Here's a recent story from NPR the gives more background.

TLDR-

Alaska had been paying for many things, including $3K per person, annually, out of a budget largely based on taxes and royalties from oil.

Last year's payment was only $1K, and the new Governor campaigned on paying everyone the Full $3K.

Governor line-item-vetoed $400M out of the state's approved budget. Not just the University but many programs.