Education
Problem Solving 101
UA: financial concerns, COVID-19, and new leadership
By Tracy Barbour
T

he University of Alaska (UA) is in the midst of tumultuous times marked by leadership changes, state funding cuts, enrollment declines, and rising costs—not to mention the COVID-19 pandemic, which exacerbated the system’s existing financial problems.

UA’s board of regents has been faced with some tough decisions, including accepting the resignation of UA President Jim Johnsen in June. “The decision regarding a change in leadership was mutual and was made after considerable reflection,” said Board Chair Sheri Buretta in a press release. In mid-July, UA named Pat Pitney as the system’s interim president. Pitney previously worked with UA for 23 years before leaving to serve as the state budget director during then-Governor Bill Walker’s administration. She will lead the university system for the next year or until the board appoints a new president.

However challenging these many recent developments have been for the UA System, it tackles them as they arise with an eye toward the future.

The Impact of COVID-19

UA’s budget has been plagued by state funding cuts since 2015, enrollment declines since 2011 (which has meant less tuition revenue), and cost increases for utilities, deferred facility maintenance, and debt.

The COVID-19 outbreak has also had a substantial—and perhaps indelible—impact on the system. According to then-UA President Jim Johnsen, the pandemic imposed some unexpected costs in the current fiscal year, costs that were not all paid for with federal or state funds. It also added an element of uncertainty for the budget, as more costs are likely to be incurred next year.

COVID-19 prompted UA to make an immediate shift in its operations, pushing its workforce, faculty, staff, and students mostly off campus to wrap up the spring semester. For the sake of physical distancing and safety, UA had to rethink the delivery of its education programs and transform many in-person classes into online courses.

Safety is a key consideration at the University of Alaska Anchorage (UAA), which has an enrollment of about 16,500 students. That’s why UAA Chancellor Cathy Sandeen decided in early March to convert to the remote delivery of courses to minimize person-to-person contact. This meant that many faculty had to pivot quickly. And so did the students. “Everybody at UAA had to adjust rapidly,” Sandeen says. “I’m happy to say that they did.”

Monique Musick
Education
Problem Solving 101
UA: financial concerns, COVID-19, and new leadership
By Tracy Barbour
Monique Musick
T

he University of Alaska (UA) is in the midst of tumultuous times marked by leadership changes, state funding cuts, enrollment declines, and rising costs—not to mention the COVID-19 pandemic, which exacerbated the system’s existing financial problems.

UA’s board of regents has been faced with some tough decisions, including accepting the resignation of UA President Jim Johnsen in June. “The decision regarding a change in leadership was mutual and was made after considerable reflection,” said Board Chair Sheri Buretta in a press release. In mid-July, UA named Pat Pitney as the system’s interim president. Pitney previously worked with UA for 23 years before leaving to serve as the state budget director during then-Governor Bill Walker’s administration. She will lead the university system for the next year or until the board appoints a new president.

However challenging these many recent developments have been for the UA System, it tackles them as they arise with an eye toward the future.

The Impact of COVID-19

UA’s budget has been plagued by state funding cuts since 2015, enrollment declines since 2011 (which has meant less tuition revenue), and cost increases for utilities, deferred facility maintenance, and debt.

The COVID-19 outbreak has also had a substantial—and perhaps indelible—impact on the system. According to then-UA President Jim Johnsen, the pandemic imposed some unexpected costs in the current fiscal year, costs that were not all paid for with federal or state funds. It also added an element of uncertainty for the budget, as more costs are likely to be incurred next year.

COVID-19 prompted UA to make an immediate shift in its operations, pushing its workforce, faculty, staff, and students mostly off campus to wrap up the spring semester. For the sake of physical distancing and safety, UA had to rethink the delivery of its education programs and transform many in-person classes into online courses.

Safety is a key consideration at the University of Alaska Anchorage (UAA), which has an enrollment of about 16,500 students. That’s why UAA Chancellor Cathy Sandeen decided in early March to convert to the remote delivery of courses to minimize person-to-person contact. This meant that many faculty had to pivot quickly. And so did the students. “Everybody at UAA had to adjust rapidly,” Sandeen says. “I’m happy to say that they did.”

