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University enrollment dropping, salaries through the roof

Suzanne Downing
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56
University enrollment dropping, salaries through the roof

16 CAMPUSES, 424 DEGREES AND CERTIFICATES

When University of Alaska President Jim Johnsen told Senate Finance Committee last week “I’m not going to negotiate,” there was an audible murmur among fiscal conservatives across the state.

Johnsen’s approach seemed incredible, considering he is facing a university system with rapidly declining enrollment, a cornerstone teaching degree program that lost its accreditation, and now a proposed budget cut of $134 million system wide from the Dunleavy Administration. That’s 40 percent cut of the total funds the university received from the State last year, but just a 17 percent cut to the university system’s overall budget.

No university president wants to preside over the decline of an institution. Johnsen has found himself in charge during a fiscal crisis that may demand he restructure higher education in Alaska, and he has little time to do so.

[Read: Surprise: University budget is NOT being cut 50 percent]

ASTRONOMY 101: UNIVERSITY SALARIES IN STRATOSPHERE

A quick survey of university salaries conducted by the Alaska Policy Forum shows that, as of 2017, UA had several highly paid professionals throughout the system, starting with President Johnsen, who is compensated $462,253.50 (in 2017, he earned $358,892.47 gross; $103,361.03 benefits). There were others:

  • Chancellors Dana Lester Thomas and Thomas Case (retired, replaced by Cathy Sandeen) were compensated $360,343.97 ($279,770.16 gross and $80,573.81 benefits) and $359,020.19 ($278,742.38 gross and $80,277.81 benefits) respectively. Case had campus housing and a vehicle allowance.
  • Dean Vickie Williams was the highest compensated dean in the system, with $347,652.08 ($316,911 gross; $30,740.43 benefits).
  • The highest compensated professor in 2017 was Gordon Kruse, Professor at the College of Fisheries and Ocean Sciences for a total of $304,185.54 ($233,092.37 gross earnings; $71,093.17 benefits).
  • The highest compensated associate professor in 2017 was Kevin Berry at the School of Management for a total of $247,475.88 ($192,139.66 gross earnings; $55,336.22 benefits).
  • Six people compensated in excess of $300,000 (gross and benefits). Eighty university employees, including some professors, were compensated in excess of $200,000 (gross and benefits).
  • UAF Chancellor and Vice President Daniel White received $310,037.88 ($240,712.64 gross; $69,325.24 benefits).
  • Three employees with job class title “Safety Svcs – Fire 2” were compensated more than $220,000: Patrick Mead, Ronnie Templeton Jr., and Gregory Lee Coon, $228,105.62, $227,250.04, and $224,454.53 respectively.
  • Michael Castellini at the UAF Provost Office Operations, job class title of “administrative management” earned $255,842.68. Thirty-four people with the job class title “administrative management” were compensated in excess of $150,000.00.
  • Institute of Social and Economic Research Director Ralph Townsend, was compensated $199,979.93, which is more than Office of Management and Budget Director Donna Arduin.
  • Mouhcine Guettabi at the College of Business & Public Policy and ISER was compensated $171,741.95.
  • UAA Athletic Director Jim Hackett in 2017 was making $157,879 in base salary, with benefits on top of that (he has since moved on).
  • Jeff Jessee, dean of the College of Health, in 2017 had a base salary of $198,000.
  • Denise Runge, dean of the Community and Technical College receives a base of $155,000.04.
  • Fred Barlow, the dean of the College of Engineering, had a base of $195,000 in 2017. He resigned, and Kenrick Mock is interim dean.

This is not to say employees are not worth their salaries. It simply puts the system in an awkward position to say the budget should be preserved, considering falling enrollment, low graduation rates, and a program losing its national accreditation.

PRESIDENT JOHNSEN WAS PRESCIENT FOUR YEARS AO

In 2015, Johnsen acknowledged the problem. He wrote that with the state paying 45 percent of the cost of running the university system, “that revenue source is in trouble, given low oil prices and gradually declining productivity. That’s a challenge for us, so we’ve really got to try to diversify our revenue sources as much as we possibly can.”

“Challenge” is an understatement. The system was already in a crisis that was spiraling faster than revenue diversification could keep up.

