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Hello from Juneau! The first session of the 34th Alaska State Legislature convened on Tuesday, January 21st and work in the Senate is underway. Over the coming months, we will develop and debate the Fiscal Year 2026 budget, as well as various bills and resolutions.
I continue with the honor of serving as Senate President. Our 14 of 20 member Senate Majority Coalition is made up of diverse members of both parties from across the state. We have reaffirmed our mutual priorities which include boosting public education funding, addressing public employee and teacher retirement, updating election processes, and tackling Alaska’s ongoing energy issues to ensure long-term sustainability and affordability.
Despite our challenges, Alaska’s future is bright. Over the 100 plus days of session, our responsibility is to identify solutions and develop them into the best possible policies. The Senate is already starting off strong on this process and looks forward to working with the Governor, the House, and other stakeholders to achieve these goals.
Education Funding
Education stands out as one of the most urgent issues facing our state. Classroom sizes in many of our schools exceed 40 students, schools are closing across all districts, and essential programs—from advanced placement courses to extracurricular activities—are being cut due to insufficient resources. We must tackle this crisis now or risk falling further behind. The Senate Majority stands ready to work towards a solution to early fund education. Education is a cornerstone of our economy, and a strong public education system is essential if we want to attract young families to Alaska and provide them with opportunities for growth and success.
The House has already introduced a bill, HB 69, to increase the Base Student Allocation (BSA). The current version of this bill introduces immediate inflation-proofing and includes a $1,000 BSA increase in 2026, followed by a $404 increase in both 2026 and 2027 to catch up with a decade of inflation with essentially flat funding. The House Education committee already took public testimony on this bill, but additional public testimony will happen again when the bill moves to the House Finance committee, and then in the Senate if it passes the House. The Senate Education committee also held public testimony on “Alaska’s Education Funding Crisis”. Additionally, the Senate and House Finance Committees will be having hearings and public testimony on the operating budget and K-12 funding. As well, the Governor has just introduced his version of an education package. I encourage you to provide public testimony on these and any bills and budget areas that are important to you. You can reach out to your nearest Legislative Information Office (LIO) for assistance. Many LIOs send out weekly emails about upcoming hearings and public testimony opportunities. Our LIOs are a great resource!
2025 Legislation & Committee Assignments
Senate Bill 24: E-Cig/Tobacco
My bill to help address the increased vaping trend with Alaska’s youth will increase the minimum age to buy, sell, and possess tobacco and E-cigarettes from 19 to 21 years old, and places a point-of-sale (retail sales) tax on electronic smoking products (ESPs). Updating Alaska statutes to mirror the federal minimum age of sale and possession of these products will allow our state enforcement program to become more effective and our state will be eligible for federal grant funding to support smoking cessation and health education programs. This bill has been referred to the Senate Labor & Commerce and Finance committees.
Senate Bill 23: Civics Education
While most Americans agree on the importance of preparing young people for citizenship in a democracy, civics education has received diminishing attention in schools over the past couple of decades. My Civics Education bill will add civics curriculum and assessment into public school statutes. The bill has been referred to the Senate Education and Finance committees.
Committee Assignments
Besides leading the Senate and the variety of duties that entails, I will continue to serve as Vice Chair of Senate Education, Chair of Senate Committee on Committees, a member of Senate Judiciary, and Co-Chair of the Senate’s Special Committee on World Trade and the Special Committee on Arctic Affairs. Additionally, I am Vice Chair on the Joint-Legislative Council, and I am a member of the Select Committee on Legislative Ethics and the Vice Chair of the Senate Rules Committee. As Senate President, I am also a member of the Leadership team which gives me the opportunity to ensure Senate District C is well-represented as major policy issues are discussed.
FY 2026 Budget
Committees in both legislative bodies have begun discussions on the FY 2026 budget. The starting point in the debate is the governor’s $14 billion operating budget proposal. The governor’s budget has a $1.5 billion shortfall which he proposes funding with savings from our state’s Constitutional Budget Reserve (CBR). I feel we need to grow our savings to be more financially secure for future generations, instead of tapping into it to fill the deficit. Our Senate majority will work to develop a budget that avoids depleting our savings while helping to address the critical infrastructure needs of our communities and state.
