2026 Capitol Report

February 6, 2026

Legislators Take First Look at University of Alaska FY27 Budget

Current UAF Student Government Leaders Voice Concerns Over House Bill 176 (HB176), an Act Related to UA Student Fees and Billing

University of Alaska President Pat Pitney was in Juneau this week to present in front of the UA House Finance Budget Subcommittee. Members of the subcommittee received a recap of the UA budget approved by the legislature last year, which contained some spending reductions, and heard how those reductions impacted the UA system. 

President Pitney also provided an overview of the budget requests approved by the Board of Regents for the upcoming fiscal year, FY27, which begins July 1, 2026. The highest priority request for the UA system this session is full funding for employee compensation. In the governor’s proposed budget, he included partial funding for UA’s employee compensation request (approximately $6.5 million), but fully funding the $15.2 million total request for compensation would provide the most stability for the university system in an environment where both state and federal dollars are becoming increasingly limited and uncertain. 

Detailed information about university budget priorities can be found on the UA Government Relations site. 

Current UAF Student Government Leaders Voice Concerns to Representative Carrick about House Bill 176 (HB176), an Act Related to UA Student Fees and Billing Statements, as Bill Passes from the House Floor

House Bill 176 (HB 176) is sponsored by Representative Carrick.  The title of the bill is “An Act relating to notice of new fees and fee increases from the University of Alaska; relating to billing statements from the University of Alaska; and providing for an effective date.”

In a letter dated January 31, 2026, the Associated Students of the University of Alaska Fairbanks (ASUAF) shared their concerns:

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Dear Representative Carrick,  

First, we want to say thank you. Not just for your work as a legislator, but for the way you continue to show up for the University of Alaska and for students. It means a lot to us students to see someone who once sat in our seats now shaping policy at the state level. 

On behalf of the student body at UAF, we wanted to reach out specifically regarding HB 176. We wanted to share how students are thinking about the practical implications of the bill as written, and how it could play out on campuses day to day. 

At a high level, students strongly support the values behind this bill. Transparency, accountability, and student protection around fees are all things we care about deeply. Where questions begin to surface is not around the “why,” but around the “how.”

Misinterpretation and Misplaced Outrage 

One concern that has surfaced repeatedly is how system-wide fee notifications might be interpreted by students. Because the University of Alaska operates as a single entity, many students would receive notices about fees that don’t apply to them or their campus. In practice, this could create confusion and, in some cases, misplaced frustration. A student might reasonably assume they are being charged more for a service they don’t use or don’t even have access to, simply because they received a notification about it. That misunderstanding has the potential to generate outrage where none is warranted, which ultimately undermines trust rather than strengthening it.

Message Fatigue 

Closely related to this concern is the risk of message fatigue. Students are already experiencing message fatigue due to the volume of fee-related and administrative communications they receive. When students are repeatedly alerted to fee changes that have little or no direct impact on their education, important messages can begin to blur together. Adding additional layers of mandatory fee communication would not solve this problem and instead risks pushing an already strained system past a breaking point, increasing the chance that students miss critical alerts about safety, academic deadlines, and opportunities. 

Local Governance and Context 

We’re also thinking carefully about how this framework interacts with existing governance structures. Many fee decisions are currently handled at the campus level, where context can be explained clearly and students have direct, meaningful avenues for feedback through student government and shared governance bodies. That local proximity really matters. It allows decisions to be shaped by the people most directly affected and informed by the realities of each campus. An additional bureaucratic barrier between students and the decisions that have the greatest impact on them could be introduced by centralizing fee communication. Since it gives more weight to system-wide notifications than to conversations at the campus level, it could inadvertently reduce the student voice in shared governance. 

Operational Delays  

Another concern is the potential for operational delays. If even small or time-sensitive fee adjustments must go through a full Board process, campuses may not be able to respond quickly enough to meet academic needs within a semester. In practice, this could mean delays in securing course materials, lab supplies, software licenses, or other required resources, or in some cases, students losing access to them altogether. While oversight is important, we worry that excessive procedural requirements could negatively affect the student learning experience.

