,                                                                      
     students could  not obtain financial  aid, grants and                                                                      
     research  funds  would be  forfeited     we  would be                                                                      
     nothing.                                                                                                                   
                                                                                                                                
     UAA,  UAS and  UAF are  separately accredited  by the                                                                      
     Northwest  Commission on  Colleges  and Universities.                                                                      
     This  is  a good  thing.  The  NWCCU  has  a rigorous                                                                      
     process and all three of our universities have earned                                                                      
     this status. The accreditation cycle is seven years                                                                        
     so  every   seven  years   each  of   our  respective                                                                      
     universities  goes through  an  intense reaffirmation                                                                      
     process    which is  the combined  efforts of faculty                                                                      
     and   administrative    staff.   UAA   received   its                                                                      
     reaffirmation  of accreditation  last year,  UAS just                                                                      
     received theirs, and UAF, which was planning on their                                                                      
     NWCCU site visit this  fall, deferred one year due to                                                                      
     the   possibility  of   restructuring  to   a  single                                                                      
     accredited university.  My colleague,  Dr. Brock, was                                                                      
     one  of  the  faculty  involved  in  the  recent  UAA                                                                      
     reaffirmation  of accreditation,  which took  over 18                                                                      
     months to collect data, file reports, and ensure that                                                                      
     UAA was  achieving goals  established in  our mission                                                                      
     statement.                                                                                                                 
                                                                                                                                
     UAA's   mission  includes   being   an   OPEN  ACCESS                                                                      
     university    so we admit  all students  who meet the                                                                      
     minimum requirement of  a high school diploma or GED.                                                                      
     For a 4  year degree program the  minimum GPA is 2.5;                                                                      
     for an  AA or certificate,  there is  no minimum GPA.                                                                      
     UAF  and UAS  have different  mission  statements and                                                                      
     different application requirements.                                                                                        
                                                                                                                                
     For example  UAF has a  research-focused mission, and                                                                      
     with more  rigorous application  requirements, do not                                                                      
     have open access (i.e. minimum SAT Test scores of 970                                                                      
     and  minimum HS  GPA of  3.0,  etc.). UAS  requires a                                                                      
     minimum HS  GPA of 3.0  and an ACT or  SAT score; for                                                                      
     their AA degree it  is open access with a minimum GPA                                                                      
     of 2.0.                                                                                                                    
                                                                                                                                
     11:35:36 AM                                                                                                              
     If UAA  is merged or consolidated,  our mission would                                                                      
     change to reflect UAF and UAS admission requirements,                                                                      
     and we  might lose our open  access mission, thus not                                                                      
     serving a significant population of students.                                                                              
                                                                                                                                
      ACCESS and an  open door  mission to  this population                                                                     
      are very important to me and  are personal. My father                                                                     
      is a UAA Alum. My father is  a poster child for 'open                                                                     
      door access'. He was born in a rural interior part of                                                                     
      southeastern  Alaska where  his  first  language  was                                                                     
      Tlingit. He was forced to go to a boarding school for                                                                     
      4  years,  punished  and  starved  for  speaking  his                                                                     
      language, a legacy  of the  'kill the Indian  to save                                                                     
      the child' policies  common during this  time period.                                                                     
      He somehow survived  the boarding school, made  it to                                                                     
      the 6th grade, and  then volunteered to  serve in the                                                                     
      Army in  WWIIand  was  a machine  gun instructor;  he                                                                     
      always told  me that  is  where he  learned to  speak                                                                     
      English. He met and married my mother and both worked                                                                     
      at the old  ANMC on 3rd and  Gambell, where he  was a                                                                     
      cook. My mother believed in education and made my Dad                                                                     
      get his GED. He then received an  AA degree from UAA,                                                                     
      in culinary arts. My  father was the first  member of                                                                     
      my very  large,  extended  family  to get  a  college                                                                     
      degree. An example of 'Door opening'.                                                                                     
                                                                                                                                
      If UAA, UAS and UAF are moved  to a single accredited                                                                     
      university   the open access aspect  of UAA's mission                                                                     
      might disappear.                                                                                                          
                                                                                                                                
      I believe that  Alaska should be celebrating  that we                                                                     
      have THREE  accredited universities,  that each  have                                                                     
      unique profiles and  community campuses  that reflect                                                                     
      the  needs of  local  communities.  If  we  have  one                                                                     
      accredited university, then UAS and UAA forfeit their                                                                     
      hard-won reaffirmation of  accreditation status  to a                                                                     
      single accredited university  - which would  leave us                                                                     
      vulnerable. Imagine  if the  one university  lost its                                                                     
      accreditation.                                                                                                            
                                                                                                                                
      My vision for  the future is  a sustainable  Alaska                                                                       
      with  locally   educated   teachers,   veterinarians,                                                                     
      artists, businesspeople, mechanics, cooks(!), nurses,                                                                     
      pharmacists, and entrepreneurs.  Education is  a door                                                                     
      opener   please do not allow that door to be shut for                                                                     
      many.                                                                                                                     
                                                                                                                                
 11:37:54 AM                                                                                                                  
DR. JENNIFER MCFERRAN BROCK, Professor of Mechanical Engineering,                                                               
UAA College of Engineering, University of Alaska Anchorage,                                                                     
Anchorage, Alaska, delivered the following prepared statement:                                                                  
                                                                                                                                
     To the chair, my name is Dr. Jennifer McFerran Brock.                                                                      
     I am  a Professor of Mechanical  Engineering in UAA's                                                                      
     College  of  Engineering.  For  years,  I  have  been                                                                      
     heavily  involved in  accreditation    as  an outside                                                                      
     examiner   for  ABET,   the   accrediting   body  for                                                                      
     engineering   and    technology   programs,   as   an                                                                      
     engineering  faculty   member  and  department  chair                                                                      
     undergoing ABET review, and as one of three co-chairs                                                                      
     of UAA's Self-Study  Committee, which prepared us for                                                                      
     reaffirmation  of  accreditation  with the  Northwest                                                                      
     Commission on  Colleges and  Universities (the NWCCU)                                                                      
     in 2018.                                                                                                                   
                                                                                                                                
     Due to accreditations'  importance to our system, the                                                                      
     proposal  to consolidate  our  three  UA universities                                                                      
     into one, singly-accredited university is a high risk                                                                      
     venture.   Separate    accreditations   and   greater                                                                      
     decentralization are  more appropriate  for UAA, UAF,                                                                      
     and  UAS,   given  that   they  are   truly  regional                                                                      
     institutions  who draw  most  of their  students from                                                                      
     their own communities.                                                                                                     
                                                                                                                                
     11:38:59 AM                                                                                                              
     The  two  types  of  accreditation  essential to  our                                                                      
     system   are  regional   and   specialized.  Regional                                                                      
     accreditation  refers to  the recognition  granted to                                                                      
     U.S.   institutions   by   one   of  seven   regional                                                                      
     accreditation  bodies (the  NWCCU is  ours). Regional                                                                      
     accreditors are  nongovernmental bodies recognized by                                                                      
     the U.S.  Department of  Education. Within accredited                                                                      
     universities,  individual programs  may  also achieve                                                                      
     specialized  accreditation  for  degrees  offered  in                                                                      
     certain    areas    or    professions.    Specialized                                                                      
     accreditation  is  essential  for  licensure in  many                                                                      
     professions. There  are approximately  48 programs at                                                                      
     UAA which  carry specialized  accreditation, and they                                                                      
     include  programs from  art  and automotive  & diesel                                                                      
     technology  to social  work and  surgical technology.                                                                      
     ABET accredits six baccalaureate engineering programs                                                                      
     at UAA.                                                                                                                    
                                                                                                                                
     In fact, we have  already had a taste of what greater                                                                      
     centralization  under Statewide control  would bring.                                                                      
     In recent  years, Statewide  administration attempted                                                                      
     to reorganize  UAA's, UAF's,  and UAS's  Colleges and                                                                      
     Schools  of  Education  into  the  Alaska College  of                                                                      
     Education. A planning  document from 2017 prepared by                                                                      
      President Johnsen for the Board  of Regents(1) reveals                                                                    
      a  long  list  of  concerns  raised   by  the  NWCCU,                                                                     
      including questions  about faculty  governance input,                                                                     
      on whether the change was financially sustainable and                                                                     
      cost effective,  and  others.  The NWCCU's  president                                                                     
      characterized   the  plan   as   unusually   complex,                                                                     
      expecting the  review  process  to take  "significant                                                                     
      time (multiple years) and effort."                                                                                        
                                                                                                                                
      11:39:51 AM                                                                                                             
      Pres.  Johnsen  concluded  that  "a  difficult,  time                                                                     
      consuming,   and  uncertain   accreditation   process                                                                     
      creates   major  challenges   to   our   ability   to                                                                     
      successfully recruit  students,  engage our  faculty,                                                                     
      build on our strengths, and deliver programs while we                                                                     
      go through the  process." He ended up  proposing that                                                                     
      the affected  programs remain  affiliated with  their                                                                   
      home  campuses  but  be  administered   by  a  single                                                                     
      Executive   Dean   at  UAS,   in   part   to   "avoid                                                                     
      accreditation concerns altogether."                                                                                       
                                                                                                                                
      The centralized Statewide  structure and  its removal                                                                     
      from the day-to-day  operation of our  programs makes                                                                     
      it structurally  incapable of  managing the  level of                                                                     
      detail  required  to  make  these  types  of  mergers                                                                     
      successful,  even  as  it   resists  delegating  that                                                                     
      control to  those who  are well-positioned  to manage                                                                     
      those  details. Following  the  loss  of  specialized                                                                     
      accreditation by UAA's initial  licensure programs by                                                                     
      the  Council  for   the  Accreditation   of  Educator                                                                     
      Preparation  (CAEP) the  Regents  voted  to  abruptly                                                                     
      discontinue the initial licensure programs  at UAA in                                                                     
      2018 after  an  expedited program  review similar  to                                                                     
      what it just ordered  at its September  12th meeting.                                                                     
      The  wishes  of  UAA  School   of  Education's  local                                                                     
      constituencies were ignored(2) and principled dissent                                                                     
      from the  Chancellors was  actively suppressed(3). An                                                                     
                                                                                                                                
      internal planning  document(4)reveals  that of  UAA's                                                                     
      474 education  majors, 27%  graduated last  year, 17%                                                                     
      transferred  to   other   majors   within  UAA,   13%                                                                     
      transferred to UAF,  11% transferred to UAS,  and 32%                                                                     
      "did  not complete,  [were  not]  retained."  So  150                                                                     
      students dropped out of  school. As a result  of this                                                                     
      rushed  and  ill-considered  consolidation,  students                                                                     
      were harmed.  This  is  indicative of  a  fundamental                                                                     
      problem with our over-centralized model, and will not                                                                     
     be  solved  by  greater  consolidation  under  single                                                                      
     accreditation.                                                                                                             
                                                                                                                                
