COMMONWEALTH NORTH The University of Alaska: A key to Alaska’s future, A time for ALL to invest Key Findings and Executive Summary
Jonathan Kumin and Steven Rieger, Co-Chairs Duane Heyman, Editor

Commonwealth North recognizes that knowledge will be an even more important part of 21st-century life than it was in the last century. Higher learning as a key to the success of a society is nothing new, but it is becoming more true all the time. Therefore, Commonwealth North has identified the future success of the University of Alaska as a key to Alaska’s future, and recommends the following report to you. The full report is available at the

This report is produced by an organization with a long-term track record of analysis of serious Alaska issues. It is an informed opinion report of dedicated volunteers who have spent many hours interviewing resource people, researching and deliberating. However, it is not, nor is intended to be, a detailed management review of the University of Alaska. It attempts to identify, analyze and make recommendations on statewide policy level issues. Recommendations are intended to be in the form of general principles that will serve as a practical guide for the statewide University community—not specific

Commonwealth North 810 N Street, Suite 202 The University of Alaska: Anchorage, AK 99501-3293 A key to Alaska’s future, (907) 276-1414; fax (907) 276-6350 A time for ALL to invest www.commonwealthnorth.org Key Findings and Executive Summary The full 34-page report is available at the Commonwealth North web site www.commonwealthnorth.org or by contacting the office.

2 Commonwealth North

Key Findings

The underlying role of the University of Alaska is to improve the quality of life for Alaskans by offering educational opportunities for self-fulfillment.

Learning is the primary purpose of the University of Alaska, supported by research and engaged service. The University system as a whole, and each major campus, must maintain and offer a quality core curriculum in the arts and sciences (frequently called the “liberal Executive Summary arts”) that equip a person to think, function and grow into a contributing member of The University of Alaska’s mission is crucial-we all need to invest in our future. society. The underlying role of the U of A is to improve the quality of life for Alaskans by offering educational opportunities for self- The University of Alaska needs adequate improvement. Recipients directly use their new and/or resources to fulfill its mission. At a improved skills, knowledge and curiosity to improve the economics, culture and politics of Alaska. U of A also minimum it must maintain its level of state contributes to the quality of life through athletic, cultural and support and at the same time generate intellectual events. additional funding from other sources. U of Learning is primary, supported by research and A’s level of state general fund engaged service. appropriations is generally in line with peer institutions. The University must maintain a. Learning, as enabled by effective teaching, is the key element of the University’s mission. The foundation for University purchasing power through appropriate curriculum must be a core of basic arts and sciences (frequently called annual state funding increases while these the “liberal arts”) at each campus and available statewide through distance delivery. Liberal arts are a combination of courses that other sources are developed. provide knowledge, capabilities and reasoning skills that enable a person to function and reason effectively in society with an awareness of historical and cultural context. Additional courses and Each urban campus, in Anchorage, programs offered by the University should not drain resources needed to maintain availability of this core curriculum statewide. Fairbanks and Juneau, needs to develop centers of excellence based on its own b. U of A is expected to provide community college programming in addition to typical university level programs and natural advantages. Each must include services. This duality of mission can represent additional challenges for the faculty and administration, but the University has successfully research and advanced degrees. Centers of made the offering seamless to the students. Through its community excellence bring vitality, community pride college mission, U of A provides vocational/technical training for both entry-level and incumbent workers in business and industry. In and support, and attract faculty, students other states, local communities make significant financial contributions to their community colleges. In Alaska, almost all the and non-general fund money. funding burden falls on the University system.

c. U of A has started a process to match and plan courses and The changes recommended in this programs to current and future needs of Alaska. These efforts must report should not be left solely to the U of A continue, as there is a need for more formalized strategic planning to look farther into the future to anticipate needs, rather than react to executive administration to implement. The them. Board of Regents must be actively involved, d. Even though learning and teaching must be the primary including establishing and maintaining a orientation, basic and applied research and service to the community are essential additional ingredients for the vitality of a campus and to results-oriented planning process. the development of our state. Advancement of knowledge through research is inherent to higher education. It is difficult to establish and maintain an optimum balance between teaching and research. Research is essential but should not eclipse the focus on teaching and learning.

