[{"_1":2,"_100":-5,"_101":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6296380,"mediaKeyId","2516376-9c6f2bcdb1041a6039551208c3728052","parentId",2516376,"title","Legislative Finance flags $2.4B deferred maintenance backlog, GRIP match and AMHS funds at risk","audioSeconds",998,"startMs",3571000,"endMs",4569000,"viewUrl","/Search/View?dp=1&key=2516376-9c6f2bcdb1041a6039551208c3728052&start=3571&end=4569","thumbnailUrl","https://assets.pipeline.soar.com/2516376-9c6f2bcdb1041a6039551208c3728052/thumbnail_3571000.jpg","articleUrl","/articles/6296380/Alaska/Legislative-Finance-flags-24B-deferred-maintenance-backlog-GRIP-match-and-AMHS-funds-at-risk","mediaUrl","https://secure.pipeline.soar.com/6296380-825c235f52fc29e4eec1058b73ce495d/orig.mp4?Expires=1771200654&Signature=DiOI0BcudJo94Ru~326chFm9lpTqjThJ7i~PMDWHPEhRkf6c7SMZtRv-vCHjcVO5ryvexJvMz4Q0Ke4ZzTdMRCFYkI1M5F1QGQ~pGKmEjR-1MNzsIJR62DxQsO4obmwyi5kNLTYk1OoGmmUR5BThpvpW5-3IvTvnlmBBCKS66VKFFuPDUlzZMtsNJxlp5xLP~1CHxi2zKkNslWy~zIz0lCIRVkzeultt0HQ0FsGg1qWjv4UK23s9BUuhSeG8KTepcNYB3oYo4DT8B0fK7nv4y1sSucyQ15CGbj970FT7FEqqGN4mu3oaooB6KXeiqVw7py~04ywfSD6QWsEZ55gxLA__&Key-Pair-Id=KUT5TJCACFTXG","author","Alaska State Legislature","date","2025-03-05T13:30:00Z","article","The Legislative Finance Division told the House Finance Committee the state faces major capital pressures: a roughly $2.4 billion deferred maintenance backlog, a federal GRIP (Grid Resilience and Innovation Partnership) program that requires a multi‑year state match, and a potential operating shortfall for the Alaska Marine Highway System (AMHS) if federal Infrastructure Investment and Jobs Act (IIJA) funds lapse.

Lehi Painter said the FY2025 deferred maintenance backlog reported by the Office of Management and Budget is about $2.4 billion and that the University of Alaska accounts for about 63 percent of that total (roughly $1.5 billion). Painter cautioned that the way agencies track facility needs differs and that some inventories, once inspected, have shown much larger needs than earlier estimates.

Painter said one way to view long‑term capital needs is to apply a 2 percent of asset value guideline; with a roughly $9 billion assessed asset value for state facilities, that would imply about $180 million per year for maintenance. But he warned this approach does not account for replacements of specialized facilities or information technology systems that require larger, often bond‑scale, investments.

On energy projects, the committee heard that AEA’s GRIP award requires state matching over several years; Legislative Finance included a placeholder for roughly $143 million in state match across FY2027–FY2032 in staff planning and noted the governor’s FY2026 budget includes only $1.5 million for GRIP in FY2026. Painter said the federal GRIP funds in some phases were reported as currently frozen in media reporting; he said he would check agency status and follow up for the committee.

On the Alaska Marine Highway System, Legislative Finance staff said current IIJA‑era operating and capital federal funds included roughly $76.5 million in operating support. The staff outlook assumes that federal operating funds could end by FY2028; if so, AMHS operating support would need to be replaced by state funds or other sources in that year.

Members asked about how the deferred maintenance tally is compiled and whether highways, bridges and local school facilities are included; Painter said highways are generally not included in the deferred maintenance pool (they are funded through separate federal highway programs) and that DEED school major maintenance and municipal school debt reimbursement operate on separate schedules and mechanisms.