     The concerns raised  by President Johnsen in the 2017                                                                      
     document about delivering programs while undergoing a                                                                      
     major  accreditation process  remain valid.  In fact,                                                                      
     the  system has  considered this  possibility before.                                                                      
     The 2016 Dana Thomas report commissioned by President                                                                      
     Johnsen on the  prospects for single accreditation(5),                                                                     
     concluded   that   single   accreditation   was   not                                                                      
     recommended.  According  to  the NWCCU's  Substantive                                                                      
     Change Manual(6), the proposed changes will have to be                                                                     
     considered by  the full Commission,  which meets only                                                                      
     twice  a year  in  January and  June,  with proposals                                                                      
     requested at  least six months in  advance of planned                                                                      
     implementation.  This  explains  President  Johnsen's                                                                      
     aggressive  proposed  timeline(7), but  it is  highly                                                                      
     unlikely that  a proposal detailed  enough to satisfy                                                                      
     the NWCCU  can be  completed on  this timeline, given                                                                      
     that preparation  for UAA's  recent successful review                                                                      
     occurred over 18 months.                                                                                                   
                                                                                                                                
     11:42:14 AM                                                                                                              
     By  contrast,  separate  accreditations  allow us  to                                                                      
     evolve  according  to the  needs  of  our communities                                                                      
     without  precluding  our  ability  to  agree to  work                                                                      
     together when it  makes sense to do so. Accreditation                                                                      
     is  built on  mission. Separate  accreditation allows                                                                      
     UAA,  UAF,  and   UAS  to  emphasize  their  distinct                                                                      
     missions,  which have  grown  up in  response  to the                                                                      
     differing needs  of their communities,  and which are                                                                      
     appended  as  Exhibit   A.  The  heart  and  soul  of                                                                      
     accreditation  is  assessment, which  is  the  act of                                                                      
     regularly reviewing data  and student assignments for                                                                      
     evidence of performance and continuously making plans                                                                      
     for  improvement.  This   is  why  accreditation  and                                                                      
     assessment work  best at the ground  level, where the                                                                      
     results of assessment  can be plugged directly into a                                                                      
     continuous  improvement process that  is personalized                                                                      
     to the needs of the local student body.                                                                                    
                                                                                                                              
     UAA,  UAF, and  UAS have  different  demographics and                                                                      
     have developed their  curricula, majors, and missions                                                                      
     in response  to their unique needs.  For example, 96%                                                                      
     of  students  at   UAA  are  commuters,  48%  are  of                                                                      
     nontraditional age, and  our students are more likely                                                                      
     than college students  in general to be working while                                                                      
      going to school  or to be caregivers  for dependents.                                                                     
      In order to be  successful, any initiatives  aimed at                                                                     
      increasing retention  and graduation  rates for  this                                                                     
      student body will have to take all this into account.                                                                     
      UAA had long known  that its 6-year  graduation rate,                                                                     
      which hovered around  an average  of 26% for  most of                                                                     
      the last seven-year review cycle,  was a problem. Two                                                                     
      years ago, thanks  to a  series of  local initiatives                                                                     
      that  UAA  has  been  implementing  to  address  this                                                                     
      problem,  our  6-year  graduation  rate  increased  6                                                                     
      percentage  points(8), and  last  year  it  increased                                                                     
      another. It is a local, community-oriented connection                                                                     
      between  students,   mission  and   improvement  that                                                                     
      produced this result.                                                                                                     
                                                                                                                                
      In  closing,   the  decentralization   that  we   are                                                                     
      advocating is  certainly not the  status quo,  and in                                                                     
      fact it offers  truly exciting opportunities  for our                                                                     
      public  university  system  to  grow  into  what  our                                                                     
      state's diverse  communities  need  in the  years  to                                                                     
      come.  If  we   can  accomplish  a  7%   increase  in                                                                     
      graduation rates in 2 years,  despite the limitations                                                                     
      of central control, think about what we might do with                                                                     
      a  university  with   its  own  Board   of  Trustees,                                                                     
      responsive to the market forces of the communities we                                                                     
      serve and empowered to pursue opportunities that make                                                                     
      the most sense for our communities, and our state.                                                                        
                                                                                                                                
      Let us show you what we can become.                                                                                       
                                                                                                                                
      EXHIBIT  A:   The   distinct  institutional   mission                                                                     
      statements of UAA, UAF, and UAS                                                                                           
                                                                                                                                
      UAA:  The  mission   of  the  University   of  Alaska                                                                     
      Anchorage is  to discover  and disseminate  knowledge                                                                     
      through teaching,  research, engagement  and creative                                                                     
      expression. Located  in  Anchorage  and on  community                                                                     
      campuses in Southcentral Alaska, UAA  is committed to                                                                     
      serving the higher education needs  of the state, its                                                                     
      communities and its diverse peoples.  UAA is an open-                                                                     
      access university with  academic programs  leading to                                                                     
      occupational endorsements; undergraduate and graduate                                                                     
      certificates;   and  associate,   baccalaureate   and                                                                     
      graduate degrees  in  a rich,  diverse and  inclusive                                                                     
      environment.                                                                                                              
                                                                                                                                
     UAF: The  University of  Alaska Fairbanks  is a Land,                                                                      
     Sea, and Space  Grant university and an international                                                                      
     center  for   research,  education,   and  the  arts,                                                                      
     emphasizing  the circumpolar  North  and  its diverse                                                                      
     peoples.  UAF   integrates  teaching,  research,  and                                                                      
     public  service as  it educates  students  for active                                                                      
     citizenship and  prepares them  for lifelong learning                                                                      
     and careers.                                                                                                               
                                                                                                                                
     UAS:  The   mission  of  the   University  of  Alaska                                                                      
     Southeast  is student  learning  enhanced  by faculty                                                                      
     scholarship,  undergraduate   research  and  creative                                                                      
     activities,  community engagement,  and  the cultures                                                                      
     and environment of Southeast Alaska.                                                                                       
                                                                                                                                
11:44:10 AM                                                                                                                   
CHAIR  SHOWER  noted  that  during  the  break  there was  some                                                                 
discussion  about   military  strategy  and   the  move  toward                                                                 
decentralizing command and control. He said the principle is to                                                                 
let the trained experts do the mission.                                                                                         
                                                                                                                                
He welcomed Dr. Chad Farrell.                                                                                                   
                                                                                                                                
                            ^Equity                                                                                           
                                                                                                                                
11:46:07 AM                                                                                                                   
DR CHAD FARRELL, Professor  of Sociology, UAA, discussed equity                                                                 
related   to  the   proposal  to   consolidate  the   three  UA                                                                 
universities  into  a single  accreditation.  He  delivered the                                                                 
following prepared statement:                                                                                                   
                                                                                                                                
     To the chair, thank you for this opportunity. My name                                                                      
     is  Chad  Farrell and  I  have  been  a  professor of                                                                      
     sociology here at UAA since 2005.                                                                                          
                                                                                                                                
     In its first  population enumeration after statehood,                                                                      
     the  U.S.  Census   Bureau  counted  roughly  226,000                                                                      
     Alaskans. Anchorage  was already our  largest city at                                                                      
     the time, but most Alaskans lived elsewhere. In fact,                                                                      
     more  than  half  of  the  state's  population  lived                                                                      
     outside  the Southcentral  region, which  I'll define                                                                      
     here as Anchorage, Mat-Su, Kenai, Kodiak, and Valdez.                                                                      
     By 1975the same year that UAA was first accredited                                                                         
     Southcentral  was home  to  nearly  a quarter-million                                                                      
     people, larger  than the  entire state  had been less                                                                      
     than a generation prior. This population shift toward                                                                      
     Southcentral continued to build.                                                                                           
                                                                                                                                
      Anchorage  has  more  than  tripled   in  size  since                                                                     
      statehood, and Kenai has more  that sextupled. In the                                                                     
      past decade, Mat-Su  ranks among the  fastest growing                                                                     
      jurisdictions in  the  entire  United States.  Today,                                                                     
      nearly  two   out  of   every  three  Alaskans   call                                                                     
      Southcentral home.                                                                                                        
                                                                                                                                
      11:47:31 AM                                                                                                             
      As  our population  has  grown  its  composition  has                                                                     
      changed. Much of my research focuses  on the changing                                                                     
      racial and ethnic contours of  the United States, and                                                                     
      I am  fortunate to  work in  a city  which is  at the                                                                     
      forefront of one  of the nation's  most consequential                                                                     
      demographic   trends.   Anchorage   is   located   on                                                                     
      indigenous  ancestral  homelands and  it  is  also  a                                                                     
      crossroads for newcomers; this reality is etched into                                                                     
      its ethnic architecture. To put this in some context,                                                                     
      the indigenous population of  Anchorage, taken alone,                                                                     
      would constitute the state's second largest city. The                                                                     
      Filipino population of Anchorage,  taken alone, would                                                                     
      constitute   the   state's   fourth   largest   city.                                                                     
      Nationally, Anchorage ranks  among the  top-25 cities                                                                     
      in the  number  of residents  claiming Hmong,  Native                                                                     
      Hawaiian,  Norwegian,  Sudanese,  Thai,  Samoan,  and                                                                     
      Finnish ancestries.                                                                                                       
                                                                                                                                
      It is  perhaps not  surprising then,  that the  three                                                                     
      most ethnically  diverse public  high schools  in the                                                                     
      United States are found here in Anchorage (please see                                                                     
      the attached exhibits).  So are five of  the nation's                                                                     
      most diverse middle  schools, and 23 of  the nation's                                                                     
      25  most diverse  elementary  schools.  Some  of  the                                                                     
      students currently  enrolled  in  those schools  will                                                                     
      eventually find  their way  into my classroom,  where                                                                     
      they will  sit side-by-side  with an  array of  other                                                                     
      students.  Together,  they   will  come   from  every                                                                     
      imaginable  background:   rural  villages,   affluent                                                                     
      Hillside neighborhoods,  refugee camps  on the  other                                                                     
      side of the world, the splendor  of Kenai, the mosaic                                                                     
      of Mountain View, the proud austerity  of Kodiak, the                                                                     
      kinetic energy of  Mat-Su, and, in some  cases, fresh                                                                     
      from military service in a war zone.                                                                                      
                                                                                                                                
