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April 25, 2025

Education Funding Debate Continues after Legislature Fails to Override Governor’s Veto

Last week, Governor Dunleavy vetoed , which would have permanently increased the K-12 base student allocation (BSA) funding formula by $1,000. The veto did not come as a surprise, as the governor had previously announced his intent to veto a BSA increase if the bill was not accompanied by other education policy measures.

The legislature met in a joint session on Tuesday to attempt a veto override, but the 33-27 vote fell short of the required 40-vote threshold. Some lawmakers who voted to sustain the veto echoed the governor’s comments about missing policy components in the bill, while others said they were supportive of an increase to the BSA, but could not vote to override the veto due to the serious fiscal problems the state is already facing. 

The governor has since introduced new omnibus K-12 education bills, /, with a $560 permanent BSA increase, in addition to a number of policy reforms. However, the Senate has taken a different approach and added a $700 BSA increase into dealing with the regulation of cell phone use in schools, along with a few other proposed changes to education policy. The Senate has already advanced the bill to the floor for consideration, but it’s not yet clear if more language will be added to make the legislation more appealing to the governor, who has expressed skepticism about HB 57 in its current form. 

The outcome of the K-12 education funding debate has broad implications for the overall FY26 operating budget, which still contains a large deficit, as well as the legislature’s ability to reach consensus between the House, Senate, and governor before the regular session ends on May 21. 

Legislation Highlight 

 

Introduced: April 22, 2025

Sponsor: Senate Rules Committee by request of the Joint Legislative Task Force Evaluating è����Ƶ's Seafood Industry

Referred: Education, Labor and Commerce Committees

Purpose: Amends è����Ƶ Statute 23.20.110(r) to expand the conditions under which the Department of Labor and Workforce Development (DOLWD) may share information with other state agencies, including the University of è����Ƶ, while ensuring compliance with federal regulations and protecting data confidentiality.

Key Provisions:

• Expanded Data Sharing:
• Allows DOLWD to share certain employment information with other state agencies, including the University of è����Ƶ, for statewide workforce and education-related statistics programs, or other program evaluation and improvement, educational outreach, and public policy research.

Impact:

• Enhances collaboration between state agencies and the University of è����Ƶ by facilitating data sharing for workforce and education programs, potentially improving policy research, educational outreach, and program effectiveness. This could benefit initiatives like those evaluating è����Ƶ’s seafood industry, as requested by the seafood industry task force.
• Maintains strict compliance with federal confidentiality laws and requires written agreements to protect sensitive data, ensuring accountability in data use.
• Supports è����Ƶ’s efforts to align workforce data with educational and economic goals, particularly in industries critical to the state’s economy.

Budget Update

The Senate and House exchanged the operating and capital budgets this week, meaning the Senate Finance Committee is now considering the House’s version of the FY26 operating budget, while the House Finance Committee reviews the Senate’s capital budget. 

While the House Finance Committee has not yet taken up the Senate’s capital budget, , the Senate Finance Committee introduced a new draft committee substitute of the operating budget, which incorporated the changes made by each of their finance subcommittees. The new draft made no changes to the recommendations put forth by the University of è����Ƶ Senate Finance Subcommittee, meaning the reductions to employee compensation increases ($5.4 million), Board of Regents travel, catering, and support staff ($82k), and vacant positions ($238k) still remain. 

It’s important to note that though there’s less than a month remaining in this legislative session, there is still a ways to go before the budgets are finalized, and many negotiations will continue to take place over the next few weeks. The Senate Finance Committee set an amendment deadline for the operating budget for 4:00 p.m. today (Friday) and will likely consider amendments next week. The bill will then advance to the Senate Floor, where more amendments will be debated, before the operating budget is voted on and sent back to the House for a concurrence vote.

The expectation is that the House will vote to not concur with the Senate’s changes to the budget, meaning a conference committee consisting of three members from House and three from the Senate will be appointed to work out the differences between the two versions of the operating budget. The same process will take place for the capital budget, except the House will be the one making changes before sending the bill back to the Senate for a concurrence vote and, if members vote against concurrence, a conference committee for the capital budget will be appointed to resolve the differences. 

