With deadline looming, a look at Alaska budget proposals

JUNEAU — Approval of state spending bills and plans to pay for them are among the unresolved issues as the constitutional deadline looms for the Alaska Legislature to finish its work.

House and Senate negotiators have reached agreement on many areas of the proposed state operating budget. But the budget hasn’t been closed out yet, and there’s the potential for items they’ve agreed upon to be reopened for further consideration.

Items adopted so far include deep cuts to the University of Alaska system, elimination of funding for early childhood programs and a denial of funding to help establish a unit within the Department of Law that would focus on use of force by law enforcement, deaths in correctional facilities and allegations of government corruption or fraud.

ADVERTISEMENT
0 seconds of 0 secondsVolume 0%
Press shift question mark to access a list of keyboard shortcuts
00:00
00:00
00:00
 

Part of the holdup in finalizing a budget has been the difficulty the House has had in trying to agree on how much to change Alaska’s oil and gas tax credit system. Legislative leaders have seen resolution on the credits issue as key to making further progress on the budget and revenue measures.

A House committee finalized a version of the credits bill Thursday seen by some as an effort to try to break the logjam. Whether it does remains to be seen. The bill is expected to advance for a floor vote.

Under the constitution, regular sessions can last 121 days, a mark lawmakers will reach Wednesday. The constitution allows for up to a 10-day extension.

Here is a look at where things stand with selected operating budget items:

—PUBLIC INTEGRITY UNIT: Negotiators have nixed funding requested by Gov. Bill Walker’s administration for a public integrity unit within the Department of Law. John Skidmore, director of the department’s criminal division, said the department proposed setting up the unit through some reorganization and funding from the Legislature. He said he would need to see a final budget before knowing how the department might proceed.

—EARLY EDUCATION: Versions of the budget passed by the House and Senate scrapped funding for pre-kindergarten grants. The conference committee also has recommended not funding Best Beginnings and Parents as Teachers.

Minority Democrats have seen the programs as a smart investment. But a House subcommittee in recommending they be cut said they fall outside of what are considered “mission critical” programs at a time when the state faces a multibillion-dollar budget deficit.

—PUBLIC BROADCASTING: The conference report matches Walker’s funding request for state operating grants for public radio, which represents a cut, but does not include grant money for public TV.

Bill Legere, general manager of KTOO in Juneau, said the cuts would be a blow to public TV stations.

—UNIVERSITY: The conference committee has adopted a roughly $50 million cut in unrestricted general funds to the University of Alaska system that the system has said could cost or have an impact on hundreds of positions.

The system is undergoing a streamlining process but with that level of cut, tough decisions would have to be made without the luxury of time to carefully weigh various trade-offs, President Jim Johnsen has said.

In a statement following the committee’s action last month, Sen. Pete Kelly called the action proof that everything is on the table as the state faces challenging times. Kelly, R-Fairbanks, said he supports the university system.

“This is what it looks like when you have to make difficult choices,” he said.

More in News

Foliage surrounds the Soldotna Police Department sign on Tuesday, Aug. 30, 2022, in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Soldotna OKs $170,000 for new police camera system

The existing system was purchased only during the last fiscal year, which ended June 30, 2024.

Winter Marshall-Allen of the Homer Organization for More Equitable Relations, Homer Mayor Rachel Lord, and Jerrina Reed of Homer PRIDE pose for a photo after the mayoral proclamation recognizing June as Pride Month on Tuesday, May 27 at the Cowles Council Chambers. (Photo courtesy of Winter Marshall-Allen)
City of Homer recognizes Pride Month, Juneteenth

Mayor Rachel Lord brought back the tradition of mayoral proclamations May 12.

File
Potential remains of missing Texas boaters discovered in sunken vessel

The vessel capsized 16 miles west of Homer in Kachemak Bay in August.

A sign for The Goods Sustainable Grocery is seen in Soldotna, Alaska, on Tuesday, May 20, 2025. (Jake Dye/Peninsula Clarion)
New Saturday Market to launch this summer at The Goods

The summer bazaar will feature craftspeople from around the central and southern Kenai Peninsula.

Council member Alex Douthit speaks during a meeting of the Kenai City Council in Kenai, Alaska, on Wednesday, June 5, 2024. (Jake Dye/Peninsula Clarion)
Kenai loosens restrictions on employee purchase of city property

Municipal officers like city council members are still prohibited from buying property.

Mount Spurr is seen from the Kenai Peninsula, Alaska, on May 11, 2025. (Peninsula Clarion file)
Likelihood of Spurr eruption continues to decline

Spurr is located about 61 miles away from Kenai and 117 miles away from Homer.

Anchor Point Chamber of Commerce President Dawson Slaughter (left) and Susie Myhill, co-owner of Anchor River Lodge and co-chair for the chamber’s sign committee, unveil the new “most westerly highway point” sign on Tuesday in Anchor Point. (Delcenia Cosman/Homer News)
Anchor Point chamber unveils new highway sign

The sign marks the “most westerly” highway point in North America.

Alaska State Troopers logo.
1 dead in Anchor River vehicle turnover

Alaska State Troopers were notified at 7:46 a.m. of a vehicle upside down in the Anchor River.

The barge, crane, and first pile of rock for the Kenai Bluff Stabilization Project is seen during a break in work at the bank of the Kenai River in Kenai, Alaska, on Tuesday, May 27, 2025. (Jake Dye/Peninsula Clarion)
Kenai bluff project underway

A roughly 5,000-foot-long berm will be constructed from the mouth of the Kenai River to near the city dock.

Most Read