UA Board Of Regents terminates the declaration of financial exigency

(KTUU)

ANCHORAGE (KTUU) - The University Of Alaska Board Of Regents met Tuesday and unanimously voted yes on terminating the declaration of financial exigency issued on July 22, 2019.

The board voted 10-0 to cancel their declaration, the declaration would have allowed the university to make cost-cutting decisions more quickly than standard operations allow. Some of the downsizings that would have taken place would have been laying off faculty and closing programs.

The declaration adopted by the board on July 22, 2019 was based on an operating budget reduction of $136 million in state funding, which would have had a material adverse effect on university (UA) operations and require cost reductions of approximately $200 million.

On Monday, Aug. 19, 2019, Governor Dunleavy signed into law a revised operating budget with a $25 million reduction in state funding for UA based on an agreement signed last week between the governor and Board Chair John Davies. Given the change in circumstance, the board terminated the July 22, 2019 declaration.

However, regents continued to express concern over the magnitude of a
reduction of $70 million over the next three years. Projected expenses will still exceed projected revenues in FY20, and may well have a material adverse effect on UA operations.

“We have been given the luxury of a $70 million cut and a three-year glide path. I don’t think we can assume that a declaration of exigency is off the table,” said Regent Dale Anderson. “We cannot afford the
university-of-yesterday. We can’t think we are okay with a $25 million cut, it’s a $70 million cut.”

UA President Jim Johnsen said no actions have been taken under financial exigency.

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