Recommendations 

How HB 176 moves forward is ultimately your decision. If you choose to advance it, we respectfully offer the following recommendations to preserve the bill’s intent while reducing unintended impacts on students and campuses. 

● Establish a de minimis threshold 

Exempt minor, course-specific fee adjustments from triggering a 30-day notice requirement, particularly when changes are operational in nature and affect a small number of students. 

● Target notifications to impacted students 

Limit required fee notifications to students at the affected university or campus, rather than issuing system-wide notices that might cause confusion or misplaced concern.  

● Adopt a tiered transparency framework 

Maintain robust notice and Board-level oversight for mandatory, system-wide fees, while allowing campus-specific or course-level fees to be communicated individually by each university. 

We share these thoughts with a great deal of respect for the intent behind HB 176 and for the care you bring to student issues. Our hope is simply to highlight how students may experience this policy in practice, and where well-intentioned transparency could, without refinement, lead to confusion or unintended consequences. Thank you for taking the time to consider the student perspective. We appreciate your leadership and your continued willingness to engage directly with students and student government. 

Signed,

Jackson Nelson, ASUAF President
Yan Vshynskyi, ASUAF Vice President
Lilly Varney, ASUAF Director of Public Relations
Brynn Illingworth, ASUAF External Affairs Chair
Bonnie Brennan, ASUAF Senate Chair

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HB 176 will now move to the Senate for consideration.

House Committee Hears Scholarship Fund Update from ACPE

The House Finance Education and Early Development Budget Subcommittee met this morning to receive an update on student financial aid from the Alaska Commission on Postsecondary Education (ACPE). Kerry Thomas, ACPE Executive Director, shared information about Alaska Performance Scholarships (APS) and needs-based Alaska Education Grants (AEG), which are both funded from the Higher Education Investment Fund (HEIF). Director Thomas highlighted some of the challenges with providing funds to all eligible students due to increased demand and limited available funds. 

The conversation is timely as voices across the university continue advocating for the legislature to replenish the HEIF after approximately $130 million was drawn from the fund last year to balance the state’s budget. Paying back the HEIF is essential to providing stability for students who rely on these critical scholarships. 

This morning’s presentation from ACPE can be viewed here. 

UAF’s IANRE Invited to Present to House & Senate Committees

Experts from the UAF Institute of Agriculture, Natural Resources, & Extension (IANRE) will be in Juneau next week to meet with lawmakers and present before the House Resources Committee and the Senate Special Committee on Arctic Affairs. IANRE Director Jodie Anderson and Communications Manager Jenn Wagaman will share information about the latest research and great work being done at IANRE to help farmers, gardeners, and Alaskans all across the state live healthier lives. 

Check the schedule below for details on the upcoming committee hearings and visit the Gavel Alaska website to watch any live or recorded legislative meetings. 

What We’re Watching

Monday, February 9

• 1:00 p.m. - House Resources: Presentation: UAF Institute of Agriculture, Natural Resources, and Extension by Jodie Anderson, Director, and Jenn Wagaman, Communications Manager.

• 1:30 p.m. - House Finance: House Bill 263: Appropriations: Operating Budget; Amend; Supplemental.  

• 1:30 p.m. - Senate Finance: House Bill 78: Retirement Systems; Defined Benefit Option. 

• 1:30 p.m. - Senate Labor & Commerce: Senate Bill 81: Public Employer Pension Contributions. 

Tuesday, February 10

• 8:00 a.m. - House Tribal Affairs: Presentation: Aviation Supply Chains for Fresh Food & Medicines to Off-Road Alaska by Mike Jones, Research Assistant Professor of Economics, UAA ISER. 

• 1:30 p.m. - House Finance: House Bill 263: Appropriations: Operating Budget; Amend; Supplemental. House Bill 283: Appropriations: Supplemental. House Bill 289: Appropriations: Supplemental. 

Wednesday, February 11

• 9:00 a.m. - House Finance: House Bill 263: Appropriations: Operating Budget; Amend; Supplemental.

• 9:00 a.m. - Senate Finance: Senate Bill 213: Appropriations: Operating Budget; Amend; Supplemental. 

