ALASKA’S FIRST UNIVERSITY AMERICA’S ARCTIC RESEARCH UNIVERSITY

University of Alaska FairbanksSpring 2010 Operating Review

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ALASKA’ S FIRST UNIVERSITY AMERICA’ S ARCTIC RESEARCH UNIVERSITY

Agenda

I IntroductionExpected outcomes Chancellor Rogers

II FY12 budget and 3 - 5 year planning horizon Operating Budget Priorities Chancellor RogersCampus master plan and 6 year capital planDirector ZanazzoR&R, M&R Director Zanazzo

III FY11 conditions and distributionsConditions and operating assumptions Vice Chancellor PitneyFY11 distributions Vice Chancellor Pitney

IV FY10 projected final performance Provost HenrichsV Management report recap

M&R and R&R Expenditures Director ZanazzoMajor cost savings Vice Chancellor PitneyCapital Accounts Director ZanazzoManagement report Vice Chancellor Pitney

VI Summary Chancellor Rogers 2

ALASKA’ S FIRST UNIVERSITY AMERICA’ S ARCTIC RESEARCH UNIVERSITY

I - Introduction

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Great Land…Great University

ALASKA’S FIRST UNIVERSITY AMERICA’S ARCTIC UNIVERSITYALASKA’ S FIRST UNIVERSITY AMERICA’ S ARCTIC RESEARCH UNIVERSITY

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ALASKA’S FIRST UNIVERSITY AMERICA’S ARCTIC RESEARCH UNIVERSITY

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ALASKA’ S FIRST UNIVERSITY AMERICA’ S ARCTIC RESEARCH UNIVERSITY

A Student and Community Focused Research University

UAF’s strategic priorities are to:

Increase degree and credential completion rates.

Lead in research concerning the circumpolar north and its peoples.

Engage communities to foster economic development and sustainability.

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UAF First-Time Full-Time Freshmen: Longitudinal Retention/ Graduation RatesFall 1999 Entering Cohort

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1st Yr 2nd Yr 3rd Yr 4th Yr 5th Yr 6th Yr 7th Yr 8th Yr 9th Yr 10th YrReturn Year

Rete

ntion

/Gra

duati

on R

ate

not enrolled

continuing

graduated

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ALASKA’ S FIRST UNIVERSITY AMERICA’ S ARCTIC RESEARCH UNIVERSITY

A Student and Community Focused Research University

UAF’s strategic priorities are to:

Increase degree and credential completion rates.

Lead in research concerning the circumpolar north and its peoples.

Engage communities to foster economic development and sustainability.

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ALASKA’ S FIRST UNIVERSITY AMERICA’ S ARCTIC RESEARCH UNIVERSITY

SPECIAL TOPICS Climate Change - November 2009 Top 20 Overall: 

The database contained 10,801 institutions. Ranked by three separate measures Citations, Papers, and Citations Per Paper. Source dates: 1999-June 30, 2009

http://sciencewatch.com/ana/st/climate/institution/ 

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ALASKA’ S FIRST UNIVERSITY AMERICA’ S ARCTIC RESEARCH UNIVERSITY

Rank Institution Citations Papers Citations Per Paper

1 NCAR 11341 362 31.33

2 NASA 10731 332 32.32

3 NOAA 10609 420 25.26

4 Columbia U 10600 412 25.73

5 Max Planck Society 9925 356 27.88

6 UK Met Office 9667 313 30.88

7 U Colorado 9078 414 21.93

8 U Oxford 8622 336 25.66

9 U E Anglia 8386 315 26.62

10 U Washington 8153 351 23.23

11 University Of Alaska 8098 347 23.34

Rank by Number of Citations

Lower ranked institutions: US Geological Survey, UC Berkeley, Penn State, UC San Diego, Stanford, CSIRO, UC Santa Barbara, U Wisconsin, Colorado State

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ALASKA’ S FIRST UNIVERSITY AMERICA’ S ARCTIC RESEARCH UNIVERSITY

A Student and Community Focused Research University

UAF’s strategic priorities are to:

Increase degree and credential completion rates.

Lead in research concerning the circumpolar north and its peoples.

Engage communities to foster economic development and sustainability.

