University of Alaska tells Senate Finance committee deferred-maintenance backlog is nearly $1.5 billion; asks for FY26 funding

Juneau — University of Alaska system officials presented their FY26 deferred-maintenance priorities to the Alaska Senate Finance Committee on March 18, telling senators the system’s deferred-maintenance backlog is approaching $1.5 billion and outlining campus-level requests and project priorities.

“For the record, my name is Chad Hutchison. I’m the state director for government relations for the University of Alaska system,” Hutchison said as he introduced the system’s FY26 deferred-maintenance list and the materials the committee received. Hutchison told the committee the system manages about 400 facilities totaling roughly 8.2 million square feet, has an average facility age of 37 years and an estimated replacement value of about $7 billion. He said the university owns roughly 40% of the state’s capital infrastructure and that the current deferred-maintenance backlog is “approaching $1,500,000,000.”

The university presented a prioritized master list drawn from its FY26 “Red Book” submission and described the methods used to estimate project costs, including third-party facility condition assessments and internal reviews. Hutchison said the system has received an average of about $17.2 million per year for deferred maintenance in recent years and reiterated interest in establishing a more predictable revenue stream; he noted legislation discussed last year, HB 236, as one approach to creating a modest, steady funding source.

“Predictability is good for us as far as planning goes,” Hutchison said, describing a proposed stable funding component the university would support.

Campus directors then summarized major projects and condition issues at their campuses. Christopher McConnell, director of facilities planning and construction for the University of Alaska Anchorage (UAA), described repeated water-main breaks, ageing cast-iron boilers, failing roof membranes, building-envelope rot at residential housing, and mechanical piping with sediment buildup. McConnell said UAA’s FY26 requests include a $3,000,000 request to reinvest in the residential campus to address roofs, hot water mains and other mechanical issues; a $500,000 request for campus safety and access upgrades; a $4,000,000 request to renew mechanical systems and controls in the Social Sciences Building (SSB); and an $847,000 request for Kodiak College roof and mechanical renewals.

“We are currently at capacity and we continue to have a wait list,” McConnell said of UAA housing, urging investment to maintain occupancy and student services.

Cameron Wolford, director of design and construction at the University of Alaska Fairbanks (UAF), characterized UAF’s building stock as among the oldest and most complex in the system and identified roofs at key buildings as immediate priorities. Wolford said UAF’s top FY26 request is $12,000,000 to address major roofs and envelopes affecting student housing, the Museum of the North and the University Park building. He also described funding the conversion of University Park to a childcare center with a $5,600,000 grant; that tenant-improvement work still leaves envelope repairs and seismic reinforcement needs for the building’s roof.

Nathan Lay, director of facilities for the University of Alaska Southeast (UAS), described recurring water-main failures, aging heating systems and single-walled fuel tanks at some housing sites and said several roof and air-handling projects are top priorities for UAS in FY26.

Committee members asked university officials to prioritize projects in smaller funding increments and provided follow-up requests. Senator Stedman asked that the university prioritize the master list in $5 million increments (0, 5, 10, 15, 20, etc.) and asked for information about the system’s absorption rate and how much previously appropriated deferred-maintenance funding is still unspent. Hutchison agreed to provide the prioritized lists and the requested report to the committee.

No formal committee action or votes occurred at the meeting. The committee chair closed the hearing after senators and university staff discussed next steps and scheduling for additional budget outlook hearings.

The presentation and discussion covered both immediate repairs — such as replacing failing roof membranes, boilers and water mains — and longer-term needs like upgrading pneumatic controls to direct-digital controls and establishing predictable, recurring funding for deferred maintenance. University witnesses emphasized that reduced or vetoed legislative appropriations in past years have forced project rescoping and phased work, increasing costs and uncertainty.

The Senate Finance Committee is scheduled to continue budget-related briefings on March 19, when the Legislative Finance Division will present a three-year budget outlook.