University of Alaska FY20 Budget Overview

FY20 Budget University of Alaska August 16, 2018

UA Overview 1. Goals and Measures 2018-2025 2. FY20 Budget Planning Principles 3. Reallocations FY18-FY20 4. FY19 Operating Budget Strategic Investments 5. FY20 University System-wide Initiatives 6. FY20 University Initiatives 7. Other University Specific FY20 Funding Needs 8. FY20 Capital Budget Priorities 9. Next Steps 10. August 16 Budget Work Session 2

UA Goals & Measures 2018-2025 (As approved by Board of Regents, contingent on Regents FY19 budget request. To be revised based on actual FY19 funding.) 2017 2017 (baseline) 2018 2018 2019 2019 2020 2020 2021 2021 2022 2022 2023 2023 2024 2024 2025 2025 1. Contribute to Alaska s economic development 1. Contribute to Alaska s economic development Increase STEM graduates 1,636 1,720 1,810 1,905 2,005 2,110 2,221 2,337 2,460 Increase # invention disclosures 17 19 21 23 25 27 29 31 34 2. Provide Alaska s skilled workforce 2. Provide Alaska s skilled workforce Increase % of educators hired 30% 35% 40% 45% 50% 60% 70% 80% 90% Double number of health program completions 874 912 1,002 1,100 1,209 1,328 1,459 1,602 1,760 3. Grow our world class research 3. Grow our world class research Lead the world in Arctic related research 1 1 1 1 1 1 1 1 1 Increase research expenditures $159m $167m $175m $184m $193m $203m $213m $224m $235m 4. Increase degree attainment 4. Increase degree attainment Increase enrollment 29,171 27,823 31,000 33,000 35,000 37,500 40,000 42,500 45,000 Increase completions 4,594 *4,400 5,200 5,800 6,600 7,500 8,400 9,400 10,400 5. Operate more 5. Operate more effectively effectively Decrease total cost of education (indirect and direct) per completer $107.3 $102.5 $94.7 $87.5 $80.9 $74.8 $69.1 $63.8 $59.0 Increase annual completions per Full Time Equivalent (FTE) 23/100 24/100 25/100 27/100 28/100 30/100 31/100 33/100 35/100 3 * FY18 estimate; final figure will be available in August.

UA FY20 Budget Planning Principles Put student success first Maintain quality & access to academic programs Leverage collaboration across the system Focus on our goals & measures Experiment with innovative solutions Build partnerships Put one-time funding to work Maximize outcomes and return on investment Diversify our revenues 4

UAF Reallocations FY18-FY20 2018 2019 2020 Research Institutes: $725K Postdocs: $500K Safety & Compliance: $175K MRI Lab support: $30K Research & education joint faculty: $200K Equipment & match: $500K (1x) Research Institutes: $725K Postdocs: $500K Safety & Compliance: $175K MRI Lab support: $30K Research & education joint faculty: $200K New 1x investments (see next slide) TBD 1. Research* (UAF allocated $1.4M of UA s total $1.8M investment) UA Procurement records to OnBase: $55K OnBase/Docusign integration: $35K Admissions/Enrollment Rx (Higher Education Data Architecture): $71K LEAN training: $45K (1x) TBD TBD 2. Process Improvements* (UAF allocated $161K of UA s total $1.1M investment) 3. Marketing/Advertising/ Recruitment (UAF s assigned minimum target spend = $750K) Backfill Enrollment Division Reductions: $300K New Admissions recruiter: $90K New Military & Veteran s Director: $90K New IR microtargeting analyst: $90K One Health Master s degree: $40K Digital and traditional marketing: $390K (1x) Articulation agreement initiative: $25K (1x) Backfill Enrollment Division Reductions: $300K New Admissions recruiter: $90K New Military & Veteran s Director: $90K New IR recruitment/retention analyst: $90K One Health Master s degree: $40K Digital and traditional marketing: $250K (1x) New 1x investments (see next slide) TBD Expand Tribal Management program: $50K Strengthen WFD recruit/retention: $50K New eLearning recruiter: $80K (1x) Moving degree programs online: $200K (1x) Expand existing WFD program/add new $100K Moving high demand courses online: $150K TBD 4. Workforce Development/Online (UAF s assigned minimum target spend = $200K) * In addition to Statewide annual investments: Research $1.8M and Process Improvements $1.1M 5

