Budget
RSSAlaska News tracks budget issues affecting Alaska schools, municipalities, state agencies, and public services.
Kodiak residents defend auditorium position as school budget vote nears
Kodiak residents urged the assembly to fund the auditorium technical director or risk losing a key community facility. • The 700-seat auditorium hosts school shows and touring acts but has only one staff member. • Assembly members explored moving the position to the borough budget instead of school budget. • The school district is requesting $1.6 million more in local funding for fiscal year 2027.

Juneau Assembly faces budget crisis with projected negative fund balance
Juneau faces $1 million budget shortfall by 2027 after tax cuts reduced revenue. • Assembly must cut services, close facilities, or raise property taxes before June 15 vote. • Residents pushed back Monday against closing recreation facilities like Eagle Crest. • City approved $12.2 million repayment for failed gondola project.

Cordova Council debates mill rate hike as school funding deadline nears
Cordova Council must choose by June 3 between raising property taxes or using federal funds for a $181,000 school budget increase. City Manager Sam proposed raising the mill rate to 12.07, costing homeowners about $404 more yearly. Council has $436,000 to $486,000 in available federal funding but debates if one-time money can reliably fund ongoing school costs.

East High students organize benefit concert to save band program
East High students host benefit concert Saturday to save band program facing elimination due to budget cuts. • School plans to cut band director position, affecting 100 students across five classes. • Concert runs 2 to 5 p.m. at Club Nyt Lyt with $15 suggested donation, all proceeds to band account. • Anchorage schools cutting programs after state education funding remained flat.

VA budget seeks $488 billion with 60,000 Alaska veterans facing shift toward private care
VA requests $488 billion budget, shifting $17 billion toward private care while holding VA facility funding flat, affecting 60,000 Alaska veterans. • VA lost 50,000 employees in 2025 and 2026, raising concerns about workforce and direct care. • Budget cuts appeals processing and oversight despite rising caseloads. • Includes $10.4 billion for infrastructure and health records modernization.

Alaska Senate opens special session on natural gas tax overhaul
Alaska Senate opened special session to overhaul natural gas taxes through Senate Bill 2001. • New volumetric tax on gas throughput and revised municipal property tax calculations for schools. • Governor Dunleavy called session under May 19 proclamation limited to natural gas tax bills. • Senate coordinating with House and three state departments to avoid costly errors.

Dunleavy vetoes transit plan, calls special session on gas pipeline tax
Governor Dunleavy vetoed a statewide transit bill and called a special legislative session to address natural gas pipeline taxation, with Senate Finance Committee hearings beginning Wednesday at 9 a.m.

School district property insurance costs to double, equivalent to four teaching positions
Juneau School District property insurance costs will more than double to over $800,000 next year, forcing the district to cut the equivalent of four teaching positions since state law caps school funding and insurance falls under that cap.

Alaska Senate passes $13.9B operating budget with $200 energy relief
Alaska Senate approved $13.9B budget with $200 energy relief per person added to Permanent Fund Dividend. • Budget passed 17-3 and includes $11M for heating assistance and $29.1M in school fuel grants. • Operating budget maintains $44M surplus and now goes to House for final vote.

Alaska House passes bill removing tax-remittance deductions
Alaska House passed a bill removing tax-collection deductions for motor fuel, tobacco, and tire fees, expected to raise nearly $500,000 yearly.
House votes to eliminate tax filing discounts worth $500,000 annually
Alaska House voted to eliminate four tax discounts worth $500,000 yearly, including a cigarette stamp break that persisted two decades after the equipment it subsidized was paid off.

Alaska Senate adopts final operating, mental health and capital budgets
Alaska Senate passed fiscal year 2027 operating budget on 17-3 vote, balanced at $75 per barrel oil without drawing from savings. • Mental health budget approved 20-0, adding $3.5 million for behavioral health treatment and $500,000 for crisis call center. • Capital budget concurred 18-2, including $32.5 million for University of Alaska deferred maintenance and school and port projects.

Alaska Energy Conference Highlights Gas Pipeline Progress Amid Legislative Tax Debate
Alaska LNG pipeline signed contracts, targets 2029 delivery, but governor and legislature split on tax framework. • Southcentral consumers could pay $22.96 per thousand cubic feet if exports fail, double current rates. • Federal officials highlighted critical minerals and $1 billion in funding, but permitting takes 15 to 18 years. • Rural Alaska pays $6.63 per gallon with no pipeline relief in sight.

Alaska Legislature fails to override veto of pension bill
Alaska Legislature fell seven votes short of overriding the governor's veto of a bill that would have restored pension options for public employees and teachers, voting 33-27 when 40 votes were needed.

Juneau Assembly Finance Committee votes 6-3 to end gondola project, repay Goldbelt
The Juneau Assembly Finance Committee voted 6-3 Tuesday to direct staff to end the Eagle Crest gondola project and draft an ordinance to repay Goldbelt and terminate the revenue sharing agreement, after construction costs ballooned from $7 million to $27 million.

Public Commenter Blames Management Turmoil for $12M Gondola Cost Surge
A public commenter told the Assembly Tuesday that forced management changes and procurement delays added millions to the Eagle Crest gondola project, with Trump tariffs worsening costs after two construction seasons were lost.

House Finance Committee advances PFD restoration for wrongfully convicted
House Finance advances tobacco age increase, e-cigarette tax on 7-4 vote
The Alaska House Finance Committee voted 7-4 Sunday to advance a bill raising the minimum age to purchase tobacco and nicotine products to 21 and imposing new retail taxes on e-cigarettes, after rejecting amendments to exempt active-duty military members and to use a wholesale tax structure.
House panel hears bill to restore PFDs for wrongfully convicted Alaskans
The House Finance Committee heard testimony Sunday on legislation that would allow Alaskans whose convictions are overturned to reclaim Permanent Fund dividends they lost while incarcerated.