  • Over five years, student count has dropped 12.2 percent and credit hours taken have diminished 12.6 percent, according to the university.
  • By 2018, enrollment fell to 23,778 from over 29,442 five years earlier. Must Read Alaska calculates this as a 19 percent drop in enrollment.
  • Over five years, salaries and benefits also dropped 9.4 percent; university system shed 1,283 jobs, or 15 percent of workforce, not an easy process.
  • Over five years, travel expenditures increased 1 percent, including a nearly 11 percent increase from FY18 to FY19.
  • The University of Alaska Anchorage has a six-year graduation rate of 29.1 percent, Fairbanks has 33 percent graduating after six years. (Some students drop, others transfer, and others continue to work toward completion.)

In his 2018 budget summary, Johnsen had advised that the “FY16 the University’s $350 million state general fund appropriation was twice the national average on a per student full-time equivalent (FTE) basis. The goal is to bring that down to $312 million, or 1.3 times the national average, by FY25.”

Over the past 40 years, with the help of money coming from Alaska North Slope oil, the university had grown from three campuses to 16, including rural and community campuses.  It offers 424 degrees and certificates.

But times are different. Oil is holding steady in terms of production, but the price per barrel is not high enough to support the $6 billion overall State budget proposed by former Gov. Bill Walker. It will be sheer luck if revenues can support the $4.6 billion budget proposed by Gov. Michael Dunleavy.

[Read the financial summary the University Board of Regents will discuss on Feb. 28]

The proposed budget cuts are profound and ask for a complete overhaul of the way the university conducts business.  So far the university administrators seem to be in a state of denial.

A memo from Anchorage campus Chancellor Cathy Sandeen last week told the campus community that the executive team had an emergency meeting, and is not implementing either a hiring freeze or a travel freeze — yet. They’re taking a wait-and-see approach.

“But I ask all leaders to use an added level of judgement in filling positions, approving travel, and making other decisions with long term commitment,” she wrote.

She also said the leadership team wasn’t planning to recommend to the Board of Regents that the campuses come under a single accreditation.

However, she said, “In terms of what is on or off the table for consideration, everything is on the table.” That includes looking at the organization of the community campuses as a community college unit. She said that reductions will be made on each university’s unique strengths and mission.

BOARD OF REGENTS TO DISCUSS

The options on the table will be discussed at the Board of Regents meeting on Feb. 28. Details:

Board of Regents’ Meeting
February 28 – March 1, 2019
Lee Gorsuch Commons, Room 107
University of Alaska Anchorage

Watch on Live Stream: (except during executive session):   http://www.alaska.edu/bor/live/

Public Testimony: Thursday, Feb. 28 from 8:15-9:15 am
Sign-up sheets: Available Thursday, Feb. 28 at 8 am in the Lee Gorsuch Commons, room 107.

Comments: Limited to two minutes per individual. Written comments are accepted and will be distributed to the Board of Regents and President Johnsen. Comments may be sent to [email protected].

Agenda material:  BoardDocs

Questions: Brandi Berg, Executive Officer, Board of Regents,  [email protected].

 

Town hall meetings

Suzanne Downing
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3
Town hall meetings

Town hall meetings with legislators are scheduled around Alaska:

ANCHORAGE

Saturday, Feb. 23, 10 am-12:30 pm

ASD Education Center

5530 Northern Lights Blvd

CHUGIAK/EAGLE RIVER

Saturday, Feb. 23, 2-4:30 pm

Chugiak-ER Senior Center

22424 Birchwood Loop Rd, Chugiak

MAT-SU

Saturday, Feb. 23, 10 am-noon

Fronteras Charter School

2315 N Seward Meridian Pkwy, Wasilla

KENAI/SOLDOTNA

Saturday, Feb. 23, 12-2 pm

KPB Assembly Chambers

144 N Binkley St, Soldotna

FAIRBANKS

Sunday, Feb. 24, 2:30 – 4:00 pm

Blue Loon

2999 Parks Hwy

Native leader resigns from top post

Suzanne Downing
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2

(3-minute read) #METOO MOVEMENT TOPPLES JACKIE PATA

Alaskan Jacqueline Pata will resign from being the executive director of the National Congress of American Indians, an organization she has been with for 18 years and where she has served as the longest-tenured executive director. She’ll continue working until a successor is found, the organization said.