What We’re Watching

Monday, April 28

• 9:00 a.m. - Senate Finance: Presentation: Budget Amendments by Office of Management and Budget
• 1:30 p.m. - House Finance: : Appropriations: Capital/Funds/Reappropriations. Overview: Governor’s Amendments by Office of Management and Budget 

Tuesday, April 29

• 1:30 p.m. - House Finance: : Retirement Systems; Defined Benefit Option
• 3:30 p.m. - Senate State Affairs: : Strategic Plans for State Agencies

Wednesday, April 30

• 8:00 a.m. - House Education: : University of è����Ƶ Fees
• 12:30 p.m. - Senate Rules: : Powers: LB&A Committee; Legislative Audit
• 1:30 p.m. - House Finance: : Appropriations: Capital/Funds/Reappropriations
• 1:30 p.m. - Senate Judiciary: : Disclosure of Wage Information
• 3:30 p.m. - Senate Education: : Employment Information Disclosure

Thursday, May 1

• 1:30 p.m. - House Finance: : Appropriations: Capital/Funds/Reappropriations
• 3:15 p.m. - House Health & Social Services: : Public Buildings: Changing Facilities
• 3:15 p.m. - House State Affairs: : Education Tax

Friday, May 2

• 1:30 p.m. - House Finance: : Appropriations: Capital/Funds/Reappropriations
• 3:15 p.m. - House Labor & Commerce: : Disclosure of Wage Information

April 18, 2025

Senate Passes Capital Budget, Operating Budget Passes House

The 2025 legislative session is quickly approaching the 90th day, which means legislators have about a month remaining to finish their work on the FY26 budgets and advance any policy priorities before the regular session ends on May 21. 

House members spent much of the week in lengthy floor sessions debating amendments to the operating budget before passing the bill in a 21-19 vote. Senators unanimously passed the lean FY26 capital budget on Tuesday. The budgets will now be exchanged, giving House members a chance to consider the Senate’s capital budget, while the Senate reviews the House operating budget. 

Budget Highlights

For the House operating budget, there were a few amendments proposed on the floor that would have impacted the è����Ƶ, but none were adopted. As a result, the final budget approved by House members retains all of the UA items included in the governor’s proposed amended budget, as well as those added during the House Finance Committee (*) process. This includes:

• $22.4 million for employee compensation increases
• $3.9 million for systemwide fixed cost increases
• $2 million for UAA athletics (for FY26 and FY27) *
• $2 million for UAF athletics (for FY26 and FY27) *
• $5 million to assist UAF in achieving R1 research status (for FY26 and FY27) *
• $2.5 million to bolster recruitment, retention, and graduation efforts *
• $500k for UA student mental health services *
• $2 million per year over three years ($6 million total) for UAF’s ACUASI drone program *
• $1 million per year over three years ($3 million total) for UAF’s agriculture program *

The capital budget approved by the Senate was noticeably smaller compared to previous years due to the strained fiscal environment. The following è����Ƶ items were included in the bill:

• $5 million for UA deferred maintenance
• $2 million for the UAS mariculture program
• $1.25 million for the UAA Leaders Archives 

UA Senate Subcommittee Closes Out

On Tuesday, the University of è����Ƶ Senate Finance Subcommittee closed out its work on the UA operating budget for FY26. Unlike the finance subcommittee actions seen in the House this year, the Senate subcommittees for the various state agencies made reductions to the budgets under their purview in an effort to rightsize the unbalanced operating budget. The è����Ƶ was not immune to those budget reductions. The recommendations put forth by the UA subcommittee did not include any additions to the governor’s proposed budget, but did make the following reductions: 

• $5.4 million cut to the employee compensation request
• $82k cut to the Board of Regents travel, catering, and support staff budget
• $238k cut associated with vacant personnel positions 

The subcommittee recommendations will be taken into consideration as Senator Hoffman, operating budget co-chair, develops the Senate Finance Committee’s version of the budget in collaboration with other members of the committee. There are still many steps left in the budget process before the final product takes shape, so things will continue to change as negotiations take place throughout the final month of the legislative session. 

K-12 Education Funding Update

The bill to increase the K-12 education base funding formula by $1,000 was vetoed by the governor yesterday, and lawmakers are now scheduled to hold a joint session on Tuesday to attempt a veto override vote. However, a similar override vote failed last year after falling one vote short of the 40 needed to successfully override the governor’s veto. There does not seem to be much confidence in the Capitol in lawmakers’ ability to reach the 40-vote threshold this time around, either.

The governor intends to introduce a new omnibus education bill with a $560 increase to the base student allocation, in addition to a number of policy priorities. The governor has said those policy priorities are a must in order for him to approve any proposed increase to K-12 education funding. 

What We’re Watching

Tuesday, April 22

• 1:30 p.m. - House Finance: : Appropriations: Capital/Supplemental/Funds

Wednesday, April 23

• 1:30 p.m. - House Finance: : Appropriations: Capital/Supplemental/Funds

Thursday, April 24

• 1:30 p.m. - House Finance: : è����Ƶ Innovation Council 
• 3:15 p.m. - House State Affairs: : Education Tax

 

April 11, 2025

Budget Process Stalls Amid State’s Poor Fiscal Outlook 

There was an expectation that budgets would be debated on the floor of both the Senate and House this week, but disagreements over how to address the large deficit halted progress of the operating and capital budgets.