UAF FY19 Operating Budget Strategic Investments* Goals GF NGF Impact on Goals 1. Contribute to Alaska s Economic Development OIPC $120K $120,000 $0 6 additional invention disclosures per year 2. Provide a Skilled Alaskan Workforce RAHI Education Track: $100K Preparing teachers: $100K $200,000 $0 Roughly 70 headcount increases in teacher preparation programs 3. Grow Our World Class Research One Health: $300K + $200K CAPS $150K Biomedical: $140K Faculty hires: $475K Arctic data: $100K Match & seed: $250K Branding & marketing: $125K 4. Increase Educational & Degree Attainment Recruitment consulting: $45K + $457.5K Branding: $100K + $175K Expand Enrollment Division staffing: $500K Student success (EAB collaborative and transfer advisor): $215K Reengage rural AK Scholars: $31.5K Expand high demand program capacity (BAM/Psych): $476K 25% tuition discount OE/Certs: $716K Expansion of CTC academic program capacity (1x): $150K $895,000 + $200,000 $645,000 Increase research expenditures by over $5M $1,188,500 + $782,500 Increase headcount by over 2,900 by 2025 Increase completions by 70 annually $895,000 5. Operate More Cost Effectively $0 $0 Total $1,860,000 $3,066,000 6 Includes UA System and Campus committed funds.

FY20 UA System-wide Initiatives Title IX Compensation Facilities Maintenance ($4.8M FY20 request) Health Programs Education Programs K-12 Partnerships Research/Innovation Internships/Placement Continuing and Professional Development Educational and Degree Attainment 7

FY20 UAF Initiatives 8

UAF FY20 Contribute to Alaskas Economic Development Initiative $ Request Impact on Goals Building competitive capacity in Alaska s industry $250,000 Increase UAF s capacity to expand disclosures and stimulate licenses. $5M over the next decade. Total, Goal #1 Total, Goal #1 $250,000 9

UAF FY20 Provide a Skilled Alaskan Workforce Initiative $ Request Impact on Goals Educators Rising: Teacher Preparation and K-12 Partnerships $300,000 Recruit/prepare teachers in AK; working toward increasing percentage of UA-trained teachers from 30% to 90% Growing Rural Alaska Teachers: Language Revitalization and Training Paraprofessionals $350,000 Enrollment increases: 10 Y1, 15 Y2, 20 Y3; 25 Y4+; grads corresponding est. at 60% 6-Yr completion rate Preparing Teachers in STEM fields in Rural Schools $100,000 Will prepare new teachers in critical shortage areas each year Increasing Capacity and Completion in High Demand Health: Allied Health, Paramedicine and CNAs $305,000 Estimated 75 new degree completions Total, Goal #2 Total, Goal #2 $1,055,000 10

UAF FY20 Grow Our World Class Research Initiative $ Request Impact on Goals Strategic Research Faculty Hiring and Retention in Competitive Areas $450,000 Increase UAF s research competitiveness by hiring and retaining critical faculty in key research (joint appt.) areas; new faculty est. to leverage additional $1M Y1; $5M by Y3 in external research funding Expanding One Health to Address Behavioral Health Sciences (CANHR) $650,000 Leverage developmental grants to produce $2M in new research funding in Y1; potential to expand to $10M over the next decade; expands research administration capacity to support efforts Alaska s Response to Climate Change and Priority Initiatives $350,000 In response to Governor Walker s Climate Action Policy, investment could leverage $1M in research funding in Y1 Total, Total, Goal #3 Goal #3 $1,450,000 11

UAF FY20 Increase Educational & Degree Attainment (1 of 2) Initiative $ Request Impact on Goals Marketing in Support of Student Enrollment, Retention & Athletics Program $290,000 Improves overall ability to attract and retain new students High Quality Academic Programs in Priority Areas $1,150,000 Faculty hires will increase enrollment est. at 15-18% in respective disciplinary areas; 8 new certs/minors will result in 360 new grads by Y2 Improving Retention & Graduation Rates Middle College Development $900,000 Increased student retention and success; career success for all students incl. non-traditional $300,000 Partnership with K-12 to promote student success and create a pipeline to higher education in Alaska; prepare students for STEM disciplines Financial Incentives/Targeted Scholarships for Student Recruitment & Retention $500,000 Availability of fellowships and scholarships will have a direct impact on enrollment, recruitment, retention, and graduation rates; 80 new undergrads and 10 grad students/year; improve retention by 4% Y1; improve 6 year graduation rate by 5% Online Program Development & Modernizing the UAF Student Experience $600,000 Increased enrollment and graduation rates; promotes understanding and acceptance of online offerings 12

