March 13, 2025
House Passes K-12 Funding Increase, Sends it to Senate
On Wednesday, the House approved a permanent increase to the K-12 education funding formula after days of lengthy debate and numerous proposed amendments. The bill, which now goes to the Senate for consideration, increases the base student allocation by $1,000. That increase to the foundation formula is expected to cost the state an additional $253 million per year.
While there is significant support throughout the Capitol for increasing school funding this year, the concern over how to address the state’s growing budget deficit remains top of mind for lawmakers. The release of the annual spring revenue forecast yesterday did not ease any of those concerns, with the latest projection showing a decline in both the production and price of oil, which would add another $70 million to the FY26 budget deficit due to reduced revenue.
Budget Process Continues
Yesterday, the House Finance Committee held the first public testimony opportunity on the FY26 operating budget and will continue hearing from the public today and tomorrow. The latest version of the operating budget in the House Finance Committee incorporates the changes made by each of the eighteen House budget subcommittees. Once the public testimony process concludes on Friday, the next step will be the full committee considering amendments to the budget bill, so there is still plenty of work to be done before the committee develops its final version of the budget and sends it to the House floor for a vote.
On the Senate side, finance subcommittees are still reviewing individual department budgets, while the full Senate Finance Committee is beginning its analysis of capital budget needs around the state. The university is scheduled to give a presentation on the highest-priority deferred maintenance needs for UA in front of the committee on Tuesday morning. The UA budget as approved by the Board of Regents requests $60 million in state funds for the most urgent facility maintenance projects. The university spends approximately $30 million annually on facility maintenance needs and is seeking state support to help reduce the project backlog.
Following the presentation in the Senate Finance Committee on Tuesday morning, the UA team is also scheduled to give a deferred maintenance presentation in front of the House Finance Committee that same afternoon. The opportunity for robust university capital project discussions in both committees next week will lay the groundwork for a conversation that will continue as legislators in the House and Senate negotiate the capital budget over the coming months.
UA in the Capitol
A group of UAF Climate Scholar students visited Juneau over the spring break this week to learn more about state government, meet with legislators, and discuss climate and energy policy in Alaska. Lawmakers have great things to say about all of the university students who take the time to travel to Juneau during the session and share their story.
What We’re Watching
Monday, March 17
- 1:30 p.m. - Senate Labor & Commerce: Presentation: UAA Workforce Solutions in Alaska by Provost Dr. Denise Runge, College of Health Dean Dr. Debbie Craig, Community and Technical College Dean Ray Weber, and Kenai Peninsula College Director Dr. Cheryl Siemers
- 3:30 p.m. - Senate Education: Presentation: UAA Teacher Apprenticeship Solutions by Provost Dr. Denise Runge
Tuesday, March 18
- 9:00 a.m. - Senate Finance: Overview: Deferred Maintenance - University of Alaska
- 1:30 p.m. - House Finance: House Bill 54: Appropriations: Capital/Supplemental/Funds. Presentation: University of Alaska System Deferred Maintenance and Capital Requests
Wednesday, March 19
- 9:00 a.m. - Senate Finance: Presentation: Three Year Budget Outlook Update by Legislative Finance Division
Thursday, March 20
- 1:30 p.m. - House Finance: House Bill 53: Appropriations: Operating Budget; Capital; Supplemental. House Bill 54: Appropriations: Capital/Supplemental/Funds. House Bill 10: Add Faculty Member University Board of Regents
Friday, March 21
- 8:00 a.m. - House Education: House Bill 88: Tuition Waivers for Family of Armed Services
- 1:30 p.m. - House Finance: House Bill 54: Appropriations: Capital/Supplemental/Funds
- 1:30 p.m. - Senate Labor & Commerce: Senate Bill 28: Retirement Systems; Defined Benefit Option
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.