College of Business & Public Policy
FY14/15 Operating Budget Request
TEAMWORK
Contents
1. Description of Current Services 3
2. Incremental Cost to Maintain Current Services 5
3. NGF Contribution 6
4. Soft/Restricted Funds in Support of Current Operations 6
5. TVEP Funding – N/A for CBPP 9
6. Reduction of General Fund 9
7. Cost Savings and Efficiency Measures 10
8. Organizational chart 12
9. FY13 Initiative Status Report (Attachment III) 13
10. CBPP Incremental Requests FY14/15 (ATTACHMENT VI) 17
ATTACHMENT VI – Incremental Request FY14/15 AK Native Business 18
ATTACHMENT VI – Incremental Request FY14/15 CBPP Property Management 22
ATTACHMENT VI – Incremental Request FY14/15 for UACED 25
ATTACHMENT VI – Incremental Request FY14/15 for SBDC PTAC 29
ATTACHMENT VI – Incremental Request FY14/15 for CAEPR 32
1. Description of Current Services
College of Business and Public Policy (College/CBPP) Academic Programs
The College of Business & Public Policy is the largest school of professional studies located in the state of Alaska, conferring over 250+ awards annually at the undergraduate and graduate levels. The CBPP’s base operating budget of $9.5M supports administrative functions, maintenance and provision of core competencies by faculty through teaching, research, and public service activities in the business and public policy disciplines for UAA. The funding also allows the College to maintain its AACSB (Association for Advance Collegiate Schools of Business) accreditation. The College also consists of a number of centers and institutes providing service and conducting research appropriate to the mission of the College and University.
Institute of Social and Economic Research (ISER)
ISER’s base operating budget of $1.8M provides for approximately 1/3 of its annual $5M expenditure activity, with the remainder supported by external funds. ISER was established by the Alaska Legislature in 1961 and is part of the College of Business and Public Policy at UAA. ISER’s mission is to enhance the well-being of Alaskans and others through the conduct of non-partisan research that helps people understand social and economic systems and supports informed public and private decision-making. This is accomplished through focusing attention on critical economic and social issues in Alaska and the Arctic, by engaging in high quality basic and applied research, and with the dissemination of research results through publications, public forums, professional presentations, community involvement, public service and teaching.
ISER is the administrative home to the newly created Center for Alaska Education Policy Research (CAEPR), which is committed to a significant expansion of education policy research as it touches the main problems of K-12 education in Alaska.
Alaska Small Business Development Center (AK SBDC)
The AK SBDC has a base operating budget of $807,200 used to support services provided by the AK SBDC network which has an overall operating budget of $2,865,000. The AK SBDC uses these funds, along with local funding and private sponsorships, to meet the 1:1 match requirements of its primary federal funding through the U.S. Small Business Administration (SBA) and the Defense Logistics Agency (DLA).
The AK SBDC’s sole mission is to promote business growth and the development of start-ups and existing businesses. AK SBDC programs and outreach have provided a direct link between UAA and businesses, entrepreneurs, and leaders throughout Alaska since 1986. The AK SBDC network consists of 7 centers located in Anchorage, Fairbanks, Wasilla, Juneau, Ketchikan, Bethel, and Soldotna, with a satellite office in Homer. The AK SBDC provides counseling services and free confidential one-on-one business advising to provide entrepreneurs with financial management tools, competitive intelligence, knowledge of industry trends, training in advanced management techniques, and assistance in navigating the regulatory bureaucracy.
The AK SBDC network is comprised of three partner programs that provide the following services to further strengthen the AK SBDC’s network of business support services:
· Procurement Technical Assistance Center (PTAC) – assisting small businesses interested in doing business with local, state or federal government agencies.
· Technology and Research Development in Alaska (TREND) – assisting individuals interested in SBIR/STTR grants, as well as assistance in trademarks and patents.
· Buy Alaska – our 20 year in-house program that provides a free online web presence to all Alaskan businesses.