UAF FY20 Increase Educational & Degree Attainment (2 of 2) Initiative $ Request Impact on Goals Rural Student Supports: Advisors, 1st Year Community, Dual Credit Offering Expansion $423,000 Increase enrollment by 3%, increase retention and completion 5% annually Y1-Y3 Student Life Campus Wellness Initiatives: Mental Health & VA Services $280,000 Capacity to add educational classes, provide critical mental health support services; Military & Veteran s Services has a 5-year enrollment growth plan Total, Total, Goal #4: Goal #4: $4,443,000 $4,443,000 13

UAF FY20 Operate More Cost Effectively Initiative $ Request Impact on Goals Philanthropic & Community Outreach $300,000 Increased outreach and major gift capacity will expand community relationships and engagement Leadership Opportunities $265,000 Increased capacity for leadership to advance strategic agenda UA/UAF Information Technology (IT) Restructure $210,000 Increased IT collaboration with business units; anticipated operational savings as duplication is reduced; increased tuition revenue as recruitment/retention initiatives are prioritized Increasing Efficiency in Key Cost Areas: Procurement & Facilities $255,000 Anticipated cost reduction in commodity spend is estimated at $450K/year Total, Goal #5 Total, Goal #5 $1,030,000 14

UAF Specific FY20 Funding Needs: Campus Safety & Security Request GF Diversity & Equal Opportunity 2 Investigators ($220K) ADA Support ($81K) Training Program (Green Dot & Bystander Initiatives) ($50K) Diversity Inclusion Educator ($40K) Human Resources Senior Employee Relations Professional ($120K) Training Coordinator ($85K) Title IX Market Adjustment $391,000 $205,000 $120,000 Professional Counselor (Student Health & Counseling) $112,000 Culture of Campus Safety: Risk Manager (Protection of Minors) ($90K) Community Service Officer ($15K) $105,000 Safety & Security Total Safety & Security Total $933,000 $933,000 15

UAF FY20 Capital Budget Priorities Capital Investment FY20 FY21-FY29 Bartlett & Moore Hall Infrastructure $10,000.0 $10,000.0 Building Demolition $500.0 $4,500.0 CTC/Fairbanks Campus Fire & Emergency Services Training & Education Facility Troth Yeddha/Indigenous Studies Center $38,400.0 $0.0 $500.0 $15,000.0 Student Life Revitalization P3 $6,500.0 $65,000.0 Core Campus Parking Garage $1,000.0 $24,000.0 Research for Alaska: Sustaining USArray Capabilities in Alaska $5,000.0 $0.0 16

UA Next Steps 7/25 Distribute draft presentation template 7/26 Discuss draft presentation template 7/27 Distribution of presentation template to campus 8/10 Budget materials due Operating budget request worksheet Operating and other fixed cost estimates Capital budget requests (non-DM/R&R) 8/16 Universities FY20 Budget Presentations (8am-noon) 8/16 Summit Team update on FY20 goals, measures, strategies, and initiatives 8/20 Executive Council budget discussion follow-up 8/27 Executive Council draft budget and presentation review and comment 9/04 Executive Council review September BOR budget and presentation 9/06 Post budget document and presentation for BOR meeting 9/13-14 Board of Regents (BOR) meeting, first review of FY20 Operating and Capital Budgets; and approval of performance framework 17

UA August 16 Budget Work Session Purpose: Work session in preparation for September 13th -14th Board of Regents meeting for first review of FY20 budget. Topics to be discussed: Update on your prior strategic investments. For each of the five goals, what are your funding requests and anticipated impacts? What are your fixed cost estimates and other funding needs? What are your capital budget priorities? Agenda: 8:00 - 8:15 Overview (President Johnsen) 8:15 - 9:15 UAA (Interim Chancellor Gingerich and Team) 9:15 - 10:15 UAF (Chancellor White and Team) 10:15 10:30 Break / Transition 10:30 11:15 UAS (Chancellor Caulfield and Team) 11:15 11:45 Statewide (CFO Dosch) 11:45 12:00 Next steps (President Johnsen) 18