The Alaska House of Representatives narrowly passed the Fiscal Year 2026 (FY26) operating budget today in a 21-19 vote, advancing a nearly $13 billion spending plan, considering all funds. The vote was along caucus lines, with the Democrat-led majority prevailing, 21-19.
The budget, which must go through the Senate committee and floor processes, is higher than the current fiscal year’s budget, which is $12.2 billion.
There is not enough projected revenue to cover the entire spending plan at this point in the process, as it is about $70 million in the red.
The budget includes:
- $6.167 billion in Unrestricted General Funds, while last year’s budget had $5.0 billion in UGF spending
- $1.004 billion in Designated General Funds
- $1.976 billion from other state funds
- $3.832 billion in federal receipts
- Total: $12.979 billion
To compare to 2012’s $13 billion budget, in that year the Unrestricted General Funds were $7.3 billion, while this year they are $6.167 billion. But 2012 was the highest budget in Alaska history. In 2018, the UGF was $4.7 billion and in 2024, it was $5.2 billion, and in 2025 it was $5.0 billion. Thus, this budget version is significantly higher than in recent years.
A supermajority vote (30 of 40 House members and 15 of 20 Senate members) is required to access the Constitutional Budget Reserve, and previous attempts to secure such votes have faced challenges. The Constitutional Budget Reserve contains about $2.84 billion.
A number of additions to the budget were added during the amendment process and those will likely be trimmed back by the Senate.
One of the most significant components of the budget is a $1,000 per-student increase to the Base Student Allocation, the formula used to fund public K-12 schools, along with additional funding for school transportation. That added $86 million to the budget and would also add that amount every year going forward. Gov. Mike Dunleavy is expected to announce a veto of the BSA increase during a Thursday press conference.
Other notable funding priorities include:
- Public Safety: Funding for five new Village Public Safety Officer (VPSO) positions.
- Senior Support: $3 million for senior centers, plus funding for adult day services and respite care.
- Child and Family Programs: $7.7 million for child care assistance, $5.7 million for early intervention and infant learning, and $5.5 million for child advocacy centers.
- Transportation: $10 million in backstop funds to stabilize the Alaska Marine Highway System, supporting coastal communities’ connectivity.
- Permanent Fund Dividend (PFD): A $950 million appropriation to support an estimated $1,400 PFD per Alaskan, with additional relief contingent on oil prices exceeding $73 per barrel. It is currently under $68 a barrel. This is one-quarter of what Alaskans are entitled to by statute, but the Legislature has not followed the statute since 2017, the year after Gov. Bill Walker vetoed half of the Permanent Fund dividend.
- Salary increases: $17.7 million for state employee salary adjustments.
The spending plan that passed the House does not make substantial cuts to overall state spending. Several members of the House’s Republican minority caucus expressed concern about long-term fiscal sustainability during floor debate.
The bill now heads to the Alaska Senate, where further changes may be made before it reaches the governor’s desk.
On Tuesday, the Senate passed a lean $162 million capital budget, which will allow the state to bring in another $2.5 billion in federal funds for roads, construction, and other big projects.
There should be no such thing as “Unrestricted General Funds”. If they haven’t got a plan for the money, they don’t need it. It really IS that simple. Much more accountability is needed from the people spending the money.
$13 billion in 2012 would be $18.3 billion today after inflation.
Unfortunately, because of Biden, and now Trump, our money is being devalued, and because of this budgets have to take this in account.
Infaltion is the silent thief in the night.
It’s worth mentioning that the state budget more than tripled in a few short years prior to the 2012 budget. While levels aren’t as high as they were when inflation is accounted for they are still much much higher than they historically were and the legislature hasn’t properly controlled spending to match revenue, as can be seen by the depletion o our various savings acoounts and siphoning off of the PFD.
So allowing for a population of about 730,000 that is about $17,779.45 per person. Or $71,717.80 for a family of four. Do you honestly think that you get $17,7779 worth of state government? Looking at it another way, It is considered that there are about 330,000 people in Alaska that could be considered to be in the workforce. Not working, but in the pool of those who might be. That works out to $39,330.30 per person who could be in the workforce but may or may not be working. Keep in mind that this is only the state government. Depending on where in Alaska you live local government excess will cause your mileage to vary.
Articles written in the media never mention these statistics. Math is probably too hard for “journalists”. Statements issued from state politicians never mention these statistics, math also being too hard for the slobs in government gorging themselves and thier buddies on your money. Or perhaps they just do not want you to realize what sort of ride you are being taken for. Imagine if every man, woman, and child actually received a bill for $17,779.
Just want to make sure you know that Child Advocacy Centers are considered public safety programs as well. CACs are defined by the U.S. Department of Health and Human Services as Level 1 emergency responders.
Our legislature is controlled by thieves and liars. Why do people keep voting for them?
No salary increase for anyone if we can’t get the full PFD that is due to us along with all the back money that you have stole from us.
As a state employee if we had been getting the full statutory calculated PFD all these years I wouldn’t need a salary increase….