May 8, 2026
Senate Passes Operating Budget; House Adds More Funding for University to Capital Budget
Only one full workweek remains before the legislative session reaches its constitutional deadline of Wednesday, May 20, and there is plenty of work still to be done. At the start of the week, the legislature met in joint session to attempt an override of the governor’s veto of a comprehensive elections reform bill, SB 64, but fell two votes short of overriding the veto. The resources committees in both the Senate and House have been working nearly every day on the governor’s proposal to change the tax structure to be more favorable to those working to develop the Alaska LNG project, but those bills (SB 280 & HB 381) still have a ways to go.
In addition to the budget for the upcoming fiscal year, these are just a few of the major items that the House, Senate, and governor have yet to reach consensus on before the clock runs out in less than two weeks. Rumors of a potential special session are swirling more and more around the Capitol as skepticism grows about the likelihood of resolving some complex issues—the LNG tax bills in particular—in the little time that remains.
Operating Budget Passes Senate Floor
The Senate passed its version of the FY27 operating budget yesterday, which means it will now be returned to the House for a concurrence vote. A vote on concurrence is a procedural part of the annual budget process, where the House can vote to either accept the Senate’s changes to the budget, or reject them. When the House votes no on concurrence, the budget is then sent back to the Senate for senators to vote on the following question: shall the Senate recede from its amendments to the budget? When the Senate declines to recede, it triggers the appointment of a conference committee.
The conference committee for the operating budget will be made up of six legislators, three from the House and three from the Senate, who are tasked with resolving the differences between the two versions of the budget. Each body appoints two members from the majority, typically two finance committee co-chairs, and one from the minority caucus to serve on the conference committee.
The Senate’s version of the operating budget includes state funding increases for the University of Alaska as follows:
- Compensation increases for eligible employees and increased health care plan costs: $11.5 million
- Student recruitment expansion for all three universities:
- UAS: $500,000
- UAA: $375,000
- UAF: $338,000
The conference committee process could begin early next week, and the UA team will be following it all very closely as the final version of the operating budget takes shape.
Rep. Schrage Comes Through for the UA - Addresses Huge Deferred Maintenance Need
On Monday, Rep. Schrage, a UA hero, unveiled the House version of the capital budget.
Here are the major takeaways:
- $15.3 million added for UA deferred maintenance. That brings the total (adding to the great work done by Sen. Stedman in the Senate) to $32.46 million. That means the top 18 projects around the UA system can be funded.
- $3 million - AKLNG Project Workforce Development - UAA Welding and Non-Destructive Testing Renovation.
- $260 thousand - AKLNG Project Workforce Development - UAA Industrial Cutting Systems and Electrical Distribution Upgrades.
- $1.38 million in university receipts and $5.44 million in federal receipt authority for the UAF Campus Transit Fleet Maintenance Facility.
- $2 million - Contingent funding ($80 or higher average price per barrel for first half of FY27) - UAS Sitka Campus New Dock and Mariculture Training Facility - Phase II.
- $1.25 million - Contingent funding ($80 or higher average price per barrel for first half of FY27) - UAA Alaska Leaders Archive Consortium Library Renovation.
The House Finance Committee advanced the capital budget from committee this morning. It will next go to the House floor, where members will consider more amendments before passing the capital budget and returning it to the Senate for a concurrence vote.
Student Fee Bill Passes from Senate State Affairs Committee
House Bill 176 (HB176), passed from the Senate State Affairs Committee on May 5. The bill does nothing that is substantively new, as the university already follows directives required by UA Board Policy Chapter 05.10, under the authority of Article VII, Section 2 and 3 of the Alaska Constitution.
The bill sets minimum notice requirements (30 days) for any changes to mandatory student fees - however, the university already has a much higher standard than this. Current practice typically gives students a minimum of at least three months notice for any proposed fees changes. In other instances, students have been given notice almost a year in advance when system-wide fees are set to increase.
In addition, UAA/UAF/UAS already has public facing consolidated fee breakdowns so that students can see how those fees are being spent. Sen. Kawasaki (whose history with UAF runs deep and continues to be a great champion for the university) correctly referenced that point in the committee hearing.
Bill Creating Joint Legislative Task Force on Alaska Native Languages Moves from House Education Committee
House Bill 387 (HB387), which creates a Joint Legislative Alaska Native Languages Academic Task Force, was moved from the House Education Committee on May 6. Rep. Story carried the bill on behalf of the House Education Committee (the sponsor). Rep. Story will likely work with Sen. Tobin (who carries the Senate companion, SB287), should the legislation become law.
The task force will assess and give recommendations about the future of the Alaska Native Language Center.
Fire Station Grant Program Legislation Gets Hearing in House Finance Committee
Senate Bill 140 (SB140) was heard in the House Finance Committee on May 6. SB 140 establishes the Fire Station Grant Program, which provides funding for up to 50% of the total project cost for constructing or renovating fire stations. UAF is supportive of the legislation, and we’re grateful to Sen. Stedman for continuing to move this forward.
Bill to Add Faculty Member to Board of Regents Moves from the Senate Finance Committee
This morning, House Bill 10 (HB10), the bill that adds a faculty member to the Board of Regents, passed the Senate Finance Committee. The bill is trending towards an expected vote on the Senate Floor.
What We’re Watching
Monday, May 11
- 1:30 p.m. - Senate Finance: House Bill 28: Teacher/State Employee Student Loan Program. Senate Bill 110: Museum Construction Grants.
- 3:15 p.m. - House Labor & Commerce: Senate Bill 217: Employer Contributions (Pending Referral).
Tuesday, May 12
- 9:00 a.m. - House Finance: Senate Bill 140: Fire Station Grant Program.
- 3:30 p.m. - Senate State Affairs: Senate Bill 287: Alaska Native Languages Academic Task Force.
Wednesday, May 13
- 9:00 a.m. - House Finance: House Bill 260: Construction Project Wages & Liability.
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 Alaska Government Relations on our Twitter page.