Although many UAA students prefer face-to-face courses, most were willing to switch to remote learning, as evidenced by the fact that the university’s withdrawal rate for spring of 2020 was down just slightly from the year before, Sandeen says.

Not only did students elect to stick with the university through the operational shift, but fall enrollment did not take a major hit. National enrollments are down 20 percent—as some students are taking a gap year—but UAA is faring slightly better. “We’re just about 15 percent down now, and we’re working really hard to remind students that the best defense against a hard economy is to have that degree in hand,” Sandeen says. “Our message to them is: ‘Don’t delay, we’re here for you. You can keep your progress going.’ I think our students are really responding to that.”

“We’re working really hard to remind students that the best defense against a hard economy is to have that degree in hand. Our message to them is: ‘Don’t delay, we’re here for you. You can keep your progress going.’”
Cathy Sandeen, Chancellor, UAA

Students were also responsive to an extensive survey that was conducted at the end of spring semester. They freely shared advice on how the university could help them in the fall semester. Their feedback indicated that while some of them prefer face-to-face course delivery, they were amenable to online learning. “With everything going on in their lives, they’re grateful they have this remote option. Overall, I think that with the initial changes we made, we did well,” Sandeen says, referring to UAA’s response to COVID-19.

Concerns over COVID-19 also led UAA to opt against holding an in-person spring commencement ceremony. To avoid a mass gathering, the university graduated more than 1,500 students virtually.

UA’s Financial Health

The financial and other impacts of COVID-19 are expected to continue well into fall and beyond. However, the overall financial health of the university system became less tenuous with the UA board of regents’ recent approval of changes made to address the budget challenges, including voting to reduce academic programs, approve administrative cuts, restructure debt, and fund scholarships from the Natural Resources Fund.

In June, the board approved UA’s FY21 total budget of $832.3 million, including $277 million in Unrestricted General Funds (UGF) from the state, a decrease of $25 million from FY20, according to a June news release from UA. Regents agreed to spend $24.8 million in one-time funds to close a budget gap brought on by the financial impacts of the pandemic.

Consequently, UA will not pay $6.5 million in planned pay raises, will institute pay cuts for 166 executives through mandatory furloughs, and cut millions in system wide administrative costs, according to another June press release. Of the $33 million in FY21 budget reductions, more than $4 million is in academic program reductions, and $29 million is in administration and other areas.

The UA board of regents voted to reduce, discontinue, rename, or merge forty-five academic programs. Programs approved for discontinuation impact the entire university system and include the bachelor of science in geography and environmental resources at the University of Alaska Southeast (UAS), the bachelor of arts in hospitality administration at UAA, and a master of arts in English at UAA. The eliminated programs will impact almost 700 students, thirty faculty and staff, and save close to $4 million.

In addition, the board agreed to postpone action on two programs—the master of science and doctorate of philosophy in atmospheric science at the University of Alaska Fairbanks (UAF)—for consideration in January. The board also approved the establishment of two new academic programs: the interdisciplinary bachelor of arts at UAS and the undergraduate certificate in local knowledge educator at UAF.

Incidentally, last year—well before the COVID-19 outbreak—the board approved a 5 percent tuition increase that goes into effect this fall. The tuition hike will also help ease financial strains while keeping the university system’s cost of attendance competitive, as it’s still lower than many other state universities in the western states.

The board previously contemplated combining the three-university system into a single accredited institution. At this juncture, that’s no longer being considered; however, there is work going on to increase collaboration and coordination across the university system’s campuses. Recently, the board approved a plan to study whether it makes sense to merge Juneau-based UAS with UAF, which would result in cost savings. The study is scheduled to be complete by October 15.

Mixed Delivery for Fall Classes

Like many entities, UA is employing a phased plan to help guide operations during the COVID-19 pandemic. The plan consists of five phases of operations, along a spectrum from the most restrictive to the least restrictive, with safety measures built into each phase. At the beginning of June, the university system was still in Phase B, which limits interior spaces to 25 percent capacity, along with other safety measures. The next stage—Phase C—allows interior spaces to be at 50 percent capacity.

