Alaska budget fight leaves $40M in senior, disability care hanging

A six-member legislative conference committee is deciding the fate of more than $40 million in funding for direct support professionals, adult day services, behavioral health treatment, and home care as the Alaska Legislature prepares to adjourn its regular session on May 20.

Alaska News previously reported that the Legislature formed a conference committee to reconcile differences between the House and Senate versions of the Fiscal Year 2027 operating budget. The House and Senate differ on multiple budget items affecting seniors, people with disabilities, and behavioral health services. Advocates are now urged to contact committee members directly before the constitutional deadline.

The Alaska Mental Health Trust Authority, the Governor's Council on Disabilities and Special Education, the Alaska Commission on Aging, the Alaska Mental Health Board, and the Advisory Board on Alcohol and Drug Abuse identified the budget items being addressed in the conference committee for the FY27 Operating Budget (HB 263) and Mental Health Budget (HB 265).

The House proposes adding $11.27 million for Direct Support Professionals, who provide essential assistance and coaching for individuals with physical, intellectual, developmental, and behavioral needs. The funding would implement recommendations from a Guidehouse rate review. The Senate version includes no such funding. Alaska News previously reported on the Guidehouse Long Term Support Services rate review and how lawmakers debated whether mandated pay increases would affect rural access to home care services.

For Personal Care Services, which help Medicaid-eligible elders and disabled people remain in their homes, the House adds $15.79 million to implement Guidehouse recommendations for Community First and Personal Care Services. The Senate budget does not include this funding.

The House version adds $6.56 million for Behavioral Health Treatment and Recovery Grants. The money would restore declining funds, stabilize community treatment and recovery services, and address severe financial challenges among mental health and addiction service providers. The Senate does not include this addition.

For adult day services, the House adds $1.5 million. The Senate does not.

The Senate takes a different approach on some items. It adds $5.15 million for the Homeless Assistance Program, which supports nonprofits, local governments, and regional housing authorities for emergency housing, shelters, rental assistance, and other support for individuals and families who are homeless or near homelessness. The House does not include this funding.

For Early Intervention and Infant Learning Program, the Senate adds $5.94 million to support inflation proofing and expanded eligibility for individuals with 25 percent developmental delay, from the current 50 percent delay. The House adds less at $5.72 million.