The House Finance Committee voted to move the FY26 operating budget out of committee last week, but disagreements around its large budget deficit resulted in the committee bringing the budget back and making more changes. Ultimately, those changes were dropped, and the committee passed the same bill that it had originally passed, with the large deficit still intact. From the UA’s perspective, our budget requests (compensation adjustments, recruitment/retention/graduation funding, R1 funding, drones, agriculture research, and athletics) remain in the operating budget as the House prepares to send it to their floor.

Meanwhile, the Senate had indicated it would put the FY26 capital budget on the floor this week, but the budget still remains in the Senate Finance Committee. On Thursday morning, the committee unveiled the latest version, which contains two additions for the è����Ƶ: $5 million for UA deferred maintenance and $2 million for UAS mariculture program expansion. There is an understanding that the capital budget will be much smaller this year in comparison to previous years, so these increases for priority è����Ƶ items are encouraging in the very challenging fiscal environment. Noteworthy: There are indicators that this may be “the starting point” and dependent on how other funding debates settle (namely K-12 funding and the size of the PFD).  

UA Senate Finance Subcommittee Prepares for Close Out 

The University of è����Ƶ Senate Finance Budget Subcommittee, chaired by Senator Kiehl, is scheduled to close out its work on the UA budget on Tuesday morning. The UA team has been working closely with Senator Kiehl’s office and the members of the subcommittee as they work on crafting the FY26 operating budget for the è����Ƶ. Once the subcommittee makes its final decisions, the UA budget will be incorporated into the Senate Finance Committee’s draft state operating budget. Senator Hoffman, who chairs the operating budget in the Senate Finance Committee, will consider the actions taken by each of the 19 finance subcommittees as his office works to craft a budget that balances funding needs with available revenue. 

Noteworthy Bills that are Moving and Affecting UA

(SB5) from Senator Hughes.

• To be heard on April 16 at 3:30 p.m. in the Senate Education Committee.  
• This bill relates to group insurance coverage and self-insurance coverage for school district employees, employees of the University of è����Ƶ, and employees of other governmental units in the state. The bill aims to allow school districts, the University of è����Ƶ, and other governmental units in è����Ƶ to participate in state-administered group health insurance or self-insurance plans, streamlining health coverage for their employees and potentially reducing costs through economies of scale.

(SB55) from Sen. Stedman. 

• To be heard on April 14 at 9:00 a.m. in the Senate Finance Committee 
• The bill amends the State of è����Ƶ Supplemental Annuity Plan to mandate participation and standardize contributions for employees in the public employees' retirement system (PERS) and teachers' retirement system (TRS) who do not participate in the federal Social Security system, ensuring consistent supplemental retirement benefits. The University of è����Ƶ is a participating employer in the public employees' retirement system (PERS) for many of its employees, such as administrative staff and non-faculty employees, and in the teachers' retirement system (TRS) for certain faculty or educators. 

Senate Advances K-12 Funding Bill

The Senate Majority acted quickly to continue moving , the bill to increase K-12 education funding, through the legislative process. The legislation proposes a $1,000 increase to the funding formula known as the base student allocation (BSA). The Senate began debating HB 69 on the floor on Friday morning following an announcement from Governor Dunleavy on Thursday that he would veto the bill if it arrives on his desk in its current form without the inclusion of any policy changes he would like to see. Last year, lawmakers attempted to override the governor’s veto of a bill that would have increased the BSA by $680, but fell one vote short. It remains to be seen whether the legislature will send the bill to the governor in its current form and, if there is a veto, it’s unclear if there are enough votes to meet the override threshold. 

What We’re Watching

Monday, April 14

• 9:00 a.m. - Senate Finance: : TRS Contribution Rate; PERS/TRS Social Security or SBS
• 3:30 p.m. - Senate Education: : Add Faculty Member University Board of Regents

Tuesday, April 15

• 9:00 a.m. - Senate Finance: University of è����Ƶ Finance Subcommittee Budget Close Out

Wednesday, April 16

• 3:30 p.m. - Senate Education: : School/University Employee Health Insurance

 

April 4, 2025

House Finance Advances Operating Budget, Senate Introduces First Capital Budget Draft

The legislature wrapped up another busy week in Juneau as the start of April brought a stretch of sunny spring weather to the capital city.

The House Finance Committee finalized its work on the FY26 operating budget after making it through the stack of nearly 100 amendments and sent the budget on to its next stop: the House floor. Another round of the amendment process awaits the operating budget when House leadership brings the bill to the floor for consideration, which could begin as soon as early next week and, if history is an indicator, may lead to marathon floor sessions that extend late into the evening. 