The Dept. of Revenue is projecting declining oil prices over the next several years. Unfortunately, this means less money for our capital budget. Here are some District C projects that are in the Governor’s proposed capital budget:
DMVA: Kodiak Armory Barracks Conversion $300,000 UGF state and $300,000 Federal
DOT: Cordova – Replace Rotary Plow $855,000 Federal
DOT: Karluk – Replace Grader $437,000 Federal
DOT: Karluk - Surface/Dust Maintenance $1.235 million Federal
DOT: Kodiak - Airport Drainage and Ramp Repave $25.939 million Federal
DOT: Ouzinkie - Grader $437,000 Federal
DOT: Seward – Snow Removal and Sand Storage Building $5.414 million Federal
DOT: Seward - Airport Improvements $10.459 million Federal
UA: UAF Seward Marine Center - Replace dock where Sikuliq boat docks $85 million Federal ($18 million state match still needs to be included once the Federal grant is formerly awarded).
DOT: Homer – Airport Master Plan Update $712,500 Federal
DOT: Seward Highway - Silvertip Camp Bunkhouse $325,000 UGF state
DCCED: Dixon Diversion - Bradley Lake Hydro Power $6.5 million UGF state
The operating and capital budgets will be carefully vetted and will see changes as they go through the legislative process. We will not know what the final budget will look like until session’s end. I will update you on its development process and public testimony opportunities in future editions of my Capitol Report. You can find out more about the governor’s budget proposal at omb.alaska.gov and on legfin.akleg.gov
Seafood Task Force
The Legislative Task Force on Evaluating Alaska’s Seafood Industry was created through Senate Concurrent Resolution 10 during the prior legislative session. This task force, which I chaired, previously met over two-day sessions each month starting last September. There were eight total members from the Senate and House, each representing coastal communities from across the state. During these meetings, the task force discussed the challenges facing the various sectors of the seafood industry including job training and labor costs, processor struggles, industry modernization, insurance challenges, regulatory complexities, harbor maintenance, and marketing competition. A wide array of presenters provided their thoughts, including the National Oceanic and Atmospheric Administration (NOAA), Pacific Seafood Processors Association (PSPA), United Fisherman of Alaska (UFA), AVTEC, the University of Alaska’s AK Sea Grant Program, and several state departments.
The Task Force held its last meeting on January 29 where we adopted our final report which outlines preliminary findings and conceptual legislation for policy areas. I look forward to our legislature transforming these insights into real solutions that support our fishing communities, strengthen the industry, and ensure its sustainability for future generations. Click here for a copy of the final report.
2025 PFD Applications
Applications for this year’s PFD can be submitted through March 31. You can apply through your My Alaska Account, pfd.alaska.gov, or fill out a paper application and mail in. Our LIOs have paper applications available and can help answer questions you may have. If you do apply by mail, please send your application by certified mail, and request a return receipt.
For Updates on Legislation & Budgets
Senate District C’s Legislative Information Offices (LIOs)
· Cordova LIO (907) 424-5461 LIO.Cordova@akleg.gov
· Homer LIO (907) 235-7878 LIO.Homer@akleg.gov
· Kenai LIO (907) 283-2030 LIO.Kenai@akleg.gov
· Kodiak LIO (907) 486-8116 LIO.Kodiak@akleg.gov
· Seward LIO (907) 224-5066 LIO.Seward@akleg.gov
Gavel Alaska: 360north.org
Live TV - AKleg: akleg.gov/LiveNow.
Bills & Laws: akleg.gov/basis/Home/BillsandLaws
Bill Tracking at akleg.gov/basis/btmf
Legislative Finance: legfin.akleg.gov.
The Senate District C Staff
Your District C’s Capitol office is staffed by hardworking individuals who are available to help. Returning with me again this year are my experienced staff Katrina Matheny, Tim Lamkin, and Jenny Martin. My talented staff, Doug Gardner, has retired after many years of service to the State and is missed. New to my office this year is Anne Rittgers who will be assisting me on the Arctic Affairs committee, among other duties.
Please keep in touch!
I appreciate hearing from you about legislation, budgets, and other state issues. Please do not hesitate to reach out to my office if we can be of assistance to you with state agency matters.
Phones:
907-465-4925 (Juneau)
800-821-4925 (toll free)
907-235-0690 (Homer)
907-486-4925 (Kodiak)
Email: Sen.Gary.Stevens@akleg.gov
Sincerely,
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