      Who is best situated to oversee  the higher education                                                                     
      of these  incoming  cohorts  of dynamic  and  diverse                                                                     
      students? Who has  the best vantage point  from which                                                                     
     to recruit talented  and diverse faculty to teach and                                                                      
     mentor  them?  Who has  the  community  visibility to                                                                      
     cultivate   partnerships   with   local   government,                                                                      
     business,  and  the  nonprofit  sector?  Who is  most                                                                      
     likely   to    have   the   necessary   on-the-ground                                                                      
     perspective  to  make  tough  budget decisions  while                                                                      
     minimizing  harm  to students?  Is  it  a centralized                                                                      
     absentee  statewide   administration?  Or   is  it  a                                                                      
     chancellor who lives here in Southcentral and has the                                                                      
     pulse of the place?                                                                                                        
                                                                                                                                
     These  questions  also pertain  to  UAS  and  UAF. My                                                                      
     colleagues   on  those   campuses   share   the  same                                                                      
     commitment  to students  that we do.  What we  do not                                                                      
     share  is  a  centralized  cookie-cutter approach  to                                                                      
     serving our  largely place-bound student populations.                                                                      
     Instead, we accomplish the mission by adapting to our                                                                      
     respective  local constraints and  opportunities, and                                                                      
     we reach out when we need a hand.                                                                                          
                                                                                                                                
     11:50:32 AM                                                                                                              
     UA  Statewide seeks  to  "right-size"  the university                                                                      
     system  through  centralized  planning  and  control.                                                                      
     However,   geography  and  demography   have  already                                                                      
     spoken.  Statewide is  not the  center of  gravity in                                                                      
     this  state and  Alaska's rich  regional distinctions                                                                      
     are not going  to be erased by anyone. Southcentral's                                                                      
     dynamism   and  distinctive   character   require  an                                                                      
     unfettered university that  is free to respond to the                                                                      
     region's changing social and economic landscape. That                                                                      
     requires local control, not remote control.                                                                                
                                                                                                                                
     [Exhibits for Dr. Farrell's presentation may be found                                                                      
     on BASIS under the documents tab for this meeting.]                                                                        
                                                                                                                                
11:51:15 AM                                                                                                                   
RICHARD  CLAYTON  TROTTER, Professor  of  Law,  Accounting, And                                                                 
Finance, UAA,  offered his perspective on  equity as it relates                                                                 
to the proposal to  centralize the University of Alaska System.                                                                 
He  reported that  he graduated  from  the University  of Texas                                                                 
School of  Law and  College of Business.  He worked  for a U.S.                                                                 
District Judge in the  Western District of Texas for two years.                                                                 
Thereafter  he  spent  two  years  studying international  law,                                                                 
comparative   law,  and   international   business   at  Oxford                                                                 
University. He  then was a corporate  council for General Mills                                                                 
and worked  with mergers  and acquisitions  throughout the U.S.                                                                 
and Latin America. After his legal career, he has had a 30-year                                                                 
 teaching career at Texas Tech, Trinity, and UAA. He spoke to                                                                   
 the following prepared statement:                                                                                              
                                                                                                                                
      To the  chair, my  name is  Richard Clayton  Trotter,                                                                     
      Professor of Business Law, Accounting  and Finance at                                                                     
      UAA.                                                                                                                      
                                                                                                                                
      We are here today to ask  that the Alaska legislature                                                                     
      act for the benefit  of the University  of Alaska and                                                                     
      the  State  of Alaska.  We  ask  that  you  use  your                                                                     
      constitutionally  authorized   power   to  give   the                                                                     
      universities greater authority to govern themselves.                                                                      
                                                                                                                                
      Self-government is  equitable.  To be  governed by  a                                                                     
      distant power is  imperial, is not equitable,  and is                                                                     
      not  consistent  with the  spirit  of  our  state  or                                                                     
      federal   constitution.   But   that   is   how   our                                                                     
      universities are governed today.                                                                                          
                                                                                                                                
      The people of Alaska and the  Alaskan government have                                                                     
      complained for many  years about  imperial government                                                                     
      from Washington,  D.C. Your  universities deserve  no                                                                     
      less from  you  than  what we  all  deserve from  our                                                                     
      nation's capital.                                                                                                         
                                                                                                                                
      11:53:35 AM                                                                                                             
      In prior legislative hearings and  in meetings of the                                                                     
      Board of Regents, the statewide administration of the                                                                     
      University of Alaska  system has sometimes  flashed a                                                                     
      power  point  slide  at  you   quoting  Article  VII,                                                                     
      sections 2 and  3 of  the Alaska  Constitution. Those                                                                     
      sections establish  the University  of Alaska  as the                                                                     
      state  university, assign  governance  and  fiduciary                                                                     
      powers to the Board of Regents and executive power to                                                                     
      the President.                                                                                                            
                                                                                                                                
      When  we  have   seen  those  quotes,   we  instantly                                                                     
      understand the point  of quoting those  sections. You                                                                     
      and we are being  told that the power  of the Regents                                                                     
      and  the  President  was  intended   to  be,  and  is                                                                     
      absolute.                                                                                                                 
                                                                                                                                
      That is not  true. The  sections limit the  powers of                                                                     
      the Board of  Regents with the phrases  "according to                                                                     
      law," and "in  accordance with law."  These important                                                                     
      phrases gave  to  future  legislatures  the power  to                                                                     
      modify the responsibilities of the Board.                                                                                 
                                                                                                                                
     It should  not be surprising that  the framers of our                                                                      
     state constitution included these phrases in sections                                                                      
     2  and  3.  The  author  of  those  two sections  was                                                                      
     delegate  Victor  Rivers.  In  another  place  in the                                                                      
     proceedings of the convention, he says this:                                                                               
                                                                                                                                
     "Now  in the  past, as  a Territorial  government, we                                                                      
     have  had  no  manner  of expressing  self-government                                                                      
     except  through  boards. We  have  had  no  manner of                                                                      
     having  citizen  participation  in government  except                                                                      
     through  boards. Consequently,  we  have had  lots of                                                                      
     boards established  to much of the  disgust of a good                                                                      
     many of our members of the legislature and citizens."                                                                      
     (page 2030)                                                                                                                
                                                                                                                                
     The  experience  with  territorial government  taught                                                                      
     them an appreciation  for establishing and preserving                                                                      
     self-government and  eliminating government by boards                                                                      
     and bureaucrats. You will find earnest debates on the                                                                      
     subject of self-government  in the proceedings of the                                                                      
     convention.                                                                                                                
                                                                                                                                
     Due to  their concern  for preserving self-government                                                                      
     in   Alaska,   they   created   Article   X   of  the                                                                      
     constitution. They knew  that some of our communities                                                                      
     would  mature and  would outgrow  imperial government                                                                      
     from a  central point, and they  knew that the people                                                                      
     deserved to govern themselves by their ancient rights                                                                      
     as  Americans.  Article  X  was  their  remedy.  That                                                                      
     article provides a  pathway for communities to become                                                                      
     independent, self- governing communities.                                                                                  
                                                                                                                                
     The Boundary  Commission was one  of the institutions                                                                      
     created by  Article X  to attend  to future questions                                                                      
     that might arise  from the growth of communities. The                                                                      
     Commission reviews  all proposals  for new boundaries                                                                      
     among  municipalities  and  cities  in Alaska.  (i.e.                                                                      
     state  governing  bodies)  The  process  is long  and                                                                      
     involved, requiring  a vote of  all those affected by                                                                    
     the boundary change. The basic requirement of the law                                                                      
     is that  the change must be  demonstrably in the best                                                                      
     interest of the state and the newly created entity. A                                                                      
     detailed analysis of the proposal to create or change                                                                      
     a boundary must  be prepared, often costing thousands                                                                      
     of  dollars,  followed   by  a  vote  of  the  people                                                                      
     involved.                                                                                                                  
                                                                                                                                
      The Board  of  Regents  is  now considering  a  total                                                                     
      consolidation of our  system that will take  away the                                                                     
      little self-government  that  our universities  have.                                                                     
      The consolidation  will affect  tens of  thousands of                                                                     
      Alaskan citizens as  well as young people  from other                                                                     
      states.  This will  have  a  profound  and  permanent                                                                     
      change in their lives. But there will be no vote, not                                                                     
      even a non-binding referendum, unlike the requirement                                                                     
      when a change in the boundaries  of a city or borough                                                                     
      is proposed.                                                                                                              
                                                                                                                                
      The  Board  of  Regents  is   un-elected  and  it  is                                                                     
      essentially  a non-democratic  institution,  but  its                                                                     
      purview  has   grown  to   the  point   that  demands                                                                     
      accountability to the people. The Regents must handle                                                                     
      their affairs according to law, and you make the law.                                                                     
                                                                                                                                
      Should not the  consolidation of the  universities as                                                                     
      the   Regents   and   President   propose,   or   the                                                                     
      decentralization of  our universities  as we  propose                                                                     
      demand as much serious and  detailed consideration as                                                                     
      would the  disposition  of  a municipality  before  a                                                                     
      massive change? Why  should such a massive  change to                                                                     
      our public system  of higher education escape  a vote                                                                     
      by  the people  or  by  the  representatives  of  the                                                                     
      people?                                                                                                                   
                                                                                                                                
      11:55:18 AM                                                                                                             
      MR. Chairman, it is not only right and constitutional                                                                     
      for the  legislature to  act.  It is  also good  risk                                                                     
      management.                                                                                                               
                                                                                                                                
      We need  not remind  you of  the jurisdiction  of the                                                                     
      Federal Courts over  the actions of the  Board, given                                                                     
      the recent  litigation regarding  a UAA  anthropology                                                                     
      professor.  The   Supreme   Court   has  ruled   that                                                                     
      individual members of a state agency  may be named as                                                                     
      defendants in  litigation in  Federal Court  alleging                                                                     
      violations  of  federal  Constitutional  rights.  The                                                                     
      Constitution of  Alaska  established The  University.                                                                     
      The Constitution of the United  States is the supreme                                                                     
      law  of  the land  and  rules  over  state  Law.  The                                                                     
      University is a state actor for jurisdiction purposes                                                                     
      regarding  federal constitutional  and  civil  rights                                                                     
      matters.                                                                                                                  
                                                                                                                                
