Second Study Group Meeting Minutes
7 a.m., April 30, 2002, Northrim Bank Building, 5th Floor Conference Room
Jon Kumin and Steve Rieger, co-chairs

Note: the meeting was shifted to Tuesday, April 30, to accommodate the schedule of Mark Hamilton.

Format: The agenda for this meeting is in regular text. The minutes are added as notations in italics. They are intended to represent the general nature of the discussion, rather than be complete, detailed minutes. Clarifications are welcomed – please email any to Duane Heyman at: duane@commonwealthnorth.org

Introductions – Study group members and guest(s). Featured guest is Mark Hamilton, President of the University of Alaska. Those present included:
Eleanor Andrews, Sarah Barton, Joseph Beedle, Milton Byrd, Jim Chapman, Brian Davies, Charles Fahl, Mark Foster, Cheryl Frasca, Sheila Gallagher, Alice Galvin, Jan Gehler, Lee Gorsuch, Joe Griffith, Ky Holland, Grant Hunter, Dave Kester, Nancy King, Jim Knapp, Jon Kumin, Grace Long, Rachel Morse, Arden Page, Ira Perman, David Rees, Steve Rieger, Susan Ruddy, Stephen Sheaffer, Jeff Staser, John Strachan, Tim Wiepking

Goals for this Meeting -- Learn more about the University of Alaska, including the vision of its leadership for the future. Engage in a meaningful dialogue with President Hamilton.

Discussion Points -- Following the traditional Commonwealth North format, it is requested that President Hamilton keep his remarks to 30 minutes. The remaining time will be reserved for a question and answer / discussion session.

• Even without its state paid employees U of A would be third largest employer in Alaska.
• U of A needs to go back to the future. Let’s aim this thing differently. Discover from people in the state what people want. Other oil states increased funding substantially when oil went down, U of A got 2 percent.
• U of A is has just started using an effective planning and measuring system -- PPBS (Planning Programming Budgeting System) which allows you to say who has the best ideas.
• Contractual obligations, extraordinary inflation eats up state funding increases, therefore preventing investment in needed programs.
• Need to wean ourselves from pork on the research agenda. Danger of losing chair of appropriations committee. Brutal consequences. NSF and NIF funding is ongoing and more reliable than ad hoc government funding.
• Community college mission central to future.
• We need to look into tuition that is lowest in nation.
• U of A is making a major investment now in Anchorage and Fairbanks in very significant science labs.
• We need to be able to discover our own areas of excellence. Global logistics, fisheries, arctic biology and informatics (latitudinal advantages with satellites). Energy is a potential, a huge area. Start with premise of on-site energy -- it changes the world.
• If you need to make changes, hope for a university that has been bled dry. Can add increments to programs that are needed. Take every increment and apply stringent accountability procedures to the increments.
• Great myth (cocktail party one liner) -- everything would be fine if we got rid of rural campuses: 1/8 of budget, _ student credit hours, 1/3 students, 100 percent of opportunity in post secondary in rural Alaska comes from U of A. Does not threaten any part of university mission.
• Unless the U of A receives much more valuable federal land, university lands will never support U of A.
• U of A is comprised of separately accredited institutions, not statewide. Not the same relationship as many other universities.
• Missions and Measures. The more people who look at M&M, the better. Reviewing M&M is always good for the university. Cannot win USNWR poll because of nature of university. U of A will always have part timers, there is relatively little alumni giving and no merit or needs based scholarships are offered.
• There is no evidence yet that virtual universities will take over.
• Typical state: 72 percent research done by industry, 12 percent by universities. In Alaska: 11 percent industry, 71 percent by universities. What is going on? In the rest of states faculty are sought. Brilliant minds are sought on a ration of 6-1, a seller's market in research. In Alaska funding is from D.C. May not be able to buy answers, but can buy questions. $40 million increase in federal funding. 36 fold level of difficulty compared to Outside. 1/36 of Outside business funding.

Related Events -- A couple minutes will be reserved at the end of the session for people to mention related events of interest to the group. An example would be a speaker or program dealing with higher education. The Study Group will focus on individual campuses for the next three weeks: UAS, UAF and UAA will each make a presentation.

Confirm next meeting and adjourn by 8 am -- Next meeting will Wednesday May 8, 7 am, same location, with UAS Chancellor John Pugh