Capitol Report: Legislature Contemplates New Revenues Amid Fiscal Challenges

February 21, 2025

Legislature Contemplates New Revenues Amid Fiscal Challenges

As committees in both the House and Senate continue examining the FY26 budget and the state’s overall fiscal situation, discussions about the growing need for new state revenue are becoming more frequent around the Capitol. The current outlook of the proposed budget for the next fiscal year shows a deficit in the hundreds of millions of dollars. This comes at a time when school districts and other entities across the state are asking for increased funding to address a variety of challenges, which puts further pressure on lawmakers to consider solutions, but those conversations have only just begun. 

Next week, the Senate Finance Committee will have public testimony opportunities on the proposed budget for FY26. Be sure to check the schedule below and make your voice heard if you have thoughts on the budget you want legislators to hear. 

The call-in numbers for public testimony are:

  • Juneau - 1-907-586-9085
  • Anchorage - 1-907-563-9085
  • All others - 1-844-586-9085

Consideration of UA Budget Continues

The second meeting of the UA House Finance Subcommittee meeting took place earlier this week, with a focus on the university’s critical role in workforce development in Alaska. Next week, the same subcommittee will meet to hear a presentation on key university budget items: funding to support UA’s recruitment, retention, and graduation support; much-needed foundation funding to sustain UAA’s athletic programs; and support to grow the athletic programs at UAF. Our team continues to work closely with Representative Galvin, Chair of the UA Subcommittee.  

On the Senate side, the UA Senate Finance Subcommittee, chaired by Senator Kiehl, held its first meeting on Tuesday, where members heard a broad overview of the university’s FY26 budget request. Subcommittees in the Senate typically have fewer meetings than in the House, so there may only be one additional meeting, during which Senators will make final decisions on UA budget items before closing out the subcommittee and forwarding the university budget onto the full Senate Finance Committee for consideration. Senator Kiehl and his staff have been excellent to work with.  

The office of Senator Stedman, Co-Chair of the Senate Finance Committee (capital budget), has notified the UA about a deferred maintenance hearing on March 7 at 9 a.m. Our great facilities teams across the system are preparing materials to “make their best case” about the need.   

U.S. Representative Nick Begich III Delivers Address in Juneau

Congressman Nick Begich was before a joint session of the legislature on Thursday, where he gave his first address in the Capitol since being sworn in as Alaska’s sole U.S. Representative last month. Representative Begich spoke of the importance of the fishing industry in and the need to provide support at a time when the industry is facing significant challenges. He also highlighted his support for a rail connection through Canada to strengthen Alaska’s economy and reduce transportation costs. 

The Congressman fielded questions from lawmakers, many of whom voiced concerns about federal funding cuts. He encouraged Alaskans to reach out to his office if they have questions or concerns about certain federal programs and potential loss of funding so he can be made aware and look into it. 

The Earthquake Center's 2023 seismicity map for and the neighboring regions.The Earthquake Center's 2023 seismicity map for and the neighboring regions.

What We’re Watching

Monday, February 24

  • 8:00 a.m. - House Education: : Teacher/State Employee Student Loan Program.  The UA drafted a conditional letter of support for this pilot program.  More .  

  • 9:00 a.m. - House University of Finance Subcommittee: Presentation: University of Budget Requests for Athletics and Recruitment, Retention, and Graduation Support by Chad Hutchison, UA Director of State Relations

  • 1:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental.  Appropriations: Capital/Supplemental/Funds

  • 3:15 p.m. - House Labor & Commerce: : Innovation Council

Tuesday, February 25

  • 12:00 p.m. - Lunch & Learn: Emerging Invasive Species Concerns and Solutions in Alaska by Dr. Tobias Schwoerer, International Arctic Research Center, UAF; Dr. Emily Reed, Southeast Watershed Coalition

  • 1:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental.  Appropriations: Capital/Supplemental/Funds

Wednesday, February 26

  • 8:00 a.m. - House Education: Presentation: How has Alaska’s K-12 Education Spending Changed by Dayna Jean DeFeo, Director, Center for Education Policy Research, ISER; Matthew Berman, Professor of Economics, ISER

  • 9:00 a.m. - Senate Finance: : Appropriations: Operating Budget; Capital; Supplemental. : Appropriations: Capital/Supplemental/Funds

    • Public Testimony for Juneau, Southeast, Prince William Sound, Kodiak 

  • 1:00 p.m. - Senate Finance: : Appropriations: Operating Budget; Capital; Supplemental. : Appropriations: Capital/Supplemental/Funds

    • Public Testimony for Fairbanks, Interior, Copper River Valley, Off-Nets

  • 1:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental 

Thursday, February 27

  • 9:00 a.m. - Senate Finance: : Appropriations: Operating Budget; Capital; Supplemental. : Appropriations: Capital/Supplemental/Funds

    • Public Testimony for Nome, Bethel, Kotzebue, Utqiagvik, Unalaska, Dillingham, Off-Nets

  • 1:00 p.m. - Senate Finance: : Appropriations: Operating Budget; Capital; Supplemental. : Appropriations: Capital/Supplemental/Funds

    • Public Testimony for Anchorage, Matanuska-Susitna Valley, Kenai Peninsula

  • 1:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental.  Appropriations: Capital/Supplemental/Funds. : Appropriations: Supplemental. Overview: Governor’s Budget Amendments by Lacey Sanders, OMB Director

Friday, February 28

  • 12:00 p.m. - Lunch & Learn: Iceland’s Approach to Attracting Industry by Gwen Holdman, Philip A. Wright, and Eli Gudleifsson, ACEP

  • 1:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental

 

For more information, contact Director of State Relations for the University of Alaska System Chad Hutchison, cell 907-378-3946, email clhutchison@alaska.edu. You can also follow the University of Government Relations on our .