The University of Alaska: A key to Alaska’s future, A time for ALL to invest e. Maximizing opportunities for teaching and student University has not had the level of community involvement that involvement adds to the benefit of any type of research. exists in Fairbanks.

f. There is a risk that sole source government grants are c. The U of A programs in professional, vocational and technical vulnerable to political cutbacks. U of A is aware of this problem and is areas need to develop and maintain close connections with employers. striving to obtain more competitive research grants and explore alternative funding sources. d. Distance delivery and distributed education will be increasingly important methods to deliver services. U of A should The University of Alaska cannot fulfill its mission continue its efforts to make distance delivery and distributed education more available, culturally relevant, effective and affordable without adequate resources. While U of A’s level of statewide. state general fund appropriations is generally in line with peer institutions, overall the University is e. The University is viewed by Alaska Natives as “their resource constrained. For years peer institutions University,” with significant implications and expectations to meet their special needs. enjoyed annual state appropriation increases while U of A declined (in inflation adjusted terms). U of A The Board of Regents must continue its recent must increase its purchasing power. To accomplish beginning efforts to establish objective financial and this U of A needs to maintain its level of state support academic results-oriented planning. No other group and, at the same time, generate additional funding has the authority, responsibility or opportunity to from other sources. bring all the disparate elements of the University a. The University struggled for many years with declining together for the benefit of the whole. revenues in real terms. Although this decline has reversed recently the University is still resource constrained. a. The Board of Regents must be responsible for creating and monitoring a system of financial and academic control that b. The existing level of state appropriations is consistent with coordinates and maximizes synergistic opportunities between similar institutions when compared on a per student basis although an campuses, yet does not stifle ability to meet regional needs. A adjustment for Alaska factors such as weather, geography and CPI adds strategic plan will ensure the most appropriate and cost effective unique expenses. State appropriations need to increase annually to distribution of programs and funding among the system campuses. maintain this position relative to peer institutions. Additionally, To the maximum extent possible, resource allocation should be based however, other University generated revenue should begin to contribute on clearly delineated needs of Alaska and students, not regional to U of A’s cost at a proportionally higher level. An analysis of the politics. funding structure of U of A shows that some revenue sources, specifically, tuition and private funding, are low. b. Start by including the diverse University constituencies at the front end of the process. c. Tuition, research grants, industry support of particular programs, alumni giving, private and community contributions, land c. The Regents should also ensure that components of the grant support and foundation support contributed only 40% of U of University’s strategic plans are implemented in a timely and effective A’s operating budget in fiscal year 1990. These same University manner. generated revenue sources now account for 56% of U of A’s operating funds. Even if state appropriations grow at the higher education Everyone is responsible for identifying the needs of inflation rate (4.2% in fiscal year 2002 or about $8 million), U of A Alaska. The Board of Regents can be an instrumental should increase its revenue from these other sources at an even greater rate, so that in three to five years these sources cover 60% of its part of the process by synthesizing the needs as part of operation. Fully developing all of these sources is a responsibility of the University’s planning process. Fostering adequate the community generally, not just the University. “bottom up” ferment is an essential element. d. We will know that the University has become successful in Contributors to the strategic planning process should include: its effort to broaden its funding base when, and to the extent that, state appropriations account for less than 40% of current fund revenue, down from the existing level of 44%. This is a substantial a. Business, education and community leaders from a state, challenge because Alaska has few foundations, a limited number of regional and/or industry development perspective. large corporations, little “old money,” and comparatively few resident graduates. b. State agencies from a perspective of implementing the policies of state leaders and maintaining information (Governor, e. Although the University has aggressively pursued revenues legislators, Department of Labor, Community and Economic from its limited land grant base, they contribute a tiny percentage of Development, Department of Education, etc.). total income. Unfortunately, this situation is not likely to improve because any lands available for selection by the University offer c. Industry and occupation consortiums knowledgeable about limited income potential. specific job areas.

The Study Group was impressed by the range and In early years, Alaska imported talent. As Alaska quality of University programs and people. Efforts to matures, it needs to grow more of its own. This is the inform and engage Alaskans in this vital institution information age and no society will succeed without must increase and continue to be enhanced. an effective system of higher education. The University of Alaska both reflects and leads the state. If Alaska a. U of A is an under-recognized vital resource that is not were to allow U of A to return to years of flat or understood or appreciated by the vast majority of the population of declining budgets it is likely the entire state will follow. Alaska. But with strong leadership and planning, U of A can b. There is a need for more engagement with communities and help avoid that mutual outcome. citizens in Alaska as part of the University’s public service commitment. This engagement is vital for maintaining and In conclusion, the University of Alaska has enhancing public and legislative support. University staff can take advantage of existing community organizations such as chambers of established a solid base that can and must be enhanced commerce and service clubs to get more involved with their to lead Alaska into a future that will benefit all of its communities. This is particularly needed in communities where the citizens for generations to come.

