UA President Johnsen on a drive to restore confidence in budget-battered state university

University of Alaska President Jim Johnsen is on a mission to build public confidence in the state university and restore morale among faculty and students following last year’s bruising battle with Gov. Mike Dunleavy over budget cuts.

Last year Dunleavy proposed a 41 percent cut to state funds for the university that survived a veto override attempt by the Legislature and actually went into effect last July.

“Had that cut gone into effect we would have been attending a memorial service here today rather than recommitting ourselves to serving the state’s needs for a strong, resilient university system,” Johnsen said.

The governor subsequently backed off in an agreement with the university for a 21 percent cut, or $70 million, in state funds spread over three years. But that is painful enough with UA absorbing a $25 million reduction in its current year, $25 million for next year and $20 million in the year after

Those reductions followed a $15 million cut that preceded the governor’s actions.

But adversity builds resilience and in the long run strength. That’s the upbeat message Johnsen conveyed last Friday, Feb. 28 in his annual “state of the university” speech given in Anchorage.

There is an important sign of continued public support for the university: Donations and contributions are up. “Since 2017 the university has received $105 million in private contributions from 13,811 people, of whom 6,388 were first-time donors and 5,485 were alumni,” Johnsen said.

Most of the donations were dedicated for a specific purpose, and many are also endowed for the long term. “This strong outpouring of support is a sign of how many people see the university as a way to realize their dreams for a better world,” he said. To build on this support, “we are in the early stage of our first ever statewide philanthropic campaign,” Johnsen said.

Higher education has an important mission: Research indicated that by 2025 65 percent of the occupations available to Alaska young people will need post-secondary education or training. “We’re now at 54 percent,” of Alaskans with those qualifications. “An 11-point gain or a 20 percent increase is needed,” to close the gap to 65 percent. “That’s not an easy lift in any state, but especially tough in Alaska,” with budget cuts being made in higher education, Johnsen said.

To accommodate reduced resources, painful reductions are now being made in programs at all three of the university’s campuses in Anchorage, Fairbanks, and Juneau.

“At the Board of Regents’ direction, we are examining both academic programs and administrative services for cost savings. When the (three) universities present their reports on March 23, we will review them at the system level, review them at the Board’s (of Regents) academic and student affairs committee and then make recommendations to the full board in early June,” Johnsen said.

Programs are being evaluating against criteria established by the Regents, which include quality; cost; demand; availability of alternatives and alignment with strategic goals. Those include economic development, research, workforce development; educational attainment and equity, and cost-effectiveness, the president said.

However, the process is also allowing UA to identify its areas of strength, and to invest in some programs. “We are stepping up recruitment and marketing, getting the word out about how well the university helps our students,” Johnsen said.

One area of strength is research, particularly in science related to the Arctic. “Our research addresses real problems and creates practical opportunities here in Alaska and across the Arctic … our research is an economic engine for Alaska. With a state investment of $25 million, our researchers generate $150 million,” per year in federal research funds.

“That’s a return of 600 percent. Those dollars flow right through our economy, they enhance what happens in our classrooms, in our labs, in our field camps. They focus on problems for our communities and for industries in our state,” Johnsen said.

University research is also resulting in a steady number of patents on new inventions and commercial “spinoffs” he said.

Building on these and other strengths, “we are going to drive revenues through increased enrollment and the tuition that follows. We are working hard in (Washington) D.C. to increase funding for research in areas ranging from the environment and behavioral health to national security,” Johnsen said.

Meanwhile, in terms of costs for what is delivered the University of Alaska is one of the best bargains in the nation, Johnsen said. “Even with our recent tuition increase we are one of the most affordable in the nation … average tuition is the third lowest of any state in the nation; the percentage of student debt is the second lowest and the share of our total cost paid by students is the fifth lowest,” the president said.

Each of the three universities is taking a close look at tuition rates, “with an eye to the possibility of different rates across the system, with some increasing with others possibly decreasing including what I hope will be a sizeable reduction at the community campuses,” along with career and technical education, Johnsen said.