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�鶹ԭ�� and �鶹ԭ��F developed the FY25 operating budget plan with a focus on the following key principles: empowering Alaska, increasing enrollment through retention in degree programs for Alaska’s workforce, maintaining responsible financial stewardship, and developing a deferred maintenance and renewal funding strategy. Additionally, the budget was crafted to include:

• Program investment support for �鶹ԭ��F R1 research and indigenous leadership.
• Requests must demonstrate return on investments and impact on goals and measures.
• Economic development/state partnerships funding extensions

FY25 BOR Approved Operating Budget Request
The FY25 approved �鶹ԭ�� budget request is $337.7 million, an increase of 9.5 percent (or $29.2 million). This represents a continued effort to seek financial stability and includes modest increases for: compensation increase of 2.5 percent ($14.7 million); fixed cost increases such as utilities, property insurance premiums, and cyber security ($8.5 million); and high priority needs to support state and Arctic leadership ($6.0 million). These figures represent the total �鶹ԭ�� System request.
 
Although there is not a �鶹ԭ��F Athletics request in this budget, �鶹ԭ��F also put forward an initiative to enhance �鶹ԭ��F’s competitiveness and excellence in athletics via support for D1 Nanook Hockey and scholarships focused on gender equality. This item under consideration is part of a larger strategy to identify a possible state matching program for funding raised through athletics at �鶹ԭ��F and �鶹ԭ��A that will likely evolve as the legislative session gets underway.

FY25 BOR Approved Capital Budget Request
In lieu of one-time capital funding, �鶹ԭ�� is pursuing a legislative strategy for consistent annual state funding to the “�鶹ԭ�� Major Maintenance and Modernization Fund.” The proposed legislation would allocate $35 million annually to an approved list of deferred maintenance projects. The university has been working with the Governor’s office and legislative leadership on the details.

The BOR approved capital budget request also includes $20.0 million for �鶹ԭ��F’s goal to achieve R1 research status and $10 million for Year 3 of the �鶹ԭ��F Drone Program. Refer to Section 5 for �鶹ԭ��F’s capital budget details.
These budget developments are pivotal in �鶹ԭ��F’s continued efforts to provide an excellent education and serve the community. �鶹ԭ��F is committed to responsible financial management and strategic investments to ensure a thriving future for the university. 

The Governor will release the FY25 budget in December 2023 and the legislative session begins in January 2024. The components of �鶹ԭ��’s budget request could change during the course of the legislative session; final budget outcomes will be known in June 2024. 

FY25 �鶹ԭ�� Operating and Capital Budget Requests - Redbook

FY25 budget guidance provided by the �鶹ԭ�� System Office asked for the universities to consider the following guidelines that will be used to develop the overall FY25 budget request:

• Key Principles
  • Increase enrollment through retention in degree programs for Alaska’s workforce
  • Develop deferred maintenance and renewal funding strategy
  • Maintain responsible financial stewardship
• Operating Budget Fixed Costs Increases ($15-$19 million)
  • Compensation 2.5% salary increase, and benefits; $12-$13 million (wage base ~$350 million)
  • Cyber Security ($1-$2 million)
  • Property Insurance Premium ($1-$2 million)
  • Facilities Maintenance ($1-$2 million)
• Program Investment in support of �鶹ԭ��/MAU goals and measures*
  • �鶹ԭ��A Healthcare and workforce training
  • �鶹ԭ��F R1 research and indigenous leadership
  • �鶹ԭ��S maritime, mariculture, southeast ocean economy, and indigenous culture
  • Requests will demonstrate return on investment and impact on goals and measures
  • Specific requests should be prioritized and ideally range from $200k-$500k, but no more than $650k
  • For reference: 1% to 3% of state general funds is ~$3 to $9 million and FY24 request for Building Capacity for Alaska’s Workforce was $5.2 million.
• Revenue
  • Earned revenue transition to greater revenue contributor (~$460 million; 60% of total revenue)
    • Enrollment/Tuition ~$110 million (25%)
    • Other unrestricted funds ~$90 million (20%)
    • Restricted and Designated funds ~$250 million (55%)
  • State General Funds ~$308 million; 40% of total revenue
  • Economic development/state partnerships - Review FY23/FY24 projects to determine if a request for a
    funding extension and/or a small base transition is necessary.
• Capital Budget
  • Deferred maintenance and renewal funding strategy
  • Student-centered sustainable space utilization strategy
  • Space and Cost Optimization through Footprint Management (reduction + existing building
    modernization + new development)
• Key Message "We Empower Alaska
  • Affordable and Accessible - higher education to all Alaskans
  • Student Success - resources and support so students can achieve their academic and career goals
  • Community Impact - through workforce and economic development, research, service, and partnerships
  • Innovation and Excellence - in teaching, learning, and research, preparing students for the future

The complete FY25 Budget Guidance can be seen here.