• 1:30 p.m. - House Finance: House Bill 263: Appropriations: Operating Budget; Amend; Supplemental.

• 1:30 p.m. - Senate Finance: Senate Bill 140: Fire Station Grant Program. 

Thursday, February 12

• 1:30 p.m. - Senate Special Committee on Arctic Affairs: Presentation: UAF Institute of Agriculture, Natural Resources, and Extension by Jodie Anderson, Director. 

Friday, February 13

• 1:30 p.m. - House Finance: House Bill 283: Appropriations: Supplemental. House Bill 289: Appropriations: Supplemental. 

 

January 30, 2026

Governor Unveils Fiscal Plan, UAA’s ISER Presents Research on “Alaska’s Fiscal Options” to Legislators; UA House Subcommittee Moving Forward; Higher Education Investment Fund Replenishment Advancing 

The second week of the 2026 legislative session saw the introduction of a proposed fiscal plan package from Governor Dunleavy, continued committee hearings on the state operating budget, as well as a presentation in Juneau from UAA’s Institute of Social and Economic Research (ISER) on the economic impact of various fiscal options the state could consider. 

Meanwhile, legislative meetings continue. The UA budget team is working with Rep. Andy Josephson and Rep. Alyse Galvin to prepare for the upcoming UA House subcommittee meetings. Areas of interest include UA employee compensation requests and operating cost increases, with an emphasis on public safety, student mental health services, and recruitment, retention, and graduation.

Importantly, the House Finance Committee has publicly noticed a hearing to take up the fast-track supplemental budget, which includes necessary money to replenish $129.6 million to the HEIF.  This is a key student and future workforce priority.   

Governor Reveals Fiscal Plan Details

Governor Dunleavy introduced his fiscal plan package earlier this week, which consists of legislation that proposes a statewide sales tax, changes to the state’s corporate income tax and oil production taxes, as well as a new per-barrel surcharge for trans-Alaska pipeline corridor maintenance.

Alongside the tax legislation, the governor also introduced a constitutional amendment to combine the Permanent Fund’s earnings reserve account (ERA) with the corpus of the fund, which would limit the amount of funds that can be drawn from the ERA. The constitutional amendment, Senate Joint Resolution 23 & House Joint Resolution 30, would also enshrine a “50/50” formula for the PFD, with 50% of the annual draw on the market value of the fund going toward dividends for all eligible Alaskans and the remaining 50% for government operations. 

The legislature has yet to begin formally reviewing the governor’s proposals, but the fiscal package is sure to generate significant debate and discussion this session. 

ISER Presents Fiscal Research to Legislators 

At the request of Governor Dunleavy’s administration, economists with UAA’s Institute of Social and Economic Research (ISER) presented findings from their recent economic study to a packed audience at the Centennial Hall in Juneau. ISER researchers evaluated 11 primary fiscal options plus three variations. These included changes to state spending, broad based taxes, and business taxes. Nine of these options were selected to match those ISER evaluated in 2016. In addition, ISER modelled two new options related to business taxes. ISER also evaluated three variations of these options.

A recording of the ISER presentation can be viewed on KTOO’s Gavel Alaska. Detailed information about ISER’s research can be found on their website. 

New Bill Would Replenish Higher Education Investment Fund 

At the beginning of the week, the House Finance Committee introduced a separate “fast-track” supplemental appropriation bill, HB 283, which is meant to address a handful of high-priority funding needs for the current fiscal year, FY26. One of those needs is the replenishment of the Higher Education Investment Fund (HEIF), which is critical for the stability of student scholarships and grants.

Last year, the legislature used the HEIF to cover the state’s budget shortfall, resulting in $129.6 million being drawn from the fund. In order to ensure that stable, reliable funding is available for students who rely on Alaska Performance Scholarships and Alaska Education Grants to help pay for their education, repaying the HEIF is a critical need. 