     Because of the detrimental reliance of faculty, staff                                                                      
     and  students involved,  promises made  in a  time of                                                                      
     plenty,  while  perhaps  understandably  difficult to                                                                      
     perform in  a time of lack,  are still promises. Many                                                                      
     faculty members, like us, moved here relying on those                                                                      
     promises,  representations and  the structure  of the                                                                      
     existing university system. Any "sea change" shift in                                                                      
     the system, could give rise to a plethora of lawsuits                                                                    
     and costly litigation.                                                                                                     
                                                                                                                                
     At a  minimum, many faculty  and students would "vote                                                                      
     with their  fee   and  leave the system.  Many in the                                                                      
     university community have approached me, asking, "can                                                                      
     we sue" or declaring they "want to sue," Nonetheless,                                                                      
     the  unwise decision  to declare  financial exigency,                                                                      
     against our advice,  has cost the board enormously in                                                                      
     good will in the community, especially among students                                                                      
     and faculty.                                                                                                               
                                                                                                                                
     After  1974,  The  University  of Alaska  established                                                                      
     three  accredited  universities  and  transferred and                                                                      
     granted,  "All  the  curriculum  matters",  including                                                                      
     teaching   and   research   to  those   institutions,                                                                      
     supposedly keeping only "administrative duties." This                                                                      
     grant  of  authority,  in  my  opinion,  created  the                                                                      
     potential for a "detrimental reliance" interest among                                                                      
     students, faculty and  perhaps staff. Arguably, staff                                                                      
     are simply at  will employees and have no expectation                                                                      
     of  future  employment  if  a  university  dissolves.                                                                      
     However, to  some degree they too  have relied on the                                                                      
     representations   of  the   University   of  Alaska's                                                                      
     constituent universities.                                                                                                  
                                                                                                                                
     Faculty are another  matter. Tenured and tenure-track                                                                      
     faculty   are  hired   for   the  "long   haul."  The                                                                      
     universities made at  the time, explicit and implicit                                                                      
     representations  that the university  would "continue                                                                      
     to exist." A  university will not work, if professors                                                                      
     have no  reasonable expectation of  employment or the                                                                      
     existence  of the institution  in the  future. Tenure                                                                      
     track faculty  serve 5 to 8  years in anticipation of                                                                      
     promotion  and tenure.  If  that  expectation ceases,                                                                      
     faculty would leave. Many already have.                                                                                    
                                                                                                                                
     All faculty, particularly  faculty that just recently                                                                      
     arrived  at  the  university,  have  relied  to their                                                                      
     detriment   on    those   representations.   If   the                                                                      
      representations had  been  intentionally false,  they                                                                     
      would be fraudulent. Damages would  be enormous. Even                                                                     
      if the representations were negligently or mistakenly                                                                     
      false, those injured  thereby have a cause  of action                                                                     
      against the university  and the state of  Alaska. One                                                                     
      does  not change  horses  (or  universities)  in  the                                                                     
      middle of the proverbial stream.                                                                                          
                                                                                                                                
      Literally, thousands of students  are operating under                                                                     
      the same  burdens.  Most  are taking  a  wait-and-see                                                                     
      attitude.  They   have  clearly   been  detrimentally                                                                     
      affected by just these proposals. Some may leave, but                                                                     
      many  in  the  most   vulnerable  populations  cannot                                                                     
      relocate - they will just  leave college permanently.                                                                     
      To  their  great  loss  and  great  loss  to  Alaska.                                                                     
      Nonetheless, if the  universities dissolve,  it could                                                                     
      create a class action of  stunning proportions. These                                                                     
      concerns may not materialize, but they do surface due                                                                     
      to the facts.                                                                                                             
                                                                                                                                
      Thank you.                                                                                                                
                                                                                                                                
 11:57:17 AM                                                                                                                  
 MR. TROTTER added  that he  moved here eight  years ago  when oil                                                              
 prices were $110  per barrel. Since  then, prices dropped  to $23                                                              
 and then rose to $62  per barrel. He opined that  this problem is                                                              
 not the legislature's,  the university's,  or the  governor's; it                                                              
 is a market problem. As the market price  of oil increases, there                                                              
 will be more money, but  we must be smart as we  move forward, he                                                              
 said.                                                                                                                          
                                                                                                                                
 11:59:41 AM                                                                                                                  
 CHAIR SHOWER announced a break until 1:00 pm.                                                                                  
                                                                                                                                
 1:03:32 PM                                                                                                                   
 CHAIR SHOWER reconvened the meeting and welcomed the next                                                                      
 presenters.                                                                                                                    
                                                                                                                                
                      ^Spending Priorities                                                                                    
                                                                                                                                
 1:03:48 PM                                                                                                                   
     DR. IAN HARTMAN, Associate Professor, UAA Department of                                                                    
   History, University of Alaska Anchorage, Anchorage, Alaska,                                                                  
 delivered the following prepared statement:                                                                                    
                                                                                                                                
     To  the Chair,  my  name is  Ian Hartman,  and  I'm a                                                                      
     professor of  American history at  UAA. Thank you for                                                                      
     holding this hearing.                                                                                                      
                                                                                                                                
     I  wish to  share with  you  some figures  about this                                                                      
     university  system. As  you'll recall  the governor's                                                                      
     proposal to fund the UA system at roughly $193M would                                                                      
     have provided state  support at the level of $11K per                                                                      
     full time enrolled student. 17,000 students enroll in                                                                      
     the UA system on  a full-time basis. Nearly 11,000 of                                                                      
     them are right here in Southcentral Alaska, attending                                                                      
     UAA. That's  65 percent  of the  students enrolled in                                                                      
     higher education in Alaska.                                                                                                
                                                                                                                                
     1:04:56 PM                                                                                                               
     After the  budget compact,  the University  of Alaska                                                                      
     Anchorage  will receive  about $107M  in unrestricted                                                                      
     general  funds this  fiscal year.  This works  out to                                                                      
     $9,700  per full  time student  at  UAA. This  is $2K                                                                      
     under  what  the governor  first  proposed.  In other                                                                    
     words,  UAA  is  already  under  the  target for  the                                                                    
     reductions originally  proposed by  the governor. But                                                                      
     if we look at  the funding picture even more closely,                                                                      
     one may be surprised at the level of disparities.                                                                          
                                                                                                                                
     UAA's  College of  Arts and  Sciences is  the largest                                                                      
     single college  within the  entire university system.                                                                      
     Last year  CAS generated  more student  credit hours,                                                                      
     and  had  more students  enrolled,  than  all  of the                                                                      
     University of Alaska Fairbanks. UAF received $148m in                                                                      
     undesignated general  funds. Meanwhile the College of                                                                      
     Arts and Sciences received under $4 million in UGF.                                                                        
                                                                                                                                
     Please consider  what I  am about to  say: the single                                                                      
     largest college in the entire university system, with                                                                      
     over  6,000  students  enrolled  at  any given  time,                                                                      
     received  about ONE  PENNY of  every dollar  that the                                                                      
     legislature appropriated for the University  of Alaska                                                                     
     system.                                                                                                                    
                                                                                                                                
     Please   don't   misunderstand:   I   appreciate  the                                                                      
     different mission and focus of UAF. I understand that                                                                      
     the  value of  research is  not  reflected well  by a                                                                      
     cost-per-student model. I'm not objecting to adequate                                                                      
     funding  for  research or  the  support  for graduate                                                                      
     programs  that make much  of that  research possible.                                                                      
     But the structure of the University of Alaska and the                                                                      
      centralization of  decision-making  at the  Statewide                                                                     
      level makes the natural  disparities between teaching                                                                     
      and research far worse.                                                                                                   
                                                                                                                                
      Statewide administration made the  decision to direct                                                                     
      shockingly low  levels of  funding towards  students,                                                                     
      staff and faculty in the  university's largest single                                                                     
      college. Statewide's decision reflects  a belief that                                                                     
      the largest  college in  the system  and the  largest                                                                     
      university in the system exists first and foremost to                                                                     
      subsidize  the  costly  overhead  associated  with  a                                                                     
      burdensome administrative  body remotely  controlling                                                                     
      teaching,  learning,  and  research  in  the  state's                                                                     
      population center. Recall that  Statewide's budget is                                                                     
      in excess of $50 million dollars,  over 10 times what                                                                     
      UAA's College of  Arts and Sciences was  allocated in                                                                     
      UGF.                                                                                                                      
                                                                                                                                
      Why does  this matter?  To the  extent that  there is                                                                     
      one, the  "typical" student  who is  enrolled  in the                                                                     
      University of Alaska system is  enrolled in a program                                                                     
      in the  College of  Arts  and Sciences  here at  UAA.                                                                     
      Perhaps she is a biology major who has her sights set                                                                     
      on medical school, or maybe he is a history major who                                                                     
      wants  to   teach   high   school  kids   about   the                                                                     
      significance of our nation's founding  ideals. But in                                                                     
      any case,  this  student  is appallingly  underserved                                                                     
      given the current funding structure and priorities of                                                                     
      the  university,  and  we  fear  that  under  greater                                                                     
      centralization, this will only get worse.                                                                                 
                                                                                                                                
      1:07:26 PM                                                                                                              
                                                                                                                                
      This arrangement benefits not a single student at UAA                                                                     
      - all  of  whom chafe  under  a  funding system  that                                                                     
      reflects political considerations rather than student                                                                     
      demand or the economic interests of the Alaska's most                                                                     
      populated region. Simply put, students at UAA pay for                                                                     
      a  system   that   has  for   too  long   chronically                                                                     
      underserved them. You in the legislature are uniquely                                                                     
      situated to help us solve this problem. Thank you.                                                                        
                                                                                                                                
      Citations:                                                                                                                
      https://alaska.edu/files/pres/FY20-Prosposed-                                                                             
      Operating-Budget-Distribution-Plan.pdf                                                                                    
                                                                                                                                
 1:07:58 PM                                                                                                                   
CHAIR SHOWER asked if any of the cost disparity between UAA  and                                                                
UAF had to do with  UAF's focus on research and development  and                                                                
the fact that  they receive grants  from outside sources, or  if                                                                
it  was  an inequitable  disbursement  of  undesignated  general                                                                
funds.                                                                                                                          
                                                                                                                                