This week, after debate, the House Finance Committee adopted Amendment 91, which directed $2.5 million to UAA/UAF/UAS’s important “recruitment, retention and graduation” efforts. These funds are critical as the University “looks to the horizon” and sees lower in-state K-12 student numbers. Tuition will be more critical as state dollars become tight, both this year and next…and maybe longer.  

Additionally, the committee adopted the UA’s proposed distribution plan for $500K, focused on student mental health services. This request was in direct response to our student coalition leaders who raised a voice in the Capitol this year.  

The Senate Finance Committee unveiled a stripped-down version of the FY26 capital budget, removing all items put forth in the governor’s proposed budget except for state match funds to leverage federal dollars. The capital budget, which primarily addresses infrastructure needs around the state, will continue to develop in the Senate Finance Committee as Senator Stedman, who’s in charge of the capital budget, and his fellow committee members negotiate where to target the limited available dollars. 

Budget Deficit Challenges Persist

On Thursday, the House passed the supplemental budget, which covers spending needs for the current fiscal year, FY25. The legislature often has to approve a supplemental budget during session to ensure the state has sufficient funds to make it through the rest of the fiscal year that ends June 30. Despite all the effort that goes into crafting the budget each year, it is not uncommon for costs to come in higher than expected, especially for things like disaster relief and wildfire mitigation. Due to the already-strained state general fund, the supplemental budget required a draw from the Constitutional Budget Reserve (CBR) in order to balance. However, the House fell short of the 30 votes needed to access the CBR, so the supplemental budget now on its way to the Senate contains a deficit of approximately $200 million. 

The FY26 operating budget for the upcoming fiscal year that begins July 1 also faces a budget deficit problem, albeit a much larger shortfall than the supplemental. Prior to advancing the bill from the House Finance Committee on Thursday, members were unable to attain enough votes to reduce spending, leaving a $1.9 billion deficit in the budget as it heads to the House floor. Once all 40 members of the House have a chance to vote on budget amendments, the outcome may change for things like the size of this year’s permanent fund dividend, which is currently included in the budget as a full statutory PFD of roughly $3,900 per person. However, there is an expectation that the PFD amount will be reduced at some point throughout the budget process due to the large cost with no means to pay for it. There is much work remaining to rightsize the budget before lawmakers reach the end of session on May 21, and some of the toughest decisions are still to come. 

Senate Considers New Revenue Proposal

Yesterday the Senate Resources Committee advanced that would include S corporations in the state’s 9.4% corporate income tax, if the S corp has taxable income over $5 million a year from oil or gas production in è����Ƶ. The measure is crafted to capture tax revenue from one producer in particular, Hilcorp, which is a private company not subject to the current C corp tax and also one of the largest oil producers operating in the state. 

This proposal has been discussed in the legislature in previous years, but has gained more momentum this session given the severe fiscal problems facing the state. However, tax bills of any kind often face strong opposition in the è����Ƶ legislature, and oil and gas tax bills are no exception to that. It’s unclear if the bill can garner enough support to make it through both the Senate and House, but proponents cite the increase it would bring in state revenue, estimated to be around $100 million per year, as a solution to help the state address its budgetary challenges. 

UA in the Capitol

On Tuesday, Dr. Bob McCoy, Director of UAF’s Geophysical Institute, gave a in the Capitol titled “è����Ƶ is an Aerospace State.” Dr. McCoy told legislators, staff, and members of the public about the cutting-edge technology and projects the Geophysical Institute is involved in, including drones, rockets, and research on everything from earthquakes, permafrost, and volcanoes, to the aurora, atmospheric processes, and space physics. 

What We’re Watching

Monday, April 7

• 9:00 a.m. - Senate Finance: Presentation: Defined Contribution Account Performance by Division of Retirement and Benefits. : Appropriations: Capital/Supplemental/Funds

Tuesday, April 8

• 9:00 a.m. - Senate Finance: : TRS Contribution Rate; PERS/TRS Social Security or SBS. : Appropriations: Capital/Supplemental/Funds
• 1:30 p.m. - House Finance: : Teacher/State Employee Student Loan Program. : Add Faculty Member University Board of Regents

Thursday, April 10

• 1:30 p.m. - House Finance: : è����Ƶ Innovation Council

Friday, April 11

• 1:30 p.m. - House Finance: Appropriations: Capital/Supplemental/Funds
• 3:30 p.m. - Senate Education: : Add Faculty Member University Board of Regents

 

March 28, 2025

House Finance Committee Considers Operating Budget Amendments

The 11-member House Finance Committee began working through amendments to the FY26 operating budget this week. After lengthy debate that, at times, stretched late into the evening, the committee made it nearly halfway through the 96 total amendments as of Thursday. 

