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Hello from Juneau! With the legislative session now in its second month, the Capitol is a busy place. It’s great to be meeting with constituents from across Senate District C.
The Senate Majority remains steadfast with our priorities to boost public education funding, address public employee and teacher retirement, update election processes, and tackle Alaska’s ongoing energy issues to ensure long-term sustainability and affordability.
Seafood Task Force Legislation
Several pieces of legislation are being drafted based on recommendations from the Seafood Task Force that met last year. I anticipate these bills and resolutions to be introduced soon with more to follow. Click here for a copy of the task force’s final report.
In other seafood news, the Alaska Seafood Marketing Institute shared that the USDA issued a solicitation for a $50 million purchase of Alaska pollock products totaling over 21 million pounds.
Education Funding
Public education is a foundation of our economy, and it is a constitutional right of every young Alaskan. If we want to attract the best teachers, educate Alaska’s youth to be the best students in the nation, and encourage young families to come to our state, we must begin by providing the resources that are so desperately needed inside the classrooms. Years of flat funding and high inflation has pushed our public education system into crisis. In a recent Joint Education meeting we heard from school districts, students, and teachers from across Alaska about crowded classrooms, school closures, and teacher shortages. Families are leaving this state because of the lack of opportunities and stability.
The Senate Majority is focused on turning this around by crafting legislation that not only provides schools with the resources they need, but also provides opportunities to improve outcomes. To be at the top of any list, you need high-quality teachers and educational opportunities for students.
The Senate and House have been negotiating with the Governor on an education package to support our schools, students, and teachers. HB 69 to increase the Base Student Allocation (BSA) passed out of the House Finance committee and is headed to House Rules next. 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 Governor’s education bill, SB 82, includes teacher bonuses, reading proficiency incentive grants, increased funding for correspondence programs and career-technical education, and streamlining for charter school authorizations. This bill is being heard in Senate Education. I have some concerns with removing an elected school board’s local control and giving it to an unelected state board to establish charter schools. Our current level of local control and parental involvement is what makes our charter schools thrive. In addition, tying educational outcomes to funding needs will not turn this crisis around, but only exacerbate it. We must provide teachers and students with the basic needs first before we can expect them to do more with less. It is our responsibility to understand this and challenge ourselves to provide the necessary resources to allow our teachers to succeed and students to thrive. The Senate Majority has identified those needs and will continue advancing through our legislative process to rebuild Alaska’s high-quality public education system. We look forward to collaborating with our legislative colleagues and the Governor to achieve this worthy goal. I also appreciate the many calls and emails from all of you on this issue and encourage your continued engagement.
FY 2026 Budget
The Governor released his amended budgets last week, adding $44 million in Unrestricted General Funds (UGF) to next year’s FY26 budget and decreasing the current year’s FY25 Supplemental Budget by $13 million UGF. Changes include:
- Removing $50 million for AIDEA for the gasline development project.
- Adding over $5.9 million UGF for the Governor’s Executive Order 136 to establish a new Dept. of Agriculture to include creating a new commissioner’s office, new staff positions, and overheads costs.
- Adding $4.9million UGF to support the Division of Public Assistance’s Virtual Call Center and fund 15 new positions which are greatly needed based on the number of calls my office is getting from concerned constituents experiencing delays with their senior benefits and heating assistance.
- Adding $19.6 million in Designated General Funds (DGF) to cover rate increases for Medicaid.
- $4.5 million for the Higher Education Fund to support Alaska Performance Scholarships, WWAMI, and Alaska Education Grants.
- Adding $1.7 million UGF to improve recruitment efforts for VPSO programs.
- Adding $2 million UGF for maintenance at state-managed seaplane base and harbor facilities.
You can read more about the amended budgets on the state’s OMB page: omb.alaska.gov
Revenue
State revenue fell $230 million from the projected Spring Revenue Forecast due to a decrease in oil production and drop in the price per barrel. (Every $1 decrease in price per barrel equals a $35-40 million reduction in revenue for the state.) Additionally, tax collections from oil companies have been reduced lately due to several oil companies developing fields on the North Slope, allowing them to deduct their capital expenditures from their taxes.