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ALASKA’ S FIRST UNIVERSITY AMERICA’ S ARCTIC RESEARCH UNIVERSITY

CampusDirect Spending

(FY08)

Estimated Direct and Indirect Economic

Impact (FY08)

Bristol Bay $2,625,000 $4,000,000

Chukchi $1,600,000 $2,400,000

Interior-Aleutians (rural)

$800,000 n/a

Interior-Aleutians (Fairbanks)

$3,500,000 $4,700,000

Kuskokwim $6,000,000 $10,000,000

Northwest $3,000,000 $5,000,000

Tanana Valley $11,000,000 $17,000,000

Data are from a report by the McDowell Group on economic and social impacts of community campuses.

Economic Impact of Community Campuses

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ALASKA’ S FIRST UNIVERSITY AMERICA’ S ARCTIC RESEARCH UNIVERSITY

From a report by the McDowell Group on economic and social impacts of community campuses.

Impact of Community Campuses

Provide place-based educational opportunities

Respond to community and local employer needs

Foster economic advancement of rural and Fairbanks residents

Engage youth

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UAF aims to align research, teaching, outreach and engagement activities within areas of emphasis:

Life Sciences

Climate

Engineering and Energy

Natural Hazards

Northern Peoples

A Student and Community Focused Research University

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Aligning Research, Education, and Community Engagement

Just a few examples...

Atmospheric scientists (with students) assist borough with air-quality issues

AVO monitors Redoubt and ash plumes GI/ARSC researchers preparing

tsunami run-up maps for 70 coastal communities

ACEP geothermal resource assessment

II - FY12 Budget and 3–5 Year Planning Horizon

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FY 12 Operating Budget Priorities

Address fixed costs increases

Meet obligations to established programs: Biomedical, Climate, WFD including teacher preparation, others

Maintain momentum: Engineering, Energy

Increase graduation rates (including State financial aid)

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ALASKA’ S FIRST UNIVERSITY AMERICA’ S ARCTIC RESEARCH UNIVERSITY

Operating Budget 3 to 5 Year Conditions

Annual 3% salary increase

Annual 15% benefit increase

Annual 10% tuition increase

Enrollment increase 10% if significant State financial aid package

ICR flat overall if no significant facilities investment

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Unrestricted Revenue GapBased Upon FY05 to FY09 Annualized Data

ALASKA’ S FIRST UNIVERSITY AMERICA’ S ARCTIC RESEARCH UNIVERSITY

$8.3M Gap

$13.8M Gap

$4.2MSurplus

Breakeven

$3.5M Gap

Does not include financial aid-dependent enrollment increase

Impact of GF/non-Federal Revenue Ratio

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ALASKA’ S FIRST UNIVERSITY AMERICA’ S ARCTIC RESEARCH UNIVERSITY

If applied at the MAU level, favors MAUs with mainly tuition rather than Federal revenue

Encourages increased tuition and fees Discourages investment in rural campuses,

Ph.D. programs Increases instability of funding (positive

feedback to revenue change)

Closing the Funding Gap

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Increase revenue: Recruit students, secure both research and education grants

Reduce cost Reallocate Adapt: Efficiency, new approaches Eliminate programs or activities Incentives for units to do all of the above Strategic investments: Pursue new GF, but

reallocate if necessary

Campus Master Plan Update

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Faculty, staff, and student committee assisted by Perkins + Will

Wide campus and community participation Chancellor Rogers briefed Board of Regents’

Facilities and Land Management Committee in April Will seek approval at the June 2010 Board of

Regents’ meeting Bristol Bay, Chukchi, Interior Aleutians, Kuskokwim

and Northwest Campuses’ MP completed in 2006 Master plans updated on a five to seven year cycle

New Construction Life Sciences Facility Energy Technology Facility Engineering Academic Programs Facility Replace Heat and Power Plant Student Residential Facilities

Renewal and Renovation Critical Electrical Distribution Main Waste Line Repairs IT Infrastructure Community Campuses’ R&R

Six-Year Capital Improvement PlanTop Priorities

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M&R and R&R

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Summary of R&R Appropriations, 97-10

Sufficient R&R and replacement of the heat and power plant are essential.

State $133.5 M

Non-State $47.4 M

Non-State Category: Federal Receipts $13.4 M

Non-State Category: University Receipts $34.0 M

TOTAL $180.9 M

Average FY97-FY10 $12.9 M

Annual Need At least $30 M

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Plumbing shower waste line from the use of showers for over 40 years.

Skarland Hall Shower Repairs

Corrosion at galvanized shower base pans. This results in water leaking to floor below.

ALASKA’ S FIRST UNIVERSITY AMERICA’ S ARCTIC RESEARCH UNIVERSITY

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Wood Stave Sewer Pipe

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50 year old wood stave pipe - shows only the "bands“. The sewer flow was holding the wood staves up, and once the sewer flow was stopped, they fell to the bottom of the line.

