Days after the University of Alaska announced financial exigency to resolve the financial crisis resulting from drastic budget cuts by the state, the Board of Regents moved to consolidate the entire university system into a single accredited university.
On Tuesday, the Board of Regents voted 8-3 to club three separate, individually accredited universities to a single unit. Under the revised organizational structure, the university will have oversight from a newly formed subcommittee of the board.
The committee will be chaired by Regent Mary K. Hughes with members comprised of Regents Karen Perdue, John Bania, Andy Teuber, Cachet Garrett, and Dale Anderson.
On June 28, Dunleavy vetoed $130 million in the university’s operating budget. Following a $5 million cut previously approved by the state legislature, this $135 million slash represented 41 percent of UA’s current state funding level of $327 million.
“You need to decide if the house is on fire or whether it’s just the toast burning,” UA President Jim Johnsen said during the vote. “In my view, the house is on fire.”
President Johnsen had recommended three options to the board, which include the closure of one or more university campuses and even creating a new University of Alaska.
The board rejected another proposal put forward by policy director of the Office of Management and Budget, Mike Barnhill that pitched for reducing administrative cost drivers.
“I am troubled by the reckless suggestion we zero our research funding,” said Board Chair John Davies.
“Even if that was an achievable goal, we certainly cannot get there in five years. We are not going to hold bake sales to operate the Sikuliaq.”
Earlier this month, Moody’s Investors Service had downgraded the credit rating of the university from its previous A1 rating to Baa1, and the Series 2012 Lease Revenue Bonds rating from A2 to Baa3.
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