Senate passes capital budget focused on school maintenance

The Alaska Senate adopted a Finance Committee substitute for the capital budget that concentrates on catching up with deferred maintenance at schools, university buildings, and courthouses across the state.

The Finance Committee substitute for Senate Bill 214, introduced by the Senate Rules Committee by request of the governor, was adopted after Senate Finance co-chair Bert Stedman outlined a spending plan that targets roughly 15 school maintenance projects from a statewide list that totals $401 million. The bill advanced to third reading for final passage on Tuesday, April 21, 2026.

"We are getting behind the curve on it," Stedman said. "If we are going to have a good education system, we need good physically structured schools and a good environment for our young Alaskans."

The capital budget includes $88.7 million in unrestricted general funds. Stedman said the Finance Committee did not alter the governor's submission total of $247.7 million but redirected spending priorities toward maintenance rather than new construction.

The Finance Committee recommendation received do pass votes from Senators Olson, Hoffman, Stedman, Merrick, and Keel. Senator Cronk signed with no recommendation. Senator Kaufman signed amend.

School and University Maintenance

The bill funds deferred maintenance projects recommended by school districts statewide, the University of Alaska Board of Regents, and the Alaska Court System. For the university, the committee addressed projects from what Stedman called the Red Book, the regents' prioritized maintenance list.

Mount Edgecumbe High School receives funding for dining hall and kitchen renovations, dormitory windows, and furniture upgrades. The boarding school serves students from communities across Alaska.

The judiciary receives funding for four maintenance projects in Anchorage. The budget also includes money to purchase the former Stratton Library building in Sitka from the Department of Education for eventual conversion to a courthouse. Stedman described the transaction as an interdepartmental exchange.

Workforce Development and Energy

The capital plan allocates money for workforce training facilities, including a commercial driving range in Wasilla. Stedman said the state needs licensed truck drivers for North Slope operations and potential gas pipeline construction.

The Alaska Vocational Technical Education Center in Seward and the Pipeline Training Center in Fairbanks receive funding. The Kenai Development District and Instructional Service Center also receives money for workforce programs.

The bill funds the top three projects from the Renewable Energy Fund, continuing what Stedman called "an ongoing challenge across the state for a couple of decades."

Tourism and Marketing

The budget distributes cruise ship passenger vessel head tax revenue based on a three-year average of ports of call. Federal law requires the money go to communities where cruise ships dock.

Anchorage receives additional funding because of growing cruise tourism. Skagway receives money to address "a big boulder over a dock," according to Stedman.

The Alaska Seafood Marketing Institute and Alaska travel industry receive funding to market the state and promote fish sales.

Budget Assumptions

The Finance Committee built the budget assuming $73-per-barrel oil prices. Stedman said the conservative revenue projection avoids relying on higher oil price assumptions of $100 or $120 per barrel given Middle East instability.

The committee expects to fund roughly one-quarter to one-third of the total $401 million K-12 deferred maintenance list by the time the House completes work on the bill. Stedman said school districts should recognize the Legislature is taking their maintenance needs seriously.

"That quarter, roughly, or third, whatever we end up retiring on that list, will be added back to from other districts that will be applying for those funds," Stedman said.

Stedman said he would provide substantially more detail on the capital budget the following day.