Alaska Senate adopts final operating, mental health and capital budgets

The Alaska Senate voted Wednesday night to adopt the state's fiscal year 2027 operating budget, then passed the mental health budget and concurred in House changes to the capital budget.

Senators approved the operating budget, House Bill 263, on a 17-3 vote. They also approved the bill's Constitutional Budget Reserve section 17-3, which authorizes spending from the state's savings account if needed, and adopted the effective date clause without objection.

Sen. Lyman Hoffman, D-Bethel, told senators the conference committee budget balances at a spring revenue forecast of $75 per barrel oil and does not require a Constitutional Budget Reserve draw to fill a deficit. He said the plan includes just over $5 billion in unrestricted general funds for agency operations, $601 million for statewide items, and $674 million for the Permanent Fund dividend.

The Senate voted 20-0 to pass the conference committee version of House Bill 265, the mental health budget. Hoffman said the final version included five changes, including $3.5 million more for behavioral health treatment and recovery grants, $500,000 for a crisis call center, and $723,000 for behavioral health prevention and early intervention grants.

Earlier in the same floor session, senators voted 18-2 to concur in House amendments to Senate Bill 214, the capital budget. Sen. Bert Stedman, R-Sitka, said the House added $15 million for University of Alaska deferred maintenance, bringing that total to $32.5 million for the university's top 18 ranked projects.

The capital budget includes money for school deferred maintenance, the Port of Alaska, state park projects, the Alaska Heating Assistance Program, and several University of Alaska projects, according to the Senate floor explanation.