Legislators have heard from many in the construction industry about the importance of quickly passing an appropriation bill to address the approximately $70 million in match funding that is needed to receive federal transportation dollars in advance of the summer construction season. As a result of that advocacy, the House Finance Committee introduced this fast-track bill to potentially resolve some of the more timely funding needs early on in session. The inclusion of the HEIF repayment in the fast-track bill is an encouraging step toward providing stability for students. 

What We’re Watching

Monday, February 2 

• 1:30 p.m. - House Finance: House Bill 263: Appropriations: Operating Budget; Amend; Supplemental. 
• 1:30 p.m. - Senate Labor & Commerce: Senate Bill 81: Public Employer Pension Contributions. 

Tuesday, February 3

• 12:00 p.m. - House University of Alaska Finance Subcommittee: Presentation: FY26 Mid-Year Status and FY27 Budget Overview by Pat Pitney, President of the University of Alaska. 

Wednesday, February 4

• 9:00 a.m. - Senate Finance: Overview: Governor’s FY26 Supplemental Budget by Office of Management and Budget. 
• 1:30 p.m. - House Finance: House Bill 283: Appropriations: Supplemental. House Bill 263: Appropriations: Operating Budget; Amend; Supplemental. Overview: FY26 Governor’s Supplemental Budget by Office of Management and Budget. 

Friday, February 6

• 8:00 a.m. - House Education & Early Development Finance Subcommittee: Presentation: AK Performance Scholarship & Education Grants by Kerry Thomas, Executive Director of Alaska Commission on Postsecondary Education. 
• 1:30 p.m. - House Finance: House Bill 263: Appropriations: Operating Budget; Amend; Supplemental. 
  
  

 

January 23, 2026

Alaska Legislature Convenes in Juneau - UA Recognized as Critical for Alaska’s Workforce

The Alaska State Capitol building is once again bustling with activity now that the 2026 legislative session has begun. Lawmakers got right to work, holding committee meetings, press conferences, convening a joint session to hold a veto override vote, and attending Governor Dunleavy’s final State of the State Address. 

There will be a number of important issues debated in the legislature this session, but the challenging fiscal circumstances the state continues to face will dominate many discussions. Governor Dunleavy has said he intends to introduce a fiscal plan package, but the details of his plan have yet to be fully revealed. 

The University of Alaska State Relations team has been busy in Juneau this week connecting with legislators, staff, and the administration to discuss UA priorities. Conversations about the university’s budget are already underway with members of both the House and Senate finance committees and in the coming weeks, the first UA budget subcommittee meetings will begin. President Pitney is scheduled to present her FY27 UA budget overview to the House on Feb. 3. 

Governor Delivers Final State of the State Address

Last night, Governor Dunleavy gave his final State of the State address to the legislature. During his speech, the governor highlighted some of the accomplishments his administration has achieved over the course of his two terms, as well as some objectives he hopes to achieve before he leaves office next year. One of those objectives is to implement the fiscal plan that his administration is developing. While he has not introduced the legislation yet, Governor Dunleavy has discussed some of the components of his plan. 

The plan is rumored to include stricter limits on state spending, changes to oil taxes, and potentially even a statewide sales tax, but the specifics are still unknown while the legislature awaits the release of this fiscal package. 

The AKLNG project also was discussed. This coincided with a same-day announcement from Glenfarne, the project lead, that Phase One of the project is advancing from development to execution. Gas Sales Precedent Agreements with Hilcorp and ExxonMobil were highlighted by Glenfarne, during that announcement.  The UA will continue to be heavily involved in the conversations regarding workforce needs, including welding, diesel mechanics, engineers, carpenters, and logistics professionals, among others. 

ISER to Present New Economic Research in Juneau at the Request of the Governor

On January 29, UAA’s Institute of Social and Economic Research (ISER) will present their analysis of state fiscal options at an event in Juneau organized by the Governor’s office, which is expected to have many legislators in attendance. The event will be held from 10:00 a.m. - 11:30 a.m. at Centennial Hall in Juneau. 

Dr. Brett Watson will present a 45-minute overview of the requested research, followed by a discussion with co-authors Dr. Brock Wilson, Dr. Mike Jones and Dr. Spencer Perry, who will answer questions from legislators and, if time permits, members of the public. Dr. Diane Hirshberg, ISER Director, will moderate.

