With state government shutdown looming, university preparing for late, reduced budget

With state government shutdown looming, university preparing for late, reduced budget

Officials unsure what to expect from governor

With a week and a half left until a possible state government shutdown, organizations are starting to prepare for the worst.

Gov. Mike Dunleavy has not yet signed the operating budget passed by the Alaska Legislature, and the new fiscal year begins July 1. On Wednesday, the University of Alaska Board of Regents granted UA President Jim Johnsen the power to cover certain operations for the university beginning July 1 if there isn’t a budget in place by then, according to a release.

Regents have to approve a budget before money is spent, this authorization allows Johnsen to allocate money to cover basic functions of the university system until a budget is passed, UA Office of Public Affairs Communications and Marketing Manager Monique Musick explained via phone Wednesday.

[University officials to consider having one University of Alaska, not three]

Associate Vice President of Public Affairs Robbie Graham said Wednesday that the university system has requested short-term funds from the Office of Management and Budget in case there isn’t a budget by July 1. That’s fairly standard, Graham said, when there isn’t a full budget prepared as a new fiscal year approaches.

She said the university can also pull from money they have set aside from the federal government, grants, tuition and other sources.

“We would look to keep the core services and the urgent services up and running, as well as some of the research and other programs that receive federal funds and are funded by sources outside the general budget,” Graham said.

There’s a huge amount of uncertainty for the university system in particular, as the Legislature proposed a $5 million cut (about 2%) and the governor’s original budget proposal included a $134 million (41%) cut to the university system. The governor has the authority to veto the whole budget or specific parts of the Legislature’s budget.

“We simply cannot manage substantial cuts without impact on the university and the state,” Johnsen said in a release. “The threat is serious. We can talk about program reductions, but our obligation to students does not go away just because we eliminate a program.”

Once a budget is signed by the governor the university will return to the Regents with a specific funding plan for its approval. The board has tentatively planned to meet again on June 28 to approve a budget or they will call an emergency meeting to take action once the budget is final.


• Contact reporter Alex McCarthy at amccarthy@juneauempire.com. Follow him on Twitter at @akmccarthy.


More in News

A freshly stocked rainbow trout swims in Johnson Lake during Salmon Celebration on Wednesday, May 10, 2023, at Johnson Lake in Kasilof, Alaska. (Jake Dye/Peninsula Clarion)
Lake fishing still ‘excellent’

Northern Kenai Fishing report

Kenai adopts budget, staff recruitment strategies

The city expects there to be a general fund surplus of about $436,000 in fiscal year 2025

A special weather statement has been issued for the Kenai Peninsula and surrounding areas. (Screenshot via National Weather Service)
‘Unseasonably strong storm’ forecast for this weekend

Saturday is set to be busy around the central peninsula, with a variety of events scheduled

Photo provided by United States Department of Agriculture Rural Development
Chugachmiut Board Vice Chair Larry Evanoff from Chenega, Chair Fran Norman from Port Graham, and Director Arne Hatch from Qutekcak break ground for the Chugachmiut Regional Health Center in Seward, June 3. The occasion marked the start of construction of the $20 million facility. The 15,475-square-foot tribally owned and operated health clinic will serve as a regional hub providing medical, dental and behavioral health services for Alaskans in seven tribal communities.
Ground broken for new regional health center in Seward

The tribally owned and operated facility will serve as a regional hub providing medical, dental and behavioral health care

The Kasilof River is seen from the Kasilof River Recreation Area, July 30, 2019, in Kasilof, Alaska. (Photo by Erin Thompson/Peninsula Clarion)
Kasilof River personal use gillnet fishery closed

It’s the Kenai River optimal escapement goal, not a Kasilof River escapement goal, that is cited by the announcement as triggering the close

The Kenai Chamber of Commerce and Visitor Center is seen on Wednesday, May 5, 2021, in Kenai, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Kenai cuts ties with out-of-state marketing firm

Council members expressed skepticism about the firm’s performance

A firefighter from Cooper Landing Emergency Services refills a water tanker at the banks of the Kenai River in Cooper Landing, Alaska on Aug. 30, 2019. (Photo by Brian Mazurek/Peninsula Clarion)
Cooper Landing voters to consider emergency service area for region

The community is currently served by Cooper Landing Emergency Services

Hundreds gather for the first week of the Levitt AMP Soldotna Music Series on Wednesday, June 7, 2023, at Soldotna Creek Park in Soldotna, Alaska. (Jake Dye/Peninsula Clarion)
Soldotna music series kicks off with crowds, colors and sunshine

A color run took off ahead of performances by Blackwater Railroad Company and BenJammin The Jammin Band

Kenai Peninsula Borough School District Finance Director Liz Hayes, left, testifies before the Kenai Peninsula Borough Assembly during a budget work session on Tuesday, March 14, 2023, in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Assembly passes borough budget

The document fully funds borough schools and includes a decrease in property taxes

Most Read