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.

The House version includes $723,000 for Behavioral Health Prevention and Early Intervention Grants. The Senate does not.

For Adolescent Residential Behavioral Health Treatment Services, the House adds $336,000. The Senate does not.

The House adds $403,000 to restore funding for the Statewide Independent Living Council to pre-2017 levels. The Senate does not include this restoration.

For Parents as Teachers, which supports families from pregnancy through children age five, the House adds $355,800. The Senate does not.

The House version includes $965,000 for Student Mental Health Support at the University of Alaska. The money would be distributed as $440,000 to the UAA Anchorage campus for three support positions, $350,000 to UAF Troth Yeddah campus for clinical psychology, and $175,000 to the UAS Juneau campus for mental health and life skills support. The Senate does not include this funding.

The House also adds $500,000 for Crisis Contact Centers that provide de-escalation, triage, intervention, and referral to services for people experiencing mental health or substance use crises. The Alaska Mental Health Trust Authority Board of Trustees recommended this amount to complement its $1 million grant for the program. The Senate does not include this funding.

The conference committee of six members will decide whether to accept the House recommendations or Senate recommendations for the FY27 Operating Budget and Mental Health Budget. The committee members are Senator Lyman Hoffman, Senator Bert Stedman, Senator Mike Cronk, Senator James Kaufman, Representative Andy Josephson, Representative Calvin Schrage, and Representative Will Stapp.

Representative Andy Josephson said during House floor debate, "There is enough room in the budget to fund crucial programs and appropriations for all Alaskans. I look forward to conference committee, if I'm selected, where we can resolve our differences. I recommend a no vote on concurrence. Thank you."

Advocates can contact conference committee members by email at [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], and [email protected].

Alaskans can also contact their personal senator and representative with their opinions. To learn who represents them, residents can go to www.akleg.gov and scroll to the bottom under Who Represents Me.

The Alaska Legislature is scheduled to adjourn its regular 2026 session on May 20.