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Administration narrows 2026 bond package, removes state funds from capital projections
Summary
OMB told the Assembly it removed state funding assumptions from the 2026 capital budget after conversations with legislators, presenting a smaller bond ask and putting district-level additions to the bond list to the Assembly for consideration.
Office of Management and Budget Director Brass told the Anchorage Assembly that the capital budget presentation for 2026 intentionally omits state funding projections after legislative conversations led the administration to conclude state capital support is unlikely. "There is no money for Anchorage, and we should not expect any, so we aren't," Director Brass said on the record.
That change reshapes the capital revenue picture the administration presented: the administration said departments proposed more than $100 million in bond projects and other capital requests, but the mayor’s team has advanced a baseline bond package of $48.9 million—about $10–15 million smaller than recent bond proposals. Director Brass described the administration’s approach as a conservative baseline that includes primarily annual maintenance and projects that have matching funds or clearly available non-state sources.
The administration also flagged how capital volumes affect delivery capacity: many Project Management & Engineering (PM&E) staff are funded by bond and capital projects billed to those projects. Fewer projects can reduce billable work and the department’s effective staffing, which the administration said can limit the capacity to deliver both large and recurring maintenance programs.
Members asked how neighborhood road and drainage projects are reflected in the capital list and were urged to propose district priorities that could be added to the baseline package. Director Brass said the administration will take member input to refine the bond list before finalizing the capital package.
Next steps: The Assembly will continue capital review in follow-up work sessions. The ordinance tied to the capital plan was cited at the meeting as O 2025-01/2007 (ordinance adopting the 2026 general government capital improvement budget); no formal vote was taken during the Oct. 10 work session.
