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February 13, 2019

For Immediate Release
Feb. 13, 2019

Johnsen says Governor's deep cuts will devastate UA

FAIRBANKS – Calling Gov. Mike Dunleavy’s $134 million reduction to the University of ����ֱ����Ƶ’s FY20 operating budget extreme, University of ����ֱ����Ƶ President Jim Johnsen said today that he would have no choice but to propose to the Board of Regents deep cuts for every UA campus including community campuses, major reductions to faculty and staff, and reduction and elimination of educational programs and services across the state.

The Governor’s FY20 budget, made public this morning, reduces the state-funded university operating budget by $134 million, or 41 percent, from its current operating budget. This is the largest budget cut in the university’s 100-year history, Johnsen said, and comes on top of state budget cuts in four out of the last five years.

“Cuts at this level cannot simply be managed or accommodated,” he said. “If this budget passes the legislature, it will devastate university programs and services, and the negative effects will be felt in communities across the entire state.”

According to a 2016 economic impact study done by the McDowell Group of Juneau, the total annual economic impact of UA is estimated to be in excess of $1 billion.

“The university purchases $122 million in goods and services from ����ֱ����Ƶ vendors; our people buy goods and services from ����ֱ����Ƶn businesses; our educational programs prepare a highly skilled, ����ֱ����Ƶn grown workforce; our research solves ����ֱ����Ƶn problems, supports ����ֱ����Ƶn businesses, and generates a 600 percent return on investment; and our graduates earn more money, enjoy better health, and build their lives here in ����ֱ����Ƶ,“ Johnsen said.

“The impact of this proposed cut will be far greater than the $155 million UGF reduction to the university. It will impact our enrollment, our research, and our philanthropy. This cut, if not reversed by the legislature, will hurt ����ֱ����Ƶ’s economic competitiveness now and long into the future,” he said.

“In light of the Governor’s budget, our path forward requires two streams of work. The first is advocacy, telling the story of UA’s critical role in our state’s economy and our quality of life. The second, unfortunately, is contingency planning for ‘what if’ the budget is cut as deeply as proposed by the Governor,” he said.

To prepare for contingencies, Johnsen has called an emergency meeting with the chancellors of UAA, UAF and UAS to discuss next steps, review strategic options and, prepare those options for consideration by the Board of Regents at its meeting on Feb 28.

“We are heading into uncharted territory with lots of uncertainty ahead,” Johnsen said, “but we will stay focused on what is certain -- that UA is a critical part of our state, that our students come first in everything we do, and that we must all pull in the same direction in service to ����ֱ����Ƶ’s future,” he said.

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For more information, contact Roberta Graham, associate vice president of public affairs at 907-360-2416 (cell). Media materials from today’s press availability on UA’s budget are available for DOWNLOAD.

University of ����ֱ����Ƶ budget terminology. PDF