Noteworthy: this is one step in a process that still includes the budget travelling to the House Floor and the Senate…there’s plenty more activity to come.   

Given the large budget deficit the state is facing, lawmakers are in a tough position with no easy solutions when it comes to funding services with the limited dollars available.  

Dollars are tight, and  the Capitol is feeling downward pressure on many spending items around the state.  

That being said: UA budget priorities have been given consideration, and tight dollars are being focused, to the extent possible, at this stage of the process. In addition to è����Ƶ items that were already added during the budget subcommittee process, there were adjustments to budget items that are important to the UA. 

Amendments to the University’s FY26 budget approved by the House Finance Committee this week include:

• Amendment #5 by Representative Stapp:
• Funding for UAF to achieve R1 Research Status: $5 million from the Higher Education Investment Fund. This is a fund source change and a move from the Capital Budget to the Operating Budget.  
• UAA and UAF Athletics (offered by Representative Josephson as an additional amendment): $4 million from Unrestricted General Funds (UGF) to be spent over the course of two years. The $4 million amount is to be split equally ($2 million for UAA and $2 million for UAF).   
• Amendment #8 by Representative Schrage: 
• UAF è����Ƶ Center for Unmanned Aircraft System Integration: $2 million UGF each year in FY26, FY27, and FY28, for a total of $6 million. This funding would move from the Capital Budget to the Operating Budget.
• Amendment #10 by Representative Schrage: 
• UAF Agriculture and Food Systems for è����Ƶ’s Economic Sustainability: $1 million UGF each year in FY26, FY27, and FY28, for a total of $3 million. This funding would move from the Capital Budget to the Operating Budget.
• Amendment #43 by Representative Jimmie: 
• Restore Funding to the Department of Education and Early Development for the è����Ƶ Native Science and Engineering Program (ANSEP): $1 million UGF. 

There are dozens of committee amendments still to be considered prior to the FY26 operating budget going to the House floor, where more amendments will be debated, before representatives send the budget to the Senate for consideration. 

UA in the Capitol

The University of è����Ƶ’s è����Ƶ Critical Minerals Collaborative (ACMC) gave a presentation to the Senate Resources Committee on Wednesday, highlighting the valuable work they’re doing to advance critical minerals research, education, technology, and partnerships. The future is bright for critical mineral development in è����Ƶ and legislators, especially those focused on the state’s resource industry, are eager to hear about the efforts UA and the ACMC are making to support è����Ƶ’s critical minerals potential. 

The is available to watch on the legislature’s website. 

What We’re Watching

Monday, March 31

• 8:30 a.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental
• 9:00 a.m. - Senate Finance: : Appropriations: Capital/Supplemental/Funds
• 1:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental
• 1:30 p.m. - Senate Labor & Commerce: : Retirement Systems; Defined Benefit Option

Tuesday, April 1

• 9:00 a.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental
• 12:00 p.m. - Lunch & Learn: Presentation “è����Ƶ is an Aerospace State” by Dr. Bob McCoy, Director, UAF Geophysical Institute 
• 1:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental

Wednesday, April 2

• 9:00 a.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental
• 1:30 p.m. - House Finance: : Retirement Systems; Defined Benefit Option

Thursday, April 3

• 9:00 a.m. - House Finance: Appropriations: Capital/Supplemental/Funds
• 1:30 p.m. - House Finance: : Retirement Systems; Defined Benefit Option

Friday, April 4

• 1:30 p.m. - House Finance: : Retirement Systems; Defined Benefit Option
• 1:30 p.m. - Senate Labor & Commerce: : Flood Insurance

 

March 13, 2025

House Passes K-12 Funding Increase, Sends it to Senate

On Wednesday, the House approved a permanent increase to the K-12 education funding formula after days of lengthy debate and numerous proposed amendments. The bill, which now goes to the Senate for consideration, increases the base student allocation by $1,000. That increase to the foundation formula is expected to cost the state an additional $253 million per year. 

While there is significant support throughout the Capitol for increasing school funding this year, the concern over how to address the state’s growing budget deficit remains top of mind for lawmakers. The release of the annual spring revenue forecast yesterday did not ease any of those concerns, with the latest projection showing a decline in both the production and price of oil, which would add another $70 million to the FY26 budget deficit due to reduced revenue. 

