Alaska DOC requests $24.7 million increase for FY26; seeks UGF backfill after U.S. Marshals payment change

The Alaska Department of Corrections on Feb. 5 told the Senate Finance Budget Subcommittee it is requesting a $24.7 million (5.4%) increase in its FY26 operating budget and described multiple fund-source shifts and program expansions that would be covered largely with unrestricted general funds (UGF). Deputy Commissioner April Wilkerson and Administrative Services Director Kevin Worley presented the overview.

The request would set the department’s operating budget near $481 million and would be staffed at roughly 2,104 permanent full‑time positions, the department said. Wilkerson said more than 90% of the department’s funding in the request is unrestricted general fund, with smaller shares from federal funding (about 1.9%), designated or program receipts (about 2.7%) and other revenue (about 4.8%). ‘‘We have been continually coordinating, with Department of Law, in efforts to try and renegotiate,’’ April Wilkerson, Deputy Commissioner for the Department of Corrections, said of talks with the U.S. Marshals Service about federal billing for federal holds.

Why it matters: the department said the U.S. Marshals Service’s change in how it pays for federal holds is driving an estimated 7.5% reduction in federal receipts the department historically collected; the department is asking the Legislature to backfill the loss with UGF. Kevin Worley, Administrative Services Director, described other proposed fund‑source changes and program increments that together shape the FY26 request.

Major budget components and changes

- Personnel and services: Personal services are the primary budget driver, followed by services (medical and contract costs). The department said institutions account for the largest share of personal-service costs, and population-management personal services account for about 70% of that division’s personal‑service costs.

- Fund-source replacement for U.S. Marshals billing: The department estimates a 7.5% reduction in federal funding tied to U.S. Marshals billings and has included a FY25 supplemental and FY26 request to replace that revenue with UGF. Wilkerson said negotiations with the Marshals and coordination with the Department of Law have not yet produced a resolution.

- Restorative-justice funds: Worley said the department initially planned a reduction in restorative-justice fund authority within physical health, backfilled with UGF, but a governor’s amended request later restored $5.5 million in restorative-justice authority and reduced the corresponding UGF need.

- Recidivism-reduction fund consolidation into CRCs: The department proposes consolidating recidivism-reduction funds that are currently spread across multiple allocations into the community residential centers (CRCs) appropriation. Wilkerson said the move is intended to centralize a fund source that fluctuates and to align the funding with transitional housing and halfway-house programming; the department described the change as appropriation restructuring with net‑zero effect after corresponding UGF adjustments.

- CRC contract authority: The department presented a governor’s‑amended request to increase authority to meet newly negotiated CRC contractual obligations by $4,128,000 UGF plus $750,000 in designated/program receipt authority. Worley said Dillingham’s reentry to the regional jail program required an additional $195,000 increment to fund that contract fully.

- Program and pilot funding: The request includes a $850,000 increment to expand vocational and construction-technology training (adding electrical and plumbing classes and expanding carpentry programs) across Goose Creek, Highland Mountain, Spring Creek and Wildwood. The department estimates the expansion will make industry‑recognized carpentry, plumbing and electrical programs available to about 2,500 inmates at those facilities. The DOC also listed a $249,000 EGF increment to continue an inmate tablet pilot at Highland Mountain and described telehealth and an ‘‘e‑consult’’ approach to reduce outside medical transports and related costs.

- Staff wellness and supervisory standby pay: The department requested $3.9 million UGF for supervisory standby pay (and a matching FY25 supplemental). Worley and Wilkerson said the request ties to a broader emphasis on staff health and wellness as a lever to reduce overtime and vacancy‑driven costs.

Support for education and recidivism metrics

Wilkerson told senators the department is emphasizing educational and reentry programming. The DOC reported issuing 56 GEDs in FY24 and 57 GEDs in the first six months of FY25. ‘‘We are really focusing on getting those different individuals out of our custody with at least something,’’ Wilkerson said, listing gains such as IDs and GEDs that can support postrelease success.

Cost drivers and efficiency efforts

The department identified personal services (wages, overtime, employer costs and health insurance) and contracted services (medical and CRC contracts) as the primary cost drivers. Worley and Wilkerson listed actions the department is taking to control cost growth: filling vacancies to reduce overtime, negotiating contracts, realigning staffing, leveraging technology (tablet program, telehealth and e‑consult) and reviewing processes for elimination or redesign.

Lawmakers’ reactions and requests

Senators asked whether the Legislature should engage the congressional delegation; Wilkerson said the department had already provided information to the delegation and welcomed additional assistance. Senator Tobin asked for a deeper review of suicides and mental‑health interventions in facilities; Wilkerson said the department would provide additional conversations and noted director Welch was available for follow-up. Senator Kaufman asked whether the department is following a national ‘‘template’’ for recidivism reduction; Wilkerson said the DOC aims to use evidence‑based practices and local partnerships rather than a single out‑of‑state model.

What was not decided at the hearing

The committee received the overview and asked questions; no appropriation votes or formal committee actions were taken at the Feb. 5 meeting.

Ending note

Committee members asked staff and the department to continue providing model projections, intent‑language responses and further detail on the Marshals funding issue, the CRC contract adjustments and the vocational‑training expansion as the subcommittee prepares for budget deliberations.