Senate Finance advances $2.8B operating budget to Rules Committee

The Alaska Senate Finance Committee voted Thursday to advance the state's operating budget to the Rules Committee, moving the $2.8 billion spending plan one step closer to final passage after a contentious journey through the House marked by close votes and multiple amendments.

The committee approved Senate Committee Substitute for Committee Substitute for House Bill 263 Finance without objection. The bill now heads to the Rules Committee, its final stop before reaching the full Senate floor.

The committee also granted Legislative Legal and Legislative Finance authority to make technical and conforming changes to the legislation.

The House passed the operating budget April 14 with a narrow 21-19 vote after multiple reconsiderations. That final tally followed weeks of amendment battles that exposed deep divisions among legislators. On April 8, Amendment No. 5 passed 21-19, while Amendment No. 13 failed by the same margin reversed, 19-21. The next day, Amendment No. 31 gained broader support with a 33-7 vote. On April 10, Amendment No. 1 as amended passed 23-17 and changed the bill's title before it automatically advanced to third reading.

The House Finance Committee had spent two months reviewing the budget through numerous sessions between February 2 and April 1, canceling meetings on February 11, February 25, and March 30 before moving the bill out of committee April 1. When the committee issued its report April 8, Representatives Jimmie, Galvin, Hannan, Josephson, Foster, and Schrage voted "Do Pass" while Representatives Tomaszewski, Allard, Bynum, and Stapp voted "No Recommendation." Representative Moore offered an amendment.

The bill reached the Senate Finance Committee April 22, where it underwent review before Thursday's action.

Governor Mike Dunleavy proposed the fiscal year 2027 budget in December 2025, with total appropriations of $14.16 billion. The operating budget portion makes appropriations for state government operations and loan programs, capitalizes funds, and includes supplemental appropriations.

The Senate Finance Committee's approval marks a critical procedural milestone as the 34th Legislature works toward finalizing the state budget before the session ends. The bill must still clear the Rules Committee and pass the full Senate before returning to the House for consideration of any Senate changes.