Budget Process Continues

Yesterday, the House Finance Committee held the first public testimony opportunity on the FY26 operating budget and will continue hearing from the public today and tomorrow. The latest version of the operating budget in the House Finance Committee incorporates the changes made by each of the eighteen House budget subcommittees. Once the public testimony process concludes on Friday, the next step will be the full committee considering amendments to the budget bill, so there is still plenty of work to be done before the committee develops its final version of the budget and sends it to the House floor for a vote. 

On the Senate side, finance subcommittees are still reviewing individual department budgets, while the full Senate Finance Committee is beginning its analysis of capital budget needs around the state. The è����Ƶ is scheduled to give a presentation on the highest-priority deferred maintenance needs for UA in front of the committee on Tuesday morning. The UA budget as approved by the Board of Regents requests $60 million in state funds for the most urgent facility maintenance projects. The è����Ƶ spends approximately $30 million annually on facility maintenance needs and is seeking state support to help reduce the project backlog.  

Following the presentation in the Senate Finance Committee on Tuesday morning, the UA team is also scheduled to give a deferred maintenance presentation in front of the House Finance Committee that same afternoon. The opportunity for robust è����Ƶ capital project discussions in both committees next week will lay the groundwork for a conversation that will continue as legislators in the House and Senate negotiate the capital budget over the coming months. 

UA in the Capitol

A group of students visited Juneau over the spring break this week to learn more about state government, meet with legislators, and discuss climate and energy policy in è����Ƶ. Lawmakers have great things to say about all of the è����Ƶ students who take the time to travel to Juneau during the session and share their story. 

What We’re Watching

Monday, March 17

• 1:30 p.m. - Senate Labor & Commerce: Presentation: UAA Workforce Solutions in è����Ƶ by Provost Dr. Denise Runge, College of Health Dean Dr. Debbie Craig, Community and Technical College Dean Ray Weber, and Kenai Peninsula College Director Dr. Cheryl Siemers
• 3:30 p.m. - Senate Education: Presentation: UAA Teacher Apprenticeship Solutions by Provost Dr. Denise Runge

Tuesday, March 18

• 9:00 a.m. - Senate Finance: Overview: Deferred Maintenance - University of è����Ƶ
• 1:30 p.m. - House Finance: : Appropriations: Capital/Supplemental/Funds. Presentation: University of è����Ƶ System Deferred Maintenance and Capital Requests

Wednesday, March 19

• 9:00 a.m. - Senate Finance: Presentation: Three Year Budget Outlook Update by Legislative Finance Division

Thursday, March 20

• 1:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental. : Appropriations: Capital/Supplemental/Funds. : Add Faculty Member University Board of Regents

Friday, March 21

• 8:00 a.m. - House Education: : Tuition Waivers for Family of Armed Services
• 1:30 p.m. - House Finance: : Appropriations: Capital/Supplemental/Funds 
• 1:30 p.m. - Senate Labor & Commerce: : Retirement Systems; Defined Benefit Option

 

March 7, 2025

House Wraps Up University Budget Subcommittee

The University of è����Ƶ House Finance Subcommittee finalized its work on the UA budget on Monday. In addition to approving all of the è����Ƶ budget items included in the governor’s proposal, the subcommittee also added $3 million for recruitment, retention, and graduation support. The budget approved by the Board of Regents included a request for $5 million to bolster recruitment, retention, and graduation efforts across the è����Ƶ system, so the UA team is grateful to see the addition of a large portion of that funding request in the House operating budget and will continue advocating for the full amount. 

Subcommittee Chair Alyse Galvin, who put forth the $3 million addition for recruitment, retention, and graduation support, requested that $500,000 of that funding go toward mental health services for students. Representative Galvin, along with many other legislators, met with the UA Coalition of Student Leaders during their visit to the Capitol last week and heard about the students’ priorities, which include more mental health services at the è����Ƶ. In response to the students’ request, Representative Galvin voiced her support for the students and her intent to direct funding toward additional mental health resources. 

Now that the subcommittee process is wrapping up in the House, the full House Finance Committee will review the various changes made to the FY26 operating budget and hold public testimony next week, before debating budget amendments in committee the following week. Check the committee schedule below to see the public testimony opportunities on the budget next week. 

The call-in numbers for public testimony are:

• Juneau - 1-907-586-9085
• Anchorage - 1-907-563-9085
• All others - 1-844-586-9085

Senate Looks for Solutions to Deficit

In recent Senate Majority press conferences, Senators have emphasized the need for additional revenue sources in order to balance the budget. Rising costs and lower oil prices have created an especially challenging fiscal environment for the state, putting lawmakers in a tough spot as they try to decide where to direct the limited dollars available. A few proposals aimed at generating more revenue have been introduced in the Senate, but there are many discussions that still need to happen before any consensus is reached on how to address the budget deficit, which current projections show could reach $500 million or more. 