DR. HARTMAN said he suspects it is a combination. He said  it is                                                                
true that UAF has  a stronger research profile and that it  also                                                                
has  a smaller  student  base.  It is  unprecedented  in  higher                                                                
education for  the main campus  to receive so  much funding  yet                                                                
have less students  while the larger campus gets the leftovers.                                                                 
He suggested  having discussions  to figure out  how to  realign                                                                
and  preserve the  strength  of UAF's  research  programs  while                                                                
reconciling that the  larger student body is  at UAA and is  not                                                                
adequately served by the current structure.                                                                                     
                                                                                                                                
1:09:54 PM                                                                                                                    
DR. JOEL POTTER,  Assistant Professor of Philosophy,  University                                                                
of Alaska Anchorage, Anchorage, Alaska, delivered the following                                                                 
prepared statement:                                                                                                             
                                                                                                                                
     To  the  chair,  my name  is  Joel  Potter.  I  am an                                                                      
     Assistant Professor  of Philosophy  at the University                                                                      
     of Alaska  Anchorage. I  serve on  the Faculty Senate                                                                      
     Committee on  Governance and Funding  Reform and also                                                                      
     live  on  campus  with  my  family  and  work in  the                                                                      
     residential community as UAA's first Faculty-in-                                                                           
     Residence.                                                                                                                 
                                                                                                                                
     Today I  intend to explain why  legislative action is                                                                      
     needed    in    order    to   significantly    reduce                                                                      
     administrative  costs  for the  University  of Alaska                                                                      
     system.  I  shall  begin  with  a  brief  summary  of                                                                      
     administrative  costs  at  the  UA Statewide  Office.                                                                      
     Then, I  shall identify  a recent  attempt to improve                                                                      
     cost  efficiency and  service delivery  at Statewide,                                                                      
     and  then  I shall  propose  why  a  legislative fix,                                                                      
     enabling greater decentralization, is the best way to                                                                      
     reduce overall administrative costs.                                                                                       
                                                                                                                                
     Administrative  costs are high  in the  University of                                                                      
     Alaska system.  In FY18, the UA  system spent 130M on                                                                      
     Institutional   Support  (the  NCHEMS   category  for                                                                      
     administrative  costs). This amount  represents 15.9%                                                                      
     of total expenditures  in the UA System and is nearly                                                                      
     twice as  high as the national  average for public 4-                                                                      
     year institutions.  Despite these facts, between FY14                                                                      
      and  FY18,  there  was  only   a  5.5%  reduction  in                                                                     
      expenditures  ($7.6M)  on  Institutional  Support  or                                                                     
      administration, whereas Instruction, which is in line                                                                     
      with national averages, was reduced by 11.5% (FY19 UA                                                                     
      in Review Report,  Table 4.08). [The Appendix  may be                                                                     
      found on  BASIS  under  the  documents tab  for  this                                                                     
      meeting.]                                                                                                                 
                                                                                                                                
      The Statewide Office has not led  the way in reducing                                                                     
      administrative  costs.  In  FY18  Statewide  was  the                                                                     
      source of  37.5%  of  administrative expenditures  or                                                                     
      $48.8M.   Despite  a   $60M   reduction   in   annual                                                                     
      unrestricted general funds  to the UA  system between                                                                     
      FY14 to  FY18,  expenditures  on administration  were                                                                     
      reduced at  Statewide  by less  than  half a  million                                                                     
      ($487,400 dollars) (FY2015 Yellowbook, "University of                                                                     
      Alaska  Approved  Operating  and   Capital  Budgets,"                                                                     
      December 2014 and  FY2019 Yellowbook,  "University of                                                                     
      Alaska  Approved  Operating  and   Capital  Budgets,"                                                                     
      December 2018).  While  UAF,  UAA,  and UAS  together                                                                     
      reduced their administrative costs over the same time                                                                     
      period  by  8%,  the  Statewide  Office  reduced  its                                                                     
      administrative costs by only 1%.                                                                                          
                                                                                                                                
      This may  come  as a  surprise,  since the  Statewide                                                                     
      Office has  reduced its  use of unrestricted  general                                                                     
      funds more than the universities  have; the amount of                                                                     
      UGF budgeted  for  Statewide  in  FY18 was  39.3%  or                                                                     
      $11.6M less than it was in FY14. However, a reduction                                                                     
      in one type of funding does  not entail reductions in                                                                     
      expenditures. To  make up  a short  fall in  UGF, the                                                                     
      Statewide Office can  effectively raise taxes  on the                                                                     
      universities by the increased use  of student tuition                                                                     
      and fees,  charges  for services,  and indirect  cost                                                                     
      recovery on  research dollars.  The Statewide  Office                                                                     
      also draws  revenue  from  interest  income and  land                                                                     
      sales.                                                                                                                    
                                                                                                                                
      In addition, this cost picture may also be surprising                                                                     
      because  total  actual  expenditures   for  Statewide                                                                     
      between FY14  and  FY18 reflect  a $11.3M  reduction.                                                                     
      These reductions have almost exclusively consisted of                                                                     
      a transfer  of costs  from  Statewide to  one of  the                                                                     
      universities. In FY16 and 17, the programs associated                                                                     
      with   Systemwide   Education   and   Outreach   were                                                                     
      transferred  from   Statewide   to   UAF.  In   FY14,                                                                     
      Systemwide Education and  Outreach cost 10.2M  at the                                                                     
     Statewide Office. Unless the receiving university has                                                                      
     managed  to reduce  the costs  associated  with these                                                                      
     programs, then what  on paper counts as reductions in                                                                      
     expenditures at Statewide may not have contributed to                                                                      
     actual reductions in expenditures in the UA system.                                                                        
                                                                                                                                
     1:13:50 PM                                                                                                               
     More recent  budgetary cuts also  do not reflect real                                                                      
     savings.  In  FY19,  a  separate  line  item  in  the                                                                      
     operating budget, called  UA Enterprise Entities, was                                                                      
     created for the UA Foundation and the Education Trust                                                                      
     of  Alaska. This  transferred  associated  costs from                                                                      
     Statewide into a  new and separate unit. According to                                                                      
     the Statewide  System Office  webpage, these services                                                                      
     are still  administered by  offices within Statewide,                                                                      
     so  this  change  reflects  no  actual  reduction  in                                                                      
     expenditures.  In fact, the  combined line  items for                                                                      
     Statewide and Enterprise Entities reflect an increase                                                                      
     in the SW budget  from the year before and, if spent,                                                                      
     would  exceed   FY14  expenditures  in  Institutional                                                                      
     Support.                                                                                                                   
                                                                                                                                
     Fiscal     challenges    and     bloated    Statewide                                                                      
     administration  are  not new  with  the  recent state                                                                      
     budget. In  March 2015, outgoing  UA System President                                                                      
     Patrick    Gamble     established    the    Statewide                                                                      
     Transformation  Team  in  the  wake  of "the  state's                                                                      
     deepening   fiscal  crisis"   (Patrick   Gamble,  "SW                                                                      
     Transformation  Team  Formed,"  March  23,  2015) and                                                                      
     asked  the team  to  "review SW  office  programs and                                                                      
     services and  make recommendations to  ensure SW work                                                                      
     is tied  to its  essential purpose,  efficient in its                                                                      
     use  of   resources,  and   effective  in  delivering                                                                      
     results"  ("Transforming the  University  of Alaska's                                                                    
     Statewide Office" September 15). In their report, the                                                                    
     Statewide  Transformation  Team noted  a  command and                                                                      
     control style and a  lack of clarity about the unit's                                                                      
     purpose  among  its   functional  leaders.  The  team                                                                      
     recommended that  many functions  at Statewide should                                                                      
     be  moved to  the  universities in  order  to promote                                                                      
     efficiency and to better serve students.                                                                                   
                                                                                                                                
     In  a  November  addendum  to  the  report, the  team                                                                      
     concluded that  the Statewide Office  "has grown into                                                                      
     an expansive entity  lacking both a clear mission and                                                                      
     a  unified connection  to  its purpose,  limiting its                                                                      
     effectiveness." They noted that "Comparison with peer                                                                      
      state university systems  across the  country reveals                                                                     
      that  UA  Statewide   is  an  outlier  in   terms  of                                                                     
      structure,    function    and     staffing    levels"                                                                     
      ("Transforming  the   University  of   Alaska's  (UA)                                                                   
      Statewide Office Addendum to  Report" November 2015).                                                                   
      While some  Transformation Team  recommendations were                                                                     
      implemented - including the transfer  of teaching and                                                                     
      public  service   at   Statewide   to   one  of   the                                                                     
      universities  -  most   of  the   recommendations  to                                                                     
      distribute of  share operational  functions with  the                                                                     
      universities were not implemented.                                                                                        
                                                                                                                                
      The way to bring about effective  long term change in                                                                     
      administrative  cost  is  to  open  up  the  services                                                                     
      currently provided  by  the  UA  Statewide Office  to                                                                     
      competition. In  order to  be  able to  do this,  the                                                                     
      university chancellors  must  have  the authority  to                                                                     
      contract cost effective and efficient services.                                                                           
                                                                                                                                
      Given  authority  to  make  decisions  about  service                                                                     
      providers,  each chancellor  could,  then,  determine                                                                     
      whether to                                                                                                                
                                                                                                                                
      (1)    utilize a  service  from  a  statewide  office                                                                     
      under  the  terms  of  a  negotiated  shared  service                                                                     
      contract,                                                                                                                 
      (2)    utilize services provided by  private industry                                                                     
      or local municipalities,                                                                                                  
      (3)    run the service from within the university,                                                                        
      (4)    receive the  service  from  one of  the  other                                                                     
      universities  under   a  negotiated   shared  service                                                                     
      agreement,                                                                                                                
      (5)    or  share  the  service  between  universities                                                                     
      using a consortium approach.                                                                                              
                                                                                                                                
      The chancellors are best positioned to decide because                                                                     
      they are  in closer  contact with  the students  they                                                                     
      serve as well as with community partners, donors, and                                                                     
      faculty and staff.  Legislative action  to distribute                                                                     
      authority  from  the president  and  regents  to  the                                                                     
      chancellors  and newly  created  boards  of  trustees                                                                     
      would force  whatever statewide  office continues  to                                                                     
      exist to take on a true  service orientation. Without                                                                     
      a  market incentive,  we  can  expect  the  sorts  of                                                                     
      inefficiencies identified by the  Transformation Team                                                                     
      to remain or worsen.                                                                                                      
                                                                                                                                
