University of Alaska selects Col. Russell Vander Lugt, Ph.D., to serve as next University of Alaska Fairbanks chancellor

FOR IMMEDIATE RELEASE
June 25, 2026

Governor Dunleavy signs University of Alaska FY27 budget with base increases to support key programs, infrastructure, compensation

(FAIRBANKS, AK) - Late yesterday, Governor Dunleavy signed the University of Alaska’s (UA) FY27 budget into law. The budget makes no changes to the version passed by the Legislature earlier this year and represents the state’s continued investment in the University’s people, programs, and infrastructure. UA will be able to build on the foundation of stability established over the last several years and continue forward progress on student success and empowering Alaska.

“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. “I’m grateful to the Governor and the Legislature for their support of our institution and confidence in our people and programs which make a difference in countless lives.”

The signed budget comes at the conclusion of a solid academic year, marked by noted progress on student recruitment, retention, and graduation. UA awarded nearly 3,600 degrees and certificates to more than 3,500 students this academic year, and increased Fall 2025 enrollment by nearly 5% over Fall 2024. Fall 2026 enrollment is also looking very positive, and systemwide retention is improving, with more than 75% of first-year students returning.

Operating Budget Summary

The state’s FY27 operating budget provides just over $366 million in state general funds, an increase of roughly 4% over FY26 ($351.5 million). Combined with federal receipts and university-generated revenue, UA’s total FY27 operating budget stands at approximately $1.2 billion. It includes the compensation and fixed cost increases requested by the Board of Regents’ , and allows UA to build on our foundation of stability while continuing progress on student recruitment, retention, and graduation. Highlights include:

• Compensation: $15.4 million ($11.5M UGF, $3.9M university receipts) to fund a 3% wage increase for employee groups as required by collective bargaining agreements and for eligible non-union staff*. It also covers a portion of a projected $6 million increase in the university’s medical, dental, and vision premium costs for benefited employees.
  • *UA Staff employees represented by the newly formed CAUSE-UAW union do not yet have a collective bargaining agreement with UA and are not eligible for the 3% wage increase as a result. Negotiations on their first contract begin this week. 
• Public safety: $701 thousand in UGF to support safety improvements across UAA, UAF, and UAS.
• Student mental health: $785 thousand in UGF to help expand mental health support across the system by adding in-house providers, expanding telehealth and virtual services, and improving our ability to support students in crisis. A student-led priority, these funds will help UA build on ongoing measures to support students’ mental well-being systemwide.
• Recruitment, retention, and graduation: $2.2 million in one-time funding ($1.2M UGF, $1M receipts) in support of the Board’s Student Attainment Framework (SAF). UA is allocating an additional $4.3 million of its own resources toward this effort, as growing enrollment, improving retention, and speeding time to graduation remain UA’s top priorities.
• UAF Alaska Critical Minerals Collaborative (ACMC): UAF is in the running to receive a multi-million-dollar National Science Foundation (NSF) Regional Innovation Engine grant that could provide up to $160 million over 10 years to support critical minerals research. The state’s support strengthens UAF’s competitiveness for the award, which has more than $300 million in committed private-sector in-kind support.

“The Board’s priorities this year were centered around improving student outcomes, supporting our staff and faculty, and advancing our research mission,” Interim President Rizk said. “UA’s future holds great promise, and the state investment in these initiatives will help make that future a reality.”

Capital Budget Summary

The FY27 capital budget includes $32.5 million to address the top 18 deferred maintenance projects across the system. The Board has made addressing UA’s growing DM backlog its highest capital priority for over a decade, and the funds will help the university avoid costlier, more disruptive failures as facilities age. Other funded capital priorities include: 

• UAA Welding and Non-Destructive Testing Renovation - $3 million: Supports key workforce needs in critical minerals by renovating instructional space to potentially triple the number of welders trained annually.
• UAA Industrial Cutting Systems and Electrical Distribution Upgrades - $260 thousand: Supports AKLNG project workforce development and expands welding program capacity, with equipment expected to be operational within 2–3 months.
• UAF Campus Transit Fleet Maintenance Facility - $6.82 million: $1.38 million in university receipts and $5.44 million in federal receipt authority to allow UAF to use a federal grant awarded in February to conduct maintenance on campus transit vehicles.
• UAS Sitka Campus New Dock and Mariculture Training Facility (Phase II)* - $2 million: Construction of a new dock and training facility necessary for UAS to expand its in-demand mariculture program is already underway. These funds will allow construction to be completed.
• UAA Alaska Leaders Archive Consortium Library Renovation (Phase 1)* - $1.25 million: Provides the final dollars needed to complete the first phase of renovation of the Consortium Library to house the Alaska Leaders Archive, leveraging millions in private donations and prior state funds while reducing UAA’s DM backlog.

*Funding for these projects is contingent upon oil prices averaging $80 per barrel or higher during the first half of FY27.

The University of Alaska inspires learning, and advances and disseminates knowledge through teaching, research, and public service, emphasizing the North and its peoples. The UA system’s three universities (UAA, UAF, and UAS) are separately accredited institutions with 12 community campuses and extended learning centers across the state of Alaska.

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For more information, contact Jonathon Taylor, director of public affairs at 907-350-0168 (cell), or via email at jmtaylor9@alaska.edu.