III - FY11 Conditions and Distributions

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ALASKA’ S FIRST UNIVERSITY AMERICA’ S ARCTIC RESEARCH UNIVERSITY

Continue Reshaping of Budget and Management ProcessesBudget PrinciplesCarryforward Principles

Impacts and Management of Cost Shifts from Statewide Functional Specific Charge Backs Broad Based ICR and SCH Assessments

New Mechanisms for Gathering Reallocation Pool

FY11 – Initial Budget Analysis

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FY11 Conditions

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ALASKA’ S FIRST UNIVERSITY AMERICA’ S ARCTIC RESEARCH UNIVERSITY

Entering FY 11 with ~$4M shortfall GF compensation increase $1.6M below

actual No GF for non-compensation fixed costs

(except fuel) Continuing GF appropriation for ACEP, CES

likely MAP, STEM may receive GF. MAP needs

1:1 match.

FY11 Assumptions

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ALASKA’ S FIRST UNIVERSITY AMERICA’ S ARCTIC RESEARCH UNIVERSITY

Legislature’s 3% redistribution pool returned Insufficient M&R and R&R funding (but more

than usual) Potential lack of utility trigger mechanism Flat or slightly increasing research revenue Flat enrollment (maintain FY10 increase)

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FY 11 Budget$8M Non-General Funds Required to Maintain Existing Programs!

ALASKA’ S FIRST UNIVERSITY AMERICA’ S ARCTIC RESEARCH UNIVERSITY

Compensation Increase$3.45M General Fund$3.77M Non-General Fund

Maintenance & Repair$795K General Fund$790K Non-General Fund

Other Fixed Costs$1.3M General Fund$3.5M Non-General Fund

Programs$1.4M General Fund*$2.67M Non-General Fund

As passed by the Legislature

*Includes CES, ACEP, MAP and 150K of one-time STEM funding.

FY11 Distributions to Units

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ALASKA’ S FIRST UNIVERSITY AMERICA’ S ARCTIC RESEARCH UNIVERSITY

Salary & benefits increases @ 60% of total 60% of resident tuition Tuition scholarship budget (‘waivers’)

formerly centralized (may delay to FY12) Replenish reserve, address unbudgeted

scholarships and critical needs: ~3 to 4% ATB reduction

PBB: 1% ATB reduction and targeted redistribution

IV – FY 10 Projected Performance

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UAF Student Credit HoursFY07-FY09 with FY10 Projection

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

FY07 FY08 FY09 FY10

Stud

ent C

redi

t Hou

rs FY10 Projection

FY10-to-Date

Yearlong CDE

Graduate

Professional

Upper Division

Lower Division

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Rural Campus Student Credit Hours

0

2000

4000

6000

8000

10000

12000

FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10

Stu

de

nt

Cre

dit

Ho

urs

Fall

Spring

Summer

Linear (Fall)

Student Credit Hours

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ALASKA’ S FIRST UNIVERSITY AMERICA’ S ARCTIC RESEARCH UNIVERSITY

Spring 2010 continued Fall 2009 Enrollment Increases:

UAF had a 6.6% increase in SCH Spring 09 to Spring 10.

Bristol Bay and Northwest led CRCD.

Fairbanks was up 8.2%; TVC was up 4.3%.

Nearly all Fairbanks schools and colleges were up, led by College of Engineering and Mines and School of Education

Student Credit Hours

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ALASKA’ S FIRST UNIVERSITY AMERICA’ S ARCTIC RESEARCH UNIVERSITY

Strategies:

Continue efforts with Alaska high school seniors School and College recruiting coordinators Contacts and visits with Alaska high school

counselors UAF UA Scholars award of $2500 Promote financial aid opportunities Recruiting in Washington and California State

Community College systems and California high schools

Targeted recruiting in China Community and business partnerships E-Learning

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ALASKA’ S FIRST UNIVERSITY AMERICA’ S ARCTIC RESEARCH UNIVERSITY

UAF High-Demand J ob AwardsFY07-FY09 with FY10 Projection

0

100

200

300

400

500

600

700

800

900

FY07 FY08 FY09 FY10

Acad

emic

Aw

ards

FY10 Projection

FY10-to-Date

Graduate/Licensure

Baccalaureate

Cert/Associate

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UAF Engineering: Longitudinal Enrollment by Degree LevelFall 1990 – Fall 2009

0

100

200

300

400

500

600

700

800

Fall 99 Fall 00 Fall 01 Fall 02 Fall 03 Fall 04 Fall 05 Fall 06 Fall 07 Fall 08 Fall 09

Nu

mber

of

Majo

rs

Doctorate

Masters

Baccalaureate

BI Pre-Major

Source: SIS and Banner SI Closing Extracts, 1990-2009.