     Appendix                                                                                                                   
                                                                                                                                
   1. Cost of Instruction vs Cost of Institutional Support                                                                      
     in University of Alaska System                                                                                             
                                                                                                                                
     Although the Direct Student-Regular Faculty Ratio for                                                                      
     UA as  a whole  may be low  (it is  11.4) compared to                                                                      
     other state systems, the actual cost of instructional                                                                    
     faculty at  UA is  not high compared  to other public                                                                      
     institutions.                                                                                                              
                                                                                                                                
     In FY18,  UA spent  $11,290 per  full-time equivalent                                                                      
     student (SFTE) on  Instruction. This is less than the                                                                      
     average  4-year  public  institution,  which  in FY17                                                                      
     spent $12,676 per SFTE.  And it is only slightly more                                                                      
     than the  average for  both public  2-year and 4-year                                                                      
     institutions ($10,832).                                                                                                    
                                                                                                                                
     Besides  including  some  other instructional  costs,                                                                      
     Instruction,  as a  NCHEMS category  of expenditures,                                                                      
     includes   the   benefits    and   full   salary   of                                                                      
     instructional   faculty,  covering   their  research,                                                                      
     service, and teaching.                                                                                                     
                                                                                                                                
     The proportion of FY18 spending on Instruction in the                                                                      
     UA system is  only 24.15% of UA's total expenditures.                                                                      
     This is  a smaller proportion than  what was spent at                                                                      
     public   4-year   institutions   in   FY17  (28.19%),                                                                      
     according  to  the   National  Center  for  Education                                                                      
     Statistics.                                                                                                                
                                                                                                                                
     By  contrast,  Institutional  Support  (which  is the                                                                      
     NCHEMS category  for administrative  costs) was 21.5%                                                                      
     (130M) of  the total unrestricted  expenditures at UA                                                                      
     and  15.9% of total  expenditures at  UA in  FY18. In                                                                      
     FY17,  the average  public  4-year  institution spent                                                                      
     8.4% of its total budget on Institutional Support.                                                                         
     serve as well as with community partners, donors, and                                                                      
     faculty and  staff. Legislative  action to distribute                                                                      
     authority  from  the  president  and  regents  to the                                                                      
     chancellors  and  newly  created  boards  of trustees                                                                      
     would  force whatever  statewide office  continues to                                                                      
     exist to take  on a true service orientation. Without                                                                      
      a  market incentive,  we  can  expect  the  sorts  of                                                                     
      inefficiencies identified by the  Transformation Team                                                                     
      to remain or worsen.                                                                                                      
                                                                                                                                
 Sources:                                                                                                                   
 [The exhibits for this  prepared statement may be  found on BASIS                                                              
 under the documents tab for this committee meeting.                                                                            
                                                                                                                                
 1:17:55 PM                                                                                                                   
 SENATOR COGHILL  asked if he  knew the  private donor  volume for                                                              
 the various campuses.                                                                                                          
                                                                                                                                
 DR. HARTMAN  said  heard  anecdotally  that  one donor  who  gave                                                              
 $200,000 to UAA  said they would  not give anymore  because their                                                              
 previous  donations  may  not  be  used  for  the  programs  they                                                              
 originally intended.                                                                                                           
                                                                                                                                
 SENATOR COGHILL said he  heard that too and he  believes it would                                                              
 be wise  to honor  the  reasons the  donations were  made in  the                                                              
 first place.                                                                                                                   
                                                                                                                                
                       ^Alternative Models                                                                                    
                                                                                                                              
 1:19:25 PM                                                                                                                   
 DR. MAX KULBERG, Assistant  Professor, Pharmaceutical Sciences,                                                                
 and the WWAMI School of Medical Education, University of Alaska                                                                
 Anchorage,  Anchorage,   Alaska,   paraphrased  the   following                                                                
 prepared statement:                                                                                                            
                                                                                                                                
      To the  chair,  my  name is  Max  Kullberg.  I am  an                                                                     
      Assistant Professor with the WWAMI  School of Medical                                                                     
      Education.                                                                                                                
                                                                                                                                
      Thank you for this opportunity. I  would like to talk                                                                     
      to you about decentralizing the  University of Alaska                                                                     
      system, which has been proposed by the Chancellors.                                                                       
                                                                                                                                
      Decentralized models  for  universities exist  around                                                                     
      the  country  including  the  Claremont  colleges  in                                                                     
      California  and  the  recently  decentralized  Oregon                                                                     
      university system.                                                                                                        
                                                                                                                                
      Decentralizing   is    a   strategy    for   reducing                                                                     
      administrative costs and increasing local governance.                                                                     
      As  has been  mentioned,  decentralization  could  be                                                                     
      accomplished  by legislatively  moving  powers  to  a                                                                     
      board of trustees for each university, or by creating                                                                     
     a separate Alaska State University. The advantages of                                                                      
     a  decentralized  model  compared  to  a  centralized                                                                      
     merger model, are as follows:                                                                                              
                                                                                                                                
     First, a decentralized model would largely save costs                                                                      
     by  reducing  administration.   We  have  heard  from                                                                      
     legislators and stake holders that they would like to                                                                      
     see the university's  money go to instruction and for                                                                      
     cost  savings to  come from  reducing administration.                                                                      
     This  makes  sense, since  the  University  of Alaska                                                                      
     system spends  nearly double the  national average on                                                                      
     administration.  Over 40%  of  that cost  is  from UA                                                                      
     statewide, which has a budget of $52M per year. If we                                                                      
     are  going to  reduce administrative  costs,  we must                                                                      
     talk about creating  a more efficient statewide unit.                                                                      
     The Oregon legislature  recently took this step. They                                                                      
     gave autonomy  to the chancellors,  created boards of                                                                      
     trustees  for each  public  university  and downsized                                                                      
     their  central administrative  office. We  should and                                                                      
     can do  the same.  The legislature of  Alaska has the                                                                      
     authority  to shift  responsibilities,  now possessed                                                                      
     solely by the Board of Regents, to boards of trustees                                                                      
     for UAF, UAS and UAA.                                                                                                      
                                                                                                                                
     A  more   decentralized  leadership  structure  would                                                                      
     reduce  the   unchecked  administrative  spending  at                                                                      
     statewide and allow the Chancellors to make precision                                                                      
     reductions  to local administration.  The Chancellors                                                                      
     have already  made such cuts,  largely absorbing this                                                                      
     year's  $25M  cut.  If  cuts  do  extend to  academic                                                                      
     programs,  adjustments  are best  managed  locally by                                                                      
     those who  know their  program's mission, curriculum,                                                                      
     students   and  community  connections.   Such  local                                                                      
     control  has already  led  to  natural collaborations                                                                      
     between UAA, UAF and UAS in chemistry, philosophy and                                                                      
     engineering  as the  programs rely  on each  other to                                                                      
     accomplish  their  goals.   Much  more  disruptive to                                                                      
     students would  be the  top down  approach of merging                                                                      
     the three universities, which would largely eliminate                                                                      
     face to face contact  at two of the campuses and rely                                                                      
     on distance learning to the third, lead campus.                                                                            
                                                                                                                                
     The  School  of  Education  is  an  example  of  this                                                                      
     approach.  Not only  did it  precipitate the  loss of                                                                      
     accreditation at  UAA, it has also  resulted in a 38%                                                                      
     decrease in student enrollment in education this year                                                                      
     across the whole university system. That is  38% fewer                                                                     
      teachers that will  be available for our  k-12 school                                                                     
      districts in just  a few years. My  daughter's second                                                                     
      grade class already has 29 students. What is it going                                                                     
      to look like  in a few  years? This will  disrupt our                                                                     
      community.  A system-wide  merger  and  consolidation                                                                     
      will impose this disruption on a larger scale, on the                                                                     
      entire state.                                                                                                             
                                                                                                                                
      1:22:40 PM                                                                                                              
      The most important  aspect of decentralizing  is that                                                                     
      it would  allow  for increased  local governance.  As                                                                     
      Mayor Berkowitz  pointed  out at  the  last Board  of                                                                     
      Regents Meeting,  he doesn't  think consolidation  is                                                                     
      the answer and said  that the system  works best when                                                                     
      there is a local authority at the University that can                                                                     
      work directly with the community.                                                                                         
                                                                                                                                
      This  is   contrary  to   the  President's   proposed                                                                     
      leadership  structure,  which  would   eliminate  the                                                                     
      Chancellors and  Provosts and  transfer authority  to                                                                     
      himself. Only  with local  autonomy can  a university                                                                     
      truly serve and align with its community.                                                                                 
                                                                                                                                
      UAA, UAF  and UAS  serve very  different cities  with                                                                     
      different workforce needs and different students. Our                                                                     
      students at  UAA have  made their  voice heard.  They                                                                     
      don't want an online education. They want to be face-                                                                     
      to-face with their teachers. They want to sit next to                                                                     
      their   peers.    Moreover,   research    has   shown                                                                     
      overwhelmingly  that underrepresented  students  like                                                                     
      those at UAA, do not do well with online education.                                                                       
                                                                                                                                
      With online educations  they are more likely  to fail                                                                     
      their courses, are  less likely to graduate  and will                                                                     
      have more difficulty finding a  job after graduating.                                                                     
      We  have   data   from   UAA  that   confirms   these                                                                     
      conclusions. In  organic chemistry,  30% of  students                                                                     
      fail when it's  delivered in  a fact to  face format.                                                                     
      When the  exact  same content  is  delivered, by  the                                                                     
      exact same teacher,  just moved to an  online format,                                                                     
      70% of students fail. That is over double the failure                                                                     
      rate from moving a course to online,  and this is the                                                                     
      model  that  the  President  wants   for  our  entire                                                                     
      university system.                                                                                                        
                                                                                                                                
      UAA has evolved  to fit the  students of UAA  and has                                                                     
      aligned with the community so  that students can most                                                                     
     effectively  transition  into our  workforce.  If the                                                                      
     universities  are  required   to  merge  and  UAA  is                                                                      
     governed from a  plane ride away, this community will                                                                      
     lose  this university  and  once it's  gone  it's not                                                                      
     coming back.  In summary a  decentralized model would                                                                      
     decrease   unchecked  administrative   costs   at  UA                                                                      
     statewide and would increase local governance so that                                                                      
     UAA, UAF  and UAS truly serve  the students and their                                                                      
     regions.                                                                                                                   
                                                                                                                                
