Senate subcommittee finalizes governor's FY '26 budget with notable reductions

The Alaska Senate subcommittee convened on April 15, 2025, to finalize the governor's operating budget for fiscal year 2026. Key discussions centered around budget reductions and structural changes within the Office of the Governor.

Pete Eklund, staff to Senator Hoffman, presented the budget action report, highlighting a significant reduction of $831,300 in general funds allocated to the Office of Infrastructure. This reduction follows a previous funding level of $1 million per year, which has been adjusted due to rising costs. Currently, the Office of Infrastructure operates with only a half-time employee and a contractor on an as-needed basis. Following this budget cut, the office will have $250,000 remaining for operations.

Additionally, Eklund noted a transfer of funds from the Department of Administration to support a new position that will assist in monitoring contractual negotiations, which will now be handled by the Department of Law. This transfer does not add to the overall budget but reallocates existing resources.

A proposed small increase of $7,400 in general funds was denied, and several structural changes were accepted as part of the budget adjustments. The committee also reviewed a wordage report related to the Human Rights Commission and cost allocation rates.

Senator Stedman moved to approve the final budget action and wordage reports, granting legislative finance the authority to make necessary technical changes. No objections were raised to the motion, indicating a smooth progression towards finalizing the budget for the upcoming fiscal year.