Last year, a sexual harassment scandal rocked the organization when John Dossett, the most senior attorney with the advocacy group, was accused of sexual harassment. The matter came to a head in Native America media outlet Indianz.com, and Dossett was eventually booted from his job in October.

Pata was criticized for the handling of the incident, and Nicole Hallingstad, a Tlingit from Juneau who serves on the Sealaska Corporation Board of Directors, resigned as the Director of Operations for NCAI over the organization’s apparent feet of clay when dealing with Dossett.

It was a moment when the #MeToo movement was rocking many major organizations.

Pata is a well-known Native American leader who has served as vice president for the Leadership Conference on Civil and Human Rights,  board member for the George Gustave Heye Center of the National Museum of the American Indian. She also serves as on the board for Sealaska Corporation. She is on the Native American Advisory Council for the Boys and Girls Clubs of America.

Prior to joining NCAI in June 2001, Pata served as Deputy Assistant Secretary for Native American Programs of the U.S. Department of Housing and Urban Development.  Previously, Pata served as the executive director of the Tlingit-Haida Regional Housing Authority headquartered in Juneau, Alaska and she is a former Vice-Chair of the Alaska Housing Finance Corporation.
She served as chairperson of the National American Indian Housing Council and was appointed to the National Commission on American Indian, Alaska Native and Native Hawaiian Housing. She also has served on the National Community Development Financial Institution Fund Advisory Board, an advisory board to the U.S. Department of the Treasury.

“After having time for thought and reflection, I have decided to resign from my role as NCAI Executive Director,” Pata wrote in a statement that was shared with news reporters. “Serving NCAI and tribal nations has been one of the greatest honors of my life. I am proud of that service and know that I leave NCAI with a strong foundation for continued growth under new leadership.”

The relationship between Pata and Hallingstad was written about by Dossett, who said he was simply caught in the middle, “a victim of a long-running political ‘rivalry’ between two Native women — Hallingstad and Pata. Both are citizens of the Tlingit and Haida Tribes who are active in Sealaska, one of the Native regional corporations in Alaska. They both serve on the corporation’s board,” he wrote.

This is fantastic news,” Hallingstad told Indianz.com. “I believe it is the appropriate outcome after the lengthy suspension and investigation of NCAI’s executive director Jackie Pata.”

Hallingstad had gone on to open her own consulting firm and is working with the Association of Village Council Presidents, headquartered in Bethel.  

Gov. Dunleavy follows through on campaign commitments

Suzanne Downing
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14
Gov. Dunleavy follows through on campaign commitments

By WIN GRUENING
SENIOR CONTRIBUTOR

Much of the reaction to Gov. Dunleavy’s proposed budget was more than predictable…it was inevitable and even calculated.  Some of it was over-hyped response that politicians and special interest groups fall back on before mounting a public relations campaign to combat what they perceive as a threat.

Just a few of the public reactions include “playing games with hundreds of thousands of Alaskans’ lives”, “devastates the legacy we’ve inherited,” “outrageous,” “fiscal tyranny, malpractice and folly,” “morally bankrupt” and “declaring war on Alaskans”.

While no budget details were prematurely leaked, the administration made it clear it would deliver a significantly smaller budget.

Since education and social services comprise the bulk of Alaska’s discretionary budget dollars, it shouldn’t have surprised anyone these two components reflected large reductions.

Indeed, Gov. Dunleavy’s declaration that budget expenses would equal revenues without additional taxes (or rosy oil price predictions and accounting gimmicks used by prior administrations) was nothing more than following through on his campaign promises.

In early campaign position papers, Gov. Dunleavy said:“Some politicians tell us that Alaska’s operating budget has been cut to the bone. This is nonsense. Alaska doesn’t suffer from a problem of too little revenue. Rather we suffer from a bloated government that spends beyond its means.  The worst possible response to a struggling private sector is to impose a statewide income tax. We can’t tax our way to prosperity. As Governor, I will introduce significantly lower budgets, and I won’t hesitate to use my veto pen to hold the line.”

