May 9, 2025
Senate Passes Operating Budget, House Finance Amends Capital Budget
Less than two weeks remain before the legislative session ends on May 21, and the Capitol continues to be a busy place as the final days of session draw closer. This week, the Senate passed the FY26 operating budget after rejecting a number of proposals that would’ve increased spending in an environment where state revenue is trending down. The Senate’s austere budget eliminated the sizable deficit lawmakers have been grappling with all session, leaving a $150 million cushion to help weather fiscal uncertainty.
For the èßäÊÓƵ, the Senate’s version of the operating budget largely maintains status quo spending, with the only addition being employee compensation increases tied to collective bargaining agreements. In contrast, the House version of the operating budget includes increments for rising fixed costs, recruitment, retention, and graduation efforts, student mental health services, UAA and UAF athletics, support for UAF to achieve R1 research status, funding for UAF’s drone and agriculture programs, and full funding of compensation increases for all employees.
Following the Senate’s passage of the operating budget, the House held an up or down vote this afternoon on whether to concur with the Senate’s changes to the bill. As expected, the House voted against concurrence in an 11-27 vote. This means the budget bill is now headed to a conference committee, where three members from the House and three from the Senate will work out the differences between the two versions of the budget. The final product usually ends up somewhere in the middle, with some components from each of the two budgets being incorporated into the version ultimately adopted by the legislature.
Capital Budget Update
The FY26 capital budget moved out of the House Finance Committee this afternoon after members considered a few amendments before adopting a new draft version earlier in the week. The bill will now go to the House floor for consideration, which could occur as soon as tomorrow, as House leadership has scheduled a floor session for Saturday. The latest version of the capital budget contains one additional item for the èßäÊÓƵ: receipt authority for the UAF Troth Yeddha’ Indigenous Studies Center project, which will be funded through private donations. The receipt authority will help with fundraising momentum to make this project a reality.
Legislation Impacting UA
Add Faculty Member to University Board of Regents - Sponsored by Representative Carrick
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On Wednesday, the House voted 23-17 to pass House Bill 10, which proposes adding a tenured faculty member to the University of èßäÊÓƵ Board of Regents, increasing the total number of regents from eleven to twelve. The bill is now in the Senate Finance Committee.
University of èßäÊÓƵ Fees - Sponsored by Representative Carrick
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On Monday, the House Education Committee advanced a new bill, House Bill 176, which would require the Board of Regents to email a notice to all currently enrolled students if the Board plans to increase or impose a new fee on students. The bill would also create a statutory requirement for the èßäÊÓƵ to provide an itemized billing statement to each student.
The èßäÊÓƵ has had conversations with Representative Carrick and Senator Myers, who is sponsoring the Senate version of the bill (), about a path forward on this issue. Those conversations will continue beyond the legislative session, with an intent to resolve outstanding concerns.
What We’re Watching
Monday, May 12
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9:00 a.m. - Senate Finance: : Flood Insurance. : Strategic Plans for State Agencies
Tuesday, May 13
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1:30 p.m. - Senate Community & Regional Affairs: : Fire Station Grant Program
Thursday, May 15
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3:15 p.m. - House State Affairs: : Public Employee Personal Information
Friday, May 16
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3:15 p.m. - House Labor & Commerce: : Peace Officers/Firefighters: Disability
Saturday, May 17
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1:00 p.m. - House State Affairs: : Designate State Dinosaur (Nanuqsaurus)
For more information, contact Director of State Relations for the University of èßäÊÓƵ System Chad Hutchison, cell 907-378-3946, email clhutchison@alaska.edu. You can also follow the University of èßäÊÓƵ Government Relations on our .