House finance subcommittee adds $577,200 to create Office of Entrepreneurship in Commerce budget

The House Finance Budget Subcommittee recommended a $577,200 increase in unrestricted general funds to the Department of Commerce, Community and Economic Development to establish an Office of Entrepreneurship, staff told the full House Finance Committee on March 7.

The recommendation, presented by Lisa Keller, staff to Representative Galvin, would increase the subcommittee's DCCED operating recommendation to $191,694,900 across fund sources and add three positions compared with the governor's FY26 amended proposal. Keller said the office would “promote innovation based economic development, new venture and job creation in emerging sectors” and help “facilitate engagement of startups with the state of Alaska.”

The subcommittee also forwarded intent language asking the Alaska Oil and Gas Conservation Commission to prepare a timeline for carbon storage projects and asking the Office of Entrepreneurship to submit a comprehensive business plan and timeline by Feb. 15, 2026.

Why it matters: Members said the item blends budget action with policy direction. Representative Josephson and others noted the subcommittees focus on numbers rather than policy language but allowed recommended intent language; some members asked for clarity on interagency responsibilities and whether other agencies should be asked to report alongside AOGCC.

Committee discussion: Representative Hannon raised whether Department of Natural Resources should be included in reporting about carbon storage and the timing of revenue realization. Representative Johnson questioned whether placing language and funding that effectively establishes a new office in the operating budget was appropriate or even constitutional. Legislative Finance Division staff Rob Carpenter responded that “you're making an appropriation for a purpose,” and that appropriations frequently fund positions or activities even when the statute creating an office has not passed. Carpenter said the legislature can later correct duplicative funding in conference committee if both an appropriation and a bill would duplicate the same fiscal note.

Procedural note: The subcommittee received one amendment on the DCCED package; that amendment failed and the subcommittee adopted the remainder of its package and transmitted the narrative and budget action report to the full committee.

What comes next: Co-chairs set an amendment deadline for the full Finance Committee; members said they may seek a legal opinion about whether the budget language effectively creates a new office without statute.