Alaskans convincingly elected Dunleavy (presumably based on his positions), so this budget is exactly what we should have expected.

According to the Alaska Policy Forum, from 1961 to the 1969 $900 million Prudhoe Bay lease sale, the per capita Undesignated General Fund (UGF) budget in Alaska averaged $1,600 per person, updated to 2014 dollars.  After the lease sale largesse, it jumped up to $5,000 per capita, the 1975 starting point that many budget-cutting opponents use to convince legislators that today’s budget isn’t that much different. But current budgets have been as much as three times the pre‐oil UGF per capita budget before 1969.

WHY HAS IT TAKEN SO LONG?

The question Alaskans should be asking themselves now is not why the budget is being cut so drastically, but why it has taken so long to have this conversation.  For years we’ve “balanced” our budget with savings and now the state’s savings accounts are almost empty.    Waiting any longer would be irresponsible.

The other question Alaskans might ask is how best to determine what facilities and level of services are critical enough to be funded by public dollars. The proposed state-wide budget reductions will force some of these decisions down to the municipal level – arguably where they should be – closer to the people.

According to the Alaska Municipal League, this cost-shifting to municipalities could be almost half the total proposed cuts. So, while no new taxes may be proposed at the state level, communities could be facing much higher taxes combined with significant service reductions at the local level.

Obviously, the Governor’s budget is a starting point for discussion.  It needs to pass both legislative houses and survive the scrutiny of concerned Alaskans.  Communities will need to weigh-in with their legislators to make their case.

This will be a painful process that is long overdue.  Until the smoke clears, local governments should insist their leaders be fiscally conservative and keep all options open before funding wish-list items or other non-essential programs and services.

Budget-cutting opponents should resist the temptation to throw rhetorical fire bombs.  There are many proposed budget items that deserve robust debate.  But discussions should be centered around whether changes will add or subtract from core functions of government, and if they are additive, how they will be funded.

If, instead, new taxes are levied first, as many Democrat legislators would prefer, Alaskans are locked into the same problem that has confronted past administrations and legislators:  How to divide up available revenue without regard to whether the services being funded are fairly allocated, efficient or critical.

Alaska can be grateful they elected a governor with the courage to choose the former approach instead of the latter.

Win Gruening was born and raised in Juneau and retired as the senior vice president in charge of business banking for Key Bank in 2012. He is active in civic affairs at the local, state, and national level.

House Finance came ready to have a conversation

Suzanne Downing
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14
House Finance came ready to have a conversation

NO SARCASM, JUST DECORUM IN COMMITTEE

After the theatrics in Senate Finance Committee earlier on Monday, when some senators took the opportunity to lecture and attack Office of Management and Budget Director Donna Arduin, the OMB director might have layered on some extra armor for her first meeting with House Finance Committee.

After all, the House is closer to the people and passions can run high.

But extra armor wasn’t necessary. The House Finance Committee, meeting for the first time to take up the matter of the operating  budget, displayed a completely different tone: It was one of respect and reflection, without adversarial baiting of the witnesses.

As with Senate Finance, Arduin,  Budget Director Lacey Sanders, and Policy Director Mike Barnhill sat before the committee to give an overview of the proposed $4.6 billion budget, which is $1.6 billion less than the Gov. Bill Walker proposed budget.

Members of the committee asked questions, sought clarification, and occasionally put points on the record that they want the administration to ponder.

Co-chair Neal Foster, who represents Nome and other parts of District 39, wanted to make sure Arduin knew why the Power Cost Equalization program came into being in the first place: Other areas of the state had state funding for dams, such as the Four Dam Pool, Dorothy Lake, and Bradley Lake.

Foster said he supports those programs because they’ve been good for the economy of the Railbelt and Southeast Alaska.

Foster put it on record that rural Alaska has the Power Cost Equalization program to keep things fair. Taking away that designated fund and putting it back into the general fund might force rural areas to compete for those funds with every other need the state has, he explained. His district, of course, would be greatly impacted, in that scenario.

But neither Foster nor any other member of the House Finance Committee showboated for the camera. They made their points with facts.

Rep. Andy Josephson earnestly asked how the State can create for predictability in budgeting if it’s still completely wedded to oil taxes. But he asked his question without badgering.

