UA sees funding increase in FY27 state budget

By Aaron Thomas

Alaska state Gov. Mike Dunleavy signed the University of Alaska’s fiscal year 2027 budget June 24, increasing state funding by about 4% while investing in employee pay, deferred maintenance and workforce development. 

“As we conclude a year of transition and advancement, this budget demonstrates what we know to be true: UA is a vital engine that empowers Alaska’s workforce and economy,” interim UA President Michelle Rizk said.

Photo Courtesy of National Governors Association website.

The University of Alaska’s state funding for 2027 increased to $366 million, about a 4% increase from last year’s $351.5 million. The total operating budget for 2027 now sits at around $1.2 billion.

The bill allocates $15.4 million to fund a 3% wage increase for eligible UA employees. This wage increase has not yet been extended to members of CAUSE-UAW because they have yet to come to a collective bargaining agreement with the University of Alaska. 

A priority of the budget was to tackle deferred maintenance projects and modernize aging infrastructure.  The budget allocates $32.5 million to address the top 18 deferred maintenance projects across UA campuses. 

At the University of Alaska Fairbanks, this funding will be used to modernize and expand student housing, campus buildings and infrastructure. The budget includes a $6.82 million fund to maintain UAF’s transit system and vehicle fleet. 

The budget aims to improve recruitment, retention and student outcomes across the UA system. The bill allocates $785,000 to improve student mental health services and $701,000 to support student safety across the state. As fall 2025 enrollment across the UA system increased around 5% over fall 2024, the UA system hopes to capitalize on student body growth and continue to expand.

The bill awarded $2.2 million in one-time funding to improve the UA Student Attainment Framework. The Student Attainment Framework is a program designed to make academic credentials more accessible to students and help students find belonging in campus life.

UAF is one of 15 finalists to receive a National Science Foundation grant aimed at critical mineral development. If selected, the university would receive $160 million from the NSF over the course of 10 years to research and develop Alaska’s critical mineral infrastructure. As the state of Alaska contains 51 of 54 critical minerals listed by the U.S. Geological Survey, further utilization of the state’s natural resources is a priority of the legislature. 

At the University of Alaska Anchorage, $3 million was allocated to revitalize the university’s welding program, with the intention of tripling the welders trained annually in the state. An additional $260,000 in funding will be used to support Alaska LNG workforce development, though the future of the Alaska LNG Project is still uncertain.

A total of $2 million will be spent on dock and training facility construction at the UAS Sitka campus to expand its mariculture program. Mariculture is a form of underwater agriculture that allows for the farming of foods like shellfish and seaweed. 

UAA’s Consortium Library is being renovated at the cost of $1.25 million in state funding and $2 million in private donations from ConocoPhillips. This will allow the library to house the Alaska Leaders Archive, one of the largest collections of historical documents and artifacts from Alaska’s legislative history.

The bill’s funding is contingent on oil prices remaining at or above $80 per barrel in the first half of 2027.