The University of Alaska System and its constituent institutions are faced with significant--and opposing--forces and pressures. The future well-being of the state will, in many ways, be shaped by the nature and extent of their contributions to the education of the state's citizens and workforce, the expansion and diversification of the state's economy, and the quality and life enjoyed by the residents of the state. Expectations in these regards are high, fueled to a large extent by the System's leadership's (Board and President) well-considered assessment of the needs of the state: (1) Increase the proportion of the state's population that has some form of post-secondary credential; a recognition that a high school education no longer equips citizens for either work or civic engagement in an increasingly complicated world; (2) Prepare the workforce needed by Alaska employers--greatly increase the numbers of state residents equipped to teach in the public schools and fill other key positions of importance to the state's employers; and (3) Contribute to economic development in the state--through research and other activities help in the creation of an economy that is more nationally and internationally competitive and less dependent on exploitation of the state's natural resources. These increasingly high expectations are running headlong into economic reality--the resources available to respond to these needs are severely constrained. The state has cut appropriations to the System and prospects for short-term recovery are slim--the University is hoping for flat funding at levels well below the peak level. And while tuition is comparatively low, concerns about affordability (and the political fallout associated with large increases in tuition rates) will keep the University from raising tuition to the levels required to replace losses in revenue from state government. This conflict between rising expectations and depleted resources has led the University to undertake a serious review of its operations--both academic and administrative--in an effort to find more efficient and effective approaches to delivery of services. This brief paper answers the following questions: (1) How can the University be organized to ensure that all its education assets can be brought to bear on meeting the needs of the state?; and (2) How should decision-making authority be distributed so that goals are achieved, quality is maintained/enhanced, and affordability of education can be sustained? [This report was prepared for the University of Alaska System.]