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Senate Passes Balanced Operating Budget That Meets the Diverse Needs of Alaskans
Operating Budget Includes $1,582 PFD and Energy Relief Payment this Fall.
JUNEAU – This afternoon, the Senate passed its version of the state’s operating budget, House Bill 268, on a vote of 17-3. The $6.25 billion operating budget leaves $196 million in surplus revenue available for pending legislation, including the state’s capital budget. The operating budget, crafted by Senate Finance Co-Chair Senator Bert Stedman, R-Sitka, demonstrates the Senate’s unwavering commitment to realistically budgeting the full year cost of public services while not dipping into savings.
"Our budget reflects our commitment to addressing pressing issues facing Alaskans. From providing over $190 million in additional dollars for education to enhancing many critical state services, we've done a good job allocating our limited resources to meet the diverse needs of our state,” said Sen. Bert Stedman. “By delivering a balanced budget, we’re focused on enhancing the financial health of our state and preserving the long-term prosperity of Alaska.”
With the FY25 budget balanced at an average of $78 per barrel of oil, the Senate is once again proposing measures to split any potential surplus revenue by first bolstering savings and then issuing energy relief checks in the fall of 2025. The "waterfall" provision allocates surplus revenue between $78 to $80 per barrel (capped at $90 million) to be available for unforeseen state costs that materialize in the fiscal year ending next June. Should the average oil price be between $80 and $93 per barrel, the excess funds will be divided equally between an energy relief payment slated for fall 2025 (capped at $500 per check) and the Statutory Budget Reserve account. Any surplus beyond $93 per barrel will be directed to the Constitutional Budget Reserve, the state’s main savings account.
“Our focus remains on delivering a balanced and reasonable budget that reflects our commitment to responsible fiscal management and positions the state for future economic growth,” said Senate President Gary Stevens, R-Kodiak. We need to be prepared to ride through future oil revenue fluctuations and deliver the services Alaskans expect and deserve, including providing a healthy PFD.”
Operating budget investments include:
- $174.7 million for additional resources outside of the BSA formula for education. This equates to a $680 Base Student Allocation one-time funding increase per student;
- $7.3 million in additional pupil transportation for school district increased costs;
- $5.2 million for the Alaska Reads Act to help with K-3 reading;
- $5.2 million for Head Start to match federal funds to serve more children;
- $1.2 million for rural Public Broadcasting to enhance emergency communication capability;
- $30 million for Community Assistance for FY 25 and 26 to help lower local property taxes throughout the state;
- $4 million to the Municipality of Anchorage for the summer operations of the municipal homeless shelter;
- $1.3 million for Central Region recruitment and hiring of highway and aviation staff to support snow removal;
- $7.5 million for grants to childcare providers to increase access to services;
- $15 million for in-home and personal care assistant services; and
- $3.7 million to the Council on Domestic Violence and Sexual Assault.
The Operating Budget passed on time within the agreed upon calendar negotiated between the House and Senate Finance Co-Chairs. House Bill 268 will now be transmitted to the House, where the process of appointing a conference committee to resolve the differences will begin.
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