The Alaska Senate is proposing school funding cuts and phasing out a scholarship program the Senate majority says hasn't met expectations.

Senate Finance Committee Co-Chair Lyman Hoffman says a $69-million cut to a school funding formula is being considered as part of a larger budget-cutting strategy.

The Senate also is proposing steps intended to improve education, including re-purposing a fund for scholarships to instead provide education innovation grants.

UA President Jim Johnsen called those cuts "devastating."

“Especially after we’ve shown lawmakers that we have a plan to gradually reduce our reliance on state general funds. But we need time to implement that plan and to continue to create the kind of university this state needs. In addition, we are in the midst of making major organizational changes to ensure wide access to affordable and high quality programs for our students,” says Johnsen in a release.

University officials say the university’s budget has been cut $53 million over the past three years resulting in the loss of 927 employees, 50 programs and other major cutbacks.

Under one proposal, this year's high school graduating class would be the last to receive merit-based scholarships. Another proposal that Johnsen says could further impact the university.

“We believe ending the program would be very detrimental to growing our enrollment, incentivizing young Alaskan’s to remain in-state for college and then joining Alaska’s workforce.”

The UA Board of Regents has called a special meeting on April 13 to receive an update on the budget situation and discuss alternative plans.

Senate Majority Leader Peter Micciche says educators unhappy with the proposed cut should urge House passage of legislation that would use Alaska oil-wealth fund earnings to fill much of the state's deficit.

He says lawmakers could then better evaluate any remaining gaps.

House majority leaders have said they want a more comprehensive fiscal plan.