Senate Finance subcommittee adopts FY26 Department of Corrections budget with targeted reductions

The Alaska Senate Finance Budget Subcommittee for the Department of Corrections voted to report its final FY26 budget recommendations to the full Senate Finance Committee, endorsing portions of the governor's amended budget while enacting specific reductions to personnel and program funding.

The subcommittee recommended Unrestricted General Funds of $417,010,000; Designated General Funds of $13,306,000; other funds of $28,725,000; and federal funds of $9,071,000, with a total reported as $468,000,000 and a permanent full-time position count of 2,124, Kelly Goode, staff to Senator Olson, told the subcommittee: "The Senate Finance Budget Subcommittee for the Department of Corrections submits the following fiscal year 26 recommendations to the Senate Finance Committee. Unrestricted general funds, 417,010,000. Designated general funds 13,306,000 other funds 28,725,000 and federal funds 9,071,000 for a total of 468,000,000. For permanent full time positions."

Why it matters: The adjustments change planned funding and operations for Alaska's correctional system, including staffing, facility usage and community programs. The subcommittee said the changes reflect recognition of constraints on currently available revenue and included intent language to guide agency implementation.

Key recommendations and reductions - Denial of general fund increments: The subcommittee "denied the request for general fund increments," citing revenue constraints. - Overtime: Reduce overtime funding tied to the end of a double overtime letter of agreement (LOA), a decrement of $6,000,000. - Spring Creek Correctional Center: Reduce funding for the specific closure of one housing unit, a decrement of $7,500,000; the report includes intent language describing this closure. - Pretrial services program: Reduce funds to "align with its original intended purpose," a decrement of $7,000,000, with intent language asking that the program return to the scope intended when it came online in about February 2018. - Regional and community jails: Reduce funding tied to a reduced bed count by two-thirds for jurisdictions whose unused bed rate averages over 60% across two years, a decrement of $1,050,000.

Other subcommittee actions - The subcommittee accepted several items in the governor's amended budget including additional interagency receipt authority, consolidation of recidivism reduction funds into the community residential center allocation, and Mental Health Trust Authority authorized receipts for several programs. - The report incorporates agency totals, an adjusted FY26 base, a transaction comparison between the governor's amended budget and the subcommittee recommendation, and accompanying worded report language including the intent provisions described above. The worded report also asks the Department of Corrections to work with the Department of Law on options regarding housing of federal inmates, noting the state no longer receives federal funding for that purpose.

Procedure and adoption Senator Tobin moved approval: "I move the attached final budget action and worded reports from subcommittee, and the legislative finance division is directed to make any appropriate conforming or technical changes," he said. Co-chair Olsen asked for objections and, "Hearing and seeing none," the subcommittee reported the attached final budget action and worded reports to committee by unanimous consent. The motion directed Legislative Finance to make technical conforming changes.

What the record shows and next steps The subcommittee adopted the attached budget action report and worded report; the worded report includes the intent language noted above. The legislative finance division was directed to implement any technical or conforming edits. The subcommittee adjourned following the action.