With deadline looming, a look at Alaska budget proposals

JUNEAU — Approval of state spending bills and plans to pay for them are among the unresolved issues as the constitutional deadline looms for the Alaska Legislature to finish its work.

House and Senate negotiators have reached agreement on many areas of the proposed state operating budget. But the budget hasn’t been closed out yet, and there’s the potential for items they’ve agreed upon to be reopened for further consideration.

Items adopted so far include deep cuts to the University of Alaska system, elimination of funding for early childhood programs and a denial of funding to help establish a unit within the Department of Law that would focus on use of force by law enforcement, deaths in correctional facilities and allegations of government corruption or fraud.

Part of the holdup in finalizing a budget has been the difficulty the House has had in trying to agree on how much to change Alaska’s oil and gas tax credit system. Legislative leaders have seen resolution on the credits issue as key to making further progress on the budget and revenue measures.

A House committee finalized a version of the credits bill Thursday seen by some as an effort to try to break the logjam. Whether it does remains to be seen. The bill is expected to advance for a floor vote.

Under the constitution, regular sessions can last 121 days, a mark lawmakers will reach Wednesday. The constitution allows for up to a 10-day extension.

Here is a look at where things stand with selected operating budget items:

—PUBLIC INTEGRITY UNIT: Negotiators have nixed funding requested by Gov. Bill Walker’s administration for a public integrity unit within the Department of Law. John Skidmore, director of the department’s criminal division, said the department proposed setting up the unit through some reorganization and funding from the Legislature. He said he would need to see a final budget before knowing how the department might proceed.

—EARLY EDUCATION: Versions of the budget passed by the House and Senate scrapped funding for pre-kindergarten grants. The conference committee also has recommended not funding Best Beginnings and Parents as Teachers.

Minority Democrats have seen the programs as a smart investment. But a House subcommittee in recommending they be cut said they fall outside of what are considered “mission critical” programs at a time when the state faces a multibillion-dollar budget deficit.

—PUBLIC BROADCASTING: The conference report matches Walker’s funding request for state operating grants for public radio, which represents a cut, but does not include grant money for public TV.

Bill Legere, general manager of KTOO in Juneau, said the cuts would be a blow to public TV stations.

—UNIVERSITY: The conference committee has adopted a roughly $50 million cut in unrestricted general funds to the University of Alaska system that the system has said could cost or have an impact on hundreds of positions.

The system is undergoing a streamlining process but with that level of cut, tough decisions would have to be made without the luxury of time to carefully weigh various trade-offs, President Jim Johnsen has said.

In a statement following the committee’s action last month, Sen. Pete Kelly called the action proof that everything is on the table as the state faces challenging times. Kelly, R-Fairbanks, said he supports the university system.

“This is what it looks like when you have to make difficult choices,” he said.

More in News

Soldotna City Manager Janette Bower, right, speaks to Soldotna Vice Mayor Lisa Parker during a meeting of the Soldotna City Council in Soldotna, Alaska, on Wednesday, Dec. 18, 2024. (Jake Dye/Peninsula Clarion)
Soldotna tweaks bed tax legislation ahead of Jan. 1 enactment

The council in 2023 adopted a 4% lodging tax for short-term rentals

Member Tom Tougas speaks during a meeting of the Kenai Peninsula Borough Tourism Industry Working Group in Soldotna, Alaska, on Wednesday, Dec. 18, 2024. (Jake Dye/Peninsula Clarion)
Tourism Industry Working Group holds 1st meeting

The group organized and began to unpack questions about tourism revenue and identity

The Nikiski Pool is photographed at the North Peninsula Recreation Service Area in Nikiski, Alaska, on Saturday, Aug. 3, 2024. (Jake Dye/Peninsula Clarion file)
Nikiski man arrested for threats to Nikiski Pool

Similar threats, directed at the pool, were made in voicemails received by the borough mayor’s office, trooper say

A sign welcomes visitors on July 7, 2021, in Seward, Alaska. (Photo by Jeff Helminiak/Peninsula Clarion)
Seward council delays decision on chamber funding until January work session

The chamber provides destination marketing services for the city and visitor center services and economic development support

A table used by parties to a case sits empty in Courtroom 4 of the Kenai Courthouse in Kenai, Alaska, on Wednesday, Dec. 11, 2024. (Jake Dye/Peninsula Clarion)
Crane sentenced again to 30 years in prison after failed appeal to 3-judge panel

That sentence resembles the previous sentence announced by the State Department of Law in July

Kenai City Manager Paul Ostrander sits inside Kenai City Hall on Thursday, Sept. 29, 2022. (Ashlyn O’Hara/Peninsula Clarion file)
Ostrander named to Rasmuson board

The former Kenai city manager is filling a seat vacated by former Kenai Peninsula Borough Mayor Mike Navarre

Joe Gilman is named Person of the Year during the 65th Annual Soldotna Chamber Awards Celebration at the Soldotna Regional Sports Complex on Wednesday. (Jake Dye/Peninsula Clarion)
Gilman, PCHS take top honors at 65th Soldotna Chamber Awards

A dozen awards were presented during the ceremony in the Soldotna Regional Sports Complex conference rooms

Alaska State Troopers logo.
Troopers respond to car partially submerged in Kenai River

Troopers were called to report a man walking on the Sterling Highway and “wandering into traffic”

Seward City Hall is seen under cloudy skies in Seward, Alaska, on Thursday, Nov. 7, 2024. (Jake Dye/Peninsula Clarion)
Seward council approves 2025 and 2026 budget

The move comes after a series of public hearings

Most Read