Rep. Bart LeBon added the importance of remembering that the University of Alaska Fairbanks budget is larger because the campus provides administrative services to the rest of the system.

And Rep. Tammie Wilson asked whether the budget writers had considered the higher per-student cost of education in rural Alaska, compared with urban Alaska, when cutting the base student allocation across the board.

But the questions were respectful and the comments made by legislators showed observers how a budget hearing can be conducted, even while the multiple participants had deep concerns.

MAYOR WELDON WRITES ABOUT ‘TROUBLING’ SOCIAL MEDIA ATTACKS 

Also today, the mayor and city manager of Juneau published a letter to the editor in the Juneau Empire, advising citizens of the community to keep their focus on the problem, and not attack individuals.

Without naming Arduin or others, Mayor Beth Weldon and Manager Rorie Watt wrote that some of the posts they’ve seen on social media have been “troubling and aggressive, and we appeal to your better senses. Let’s be the good capital city that we work so hard to be. Democracies are about the debate and consideration of ideas. Take faith that the best ideas will prevail, and channel your energy into explaining and defending those ideas.”

The letter continued: “Let’s be hard on the problems not on the people. Your participation in the public process is essential to the good health of our democratic process. We have a long way to go before the state’s budget is finalized.”

 

Slanted survey: More Americans worry about climate warming

Suzanne Downing
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15

(3-minute read) YALE U. GROUP STUDIES HOW TO CHANGE YOUR MIND

Six in 10 Americans are either “alarmed” or “concerned” about a warming global climate, and the number of people who are in the alarmed category has doubled since 2013, according to a new survey published by two academic organizations devoted to learning how to convince people to be alarmed enough to support government action.

[Read the entire summary and related documents here]

The yearly study breaks respondents into “Six Americas” based on their climate change beliefs, attitudes and behaviors. The “alarmed” are the most worried about global warming and most supportive of aggressive action to reduce carbon pollution. In contrast, the “dismissive” do not believe global warming is happening or human-caused and strongly oppose climate action.

[To get an idea of how the survey was conducted, a shortened “Six Americas” quiz can be taken here.]

The research was funded by the climate change advocacy groups 11th Hour Project, the Endeavor Foundation, the Energy Foundation, the Grantham Foundation, and the MacArthur Foundation.

The researchers are cheered that, according to the responses received, 29 percent of Americans are now alarmed at global warming, an all-time high since the annual survey started five years ago.

The Americans who are dismissive of climate change or doubtful decreased by 12 points. These are the people who either do not believe it is happened or are doubtful it is human-caused. They are the ones strongly opposed to climate action, such as the Paris Agreement.

The survey was conducted by the Yale Program on Climate Change Communication, which supports the theory of human-caused global warming. The program boasts that its work helped convince the Obama White House to make climate change an administration priority.

In 2013, the alarmed and dismissive were an equal size at 14 percent of U.S. adults, a total of 28 percent. By December, 2018, however, the alarmed now outnumber the dismissive more than 3 to 1 (29 percent vs. 9 percent), representing a major shift in these two parts of the general population who are most engaged in the issue of climate change.

But there’s a catch: The survey was web-based and self-administered by respondents.

Yet for political figures, it’s instructive to know that attitudes on climate change may be changing and the public may be more amenable to government action to reduce carbon emissions and to curtail other pollutants.

For policymakers and political observers, it’s instructive to know that there is a concerted and well-funded effort underway to learn how to persuade Americans to move into the “alarmed” category.

For those with investments in energy such as coal, oil, and gas, or even wind and solar, information about public attitudes is worth monitoring, as government policy often follows attitudinal changes.

Prisoner gender reassignment bill gets ‘death by committee’

Suzanne Downing
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13
Prisoner gender reassignment bill gets ‘death by committee’

SPEAKER EDGMON REFERS IT TO THREE COMMITTEES

Rep. George Rauscher of Sutton offered a flurry of bills this session, and one of them is sure to get the progressives up in arms — if it ever gets a hearing.

HB 5 would prohibit State funds from being used to pay for “gender reassignment” surgery or other similar procedures for prisoners.