When Phase C will begin depends primarily on one factor: safety. UA will make the decision to deliver in-person classes based on the advice of public health experts, the chancellors, and other university leaders.

This fall, UAA anticipates providing a mix of alternate delivery and in-person instruction instead of the usual 70 percent face-to-face delivery of courses. Sandeen estimates that about 90 percent of UAA’s classes will be provided remotely, with the remaining 10 percent via alternate delivery. “I think it’s safe for us to use a smaller number for face-to-face delivery,” she says.

During the fall semester, UAA will hold in-person small courses, science labs, and clinicals while following mask-wearing, social distancing, and hygiene practices. A twenty-person limit could be allowed in accordance with state guidelines.

However, the university will discourage students from congregating or hanging out on campus. “It will be a controlled-entry situation,” Sandeen says. “Go [only] where you need to go.”

To maintain a more controlled environment, UAA will post new signs to direct people where to go. And in some buildings, people will need to swipe their identification card to enter.

This bridge connects the Engineering & Industry and Health buildings on the UAA campus.

UAA

Continuing Innovative Initiatives

Despite the coronavirus disruption and tough budget cuts, positive initiatives continue to take place within the university system. UA has been investing in several major initiatives over the years and is anticipating positive returns. One of the initiatives is a program that allows students to earn certain degrees and certificates entirely online. The program provides students with flexible access to education, allowing them to balance school with work and family obligations. UA is also investing in dual enrollment programs that let students simultaneously earn secondary and postsecondary credits.

UAA is leading several initiatives, including the 49th Finishers scholarship program, which was unveiled in May. The unique program caters to students who want to return to school or transfer from another institution. Essentially, the scholarship is available to Alaskan residents who have earned college credits but either studied elsewhere or took a break from school to focus on family, work, or other endeavors. “The 49th Finishers scholarship is an exciting opportunity for students to continue their education and earn a degree at UAA. Amidst the COVID-19 pandemic, the program offers additional financial support for Alaska students who would like to return to school but may be experiencing financial hardship,” according to UAA’s website.

Students are automatically considered for the 49th Finishers scholarship if they apply for admission before the July 15 application deadline. Part-time recipients are awarded $1,000 per year while full-time students receive $2,000 per year. The scholarship is renewable for up to four years. And over the course of four years, eligible students can receive up to $8,000 in total financial assistance.

Alaskans have responded positively to the multi-year 49th Finishers scholarship. “We started advertising that during the pandemic and it’s the most successful campaign that we’ve ever had,” Sandeen says.

From early May to mid-June, the 49th Finishers site saw more than 18,000 page visits. Since its inception, the scholarship page has accounted for roughly 40 percent of the traffic to UAA’s financial aid pages. Since UAA began advertising 49th Finishers, the university received roughly 500 applications for admission, many stemming from interest in this new scholarship opportunity.

Other UAA-led initiatives include launching an admission code designed to waive the application fee, removing barriers to application completion so that students can advance their education. “We’re reminding people that UAA is here and it’s a world-class university right in their backyard.”

This fall the university will offer training for occupational endorsement certificates in areas ranging from entrepreneurship and IT to infant and toddler development. The certificates—which can be completed in as few as one or two semesters for most skill areas—are designed to allow people to retool quickly. “We’re being really innovative and agile—and addressing skills our community needs,” Sandeen says.

In addition, UAA is working closely with the state to offer contact tracer workforce development training for healthcare professionals. The training launched in June in response to state demand resulting from increased COVID-19 cases.

Positive about the Future

“When you see all of the different ways that UAA serves Alaska, you can see we are a very strong university,” Sandeen says. “UAA promotes itself as an open access, modern, urban, metropolitan, connected university—and that won’t change. We are still that during the COVID-19 era. We will open up again and become the vibrant learning community that we are. We will begin to have so many of those face-to-face learning opportunities that we love, and in some ways, we’ll be better.”