University of Alaska leaders outline budget priorities, cite rising costs and enrollment gains

Juneau — University of Alaska system leaders told the House Finance Committee's University subcommittee on Feb. 10 that modest enrollment gains and improved freshman retention have helped stabilize the system but that rising health benefits, utilities and deferred maintenance continue to put pressure on the university budget.

"Our freshman to sophomore retention rate has hit a 5 year high. It's at 66.8," said Pat Pitney, president of the University of Alaska system, summarizing what she called recent progress in student retention. Pitney told lawmakers the system includes "3 universities and 11 community campuses that stretch from Ketchikan to Kotzebue."

Pitney and Alicia Kruckenberg, the university budget director, presented the Board of Regents' operating and capital requests and walked through how the university plans to cover nonstate costs. Pitney said the Board of Regents' operating request includes increases for compensation, delayed health‑benefit recovery and fixed costs; she said some parts of the board's request are in the governor's proposed budget while other parts are not.

"The recruitment, retention and graduation, this $55,000,000 in general fund support is not in the governor's budget," Pitney said, noting that the governor included most but not all of the board's operating request. Kruckenberg told the subcommittee the governor's budget covers roughly $24 million of the board's approximately $34 million operating request as shown in the university presentation materials.

Pitney described a number of enrollment and program…