Ending: Legislative Finance recommended the committee consider the backlog, school major maintenance lists and large single‑facility replacement needs (for example, pioneer homes or prisons) when setting capital priorities and noted that larger bond measures may be necessary for some high‑cost replacements.","mediaType","Video","parentTitle","03/05/2025 01:30 PM House FINANCE","oneSentenceSummary","Staff told the committee the state’s deferred maintenance backlog is about $2.4 billion (University of Alaska ~63%), that GRIP energy grants require a substantial future state match, and that the Alaska Marine Highway System faces a potential $76.5 million operating hole if federal funding ends.","taxTitle","2025 Legislature Alaska, Alaska","taxId",78559,"location","Alaska","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6296385,"Committee hears how enrollment shifts and multipliers are reshaping K‑12 costs",589,1784000,2373000,"/Search/View?dp=1&key=2516376-9c6f2bcdb1041a6039551208c3728052&start=1784&end=2373","https://assets.pipeline.soar.com/2516376-9c6f2bcdb1041a6039551208c3728052/thumbnail_1784000.jpg","/articles/6296385/Alaska/Committee-hears-how-enrollment-shifts-and-multipliers-are-reshaping-K12-costs","https://secure.pipeline.soar.com/6296385-4404a218a46744fcba0b27ae22efe40f/orig.mp4?Expires=1771200654&Signature=KeI6zceMpIQ6izNkJNKkYR7VTs0t8ih~4PttkHJpUawXlOrl241Yq9ZvjTVgavimFSDrqAaDn2IfTJLoxdCh3-RENaoIUfNtTvEZr37Jr2YGrEJoryOSVhlGW~m6eUGZSzoASK7lMPLYlmQQm7NrAph7jkiIwG~PSFSYgqe9DbAEokKcApLo00wN64d-Wrjof7t-ffJOyGYhKazrNi8D-Sx-K7t-eqJoN1fzAL1rm1bAzvQgSttV94547A2KpkS8jVSmL2tuo3WLuxrFUkvRSIwnAPrk508au3vKJZGRyYxKmYps3jYT45mTZS0xBzxBp1ZdIg7GwKecv7e284yhvg__&Key-Pair-Id=KUT5TJCACFTXG","Legislative Finance presented a focused accounting of K‑12 cost drivers to the House Finance Committee, showing that demographic shifts and the formula’s multipliers have amplified the fiscal impact of changes to the base student allocation (BSA).

Lehi Painter, legislative fiscal analyst, told the committee the FY2026 baseline projects fewer students and that the mix of correspondence versus brick‑and‑mortar students has shifted significantly over the last decade. He said that correspondence Average Daily Membership (ADM) rose from about 12,000 to roughly 22,000 while non‑correspondence (in‑person) ADM fell by roughly 16,000 students over the same period.

Why it matters: the K‑12 formula uses the base student allocation plus several multipliers and adjustments (school size, cost factors, special needs factor and special education intensives). Painter showed that a dollar added to the BSA in FY2011 now has a greater effect on district funding because of those multipliers—what was $1 became about $2.28 in impact under current multipliers. He also emphasized a growth in students qualifying for the special education intensives: those students are counted at 13 times the BSA, so increases in that count drive funding materially higher.

Supporting detail: the FY2025 enacted budget included roughly $175 million in one‑time outside‑the‑formula K‑12 additions; the governor’s education omnibus (House Bill 76 / SB 82) carries fiscal notes totaling roughly $116 million for FY2026 (and larger in FY2027), and a tribal compacting proposal carries additional fiscal notes (discussed in committee). The House rules committee version of a BSA‑increasing bill under consideration would add $1,000 to the BSA in FY2026 and was estimated in staff scenarios to add hundreds of millions in FY2026 costs when combined with additional targeted grants (for example, reading proficiency incentives).

Committee members asked whether formula dollars earmarked for special education and other factors are tracked to individual students. Painter said the system currently provides a special needs factor as a block grant and separate intensives funding; he offered to follow up with the Department of Education and Early Development on reporting and whether districts must account for the specific use of block‑grant dollars.

Ending: Members noted potential cliffs when hold‑harmless provisions (which phase out over several years) end, and cautioned districts may face consolidation decisions and facility costs even if statewide totals decline. Legislative Finance proposed to provide additional analytic follow‑up for per‑student total spending and reporting of special education flows.

