Alaska DNR outlines FY27 operating budget; governor's plan shifts programs, adds federal funding and personnel transfers

John Crother, commissioner designee for the Department of Natural Resources, and Deputy Commissioner Brent Goodrum presented the governor's proposed FY27 operating budget to the House Finance Department of Natural Resources Subcommittee on Jan. 30, 2026.

The proposal would raise the department's operating total by about 2.7% from FY26, Goodrum said, driven largely by increases in federal receipts and structural transfers of long‑standing programs from the capital budget into operating. "The most significant change is in our federal funds category," Goodrum said, noting an increase of approximately $4.3 million in federal authority on the slide he presented.

Why it matters: the budget changes affect staffing, program authority and how DNR coordinates major projects and disaster response across the state. Goodrum said the governor's package reflects three main drivers: (1) movement of recurring federal programs and matching receipts from capital to operating; (2) additional authority to receive interagency receipts for all‑hazard disaster response; and (3) implementation of a statewide information‑technology classification study for positions in DNR.

Key numbers and program moves - General fund: Goodrum said combined unrestricted and designated general funds total approximately $122,000,000 for the DNR operating budget. - Federal grants and transfers: the DGGS Earth MRI (geologic mapping) funding is shown in operating with a federal increment of about $5,800,000 and no state match requested for FY27. Goodrum described that grant as core, long‑running federal support for mineral mapping. - Executive Order 137 transfers: Line 10 transfers approximately $5,800,000 and 17 permanent full‑time positions to the proposed Department of Agriculture. Line 11 transfers the North Latitude Plant Material Center with roughly $3,900,000 and 15 permanent full‑time and 5 permanent part‑time positions. - Mental Health Trust Land Office: a structural change establishes trust land O&M under a facilities component and adds $895,800 in trust authority (including $573,200 for facilities O&M and a $323,000 intradepartmental transfer). - Fire and forestry: a Good Neighbor Authority forester position in Ketchikan is proposed (one permanent position with about $160,000 in federal authority). The budget requests $1,500,000 in additional interagency authority to expand reimbursable services for fire suppression preparedness and all‑hazard support. - Exxon Valdez fund authority: the budget eliminates a residual Exxon Valdez Oil Spill Trustee Council projects fund allocation, a decrement of about $175,000, because those projects have concluded.

Staffing and hiring Goodrum noted a net decrease of about 30 positions between the FY26 management plan and the FY27 governor's budget, driven primarily by removal of positions tied to the Division of Agriculture as that program is transferred out. He said the department expects some positions (PCNs) to return from the Department of Administration as centralization reversals are implemented; funding for many positions remained with DNR while PCN authority moved in prior consolidations via RSAs.

On hiring under the statewide freeze, Crother said: "the hiring freeze remains in place, and consequently any exception requires a special waiver" from the governor's office and will be evaluated case by case.

Questions from legislators Representative Fields pressed the department on a classification study for state park rangers, saying rangers "earn 40% less than starting state troopers" despite first‑responder roles; Crother said the park ranger reclassification effort "is at its final steps." Representative Colom, Representative Sadler and others asked detailed questions about funding source fungibility if positions move to the Department of Agriculture and about whether transferred PCNs carry associated authorities and funding.

Other division highlights - Forestry and fire protection: the division reported training 235 new firefighters, containing over 90% of fires in priority areas with initial attack assets, and active hazardous fuels projects statewide. - Division of Mining, Land and Water: DMLW reported $38.3 million in revenue from state land use (a ~1% increase), conveyance of about 18,000 acres to municipalities, and potential federal land entitlements of up to about 1.4 million acres. - Oil and gas: Crother highlighted that the division helps secure roughly $1.8 billion in annual royalty revenue for the state and continues work on North Slope activity and the Alaska LNG project. - Parks: the division reported a 13% year‑over‑year increase in authorizations tied to a new online permitting portal, installation of 108 electronic fee stations, and 63 search‑and‑rescue missions involving state park rangers last year.

Next steps Chair Shrogy said the DNR subcommittee will meet at noon on Wednesdays or Fridays as needed and that members should direct specific follow‑up requests to staff. Committee members asked for additional follow‑ups on the park ranger classification timeline, forestry federal partnerships, and updates on federal policy changes that could affect resource permitting.

The subcommittee adjourned at 1:16 p.m.