Chris Noss of Confluence Strategies presented a state budget briefing to the Wasilla City Council, highlighting revenue drivers, recent vetoes and items that could affect local projects and federal matching funds.

Noss summarized recent developments in the Alaska FY26 budget, including changes to the Base Student Allocation (BSA) battle reported in June, the governor’s vetoes and legislative overrides affecting school funding, and how those outcomes can influence Mat‑Su education funding. He said the legislature overrode a veto related to a statutory BSA change and that the resulting reductions and replacements in vetoed items may be revisited by the legislature in the next session.

Noss also described vetoes to Department of Transportation capital appropriations that he said removed approximately $66.6 million from DOT’s capital budget and roughly $52.3 million from the STIP program; he warned those cuts could jeopardize federal matching dollars. He cited a $9.8 million veto to Aviation Improvement Program matches that, per his presentation, could place about $111 million in federal revenue at risk.

He discussed how the Permanent Fund dividend debate and the use of percent-of-market-value earnings affect state budgeting, and he noted trends in education ADM (average daily membership) and Mat‑Su funding levels. Noss closed by noting federal legislative issues (Medicaid coverage and SALT provisions) and urged local officials to monitor appropriations and pursue grant/match opportunities.

Council members thanked Noss and had follow-up questions about timing and how state-level decisions might create local capital opportunities, notably for transportation STIP projects and matching requirements.