A key component of these budgetary negotiations is the permanent fund dividend amount. Last week, all seven members of the Senate Finance Committee, five from the majority caucus and two from the minority caucus, introduced , a bill that would split the annual draw on the Permanent Fund earnings two ways: 75% for the state general fund and 25% for the PFD. This proposal, which has been put forward in previous years, is commonly referred to as the “75/25” plan. The bill would also remove the statutory PFD formula, which has not been used for the annual PFD calculation in almost a decade due to the significant cost. 

House Prepares for K-12 Funding Debate

to permanently increase K-12 education funding is expected to hit the House floor as early as Monday, with lengthy debate and a number of amendments anticipated. The majority and minority caucuses in the House have been at odds over the legislation for many weeks as different views on the funding amount and changes to education policy persist. The final outcome of the education funding bill is one of the major questions in the Capitol this session, largely due to the implications on the already-constrained state budget coupled with the need school districts have expressed for additional financial support. The action that the House, Senate, and eventually the governor take on this issue will be closely watched. 

UA in the Capitol

Last week there were dozens of University of è����Ƶ voices in the Capitol advocating for UA priorities with legislators who represent communities all across the state. The UA Faculty Alliance, UA Foundation leaders, the Coalition of Student Leaders, and the alumni associations from UAS, UAA, and UAF all took time out of their busy schedules to talk with senators and representatives about the positive impact the è����Ƶ has in è����Ƶ, as well as the funding needs for UA this session. 

Lawmakers had many positive things to say about their meetings with è����Ƶ advocates and expressed appreciation for the opportunity to hear from so many different voices. 

Those voices have been critical. Senator Bert Stedman, the co-chair of the Senate Finance Committee (Capital Budget), has requested further information from the UA on its capital requests, and, specifically, on its deferred maintenance needs. A lot of credit goes to the advocates that came down to Juneau to emphasize those important areas. On the UA capital requests, the conversation with Sen. Stedman’s office, as well as other legislators, continues. 

What We’re Watching

Monday, March 10

• 8:30 a.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental. 

Tuesday, March 11

• 8:30 a.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental. 
• 1:30 p.m. - House Finance: : Add Faculty Member University Board of Regents. 

Wednesday, March 12

• 1:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental. 
• 1:30 p.m. - Senate Labor & Commerce: : TRS Contribution Rate; PERS/TRS Social Security or SBS. 
• 4:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental. 
• Public Testimony for Anchorage, Mat-Su, Off-Nets

Thursday, March 13

• 9:00 a.m. - Senate Finance: Presentation: Spring Revenue Forecast by Department of Revenue. 
• 4:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental. 
• Public Testimony for Fairbanks, Kenai, Bethel, Cordova, Kotzebue, Nome, Utqiagvik, Off-Nets

Friday, March 14

• 1:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental. 
• Public Testimony for Juneau, Sitka, Petersburg, Delta Junction, Dillingham, Glennallen, Valdez, Wrangell, è����Ƶr, Ketchikan, Kodiak, Seward, Tok, Off-Nets

 

February 21, 2025

Legislature Contemplates New Revenues Amid Fiscal Challenges

As committees in both the House and Senate continue examining the FY26 budget and the state’s overall fiscal situation, discussions about the growing need for new state revenue are becoming more frequent around the Capitol. The current outlook of the proposed budget for the next fiscal year shows a deficit in the hundreds of millions of dollars. This comes at a time when school districts and other entities across the state are asking for increased funding to address a variety of challenges, which puts further pressure on lawmakers to consider solutions, but those conversations have only just begun. 

Next week, the Senate Finance Committee will have public testimony opportunities on the proposed budget for FY26. Be sure to check the schedule below and make your voice heard if you have thoughts on the budget you want legislators to hear. 

The call-in numbers for public testimony are:

• Juneau - 1-907-586-9085
• Anchorage - 1-907-563-9085
• All others - 1-844-586-9085

Consideration of UA Budget Continues

The second meeting of the UA House Finance Subcommittee meeting took place earlier this week, with a focus on the è����Ƶ’s critical role in workforce development in è����Ƶ. Next week, the same subcommittee will meet to hear a presentation on key è����Ƶ budget items: funding to support UA’s recruitment, retention, and graduation support; much-needed foundation funding to sustain UAA’s athletic programs; and support to grow the athletic programs at UAF. Our team continues to work closely with Representative Galvin, Chair of the UA Subcommittee.  

On the Senate side, the UA Senate Finance Subcommittee, chaired by Senator Kiehl, held its first meeting on Tuesday, where members heard a broad overview of the è����Ƶ’s FY26 budget request. Subcommittees in the Senate typically have fewer meetings than in the House, so there may only be one additional meeting, during which Senators will make final decisions on UA budget items before closing out the subcommittee and forwarding the è����Ƶ budget onto the full Senate Finance Committee for consideration. Senator Kiehl and his staff have been excellent to work with.  