University of Alaska Center for Economic Development (UACED)
The UACED base operating budget of $383,100 provides between 25 and 29 percent of the annual $1.3 to $1.5 million in expenditure activity of the UACED. The remainder of the UACED budget comes from federal or private contract funds. These funds enable the building of relationships and collaborations across MAUs, as well as, with public and private industry partners; programmatic outreach and dissemination of related university research that educates Alaskans on the economy and enhances Alaska’s communities; engagement of UA students in applied learning activities and other activities that further the University of Alaska mission. The UACED operates at a near deficit-level and relies on these funds in order to leverage other external funds to support staff salaries.
Established in 1992, the Center for Economic Development at the University of Alaska leverages the University’s resources to build the capacity of Alaska’s communities to engage in sustainable economic development. UACED’s programs and services provide a vehicle for University of Alaska faculty, staff, and students to engage with the community through applied client projects that promote both teaching and learning success as well as public service. These programs provide for the mutually beneficial application of knowledge and resources.
The University of Alaska’s emerging role in economic development is one that embraces and encourages a stronger civic infrastructure in which the University serves as a bridge between industry and the community. The University is becoming a respected leader, invited to the table and responsive in acting as a catalyst for innovation and entrepreneurship throughout the state of Alaska.
2. Incremental Cost to Maintain Current Services
College of Business and Public Policy Academic Programs
During FY13, the CBPP has experienced significant salary savings from unfilled faculty vacancies. The College was successful in all 4 recruitments resulting in faculty hires starting in fall 2013. Due to these positions being filled in FY14, the College does not expect to realize any significant salary savings from vacant positions in the next fiscal year, FY14.
The AACSB (Association for Advance Collegiate Schools of Business) standards require the College to deliver 90% or more of its accredited programs using academically qualified (AQ) and professionally qualified (PQ) faculty (50% of who must be AQ). In order to meet these standards and recruit/retain AQ/PQ faculty, it is imperative that the College offer market salaries when recruiting new faculty. The College uses the AACSB International US Salary Survey Report to establish a “marketable” salary level for recruitments.
PBAC recommended incremental funding in prior years significantly strengthened our accreditation base and allowed the College to successfully recruit nationally and retain academically qualified (AQ) faculty.
The College will experience incremental costs in FY14 with new recruitments and retaining faculty at competitive market salaries. Other costs include: increased costs associated with hiring foreign nationals - (e.g., college is responsible for paying up to $6,000 in attorney costs and associated fees for H1B visa applications and extensions).
Institute of Social and Economic Research
ISER’s current funding levels plus FY14 wage and benefit increases would maintain current service levels in FY14.
Alaska Small Business Development Center
Despite measures taken by AK SBDC leadership in recent years to reduce costs through unfilled positions and gains in efficiency, regular wage and benefit increases place an increasing strain on an already tight budget. In addition, two one-time grants from the SBA will sunset in FY14, which will return two FTEs to the AK SBDC core SBA grant, with a requisite increase in match funding requirements.
Procurement Technical Assistance Center
The SBDC partner program PTAC (Procurement Technical Assistance Center) needs funds to help with its match ratio. Our current PTAC budget for match is $147,000 and the PBAC request of $281,707 to base will not only help with the match, but it will help add personnel and increase outreach of our PTAC services. Currently we have 2.5FTE serving as government contractor counselors.
University of Alaska Center for Economic Development
The UACED will minimally rely on current funding levels in addition to FY14 wage and benefit increases. Based on an increasing demand for services and non-funded activities such as Lemonade Day; the Entrepreneurial Edge Entrepreneurship Series; and the Entrepreneurial Web-portal AK SourceLink, the additional budget necessary to maintain and build on these programs in FY14 is $400,000. This estimate is based on significant increases in match, anticipated reductions in federal funds and unfunded initiatives currently provided to support University of Alaska entrepreneurship ecosystem enhancement. Entrepreneurship ecosystem related programs will likely be eliminated if sufficient funds are not generated. Each of these entrepreneurship initiatives relates back to the SDI strategic points of emphasis.
3. NGF Contribution
University of Alaska Center for Economic Development
The UACED total budget ranges between $1.2-1.5M. General funds contributed to the UACED were in the amount of $133,100 until FY13 when they were increased to $383,100. Non general funds come from the US Economic Development Administration, the US Department of Agriculture as well as the US Minority Business Development Center. The UACED also generates between $150,000 and $200,000 in earned income contracts annually. The UACED also leverages approximately $100,000 in private sector contributions to support entrepreneurial activities. The core federal funding for the UACED has been flat for more than a decade. The UACED is continually seeking to leverage other federal as well as non-federal funding opportunities.
