Assembly reviews alcohol‑tax changes as mayor’s office ties funds to homelessness and outreach strategy

Anchorage — Assembly members heard a detailed briefing on the municipal alcohol‑tax fund and how the administration plans to use it in 2026 to support shelter, outreach and housing services.

OMB staff told the assembly the alcohol‑tax budget proposal reduces evidence‑based community grants from $2.0 million in 2025 to $1.5 million in 2026 and moves some crisis‑response operations previously paid from the alcohol‑tax fund into the municipal operating budget. The proposal includes a new $500,000 line to position a multidisciplinary outreach team at the Third Avenue Resource and Navigation Center and retains funding for a mix of congregate and noncongregate shelter operations. The proposed 2026 alcohol‑tax spend is $15.9 million, with a small projected year‑end fund balance.

The mayor’s office presented the spending in the context of two city strategies — the homelessness & health strategy and the Safe Anchorage public‑safety plan — and described how the alcohol‑tax allocations are intended to create an integrated safety net. Pia Agnewbemben, a special assistant to the mayor, said the administration is aligning investments to…