Freshman Retention

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FY07-FY09 3 Yr Avg. FY10

FY11Projection

Tanana Valley Associate-Level, FTFT

43.7% 47.1% 48%

Baccalaureate, all campuses, FTFT

76.4% 81.5% 80%

Total FTFT Retention 65.3% 66.7% 68%

Retention and Graduation Strategies

Increased Baccalaureate admission standard Mandatory placement Improved advising Supplemental instruction Freshman seminars Improvements to the Honors Program Northern Leadership Center Leadership, Involvement, Volunteer Experience

(LIVE)

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Retention and Graduation Strategies

Early registration, Fairbanks, TVC and Rural Improved Financial Aid Advising, Rural and TVC More Outdoor Adventures Expanded UAF Traditions programming Student sustainability efforts And established efforts like Rural Student Services,

TRiO, EDGE (Education Development Growth Experience)...

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UAF Grant-Funded Research ExpendituresFY07-FY09 with FY10 Projection

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

FY07 FY08 FY09 FY10

Dol

lars

in T

hous

ands

FY10 Projection

FY10-to-Date

Other

State

Federal

Research Expenditures

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ARRA Impacts:

Facilities improvements should lead to future research opportunities R/V Sikuliaq Upgrades to Toolik Lake research

facilities. Fill atrium of Arctic Health Research

Building and construct facility at Kuskokwim Campus.

NSF MRI grant to support bioinformatics research

Research funding impacts are not yet clear May have largely substituted for other

research funding sources.

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Failure of some campus facilities, more anticipated

Facilities are a major concern

Need Life Sciences Facility, both teaching and research laboratories

Further develop strategy on Energy Tech Center

Research Expenditures

Research Expenditures

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ALASKA’ S FIRST UNIVERSITY AMERICA’ S ARCTIC RESEARCH UNIVERSITY

Biomedical programs update

PACMAN funded

Looking forward to EPSCoR IV funding

Alaska Climate Science Center is under negotiation

DHS Center of Excellence (National Center for Island, Maritime, Extreme Environment Security with UH and UPRM)

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UAF Doctoral Degree Production: Longitudinal TrendsFY90 – FY10*

0

50

100

150

200

250

300

350

400

450

500

FY90 FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10

PhD

Stu

dent

s

0

5

10

15

20

25

30

35

40

45

50

PhD

Deg

rees

Aw

arde

d

Enrolled PhD Students

PhD Degrees Awarded

PhD Degrees Awarded 5-Yr Avg

Source: SIS and Banner SI Closing and Opening Extracts, 1990-2010.

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UAF Development

Loss of Foundation funding Decentralized: SFOS, SOM and

CLA/Library have unit development officers Five staff remain in central development

office On track to meet FY10 goal of $5.6M Alumni giving is up 6% so far

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UAF University-Generated RevenueFY07-FY09 with FY10 Projection

$-

$50,000

$100,000

$150,000

$200,000

$250,000

FY07 FY08 FY09 FY10

Dol

lars

in T

hous

ands

FY10 Projection

FY10-to-Date

Other

U of A Receipts

Dorm, Food & Auxil Serv

Student Tuition/Fees

Indirect Cost Recovery

Federal Receipts

V - Management Report Recap

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ALASKA’ S FIRST UNIVERSITY AMERICA’ S ARCTIC RESEARCH UNIVERSITY

M/R & R/R ExpendituresFairbanks

Campus

CRCD &

TVCCTotal

FY09

Expenditures

Capital $ 9,367,700 $ 7,573,200 $ 16,940,900

Operating $ 16,343,472 $ 700,103 $ 17,043,575

FY09

CalculatedOperating $ 14,141,853 $ 560,726 $ 14,702,579

FY10

Budgeted

Capital $ 16,181,700 $ 5,036,800 $ 21,218,500

Operating $ 14,682,070 $ 941,467 $ 15,623,537

FY10

CalculatedOperating $ 15,391,100 $ 799,200 $ 16,190,300

FY11

CalculatedOperating $ 16,828,800 $ 946,400 $ 17,775,200

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Major M&R and R&R Projects Funded in FY 09

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ALASKA’ S FIRST UNIVERSITY AMERICA’ S ARCTIC RESEARCH UNIVERSITY

Projects Description Amount

One-Stop ShopCompleted Jan. 2010

Provides a more convenient service for UAF students.

