May 2, 2025
Legislature Continues Budget Work, Passes New K-12 Education Package; UA Deferred Maintenance Funding Gets Boost in Tight Fiscal Scenario
Following the legislature鈥檚 failure to override the governor鈥檚 recent veto of a bill that proposed to permanently increase the base student allocation (BSA) by $1,000, lawmakers moved quickly to pass a new K-12 education package this week. , which began as a bill to regulate the use of cellphones in schools, developed into a bipartisan package that includes a $700 permanent increase to the BSA, along with other education policy changes meant to garner more support for the legislation.
Legislators are waiting to see if the governor will also veto this bill, but unlike previous override attempts, members in both the Senate and House seem confident that they can reach the 40-vote threshold this time if it is vetoed. If the K-12 education debate remains unresolved due to yet another failed attempt at passing legislation, it could derail the legislature鈥檚 plans to finish its work on time and adjourn by May 21.
Meanwhile: Legislators from both bodies are mentally preparing the state for budget tightness this year, and for, potentially, the next few years. Federal fiscal uncertainty, tariffs, lower projected oil prices and an appetite to save in anticipation of absorbing future risk are 鈥減ressing matters鈥 for many in Juneau.
Budget Update
The Senate Finance Committee adopted a new draft of the FY26 operating budget on Thursday. The most notable change was a reduction to the PFD from $1,400 per person to $1,000 per person, which reduces the budget by approximately $265 million. Senate leadership has indicated that the $1,000 PFD is the lowest amount they鈥檙e willing to pay out, meaning the PFD is unlikely to be further reduced by the legislature this session. On Friday morning, the Senate Finance Committee advanced the budget bill to its next stop: the Senate floor. Senators intend to debate the operating budget on the floor next week with the goal of passing it by May 8.
The House Finance Committee introduced a new version of the FY26 capital budget yesterday. The new draft added $5 million in deferred maintenance funding for the University of 色花堂, bringing the total amount to $10 million for UA deferred maintenance in the budget this year. These funds will help UA address some of the most critical facility needs across the university system. Rep. Calvin Schrage, from Anchorage, and Sen. Bert Stedman, from Sitka, both deserve a lot of credit for looking after the UA on this issue.
Other capital items continue to be preserved, including $2 million for UAS鈥檚 Mariculture Program Expansion and $1.25 million for UAA鈥檚 色花堂 Leaders Archives Consortium Library.
Board of Regents Confirmation Next Week - For Student Regent Fernando Escobar
Current Student Regent Albiona Selimi's term ends on June 30 this year, and Governor Dunleavy has appointed a new student to take on that role for the next 2 years. Student Regent nominee Fernando Escobar will have his confirmation hearings in the House and Senate Education Committees on May 7. Mr. Escobar is currently at UAF, majoring in Anthropology and minoring in Tribal Governance. He is from Kodiak Island and advocates for educational access and restorative justice for juvenile delinquents.
Mr. Escobar鈥檚 youth leadership roles and volunteer work include working with the Kodiak Lions Club, Kiwanis Club, Kodiak Teen Court, United Youth Courts of 色花堂, and the Kodiak Island Borough School District.
Our UA family appreciates Mr. Escobar鈥檚 call to service, and thanks Regent Selimi for her tireless representation of UA students over the last two years!
Session Hits Day 100
Wednesday, April 30, marked the 100th day of the 2025 legislative session, which means less than three weeks remain before the regular session ends at midnight on the 121st day (May 21, 2025). While the budget is the top priority that must be completed before the next fiscal year begins on July 1, the legislature is also focusing on advancing various pieces of legislation in the last few weeks. This year is the first of a two-year legislative cycle, meaning all of the bills that are not passed this year can be picked up again next year without having to restart the legislative process. This time of year tends to be a frenzy of activity in the Capitol as legislators, staff, and stakeholders try to get their priorities across the finish line before the clock runs out.
What We鈥檙e Watching
Monday, May 5
- 8:00 a.m. - House Education: : University of 色花堂 Fees
- 1:30 p.m. - House Finance: : Appropriations: Capital/Funds/Reappropriations
- Public Testimony
- 3:30 p.m. - Senate Education: : Employment Information Disclosure
Tuesday, May 6
- 10:00 a.m. - House Finance: : Appropriations: Capital/Funds/Reappropriations
- 1:30 p.m. - House Finance: : Appropriations: Capital/Funds/Reappropriations
- 3:15 p.m. - House Health & Social Services: : Public Buildings: Changing Facilities
- 3:30 p.m. - Senate State Affairs: : Accounting; Practice Privilege
Wednesday, May 7
- 8:00 a.m. - House Education: Consider of Governor鈥檚 Appointees - UA Board of Regents: Fernando Escobar
- 9:00 a.m. - House Finance: : Appropriations: Capital/Funds/Reappropriations
- 1:30 p.m. - House Finance: : Retirement Systems; Defined Benefit Option. : Appropriations: Capital/Funds/Reappropriations
- 3:15 p.m. - House Labor & Commerce: : Disclosure of Wage Information
- 3:30 p.m. - Senate Education: Consideration of Governor鈥檚 Appointees - UA Board of Regents: Fernando Escobar
Thursday, May 8
- 10:00 a.m. - House Finance: : Appropriations: Capital/Funds/Reappropriations. : Teacher/State Employee Student Loan Program
- 1:30 p.m. - House Finance: : Appropriations: Capital/Funds/Reappropriations
- 3:30 p.m. - Senate State Affairs: : Accounting; Practice Privilege
For more information, contact Director of State Relations for the University of 色花堂 System Chad Hutchison, cell 907-378-3946, email clhutchison@alaska.edu. You can also follow the University of 色花堂 Government Relations on our .