Capitol Report March 7, 2025

March 7, 2025

House Wraps Up University Budget Subcommittee

91麻豆天美 House Finance Subcommittee finalized its work on the UA budget on Monday. In addition to approving all of the university budget items included in the governor鈥檚 proposal, the subcommittee also added $3 million for recruitment, retention, and graduation support. The budget approved by the Board of Regents included a request for $5 million to bolster recruitment, retention, and graduation efforts across the university system, so the UA team is grateful to see the addition of a large portion of that funding request in the House operating budget and will continue advocating for the full amount. 

Subcommittee Chair Alyse Galvin, who put forth the $3 million addition for recruitment, retention, and graduation support, requested that $500,000 of that funding go toward mental health services for students. Representative Galvin, along with many other legislators, met with the UA Coalition of Student Leaders during their visit to the Capitol last week and heard about the students鈥 priorities, which include more mental health services at the university. In response to the students鈥 request, Representative Galvin voiced her support for the students and her intent to direct funding toward additional mental health resources. 

Now that the subcommittee process is wrapping up in the House, the full House Finance Committee will review the various changes made to the FY26 operating budget and hold public testimony next week, before debating budget amendments in committee the following week. Check the committee schedule below to see the public testimony opportunities on the budget next week. 

The call-in numbers for public testimony are:

  • Juneau - 1-907-586-9085
  • Anchorage - 1-907-563-9085
  • All others - 1-844-586-9085

Senate Looks for Solutions to Deficit

In recent Senate Majority press conferences, Senators have emphasized the need for additional revenue sources in order to balance the budget. Rising costs and lower oil prices have created an especially challenging fiscal environment for the state, putting lawmakers in a tough spot as they try to decide where to direct the limited dollars available. A few proposals aimed at generating more revenue have been introduced in the Senate, but there are many discussions that still need to happen before any consensus is reached on how to address the budget deficit, which current projections show could reach $500 million or more. 

A key component of these budgetary negotiations is the permanent fund dividend amount. Last week, all seven members of the Senate Finance Committee, five from the majority caucus and two from the minority caucus, introduced , a bill that would split the annual draw on the Permanent Fund earnings two ways: 75% for the state general fund and 25% for the PFD. This proposal, which has been put forward in previous years, is commonly referred to as the 鈥75/25鈥 plan. The bill would also remove the statutory PFD formula, which has not been used for the annual PFD calculation in almost a decade due to the significant cost. 

House Prepares for K-12 Funding Debate

to permanently increase K-12 education funding is expected to hit the House floor as early as Monday, with lengthy debate and a number of amendments anticipated. The majority and minority caucuses in the House have been at odds over the legislation for many weeks as different views on the funding amount and changes to education policy persist. The final outcome of the education funding bill is one of the major questions in the Capitol this session, largely due to the implications on the already-constrained state budget coupled with the need school districts have expressed for additional financial support. The action that the House, Senate, and eventually the governor take on this issue will be closely watched. 

UA in the Capitol

Last week there were dozens of University of Alaska voices in the Capitol advocating for UA priorities with legislators who represent communities all across the state. The UA Faculty Alliance, UA Foundation leaders, the Coalition of Student Leaders, and the alumni associations from UAS, UAA, and UAF all took time out of their busy schedules to talk with senators and representatives about the positive impact the university has in Alaska, as well as the funding needs for UA this session. 

Lawmakers had many positive things to say about their meetings with university advocates and expressed appreciation for the opportunity to hear from so many different voices. 

The UA Coalition of Student Leaders on the front steps of the Alaska State CapitolThe UA Coalition of Student Leaders on the front steps of the Alaska State Capitol

Those voices have been critical. Senator Bert Stedman, the co-chair of the Senate Finance Committee (Capital Budget), has requested further information from the UA on its capital requests, and, specifically, on its deferred maintenance needs. A lot of credit goes to the advocates that came down to Juneau to emphasize those important areas. On the UA capital requests, the conversation with Sen. Stedman鈥檚 office, as well as other legislators, continues. 

What We鈥檙e Watching

Monday, March 10

  • 8:30 a.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental. 

Tuesday, March 11

  • 8:30 a.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental. 
  • 1:30 p.m. - House Finance: : Add Faculty Member University Board of Regents. 

Wednesday, March 12

  • 1:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental. 
  • 1:30 p.m. - Senate Labor & Commerce: : TRS Contribution Rate; PERS/TRS Social Security or SBS. 
  • 4:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental. 
    • Public Testimony for Anchorage, Mat-Su, Off-Nets

Thursday, March 13

  • 9:00 a.m. - Senate Finance: Presentation: Spring Revenue Forecast by Department of Revenue. 
  • 4:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental. 
    • Public Testimony for Fairbanks, Kenai, Bethel, Cordova, Kotzebue, Nome, Utqiagvik, Off-Nets

Friday, March 14

  • 1:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental. 
    • Public Testimony for Juneau, Sitka, Petersburg, Delta Junction, Dillingham, Glennallen, Valdez, Wrangell, 91麻豆天美r, Ketchikan, Kodiak, Seward, Tok, Off-Nets