Following the presentation, ISER will make available an overview of the research on the ISER website: ISERALASKA.ORG. 

Greater Fairbanks Chamber Supports HEIF Stability

The Greater Fairbanks Chamber of Commerce sent a letter to legislators in support of replenishing the Higher Education Investment Fund (HEIF), which was partially depleted last year when it was used to cover the state’s budget deficit. Replenishing the HEIF is a high priority that is critically important to keeping Alaskan students in Alaska, making post-secondary education more affordable for students, and meeting the needs of Alaska’s workforce. The following message was sent to all sixty legislators earlier today:

“Dear Honorable Members of the Alaska State Legislature,

The Greater Fairbanks Chamber of Commerce strongly supports replenishing the Higher Education Investment Fund (HEIF), which was drawn down last year. HEIF is a critical investment in Alaska’s workforce and long-term economic competitiveness. We respectfully urge you to support the Governor’s proposal to replenish $129.5 million to the HEIF through the FY26 Supplemental Budget.

Replenishing the HEIF from the Constitutional Budget Reserve Fund is essential to maintaining stability in Alaska’s postsecondary education and workforce development system. A healthy HEIF ensures continued support for programs that help Alaskans pursue education and training beyond K–12—keeping talent in-state and preparing students for high-demand, in-demand careers.

Programs supported by HEIF, including the Alaska Performance Scholarship, play a vital role in strengthening Alaska’s workforce pipeline. These programs directly benefit employers by helping develop a skilled, job-ready workforce aligned with the needs of Alaska businesses across industries.

As the business community continues to face significant workforce shortages, every available tool should be used to help stabilize and grow Alaska’s workforce. Reinvesting in HEIF is a practical, forward-looking step to help mitigate these ongoing challenges. Students supported through HEIF-funded programs often fill essential part-time positions while pursuing their education; roles that are critical to keeping small businesses operating and communities functioning.

We respectfully request your support and leadership on this issue to help strengthen Alaska’s workforce pipeline and support continued economic growth statewide.

Sincerely,

GREATER FAIRBANKS CHAMBER OF COMMERCE”

Alaska Sea Grant Marine Advisory Program Supporting Next Generation of Fishermen in Juneau

The Alaska Young Fishermen’s Summit convened in Juneau and held a reception, supported by Representative Stutes on Jan. 21. The Alaska Sea Grant Advisory Program (UAF) is a key contributor to the conversation as Alaska thinks about the next generation of people interested in the fishing industry, which is one of Alaska’s most important sectors.  

What We’re Watching

Monday, January 26

• 9:00 a.m. - Senate Finance: Governor’s FY27 Budget Request by Office of Management and Budget. 

• 1:30 p.m. - House Finance: Presentation: FY26 Vetoes by Office of Management and Budget. 
• 1:30 p.m. - Senate Labor & Commerce: House Bill 78: Retirement Systems; Defined Benefit Option. 

Tuesday, January 27

• 9:00 a.m. - Senate Finance: Governor’s Veto Overview/Discussion: Office of Management and Budget, Department of Transportation and Public Facilities. 
• 1:30 p.m. - House Finance: Overview: Governor’s FY27 Budget by Legislative Finance Division. 

Wednesday, January 28

• 9:00 a.m. - Senate Finance: Overview: Governor’s FY27 Budget Request by Legislative Finance Division. 
• 1:30 p.m. - House Finance: Presentation: Statewide 2026 Jobs Forecast and Unemployment Insurance Financing Metrics by Department of Labor and Workforce Development. 
• 1:30 p.m. - Senate Labor & Commerce: House Bill 78: Retirement Systems; Defined Benefit Option. Senate Bill 198: PERS/TRS Retirement & Medical Eligibility. 

Friday, January 30

• 1:30 p.m. - House Finance: Presentation: Savings, Reserves, and Investments by Department of Revenue.
• 1:30 p.m. - Senate Labor & Commerce: House Bill 78: Retirement Systems; Defined Benefit Option.  

