Although I have taken advantage of the benefit myself, I have never understood the rational for tuition waivers for university employee’s children and spouses as a special benefit. It may be a relatively small item, but nothing is too small anymore (unless you listen to the hypocritical legislature and discussions of taxes or PFD reductions).
A related issue is the internal charge to athletic programs for scholarship tuition waivers, a fairly soft dollar cost unless enrollment is at max and scholarship students are taking the seats of paying students. Not so here. My recommendation would be make sure all athletic teams are allocated the full amount of scholarship tuition waivers allowed by the NCAA (an issue here, maybe not UAA), and eliminate the employee/child/spouse waiver. Scholarship athletes still pay for food, housing, etc. which supports the University. Based on internal cost allocations there should be a substantial net savings there.
If we can’t fund/award athletic scholarships and recruit accordingly, then cut athletics instead of letting them die a slow, agonizing, embarrassing death.