Gender reassignment from male to female involves removing male genitalia and crafting something that resembles  female genitalia. It requires lifelong hormonal treatments to reduce masculine appearance. Changing from a man to a woman would allow a prisoner to enter a women’s prison.

The bill is in response to real situations across the nation, that began most publicly with former federal inmate Chelsea (formerly Bradley) Manning, who began fighting for the procedure while still serving a 35-year sentence for espionage, after he leaked classified documents. His sentence was commuted by President Barack Obama before he left office. Manning had the surgery after leaving prison.

The Democrat-led House of Representatives, where Rep. Rauscher is now part of a 15-member republican minority, didn’t treat HB 5 with open arms. Speaker Bryce Edgmon sent it to three committees: State Affairs, Education, and HSS.

Why so many committees? This is one of the tools a majority has to hobble a bill’s progress when it disagrees with the bill. The referral of this bill to the Education Committee, chaired by Rep. Harriet Drummond, is a example of why the choice of House Speakers matters. The bill appears to have little relevance to the normal work of the Education Committee.

Rookie mistake: Bernie Sanders misplaces Alaska, Hawaii

Suzanne Downing
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11
Rookie mistake: Bernie Sanders misplaces Alaska, Hawaii

(1-minute read) EASY TO OVERLOOK 49 AND 50

Sen. Bernie Sanders has exploded back on the scene, raising $6 million on his first day after announcing his run for president.

His social media team was still trying to get out of the starting gate, however, with their map of “ALL 50 STATES” that excluded Alaska and Hawaii, had Nevada squeezing out California, and Oregon bulging into the offshore Cascade Subduction.

The Socialist Sanders says this time, he’ll win, and it will be a populist movement.

“In the last year, more American workers went on strike than in any year in nearly 3 decades. When we stand together and fight, we can accomplish anything. We can transform this country from the bottom on up,” he said on Twitter.

He’s also going after the older American vote: “At a time when half of older Americans over the age of 55 have no retirement savings, our job is to expand Social Security to make sure that everyone in this country can retire with the dignity they have earned and everyone with a disability can live with the security they need.” That way, Americans can continue to not save for retirement, generation after generation.

Pebble environmental impact statement released

Suzanne Downing
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9
Pebble environmental impact statement released

(2-minute read) DRAFT SHOWS NO MAJOR HURDLES

The Draft Environmental Impact Statement for the Pebble Project has been released by the U.S. Army Corps of Engineers today.

The Pebble Partnership says that the plan shows the mine can be done in an environmentally responsible manner and that the draft EIS shows the plan has a “clear path forward for success in permitting the project.”

“Our preliminary review of the DEIS shows no major data gaps or substantive impacts that cannot be appropriately mitigated. We see no significant environmental challenges that would preclude the project from getting a permit and this shows Alaska stakeholders that there is a clear path forward for this project that could potentially generate significant economic activity, tax revenue and thousands of jobs,” said Pebble CEO Tom Collier. “I also commend the Corps for their comprehensive, efficient and transparent management of the process thus far.”

[The draft EIS and related documents are linked here]

The document is a draft that will be subject to public review and comment periods to develop the final EIS that forms the formal “record of decision.”

Pebble will develop its own comments about the draft after reviewing it, but Collier said that the first look at the document shows no major hurdles.

“Since this is our first chance to see what the Corps has evaluated, I fully expect a few bumps along the way before we conclude this process. This is what reviewing a draft is all about. While we have a lot of work remaining in front of us, this is clearly a very exciting time for the project as we have reached a significant milestone for Pebble,” said Collier.

In December 2017, Pebble submitted its application with the Corps to begin the process for permitting the 20-year mine development plan for the Pebble Deposit. The project has a smaller footprint, has no major mine facilities in the Upper Talarik drainage. It uses no cyanide for secondary gold recovery.

“We have stated that the project must co-exist with the important salmon fishery in the region and we believe we will not harm the fish and water resources in Bristol Bay. Now we have a science based, objective assessment of the project that affirms our work,” said Collier.

The mine has been a hot-button issue for Alaskans, and often comes into play during elections. The environmental industry has blocked it for years, and the Obama Administration put an illegal preemptive prohibition on Pebble advancing through the permitting process. That was undone after Pebble sued the Environmental Protection Agency.

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