4 COMMONWEALTH NORTH Commonwealth North 810 N Street, Suite 202 Anchorage, AK 99501-3293 Study Group Participants (907) 276-1414; fax (907) 276-6350 Jonathan Kumin Co-Chair www.commonwealthnorth.org Steven Rieger Co-Chair Duane Heyman Editor Commonwealth North would like to give special Richard Barnes•Sarah Barton•Joseph Beedle•Steven Boyd thanks to the University of Alaska for candor, Patrick Burden•Michael Burns•Milton Byrd•Thomas Case•James Chapman•Bill Dann•Brian Davies•Betty Emerick•Charles openness and cooperation above and beyond the Fahl•Mark Foster•Cheryl Frasca•Jan Fredericks•Alice Galvin• call of duty. This report was greatly enhanced by Jan Gehler•Edward Lee Gorsuch•Joe Griffith•H.R.”Ky” Holland•Grant Hunter•Pamela Keeler•David Kester•Nancy the University’s help. King•Jim Knapp•Grace Long•Cynthia Matson•Ronald Miller Pitney•David Rees•Wendy Redman•Susan Ruddy•Jeff Staser Commonwealth North Niel Thomas•Tim Wiepking Board of Directors Joe Griffith President Jonathan Kumin Vice President Janie Leask Vice President Resource people interviewed by the James Yarmon Vice President

Study Group Morton Plumb Jr Secretary Jan Fredericks Treasurer University President Mark Hamilton Nancy Bear Usera Past President University of Alaska Fairbanks Chancellor Marshall Lind Duane Heyman Executive Director

University of Alaska Southeast Chancellor John Pugh Richard F. Barnes Retired President, ENSTAR Natural Gas Co. University of Alaska Anchorage Chancellor Lee Gorsuch Douglas Bruce Director of the Division of Public Health William H. Colbert, III Assistant General Counsel, BP U of A Regents Chancy Croft and Michael Burns Mano Frey Regional Manager and Vice President of the Laborer’s U of A System Chief of Staff James Johnsen International Union of North America

U of A Director of Budget & Institutional Research Pat Pitney Edward Lee Gorsuch Chancellor, University of Alaska Anchorage Walter J. Hickel Former Alaska Governor; Co-founder of CWN Vice President for Finance Joseph Beedle Max Hodel Founding board member of CWN U of A Vice President for University Relations Wendy Redman Karen L. Hunt Retired Judge, State of Alaska Jewel Jones Director, Municipal Dept. of Health and Human UAA Director of Native Student Services Willy Templeton Service; Chair, Alaska Housing Finance Corp.

UAA Professor of English Dr. Jeane Breinig Marc Langland President, Northrim Bank First Alaskans Institute Sarah Scanlon Betsy Lawer Vice Chair & Chief Operating Officer, First National Bank Alaska UAA Professor Deborah Narang James Linxwiler President and Managing Shareholder Guess & Rudd, P.C. Loren H. Lounsbury Founding board member of CWN Jeff B. Lowenfels Lewis & Lowenfels United Academics President Michael Jennings Kevin Meyers President & CEO, ConocoPhillips Alaska, Inc. Workshop meetings held in Juneau and Fairbanks with Rick Mystrom Former Mayor, Municipality of Anchorage Matthew Nicolai President, Calista Corporation Chambers of Commerce, University and community Mike Sexton Publisher/President, Anchorage Daily News representatives. Dr. Michael Sfraga, student representatives Mark William Sheffield Former Governor; founding board member Jeff Staser Federal Chairman, Denali Commission Graves of UAS, Derek Miller of UAF, David Parks of UAA, Kaci William J. Tobin Editor, The Voice of the Times; founding board member Hamilton of PWSCC and Elaine Bialka of Mat Su. David Wight President & CEO, Alyeska Pipeline Service Co.

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