$162,539

Parking Lot Storm Water Run-off

Control storm water run-off from West Ridge lots, modify WRRB roof drain.

$328,196

TVCC Exterior EnvelopeCompleted October 2009

Replaced entire exterior building envelope. $3,387,200

Northwest Campus Critical Deferred RenewalProjected for October 2010

Replace steel pilings under the Nagozruk and Emily Brown Library buildings.

$112,800

Campus Main Sanitary WasteProjected for September 2010

Multi-year campus wide sanitary and storm water waste line project $556,700

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TVCC Thermography Photos

TVCC Revitalization Phase 3 Exterior Envelope

Before After

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Critical Electrical Distribution Phase 1A

New utilidor (8' x 8') located on the North side of Alumni Drive near the Atkinson Power Plant.

Interior of Vault 2 - boxes and switches will be located on the left hand wall.

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Debt Service

0

1000

2000

3000

4000

5000

6000

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19

Th

ou

sa

nd

s o

f $

0

0.5

1

1.5

2

2.5

3

% o

f U

nre

str

icte

d R

ev

en

ue

Current

Life Sciences

Energy Tech 1A

Energy Tech 1B

% of unrestricted revenue

ALASKA’ S FIRST UNIVERSITY AMERICA’ S ARCTIC RESEARCH UNIVERSITY

FY10 Major Continuing Cost Savings

Academic Affairs $174K – Library eliminated two staff positions, cut journals and

database $329K – Museum eliminated or left unfilled three staff and two

faculty positions $200K – School of Management eliminated one faculty position

and refilled another at lower cost $ 63K – College of Liberal Arts reduced adjunct faculty hires

Administrative and Facilities Services $379K – Eliminated or holding vacant seven administrative and

staff positions

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ALASKA’ S FIRST UNIVERSITY AMERICA’ S ARCTIC RESEARCH UNIVERSITY

FY10 Major Continuing Cost Savings

College of Rural and Community Development $ 60K – Reduced staff position to part-time $ 43K – Reduced TVC heating costs due to new envelope

IT $118K – Eliminated or reduced two staff positions $ 42K – Software licenses dropped due to Google Apps

Student and Enrollment Services $265K – Eliminated or holding vacant three staff and one executive position

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Active Capital Accounts

0

4,000

8,000

12,000

16,000

20,000

FY06 M

ajor

R&R

FY07 C

ode

and

Compli

ance

Main

FY07 R

equi

red R

&R for P

rogr

ams

FY07 T

VC Ren

ewal

FY07 C

ritica

l Bui

lding

Def

icien

cies

FY08 B

ethe

l Fac

ility R

enew

al

FY09 F

airba

nks

and

TVC Prio

rity

R&R

FY09 N

W C

ampus

Prio

rity R

&R

FY10 U

A SW

Mai

ntai

n Exis

ting F

acilit

ies R

&R

FY10 U

AF and

TVC M

aint

ain

Facilit

ies R

&R

Th

ou

sa

nd

s o

f $

Working Balance

Expended or Projected

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FY 10 Budget$8.2M Non-General Funds Required to Maintain Existing

Programs! ($7.4M projected additional in FY10)

ALASKA’ S FIRST UNIVERSITY AMERICA’ S ARCTIC RESEARCH UNIVERSITY

Compensation Increase$4.2M General Fund$3.3M Non-General Fund

Maintenance & Repair$434K General Fund$657K Non-General Fund

Other Fixed Costs$150K General Fund$4.2M Non-General Fund

Programs$1.1M General Fund$2.7M Non-General Fund

Management of Contingencies

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Initial FY10 budget included only $1.3M contingency reserve

1% pullback in August 09 (pre-distribution) yielded $2M additional

$522K in utilities not covered by “trigger” Higher than anticipated tuition revenue

(~$700K) and ICR ($~1.4M) No significant additional contingency

funding anticipated

Carryforward Analysis

Unrestricted (F1) carryforward projected at $4.9 M or 2.3%

Estimate $5 M to $7 M at end of FY10

Initial contingency reserve low but a pullback replenished

Higher than anticipated tuition and ICR revenue partly offset fixed costs increases

Grants and Contracts accounts receivable reduced

Units with deficits at end of FY10 will submit a remedial plan

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VI - Summary

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