House Bill 441 invests a one-time; state funded $34,000,000 appropriation to the University of Alaska with a two-year lapse date. In total, it invests $532,654,800 in operations of the University of Alaska.

This bill responds to University President Mark Hamilton and the University's Board of Regents request to help the University by making a significant and multi-year commitment to a new direction.

House Bill 441, in an innovative fashion, addresses the needs of the University of Alaska. The bill invests a total of $532,654,800 for operation of the University of Alaska. This includes $66,284,700 ($34,000,000 in state funds) with a two-year lapse date so the University can retool to meet Alaska's changing needs. HB 441 provides $466,370,100 (including $172,143,300 in state funds) as basic funding for FY 01.

The separate, two-year allocation to the University budget will allow President Hamilton and the Board of Regents stability in funding for new programs and additional flexibility in meeting the evolving needs of our students and the state. They will be able to begin programs with the assurance that the second year funding will be available. The two year time span will allow new and modified programs to begin functioning so that they can be reasonably measured as the FY 03 budget is being considered.

House Bill 441 establishes goals for the University to meet, including providing more Alaska trained teachers, helping diversify our economy, providing education and training for jobs and professions that are developing in Alaska. The Legislature expects the University to offer quality education to its students and retain students through graduation. It also expects the University forge partnerships with the private sector. To accomplish these goals, the University will need to review all its programs and facilities and eliminate or revamp those not contributing to these new goals.

If HB 441 passes the Legislature, University funding would be removed from HB 312, as total FY 01 funding is included in HB 441.