Even with a reduced PFD, it will be difficult to balance the budget this session. The Senate Majority does not feel it is prudent to use the Constitutional Budget Reserve (CBR) savings to balance the budget. We will need to look at sustaining the revenue we have as well as possible new revenue sources. Last year the legislature passed, and the Governor signed legislation for the state to pursue revenue from carbon sequestration, but unfortunately, this has not generated any revenue to date. Recently, SB 92 was introduced in the Senate which would restructure the state corporate income tax so that it was applied equally to all companies in Alaska including S corporations. It could generate as much as $150 million per year. SB 92 has been referred to Senate Resources and Finance committees.
What would you support? I welcome your thoughts on how to balance the budget and provide for improved education funding and other vital services.
Click here to review Legislative Finance’s FY25-FY28 Fiscal Outlook.
Public Testimony
This week, Senate Finance will be holding public testimony on the Fiscal Year 2026 on SB 56: Operating Budget, SB 57: Capital Budget, SB 58: Mental Health Budget, and SB 59: Supplemental Budget. Your comments during public testimony hearings are crucial to helping create a balanced budget that provides services and infrastructure needed in our district and state.
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Wed. Feb 26 at 9am: Kodiak, PrinceWilliam Sound, South East, and Offnet (statewide call in). Sign up by 10:15am.
- Wed. Feb 26 at 1pm: Fairbanks, Interior, Copper River Valley, and Offnet (statewide call in). Sign up by 2:15pm.
- Thur. Feb 27 at 9am: Northern and Western AK, Nome, Dillingham, Bethel, etc. Sign up by 10:15am.
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Thur. Feb 27 at 1pm: Kenai Peninsula, Anchorage, and Matsu. Please sign up by 2:15pm.
There are 3 ways you can testify:
I look forward to my work on the Senate Finance Subcommittees to review the budgets and advocate for the services that are important for our district and the state. You can follow the committee schedules and public testimony opportunities on akleg.gov or contact your regional Legislative Information Office (LIO). You can review the Governor’s proposed and amended budget here: omg.alaska.gov. The House and Senate Finance Committee and subcommittee reports will be posted here once completed: legfin.akleg.gov.
2025 Legislation
Retirement & Retention
There are several bills introduced this session to address the recruitment, retention, and retirement issues facing our state. Alaska has been losing valuable teachers, police, marine highway staff, and firefighters due to our poor retirement system. Reports show that new employees are less likely to remain in Alaska and more are likely to leave for jobs in other states that provide better retirement programs. Retaining quality employees is a top priority for our Senate Majority. Here are some of the retirement bills introduced so far. I encourage you to read about them and provide public testimony.
HB 78:Retirement Systems – In House Finance
SB 28: Retirement Systems (companion to HB 78) - referred to Senate Labor & Commerce then Finance.
SB 27: Teachers & Public Employee Retirement Plans – referred to Senate Labor & Commerce then Finance.
SB 55: TRS Contribution Rate - referred to Senate Labor & Commerce then Finance.
SB 81: Public Employer Pension Contributions - referred to Senate Labor & Commerce then Finance.
HB 65: Railroad Corp Financing
HB 65 passed the House and Senate Finance committee this month and is now headed to the Senate Floor. This bill authorizes the Alaska Railroad Corporation (ARRC) to issue a total of $135 million in revenue bonds for the replacement and expansion of the passenger dock and terminal facility in Seward. ARRC is partnering with Royal Caribbean Group to finance the new facility through a 30-year commitment from Royal Caribbean as the dock’s anchor tenant. The bonds will be covered by revenue generated from the dock operations. No state dollars will be used for repayment.
First lady nominations
Nominations are now being accepted for the 2025 First Lady Volunteer Awards. Deadline to submit online is March 10, 2025. For more information click here.
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.
Real ID
As of May 7, 2025, you will need a REAL ID or other federal ID such as a passport, military ID, or BIA card with photo, to fly on domestic flights, access certain federal facilities, and pass through certain TSA checkpoints. More information at dmv.alaska.gov
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.
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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