House and Senate Approve the Operating and Capital Budgets; Governor Vetoes Education Increase

Protecting Your Rights: Serving West Anchorage

April 18, 2025

Dear Friends and Neighbors,

This week, the House passed the operating budget and the Senate passed the capital budget. The legislation includes a $1,000 Base Student Allocation increase, a $1,400 dividend, and a $450 million deficit. There is more work to be done on budget, which will be done when each chamber exchanges their approved budget. Next, the operating budget will pass to the Senate and the capital budget will pass to the House.

And on Thursday, Governor Dunleavy vetoed House Bill 69, which increased the Base Student Allocation for public education by $1,000.

Read on for more legislative updates.

Governor Dunleavy Vetoes House Bill 69

On Thursday, Governor Dunleavy vetoed House Bill 69, which would have permanently increased the Base Student Allocation by $1,000. The bill previously contained additional policy measures, including reforms for correspondence and homeschooling, guidelines for cell phone use in schools, and financial incentives for the Alaska Reads Act.

Article II, Section 16 of the Alaska Constitution states that "upon receipt of a veto message during a regular session of the legislature, the legislature shall meet immediately in joint session and reconsider passage of the vetoed bill or item." Because HB 69 is not an appropriations bill, it requires only a 2/3 vote to override the veto, not a 3/4 vote.

The Legislature is expected to meet in Joint Session next week to consider the Governor's veto.

Operating Budget Passes the House

The Operating Budget funds the annual expenses of running our state government like payroll and wages, as well as school funding and the dividend.

On Wednesday, the House passed a $6.2 billion budget. That budget includes funding for a one-time increase of $1,000 to the Base Student Allocation for public education.

The operating budget that passed the House also contains $950 million for a $1,400 dividend. And it contains a $79 million unallocated budget cut, which is expected to be allocated in the Senate.

The House-approved Operating Budget comes with a $450 million deficit that would require spending from the Constitutional Budget Reserve - Alaska's savings account. Drawing from that account would require a three-quarters vote of the Legislature. A vote to draw from the Constitutional Budget Reserve to fund the deficit failed in the House.

Other highlights in the Operating Budget include:

$7.7 million for childcare assistance, $5.7 for early intervention and infant learning, and $5.5 million for child advocacy centers
$3 million for senior centers
$230,000 for wildland firefighting
$10 million for the Alaska Marine Highway System

The Operating Budget passed the House 21-19. Next it will advance to the Senate.

Capital Budget Passes the Senate

On Wednesday, the Senate passed a $162 million Capital Budget for funding projects like facility maintenance and roads.

This year's capital budget is a "bare bones" budget, with almost no money for discretionary or district projects. No district will receive money for capsis requests this year. Much of the spending included in the capital budget is designed to maximize federal matching grants.

The Senate removed some previously-allocated projects from projects across the state. The removals include $37 million from the Juneau Access Road project, $10 million from a proposed deep-draft port in Nome, $4.2 from the Alaska Gasline Development Corporation, and $2.5 million from the Susitna Access Road.

In addition to maximizing federal grants, the Senate funded a limited number of maintenance projects. The Senate added $19 million for public school maintenance schools across the state in dire need of repair. We approved $15 million for the Fish Creek Trail in West Anchorage and $10 million for the Ted Stevens airport.

Highlights from the FY26 Capital Budget include:

$36 million for deferred maintenance
$19 million for K-12 school major maintenance
$5 million for University of Alaska facilities
$1.4 million for Mount Edgecumbe High School Maintenance
$750,000 for judiciary facility needs
$10 million for statewide emergent repairs

26 new capital projects totaling $89 million, including:

Fairbanks Public Safety Evidence Facility remodel, replacing unsafe mold-ridden storage currently in use
Renewable Energy Fund projects in Pelican, Naknek, Skagway, Kwethluk, Quinhagak, and Nenana
Alaska Marine Highway vessel maintenance ($26 million in fare revenue)
Dalton Highway (Haul Road) maintenance
Port electrification for cruise terminals
Courthouse security upgrades and law enforcement equipment purchases
IT modernization across several departments (Administration, Law, Revenue, Labor)
Rental and senior housing assistance, including support for domestic violence victims
Reappropriation of $47.1 million in unused capital funds from prior projects
Reallocation of $20.9 million in unused federal highway and airport match funds
Increase in the AIDEA dividend from 30% to 50% of net income, generating $12.5 million in additional revenue

The capital budget passed the Senate unanimously, 20-0.

Community Information

Adopt a Garden!

Want to help make Anchorage BLOOM? Consider volunteering with the Adopt-A-Garden program, and caring for a flower bed managed by the Municipality.

Responsibilities: Picking up, planting, watering, and weeding your garden from May - September.

Where: Multiple parks and gardens throughout Anchorage Visit the Adopt-A-Garden website to learn more!

Community Events

Statewide Trails Conference

When: April 24th and 25th, 9:00 - 4:00

Where: BP Energy Center and online

The Statewide Trails Conference brings together land managers, trails organizations, trail advocates, and trail enthusiasts surrounding a dynamic slate of current topics. The conference will be both in-person and virtual this year. More info and registration on our website: https://www.alaska-trails.org/trails-conference

Scoop the Poop Day

When: Saturday, April 26 from 11 am - 3 pm

Where: Stations with cleanup materials at University Lake and Connor's Bog

Join the Anchorage Waterways Council and Anchorage Parks and Recreation for some spring cleaning at our local dog parks! We provide all the necessary cleanup supplies. Learn more here.