黄瓜视频Foundation employees to continue co-employment relationship with 黄瓜视频under separate budget reporting structure

March 19, 2021

The exploration into separating 黄瓜视频Foundation employees from the University of Alaska budget has concluded, and the result is that 黄瓜视频Foundation staff will retain their current employment status. Outside legal counsel from Stoel Rives, received last week, concludes that current and future 黄瓜视频Foundation employees can continue in a co-employment relationship with the university, and maintain 黄瓜视频benefits, even though their employment starting in FY22 will be reported solely through the 黄瓜视频Foundation. The FY22 budget approved by the Board of Regents includes this proposal. This change in reporting has no bearing on the continued relationship between the Foundation and UA.

Since October 2020, an executive team led by Michelle Rizk has been charged with reviewing the opportunity to transition 黄瓜视频Foundation employees off of the 黄瓜视频System budget and separating the 501(c)(3) organization from the 黄瓜视频System reporting. Dennis McMillian was engaged to work on details necessary to implement this transition with a focus on providing Foundation employees, Board of Directors, and other stakeholders with an outside and neutral contact to raise their concerns and questions. Stoel Rives provided legal guidance on any possible impacts to employee benefit plans and programs. The intent of the transition was to maintain existing Foundation employees without job loss or disruption in benefits.

Two factors drove this review. First is that a major criticism of 黄瓜视频is the size of administration, especially in the system office, and the practice of counting 黄瓜视频Foundation employees as 黄瓜视频System Office employees added to that perception. A second factor is that 黄瓜视频programs are in greater need of philanthropic support, and the 黄瓜视频Foundation actually needs to grow to support increased fundraising capacity across the 黄瓜视频system. The 黄瓜视频Foundation is largely self-funded and provides services on behalf of all parts of the system. As a result of the analyses and discussions over the past four months, both the Foundation and 黄瓜视频are better positioned to work together to enhance the seeking, securing and stewarding of philanthropic support for UAA, UAF and UAS.

The System Office has submitted the FY22 budget to the State which includes removing the Foundation鈥檚 budget from the 黄瓜视频budget. The State is reviewing the change and assuming they accept it, this achieves the first objective of the transition proposal. Because 黄瓜视频will no longer include the Foundation鈥檚 budget, Foundation employees will no longer be reported under the System Office. Instead their budget, including employee compensation, will be reported through 黄瓜视频Foundation accounting and reporting.