1:24:12 PM                                                                                                                    
DR. PAUL DUNSCOMB,  Professor and Chair, Department of  History,                                                                
University  of Alaska  Anchorage, Anchorage,  Alaska,  delivered                                                                
testimony on  alternative models. He  paraphrased the  following                                                                
prepared statement:                                                                                                             
                                                                                                                                
     To the  chair, I'm Prof. Paul  Dunscomb, chair of the                                                                      
     department of history at UAA.                                                                                              
                                                                                                                                
     When  we to  talk about  the restructuring  of higher                                                                      
     education in  Alaska, it is critical  to note this is                                                                      
     not  a discussion  about  declining budgets  and cost                                                                      
     savings. It's not  about how diminished state support                                                                      
     gets distributed.  Questions regarding  the structure                                                                      
     of  higher   education  in   Alaska  are   much  more                                                                      
     fundamental. They are about mission, and purpose. Who                                                                      
     shall have access  to higher education, and who shall                                                                      
     not?  What value can  the state  of Alaska  expect to                                                                      
     realize from its system of higher education.                                                                               
                                                                                                                                
     Higher education in Alaska has evolved since the days                                                                      
     of statehood  and it  must evolve  again. It  is also                                                                      
     clear that no matter  what model we ultimately end up                                                                      
     adopting   for  the  system   (how  our   product  is                                                                      
     delivered),  the   basic  governance  structures  for                                                                      
     higher education in Alaska require reform. The Alaska                                                                      
     Legislature has a critical role to play in this.                                                                           
                                                                                                                                
     1:25:33 PM                                                                                                               
     In 1974  the Board  of Regents  and the  UA President                                                                      
     Robert Hiatt approved a measure to grant the branches                                                                      
     of the  University of Alaska  in Anchorage and Juneau                                                                      
     permission to  seek their own  accreditation. In 1975                                                                      
     the University of Alaska deeded its own accreditation                                                                      
     to the University of Alaska at Fairbanks. When it did                                                                      
     so the  University of Alaska  as such, an accredited,                                                                      
     degree  granting  institution  whose  faculty teaches                                                                      
      students  and conducts  research,  ceased  to  exist.                                                                     
      During those forty-five years the vast bulk of higher                                                                     
      education in the  state of Alaska has  been delivered                                                                     
      by three  separately  accredited universities,  known                                                                     
      since 1987 as UAF, UAA, and  UAS. While there remains                                                                     
      an entity known as  the University of Alaska  it is a                                                                     
      purely  administrative one,  costing  $52  million  a                                                                     
      year.                                                                                                                     
                                                                                                                                
      The basic  shape of  higher education  in  Alaska has                                                                     
      been at variance with the constitution for forty-five                                                                     
      years. Up  until  last week,  the  only proposal  for                                                                     
      restructuring that had received serious attention was                                                                     
      for consolidation of the three UA universities into a                                                                     
      "new UA." One  justification for it was  the language                                                                     
      of the  constitution  (Article VII,  Sections 2,  3),                                                                     
      which describes a University of  Alaska under a Board                                                                     
      of Regents. However, trying to stuff forty-five years                                                                     
      of institutional evolution and growth  into that form                                                                     
      is rather like the tailor cutting the customer to fit                                                                     
      the suit. Far better  would be a new  legal framework                                                                     
      building on what  presently exists and  providing for                                                                     
      greater autonomy and improved local governance.                                                                           
                                                                                                                                
      1:27:06 PM                                                                                                              
      There are three particular ways the legislature could                                                                     
      do this.                                                                                                                  
                                                                                                                                
      The constitution could be amended to conform with the                                                                     
      current reality.  This  would  likely  prove a  heavy                                                                     
      lift,   however.  There   are   measures   short   of                                                                     
      constitutional  reform  that  the  legislature  might                                                                     
      entertain.                                                                                                                
                                                                                                                                
      Article VII,  Section 3  notes the  Board  of Regents                                                                     
      shall  operate  "in  accordance  with  the  law.   As                                                                     
      authors of the law you have the power to redefine and                                                                     
      separate the duties  of the  board to allow  for more                                                                     
      effective governance  by  giving  each  of the  three                                                                     
      universities local boards  of trustees  and requiring                                                                     
      the chancellors to answer to them.                                                                                        
                                                                                                                                
      Finally, Article VII Section 1  does permit the state                                                                     
      to provide for other public educational institutions.                                                                     
      This  could   take  the  form   of  a   separate  and                                                                     
      independent Alaska State University  to which you can                                                                     
      convey  the  assets  of  the   University  of  Alaska                                                                     
     Anchorage    (land,   buildings,    curriculum,   and                                                                      
     accreditation).  Prof.  Nabors  referenced  the  1988                                                                      
     Alaska Supreme Court  Decision McAlpine v. University                                                                      
     of Alaska that  implied the legislature has the right                                                                      
     to do this.  In that vein it  should be noted that in                                                                      
     1976 the legislature moved and considered a bill that                                                                      
     would  have  broken  out  all  of Alaska's  community                                                                      
     colleges into a  separate system independent of UA.(1)                                                                     
     They ultimately  stopped short of  doing so, but they                                                                      
     did give the matter serious consideration.                                                                                 
                                                                                                                                
     Higher  Education in  Alaska  has evolved  beyond the                                                                      
     ability of  a single Board of  Regents perched at the                                                                      
     very  top  of   the  system,  to  exercise  effective                                                                      
     governance  over  the  three  universities  in  their                                                                      
     charge,  especially  not  peering  down  through  the                                                                      
     overcast of Statewide Administration. A decentralized                                                                      
     model providing  local control  and greater autonomy,                                                                      
     which  you have the  authority to  provide, is  a far                                                                      
     more effective answer  to the challenges we face than                                                                      
     merely insisting  on reverting to  the form described                                                                      
     in the constitution  regardless of how ill-fitting to                                                                      
     the needs of Alaskans that form is.                                                                                        
                                                                                                                                
     Thank you.                                                                                                                 
                                                                                                                                
     1. W. A. Jacobs. Becoming UAA, 1954-2014: The Origins                                                                      
     and   Development   of  the   University   of  Alaska                                                                      
     Anchorage. University  of Alaska Anchorage, 2014. 64-                                                                      
     66.                                                                                                                        
                                                                                                                                
1:29:11 PM                                                                                                                    
SENATOR  COGHILL said  that was  a final  emphasis to  what  the                                                                
committee has  heard throughout  the testimonies.  He said  he's                                                                
started outlining a  series of principles of things to  consider                                                                
moving forward. This debate requires the legislators to look  at                                                                
what they want as outcomes for the university system as well  as                                                                
for each campus.  He said the legislature  will go to the  Board                                                                
of  Regents   who  have   also  faced   adversities,  but   this                                                                
perspective today has brought some things to light that need  to                                                                
be  addressed with  the board.  He  highlighted the  three  main                                                                
suggestions  given today  was to  amend the  constitution,  give                                                                
trustee authorship,  or create a university  that is unique  and                                                                
distinct.                                                                                                                       
                                                                                                                                
1:31:01 PM                                                                                                                    
 DR.  DUNSCOMB  said  the  Board  of   Regents  listens  to  the                                                                
 legislature's opinions and often quotes them in board meetings.                                                                
 He said he appreciates  the legislature making  its voice heard                                                                
 to the regents.                                                                                                                
                                                                                                                                
 1:31:20 PM                                                                                                                   
 CHAIR SHOWER said  he is  cautious about having  three separate                                                                
 university  systems  coming  to   the  legislature  asking  for                                                                
 different things,  however, that  could be  prevented  with the                                                                
 appropriate  structure.  He  emphasized   that  competition  is                                                                
 healthy in the  appropriate structure,  and when it  is handled                                                                
 the right way is a good thing.                                                                                                 
                                                                                                                                
 DR. DUNSCOMB commented that Oregon goes through a central board                                                                
 for its  budgetary information,  so there  is a  possibility to                                                                
 streamline that approach within the decentralized model.                                                                       
                                                                                                                                
                     ^Perspective of Alumni                                                                                   
                                                                                                                                
 1:33:15 PM                                                                                                                   
 LEA BOUTON, M.A.T., President, UAA  Alumni Association Board of                                                                
 Directors, Anchorage,  Alaska, as  a UAA  alumnus,  offered her                                                                
 perspective  of  the  proposal  to  consolidate  the  three  UA                                                                
 universities into a single accreditation.  She said she holds a                                                                
 Master of Arts in  Teaching from UAA and  teaches chemistry and                                                                
 engineering at Dimond High School. She said her testimony would                                                                
 be a  little  different and  that  was her  primary  point. She                                                                
 offered her  belief that  the  alumni of  an  institution offer                                                                
 something  unique.  She  cited  a  report  to  the  UAA  Alumni                                                                
 Relations  in  which   the  consultant  said   that  when  used                                                                
 correctly, alumni  comprise  the fourth  endowment  piece  of a                                                                
 university. Alumni used as an endowment is a resource organized                                                                
 to support the  university in a  variety of ways to  ensure the                                                                
 university's success  in ongoing  development.  She highlighted                                                                
 that in 2012  the Alumni Association was  reestablished because                                                                
 previous alumni structures did not  work for the community. She                                                                
 noted that  the  university struggled  to  effectively use  UAA                                                                
 alumni as an endowment  and many alumni felt they  were only to                                                                
 give financially, while being disregarded for their experience,                                                                
 energy and opinions.                                                                                                           
                                                                                                                                
 She said that the alumni endowment  represents more than annual                                                                
 giving. The alumni provide  a glimpse of  where the institution                                                                
 is headed because  they act as  the data points  connecting the                                                                
 current  students,  the curriculum  they  experience,  and  the                                                                
 future results.  She  pointed out  the  Alumni Association  has                                                                
experienced  increased engagement  after its  open access  model                                                                
was reestablished.                                                                                                              
                                                                                                                                
1:35:53 PM                                                                                                                    
MS BOUTON  said UAA  alumni are active,  engaged, and generous,                                                                 
but they  do it  differently. A model  that may  work for  other                                                                
student bodies  doesn't work as  well here. She  said she was  a                                                                
nontraditional student,  like so  many others.  She walked  away                                                                
after  graduation,  expecting   to  not  return,  until   former                                                                
students became star athletes. She said the presence of the  Sea                                                                
Wolves athletics in her  small town, captures the hearts of  her                                                                
family. This  engagement  strategy enticed  her and transformed                                                                 
her into an active  and present alum. She wondered if the  level                                                                
of active  engagement would  change with  a consolidation  model                                                                
and she has two main responses. First, history has shown that  a                                                                
structure that works at UAS or UAF does not necessarily work  at                                                                
UAA. She does not have any confidence that the value of the  UAA                                                                
alumni endowment is understood by statewide. She noted that  the                                                                
alumni have presented their concerns about consolidation to  the                                                                
Board of Regents.                                                                                                               
                                                                                                                                