","Legislative Finance told the House Finance Committee that declining brick‑and‑mortar enrollment, growing correspondence counts and rising counts of intensive special‑education students have changed how increases to the base student allocation (BSA) flow to school districts.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6296390,"House Finance hears three‑year budget outlook as PFD choices drive shortfalls",5000,660000,5660000,"/Search/View?dp=1&key=2516376-9c6f2bcdb1041a6039551208c3728052&start=660&end=5660","https://assets.pipeline.soar.com/2516376-9c6f2bcdb1041a6039551208c3728052/thumbnail_660000.jpg","/articles/6296390/Alaska/House-Finance-hears-threeyear-budget-outlook-as-PFD-choices-drive-shortfalls","https://secure.pipeline.soar.com/6296390-62cf3a432e79cfd844807a10210afab8/orig.mp4?Expires=1771200654&Signature=B0maqWNn~dBOxy6I15q5BCsJNrUabT5SK-nq3nT-mOnXH8yJCN4u2DnunmG9mQzIlQTNRykFFvFVH-g0BT55CqyYDTry0BurRnxkvC8OZV8fKi6iaeyN-ezqKHUJa~GIAGrqqH4Bs6JTLqlzWjoNkHVgUmrq3Q0oHcLkDSo0d2x1BiPmFQdS7qVuqXfKUSIWLydnTkOlJUSEwBttUdUjBQ3xVuRrvVfzZCYV9fc6NJMhdW2kPv7-ufy2f7uK3sg9IL1Ke84d0jeXVSHUFLWOnIdW6lX6GQtSCTQ5DTSsZus9WN3CNXjpcVqdfCHcUWCFPFxZZQwHo0JjsQy9HMnxEg__&Key-Pair-Id=KUT5TJCACFTXG","The House Finance Committee on Wednesday heard a three‑year budget outlook from the Legislative Finance Division that projects a sizable FY2026 budget shortfall under multiple Permanent Fund Dividend scenarios and identifies oil prices, federal receipts and rising personnel and K‑12 costs as the principal drivers.

Lehi Painter, legislative fiscal analyst, told the committee the Department of Revenue fall forecast used in the staff scenarios assumes a $70 per barrel Alaska North Slope oil price and roughly 470,000 barrels per day of North Slope production. \"Oil can be extremely volatile,\" Painter said, adding: \"I would not at all be surprised if this forecast is $10 off for a year from now.\" Painter quantified the sensitivity: each $1 per barrel change in the oil price alters unrestricted general fund revenue by roughly $35 million–$40 million.

The nut graf: choices about how large to make the PFD and whether to use reserves or raise new revenue will determine whether the Legislature sends a balanced FY2026 budget to the governor. Under the scenarios Legislative Finance presented, higher dividends substantially increase projected deficits; lower dividends reduce them but do not eliminate all risk unless paired with other changes in revenues or spending.

Most important facts first: Legislative Finance showed a FY2026 unrestricted general fund revenue baseline of about $6.2 billion under the $70 oil price assumption. Federal funds are also a large part of the state budget; Painter noted federal receipts for FY2026 across operating and capital budgets are on the order of $6.1 billion. Using those assumptions and the governor's amended operating budget as the baseline, staff produced several scenarios that vary only by the PFD amount. Under one scenario, a PFD sized to the Legislative Finance example (about $1,400 per recipient in that illustration) left a FY2026 deficit of roughly $440 million. A $1,000 PFD lowered the gap to about $169 million. A $2,000 PFD raised the gap to about $808 million. A full statutory (PFC/POMV) dividend in the presentation—about $3,800 per recipient under the Permanent Fund Corporation estimate—produced a near $1.9 billion deficit in FY2026.

Painter also outlined the FY2025 position: based on the fall forecast the committee faces an FY2025 shortfall (before supplementals) of about $81.5 million; the governor’s supplemental requests then raised the FY2025 gap when combined with unpaid items to roughly $165 million that the Legislature must address. He pointed out that the governor has proposed using the Constitutional Budget Reserve (CBR) as one option, which requires a three‑quarters legislative vote to withdraw.

Committee members asked about options beyond adjusting the PFD, including closing tax exemptions and the status of the spring revenue forecast. Painter said the spring revenue forecast is expected next week and could alter the baseline modestly but that, under prevailing market signals, a materially higher spring oil price would be unlikely without dramatic global changes.

The presentation included other fiscal uncertainties that will affect the three‑year outlook: new collective bargaining and salary survey results (Legislative Finance used a placeholder that staff said may be on the low side), greater K‑12 fiscal notes and one‑time items that appeared in FY2025 but are not guaranteed for FY2026, and potential federal changes (for example, shifts in Medicaid funding rules) that are difficult to quantify.

Ending on process: Painter and committee members emphasized this was an illustrative set of scenarios, not policy decisions. The spring revenue forecast and subcommittee closeouts scheduled this week will narrow the choices the Legislature faces for FY2026. Chair Josephson closed the hearing after the committee agreed to reconvene for subcommittee closeout reports the next day.

","Legislative Finance presented a three‑year revenue and spending outlook showing an FY2026 shortfall under several Permanent Fund Dividend (PFD) scenarios, with oil prices, federal funds and new salary and K‑12 costs identified as the largest revenue and cost risks.","actionData","errors"]

Article not found

Legislative Finance flags $2.4B deferred maintenance backlog, GRIP match and AMHS funds at risk

Committee hears how enrollment shifts and multipliers are reshaping K‑12 costs

House Finance hears three‑year budget outlook as PFD choices drive shortfalls