4. Soft/Restricted Funds in Support of Current Operations
College of Business and Public Policy Academic Programs Support
The following restricted funds received by the College over the years have enhanced our ability to support activities and programs (in some cases, faculty positions and non-personal type services), while continuing to build donor relations for additional support needed.
CBPP Endowed Rasmuson Chair
The College has successfully leveraged the Rasmuson Chair funding to establish a program in experimental economics that is gaining international recognition. Due to the projected shortfall prior to the 2009-10 economic decline the College funded over $224K to cover salary and benefits in FY11 and FY12 to continue the success of the Rasmuson Chair efforts. The Rasmuson Chair position was unfilled in FY12 in order to rebuild the account. The current spendable funds available in FY13 and FY14 has afforded the College to hire two new Rasmuson Chairs in summer 2012 through summer 2014 so that we can maintain our momentum in experimental economics and research.
CBPP Real Estate and Property Management Track Program
CBPP received external funding to develop and initiate a program in Real Estate/Property Management. The program has successfully provided for CBPP BBA students with exposure to an important, relevant and applied curriculum that enhances their professional opportunities. With the majority of the program’s courses offered online, it has also functioned as a continuing education program for the real estate community across Alaska.
No faculty position was created to support this program. However, with CBPP Real Estate and Property Management external funds, the college was able to cover a portion of term and adjunct salaries for instruction in Real Estate and Property Management. In addition to the remaining external funds the college will need $60,000 in one-time FY14 funding to provide a non-tenure track position to continue this program. The continual growth of this program will likely leverage additional external contributions.
Weidner Chair of Business Management
CBPP received a $3M endowment for a chair in business management. These funds are currently earning principle with no spendable balance. The College set aside $100K to hire a Weidner Chair of Business Management. We have constituted a selection committee and are currently undertaking a search for the chair among prominent members of the regional property and real estate management industries. The holder of the Weidner Chair in Property and Business Management will be expected to raise the profile of the academic program in Property Management and Real Estate at the University of Alaska Anchorage fostering student interest in the program and its related career pathways, and engaging stakeholders across the industry spectrum. The first Weidner Chair will have limited teaching responsibilities, restricted largely to the gateway introductory course. In subsequent years the chair may also be filled by visiting faculty from peer institutions which have more developed property and real estate programs, and carry a heavier teaching load.
AK Native Business & Public Policy
In the past three years, the college has received funding for Alaska Native Business & Public Policy Excellence initiatives and in FY12 (continuing to the present), the college hired both a term assistant professor to design and develop the program and teach courses and a temporary Visiting Distinguished Professor of Business & Public Policy to focus community interest on the program. The college has also shared these funds in support of other non-CBPP units within UAA to realize the full potential and benefits of such an initiative. However, CBPP is unable to continue these efforts without the support of base funding, resulting in a loss of all momentum and progress achieved so far.
CBPP Innovation and Entrepreneurship & Alaska Business Plan Competition Support
Over the past four years, the College has received funding from external donors to support
boot camp activities, entrepreneurship courses, workshops, seminars, speaker series, and the annual entrepreneurial business plan competition, (a program designed to help inspire and empower students through an active learning project in a joint venture with APU, UAF, and UAS).
William H. Seward Chair in International Finance
These funds allow the college to enhance the quality of program activities in the field of finance, including international investment and support a faculty member in the college designated as the “William H. Seward Chair in International Finance”.
Institute of Social & Economic Research
ISER depends on external sources for approximately two-thirds of its funding. These external sources range from large ($500,000+ multi-year NFS grants) to smaller and shorter-term contracts with federal, state and local agencies, foundations, non-profits and other organizations. The overhead recovery from these grants and contracts represents a critical source of funding for ISER for fulfilling ISER’s public service mission; as well as supporting professional research, IT and editorial staff who are integral to ISER research activities; and supporting the development of new proposals.