Senate panel advances $535 million corrections budget with jail funding cut

The Senate Finance Department of Corrections Subcommittee approved a $535 million operating budget for the Department of Corrections on Wednesday, cutting in half the funding the House had added for community and regional jails.

Background

The budget deliberations come as Alaska continues to grapple with corrections reforms and ongoing budget adjustments. The subcommittee's decision to explore housing inmates outside Alaska reflects a broader debate about the state's correctional capacity and cost management. The reduction in funding for community and regional jails could affect local facilities that serve as alternatives to state-run institutions, potentially shifting more inmates into the state system or out-of-state facilities. The panel's call for an independent cost driver study signals recognition that the department's spending patterns require deeper analysis to inform future budget decisions.

Budget details

The fiscal year 2027 budget includes $486.9 million in unrestricted general funds, $14.2 million in designated general funds, $24.3 million in other funds, and $9.6 million in federal funds. The budget supports 2,127 full-time permanent positions.

The subcommittee accepted all of the governor's budget requests but reduced the House addition for community and regional jails by 50 percent, bringing that allocation to $2.8 million. Kelly Goods, staff to Senator Olson, presented the subcommittee's recommendations.

Out-of-state housing and cost study

The panel also included intent language directing the department to issue a request for information regarding housing inmates outside Alaska. The subcommittee recommended that the full Senate Finance Committee add funds to Legislative Budget and Audit to hire an outside firm to conduct an independent cost driver study for the department.

The exploration of out-of-state housing options could have significant implications for Alaska's correctional system and the communities that host inmates. Moving inmates outside the state can complicate family visitation, reentry planning, and connections to Alaska-based services, while potentially offering cost savings or addressing capacity constraints.

Committee action

Senator Tobin moved to advance the budget from subcommittee with the attached legislative finance budget and action sheet dated April 15, 2026. The motion passed without objection.

The budget now moves to the full Senate Finance Committee for consideration.