Alaska News Roundup: Gas pipeline tax fight, Point Thomson trade-off, and McNeil River access debate
This episode covers the week's major Alaska stories: a gas pipeline tax bill that added oil tax increases, the Point Thomson condensate trade-off for pipeline gas, Mount Edgecumbe enrollment crisis, and McNeil River bear sanctuary access proposals.

Alaska Legislature approves $1,000 PFD, $200 energy relief payment
The Alaska Legislature conference committee approved a $1,000 Permanent Fund Dividend and increased energy relief payments from $150 to $200 per person, totaling $127.3 million, in a split vote Sunday.

House panel cuts youth tobacco fines, advances Tobacco 21 bill
Alaska's House Finance Committee reduced proposed fines for minors possessing tobacco from $300 to $100 and eliminated mandatory court appearances, advancing legislation to raise the tobacco purchasing age to 21 and tax vaping products.

Senate panel weighs municipal concerns over Alaska LNG tax structure
The Senate Resources Committee Saturday reviewed Alaska Municipal League concerns about tax abatements and revenue distribution for the Alaska LNG pipeline project, with legal counsel proposing a 10-year sunset provision to address precedent worries.

House Finance advances civics education bill after rejecting military exemption
The Alaska House Finance Committee moved a civics education bill forward Saturday after voting down an amendment that would have exempted active-duty military children from a new graduation requirement.

Senate panel advances full funding for pre-K students statewide
The Senate Education Committee voted Saturday to expand pre-kindergarten funding by counting pre-K students as full-time rather than half-time in the state funding formula, removing previous caps and sunset clauses.

House rejects Galena school funding swap after dramatic rescind vote
The Alaska House of Representatives narrowly rejected an amendment to redirect $5 million from a Galena school renovation to Anchorage and Mat-Su projects after a dramatic rescind vote brought the measure back for reconsideration.
House panel hears gas line tax bill with 15-cent volumetric fee
The House Finance Committee heard testimony Thursday on House Bill 381, which would replace traditional property taxes on the Alaska LNG pipeline with a 15-cent per thousand cubic feet volumetric tax, generating an estimated $577 million by 2033 while giving municipalities decision-making authority over gas treatment plants and LNG facilities.

Alaska Conference Committee Advances 23 of 25 Supplemental Budget Items
A legislative conference committee Tuesday adopted most items in Alaska's FY26 supplemental operating budget, accepting Senate versions while leaving two items open for continued negotiation.

House Finance Advances Paid Parental Leave Bill
The Alaska House Finance Committee voted 7-4 to advance a paid parental leave bill that would create a new payroll tax and provide up to 12 weeks of benefits, despite warnings the fund could be depleted by 2040 and concerns about small business exemptions creating legal vulnerabilities.

Senate Finance exempts emergency management from contract payment rules
The Senate Finance Committee advanced a bill Tuesday that exempts Alaska's Division of Homeland Security and Emergency Management from new state contract payment requirements, giving emergency responders flexibility during disasters.

Alaska House Passes Required Local Contribution Cap for Schools
The Alaska House adopted an amendment capping annual growth in required local property tax contributions to schools at 2%, shifting an estimated $29 million in education costs from municipalities to the state.

Alaska House panel hears push to raise tobacco age to 21, tax vapes at 25%
The House Finance Committee heard testimony Monday on Senate Bill 24, which would raise Alaska's legal tobacco purchase age from 19 to 21 and impose a 25% retail price tax on vapor products, drawing support from public health advocates and opposition from retailers who warn the tax structure could fuel illicit markets.
Alaska Legislature Forms Conference Committee on $14B Operating Budget
Six lawmakers convened Monday to reconcile differences between House and Senate versions of Alaska's fiscal year 2027 operating and mental health budgets, adopting identical items and requesting limited negotiating powers.

Alaska House Finance Rejects Cemetery, School, Energy Amendments
The House Finance Committee rejected multiple capital budget amendments Friday, including funding for an Eagle River cemetery, Galena school repairs, Arctic Winter Games, and the West Susitna Access Road, citing budget constraints despite acknowledging merit in the proposals.

House Finance cuts paid parental leave to 12 weeks, reduces benefits to $524
Alaska House Finance Committee amended paid parental leave legislation to reduce maximum leave from 26 to 12 weeks and cut weekly benefits from $817 to $524, while exempting businesses with fewer than 25 employees.

House Finance Advances Education Funding Bill Despite Fiscal Concerns
The Alaska House Finance Committee narrowly advanced HB 261, an education funding reform bill using three-year student count averaging, after rejecting amendments to mandate averaging for special needs students and cap administrative spending at 15 percent.

Alaska House panel considers doubling bulk fuel loan cap amid price crisis
The House Finance Committee heard testimony Tuesday on legislation to raise the maximum bulk fuel loan from $750,000 to $1.5 million as rural communities face doubled fuel prices and supply shortages.

Senate panel advances behavioral health crisis surcharge bill
The Senate Finance Committee advanced a bill establishing a surcharge to fund behavioral health crisis services after adding exemptions for low-income phone users.

House Finance advances education fund amendment, rejects gas pipeline revenue tie
The House Finance Committee passed a constitutional amendment creating a public education fund 8-3 but rejected linking it to future gas pipeline revenues.

House Finance cuts West Susitna road funding from capital budget
The House Finance Committee adopted a $2.5 billion capital budget that removes $94 million in federal receipt authority for the West Susitna Access Road project, sparking partisan debate over resource development priorities.