Helpful Resources

To learn more about issues important to the University of Alaska and UA priorities for the upcoming legislative session, take a look at the UA Advocacy Materials page. We’ll continue to keep you up to date with our weekly Capitol Report on what’s happening in Juneau. 

 

January 16, 2026

Second Session of the 34th Alaska Legislature Begins January 20, 2026

Next week marks the start of the 2026 legislative session, which will begin on Tuesday, January 20 at 1:00 p.m. when both the House and Senate are scheduled to gavel in. 

Since this is the second year of the two-year legislative cycle, all of the bills introduced last year that have yet to pass are still “alive” this year, meaning the legislature can pick up right where it left off at the end of last session. However, there are a few things that are different from last year, including some new legislators, different caucus leadership, and the latest budget proposal from Governor Dunleavy for Fiscal Year 2027. 

New House and Senate Members

Senators Shelley Hughes (R-Palmer) and Mike Shower (R-Wasilla) recently resigned from their seats in order to run for governor and lieutenant governor, respectively. This left two vacant seats in the Senate, which were filled by Representatives Cathy Tilton (R-Wasilla) and George Rauscher (R-Sutton), who were both appointed by the governor. The vacancies in the House created by the departure of Reps. Tilton and Rauscher were filled by two new members, Steve St. Clair (R-Wasilla) and Garret Nelson (R-Sutton), who were also appointed by Governor Dunleavy and confirmed by a vote of their colleagues. 

Minority Caucuses Select New Leaders

The House Minority Caucus, made up of 19 republican members, selected Representative DeLena Johnson (R-Palmer) to be their new minority leader. With Rep. Johnson now leading the caucus, she intends to give up her seat on the House Finance Committee and be replaced by her fellow caucus member, Rep. Elexie Moore (R-Wasilla). 

On the Senate side, the six-member Senate Minority Caucus selected Senator Mike Cronk (R-Tok) to be the new leader of their caucus. Senator Cronk currently serves on the Senate Finance Committee and is expected to keep that committee seat, but there will be some other changes to committee membership in both the Senate and House now that both bodies have new members. After the legislature convenes next week, one of the first actions they take will be to finalize committee assignments. 

Governor Proposes FY27 Budget

Last month, the governor released his proposed budget for the upcoming fiscal year, FY27, which begins on July 1, 2026. His budget reflects the challenging fiscal environment the state continues to grapple with, which has led to reduced funding for state services and very few dollars available for infrastructure needs in the state’s capital budget. 

Of the funding requests approved by the UA Board of Regents, only a portion of the compensation increase request was funded by the governor, with $6.5 million out of the $15.2 million total state funding request included in his budget. This document provides a helpful overview of the differences between the budget approved by the Board of Regents and the proposal put forth by the governor. 

The governor did include approximately $130 million in his budget to replenish the Higher Education Investment Fund (HEIF), which is a critical fund for students who rely on scholarships and needs-based grants in order to fund their education. Last year, the legislature used the HEIF to cover the state’s budget deficit, but the long-term health of the HEIF hinges on that money being repaid. This is an issue that’s very important to both current and future students, as well as faculty, staff, and communities across the state that are working hard to keep Alaskan students in Alaska. 

The legislature will begin examining the governor’s proposed budget next week. The UA team looks forward to working closely with the legislature and the governor as the budget process gets underway. 

What We’re Watching

Wednesday, January 21

• 1:30 p.m. - House Finance: Presentation: Production Forecast, Department of Natural Resources.

Thursday, January 22

• 1:30 p.m. - House Finance: Presentation: Revenue Forecast, Department of Revenue. 

Friday, January 23

• 1:30 p.m. - House Finance: Overview: Governor’s FY27 Operating Budget. 
• 1:30 p.m. - Senate Labor & Commerce: House Bill 78: Retirement Systems; Defined Benefit Option. 

Helpful Resources

To learn more about issues important to the University of Alaska and UA priorities for the upcoming legislative session, take a look at the UA Advocacy Materials page. We’ll continue to keep you up to date with our weekly Capitol Report on what’s happening in Juneau.