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Senate Passes FY27 Capital Budget Focused on Deferred Maintenance for Public Schools
$248 Million in State Funds Leverages Nearly $2 Billion in Federal Dollars for Alaska's Infrastructure
Juneau, AK - Today, the Alaska State Senate approved Senate Bill 214, the Fiscal Year 2027 Capital Budget. This budget includes a prudent spending plan that allocates a total of $248 million from Unrestricted General Funds (UGF) and unlocks nearly $2 billion in federal matching funds for important projects across the state. A highlight of this budget is the urgent investment in Alaska's public schools. Of the $88.7 million in UGF added by the Senate Finance Committee, $83.5 million, or 94%, goes directly toward K-12 to ensure Alaska students have safe places to learn.
The Senate’s capital budget continues to support all the projects proposed by Governor Mike Dunleavy. The Senate Finance Committee allocated about $57 million for K-12 major maintenance, which will fund the top 15 projects on the Alaska Department of Education and Early Development’s prioritized list, as well as tank farm repairs at three rural schools. This investment brings much-needed repairs to schools, including in Alaska’s most remote and underserved communities.
“This budget is about keeping a promise to Alaska’s students and families,” said Sen. Bert Stedman (R-Sitka), co-chair of the Senate Finance Committee and Capital Budget Chair. “The reality is that too many of our schools have deteriorated to the point where students cannot receive the quality education they deserve. One school has even collapsed. This is not acceptable in Alaska, and it is not something we can continue to ignore.”
Key highlights of the FY27 Senate Capital Budget include:
- $57 million for K-12 major maintenance projects, fully funding the top 15 priority schools on the state’s deferred maintenance list, as well as tank farm repairs at three rural schools;
- $17 million to replace the Stebbins school, destroyed in a 2024 fire;
- $14 million for repairs at Mt. Edgecumbe High School;
- $17 million for University of Alaska deferred maintenance;
- Workforce development programs to build Alaska’s pipeline and construction workforce for future economic growth.
The necessity of this investment has been underscored by years of documented neglect. Students, school officials, and community leaders have testified before the Legislature that deferred maintenance in Alaska’s schools, particularly in rural communities, has reached crisis levels, with failing infrastructure threatening student health, safety, and the ability to learn. An investigation by ProPublica and KYUK documented the extent of disrepair in state-owned schools across Alaska.
The urgency was brought back into focus in February, when a delegation of Senate Finance members made an impromptu visit to Mt. Edgecumbe High School in Sitka and found leaking roofs, rodent infestations, and crumbling dormitories, prompting members to declare the conditions "deplorable."
“This is a strong first step, but the work doesn’t end here,” Sen. Stedman said. “We will continue to work with the House to ensure our schools are functional, welcoming, and a safe place for Alaska students to learn.”
The FY27 capital budget now heads to the House of Representatives for consideration.
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