1:37:38 PM                                                                                                                    
Secondly, due  to the current fiscal  situation, there could  be                                                                
unintended consequences to consolidation. She opined that  there                                                                
may be a loss in financial support if alumni were to lose  their                                                                
tie to  their alma mater.  "We are Sea  Wolves. Our colors,  our                                                                
name, our  mascot, and  our culture;  are all  integrals of  our                                                                
identity and we give as an expression of that."                                                                                 
                                                                                                                                
MS  BOUTON stated  that the  alumni are  here today  largely  to                                                                
support the current students of the institution. She noted  that                                                                
the current  students have  chosen UAA  for its community-based                                                                 
institution  and  the ability  to  personally  work  with  their                                                                
professors  face-to-face. She  said  that the  current  students                                                                
have voiced that a consolidated structure is not what they  came                                                                
to UAA for and a  "new UA" is not what they desire. She is  also                                                                
here to support  the 12 percent of  students who decided to  not                                                                
return  to  UAA after  the  tremulous  summer.  She  said  those                                                                
students are lost assets.  She emphasized that we owe it to  our                                                                
state to give students  an institution of higher education  that                                                                
supports their needs and works for them.                                                                                        
                                                                                                                                
She said the UAA  mission is distinct and important and tied  to                                                                
the community  of Anchorage. She urged  the legislature to  help                                                                
UAA find a  future with its own  accreditation and supported  by                                                                
four  strong  endowments:  financial,  physical,  intellectual,                                                                 
indiscernible.                                                                                                                  
                                                                                                                                
 1:39:49 PM                                                                                                                   
 MICHAEL LOWE,  UAA Alumnus, Anchorage,  Alaska, stated  that he                                                                
 graduated from UAA in December 2018. He opined that the plan to                                                                
 consolidate the  university  system is  shortsighted.  He noted                                                                
 that  centralization  would   impact  UAA's   Reserve  Officers                                                                
 Training Corps (ROTC) Program. This program is one of many that                                                                
 are at risk  under consolidation.  He said  as a member  of the                                                                
 Alaska National Guard,  it is a  concern that students  may not                                                                
 have the  opportunity to  enhance their  careers by  pursuing a                                                                
 local ROTC program. The possibility  of discontinuing a program                                                                
 like  ROTC  is one  of  the  many  unforeseen  consequences  of                                                                
 consolidation.                                                                                                                 
                                                                                                                                
 CHAIR SHOWER thanked him for his service.                                                                                      
                                                                                                                                
 1:41:49 PM                                                                                                                   
 STACEY  LUCASON,  UAA Alumnus  Anchorage,  Alaska  offered  her                                                                
 perspective  of  the  proposal  to  consolidate  the  three  UA                                                                
 universities into a single accreditation. She reported that she                                                                
 had been student body president, had served on the Coalition of                                                                
 Student Leaders to  advocate for  the students on  all campuses                                                                
 before the legislature, and had served  as a student regent for                                                                
 two years.                                                                                                                     
                                                                                                                                
 She opined that  statewide is  not very productive  but heavily                                                                
 relied on because they have taken on that role. She highlighted                                                                
 that sometimes small problems  get amplified by  someone who is                                                                
 not completely aware of the data and unfortunately statewide is                                                                
 a  part   of   the  amplification   of   those  problems.   The                                                                
 administrator's offices are in Fairbanks, so they do not have a                                                                
 relationship with the  students in Anchorage,  Kenai, Homer, or                                                                
 Southeastern Alaska.  She said  she has  heard the  remarks "we                                                                
 want sameness for sameness  sake," or "it will  be easier if it                                                                
 is the  same" for  a while  now. She  opined that  having local                                                                
 control and local processes will help navigate problems. If the                                                                
 office in  Fairbanks must  be contacted  for every  problem, it                                                                
 creates a much more difficult process.                                                                                         
                                                                                                                                
 1:45:04 PM                                                                                                                   
 MS. LUCASON  highlighted  that amid  budget  cuts, the  current                                                                
 chancellor at UAA invested in the  academic and student affairs                                                                
 so UAA would have more first year advisors. UAA has outreach on                                                                
 the campus, to  have more young  students come in  and check it                                                                
 out. She  pointed out  that  this year  is one  of  the largest                                                                
 freshman classes  UAA has  ever seen.  The momentum  of helping                                                                
 students figure  out  the best  academic path  has  been halted                                                                
since the administration said, "we are going to be one, that  is                                                                
just happening." She emphasized that students need this system,                                                                 
with  outreach and  academic advisors,  so they  understand  the                                                                
opportunities that exist at UAA like undergraduate research.                                                                    
                                                                                                                                
She urged the  legislature to see  the value in a decentralized                                                                 
structure and find ways to bring up enrollment and have tuition                                                                 
match  what the community  can  support and  the school's  value                                                                
which will  lead to  more revenue  instead of  worrying so  much                                                                
about cuts.                                                                                                                     
                                                                                                                                
1:47:12 PM                                                                                                                    
CHAIR  SHOWER commented  that the  people in  the classroom  and                                                                
those  who  have  gone  through  the  system  offer  a  uniquely                                                                
different  perspective.  The  most  shocking  takeaway  is   the                                                                
regional impacts and the relationships that are established  and                                                                
to  remember how  unique  each area  is.  He said  it  has  been                                                                
impactful to not only  see the impacts from a budget standpoint                                                                 
but also how this will impact the students themselves.                                                                          
                                                                                                                                
1:48:20 PM                                                                                                                    
JONATHAN TAYLOR, UAA Alumnus, Anchorage, Alaska, said he  serves                                                                
on the Alumni  Board and has stayed  involved in the  university                                                                
because he values the  institution. He wants others to have  the                                                                
same opportunities that he  had. He talked about the impacts  of                                                                
having three different institutions.                                                                                            
                                                                                                                                
First,  he  said,  these  institutions  offer  students   unique                                                                
opportunities.  The  uncertainty  of  the  future  of  UAA   and                                                                
students  receiving  their scholarships  led  to  a  decline  in                                                                
enrollment,  students  stopped  showing  up.  He  said  this  is                                                                
problematic because these students are less likely to return  to                                                                
the institution.  He said  this restructuring  not only  impacts                                                                
current  students  but  future  students.  The  impact  of  that                                                                
uncertainty  has trickled  down to  people who  are potentially                                                                 
considering the university.  He understands there are  budgetary                                                                
concerns, but he urges  the legislature to proceed in a careful                                                                 
manner so that the  institution can manage those productions  in                                                                
a way that does not negatively impact students.                                                                                 
                                                                                                                                
Second,  having   three  separate   institutions  reflects   the                                                                
diversity  of Alaska.  He said  that where  a student  graduates                                                                
from college, is where they will most likely put down roots.  He                                                                
emphasized that each individual community has its own identity,                                                                 
mission, and  purpose. Students are diverse  so having an  array                                                                
of missions through  three separate universities is crucial.  He                                                                
noted  that education  is an investment  in  the future  because                                                                
 students will  be  educated  to meet  Alaska's  diverse set  of                                                                
 needs. He said he  would hate to see people  leave because they                                                                
 didn't have access to higher education.                                                                                        
                                                                                                                                
 1:53:31 PM                                                                                                                   
 SENATOR COGHILL said the future  perspective is appropriate. He                                                                
 suggested that going  forward it  would be important  to listen                                                                
 long and  speak  short because  the  Board of  Regents  is also                                                                
 considering things.  The point of  consolidation has  been made                                                                
 clear  throughout  today's  discussion.  He  stated  it's  also                                                                
 important the community has had an opportunity to speak. Alaska                                                                
 is  a  unique community  with  a  small  population  and  large                                                                
 geography. He  said  he  would ponder  how  to restructure  the                                                                
 system so the community can thrive.                                                                                            
                                                                                                                                
 He thanked  the presenters  and said  he would  take everything                                                                
 that was said to heart. He was listening.                                                                                      
                                                                                                                                
 1:55:30 PM                                                                                                                   
 CHAIR SHOWER said this  is step one in the  process to find the                                                                
 best university system. He said he would  like to also hear the                                                                
 other side of the argument. He advised  that he has plans for a                                                                
 roundtable  discussion so  all  the  ideas  can  be argued  and                                                                
 vetted. He  understands that it  is critical  to have  a robust                                                                
 university system  for the future  of Alaska,  it is  all about                                                                
 finding  the   best  way  forward   with  the   current  budget                                                                
 constraints. He said he  looked forward to  seeing everyone for                                                                
 further discussions and he appreciates everyone coming to speak                                                                
 today.                                                                                                                         
                                                                                                                                
 1:57:04 PM                                                                                                                   
 There being no further  business to come  before the committee,                                                                
 Chair  Shower  adjourned  the  Senate  State  Affairs  Standing                                                                
 Committee meeting at 1:57:04 p.m.                                                                                              

Document Name Date/Time Subjects
List of Witnesses.pdf SSTA 9/20/2019 9:00:00 AM
univeristy of alaska presentation by the univeristy faculty senate - list of witnesses
Restructuring the University of Alaska System - Dr. Forrest Nabors.pdf SSTA 9/20/2019 9:00:00 AM
restructuring the university of alaska system
Perspective of Student and Faculty Leadership - Scott Downing & Alex Jorgensen.pdf SSTA 9/20/2019 9:00:00 AM
perspective of student and faculty leadership
Management Risks - Dr. Frank Jeffries, LuAnn Piccard, and David Fitzgerald.pdf SSTA 9/20/2019 9:00:00 AM
management risks
Accreditation and Student Success - Dr. Jennifer Brock and Dr. Maria Williams.pdf SSTA 9/20/2019 9:00:00 AM
accreditation and student success
Equity - Dr. Chad Farrell and Clayton Trotter.pdf SSTA 9/20/2019 9:00:00 AM
equity
Spending Priorities - Dr. Ian Hartman and Dr. Joel Potter.pdf SSTA 9/20/2019 9:00:00 AM
spending priorities
Alternative Models - Dr. Max Kullberg and Dr. Paul Dunscomb.pdf SSTA 9/20/2019 9:00:00 AM
alternative models