University of Alaska president Jim Johnsen warned of “laying off a large number of people,” following a drastic cut to the state-funded portion of the university’s operating budget.
On June 28, Alaska Gov. Mike 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 represents 41 percent of UA’s current state funding level of $327 million.
“We are heading into uncharted territory with much uncertainty still ahead,” Johnsen wrote in a letter to the university community on Friday.
Johnsen said furlough notices will be distributed to university staff and that an immediate freeze on hiring, travel and new contracts would also take effect.
Johnsen encouraged residents to contact their legislators and to advocate for a veto override. If an override does not occur, the university’s Board of Regents directed Johnson to prepare a plan for declaring financial exigency by July 15.
“Simply put, if not overridden, today’s veto will strike an institutional and reputational blow from which we may likely never recover,” Johnsen wrote.
Alaska’s fiscal year began on Monday.
“We can’t continue to be all things for all people,” Dunleavy said Friday morning in a news conference, the Anchorage Daily News reported.
Dunleavy indicated that the cuts will enable increased contributions to the Alaska Permanent Fund, which provides a dividend to state residents based on oil revenue, according to a report by Inside Higher Ed.
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