Hamilton made the offer after getting into an argument this week with Sen. John Cowdery, an Anchorage Republican, who was complaining that Hamilton made too much money.

"My statement to him very simply was this: If that is standing in the way of funding the university, I will work for a dollar next year and be proud of it," Hamilton said.

Cowdery said Friday he'll support whatever level of university funding the Senate Finance Committee recommends. He is not a member of the committee.

"I have always supported the university funding and I have always thought that the administration costs were out of line, way high," Cowdery said.

The university is lobbying the Legislature to provide the $10.3 million increase that Republican Gov. Frank Murkowski proposed in his budget. The budget that passed the House this week does not contain the increase.

The Senate Finance Committee will take up the university budget next week. If it comes up with a different number than the House did, the difference will be settled in a conference committee.

Cowdery has been passing out information on pay for Hamilton and other university administrators, comparing their salaries to that of other state officials.

Hamilton's base salary of $250,000 along with a $9,300 vehicle allowance and the $25,000 bonus he received last year far exceeds that of many other state officials. The governor makes $81,648.

Hamilton said he understands the "sticker shock" associated with his pay, but said it is lower than the $321,000 national average for state universities.

But he said he doesn't want that to be an excuse not to fund the university, which he calls a key "instrument of economic development," so he's willing to forgo the pay.

The budget that passed the House would have the effect of reducing the UA budget by $12 million after accounting for fixed costs and inflation, Hamilton said earlier this week.

Hamilton, who is a retired Army general, would continue to receive his military retirement income if he gave up his salary. He also has a house provided by the University of Alaska Foundation.

"I'd be fine and I'd be proud as I could possibly be if that sacrifice made a difference to my university," Hamilton said.

Senate Majority Leader Ben Stevens, an Anchorage Republican, said he does not think Hamilton's pay is at risk. Getting $10 million more for the university is unlikely in a year when nearly every other budget is being cut, he said.