The office of Senator Stedman, Co-Chair of the Senate Finance Committee (capital budget), has notified the UA about a deferred maintenance hearing on March 7 at 9 a.m. Our great facilities teams across the system are preparing materials to “make their best case” about the need.   

U.S. Representative Nick Begich III Delivers Address in Juneau

Congressman Nick Begich was before a joint session of the legislature on Thursday, where he gave his first address in the Capitol since being sworn in as è����Ƶ’s sole U.S. Representative last month. Representative Begich spoke of the importance of the fishing industry in è����Ƶ and the need to provide support at a time when the industry is facing significant challenges. He also highlighted his support for a rail connection through Canada to strengthen è����Ƶ’s economy and reduce transportation costs. 

The Congressman fielded questions from lawmakers, many of whom voiced concerns about federal funding cuts. He encouraged è����Ƶns to reach out to his office if they have questions or concerns about certain federal programs and potential loss of funding so he can be made aware and look into it. 

UA in the Capitol

On Tuesday, Fairbanks Representative Ashley Carrick hosted a Lunch & Learn featuring UAF’s è����Ƶ Earthquake Center (AEC). AEC Communications Manager Elisabeth Nadin presented on earthquake early warnings and the vital research, monitoring, and alerts provided by AEC. The AEC Lunch & Learn can be viewed  

Director Brent Sheets with the UAF Petroleum Development Laboratory was in the Capitol this week along with members of his team to meet with legislators and discuss the cutting edge research and development they are working on. The UA team always encourages legislative offices to reach out to and speak with the many experts at the è����Ƶ who work on issues that matter to them, their constituents, and all of è����Ƶ. 

What We’re Watching

Monday, February 24

• 8:00 a.m. - House Education: : Teacher/State Employee Student Loan Program.  The UA drafted a conditional letter of support for this pilot program.  More .  
• 9:00 a.m. - House University of è����Ƶ Finance Subcommittee: Presentation: University of è����Ƶ Budget Requests for Athletics and Recruitment, Retention, and Graduation Support by Chad Hutchison, UA Director of State Relations
• 1:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental.  Appropriations: Capital/Supplemental/Funds
• 3:15 p.m. - House Labor & Commerce: : è����Ƶ Innovation Council

Tuesday, February 25

• 12:00 p.m. - Lunch & Learn: Emerging Invasive Species Concerns and Solutions in è����Ƶ by Dr. Tobias Schwoerer, International Arctic Research Center, UAF; Dr. Emily Reed, Southeast è����Ƶ Watershed Coalition
• 1:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental.  Appropriations: Capital/Supplemental/Funds

Wednesday, February 26

• 8:00 a.m. - House Education: Presentation: How has è����Ƶ’s K-12 Education Spending Changed by Dayna Jean DeFeo, Director, Center for è����Ƶ Education Policy Research, ISER; Matthew Berman, Professor of Economics, ISER
• 9:00 a.m. - Senate Finance: : Appropriations: Operating Budget; Capital; Supplemental. : Appropriations: Capital/Supplemental/Funds
• Public Testimony for Juneau, Southeast, Prince William Sound, Kodiak 

• 1:00 p.m. - Senate Finance: : Appropriations: Operating Budget; Capital; Supplemental. : Appropriations: Capital/Supplemental/Funds
• Public Testimony for Fairbanks, Interior, Copper River Valley, Off-Nets

• 1:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental 

Thursday, February 27

• 9:00 a.m. - Senate Finance: : Appropriations: Operating Budget; Capital; Supplemental. : Appropriations: Capital/Supplemental/Funds
• Public Testimony for Nome, Bethel, Kotzebue, Utqiagvik, Unalaska, Dillingham, Off-Nets

• 1:00 p.m. - Senate Finance: : Appropriations: Operating Budget; Capital; Supplemental. : Appropriations: Capital/Supplemental/Funds
• Public Testimony for Anchorage, Matanuska-Susitna Valley, Kenai Peninsula

• 1:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental.  Appropriations: Capital/Supplemental/Funds. : Appropriations: Supplemental. Overview: Governor’s Budget Amendments by Lacey Sanders, OMB Director

Friday, February 28

• 12:00 p.m. - Lunch & Learn: Iceland’s Approach to Attracting Industry by Gwen Holdman, Philip A. Wright, and Eli Gudleifsson, ACEP
• 1:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental

 

February 14, 2025

House and Senate Committees Begin Review of University of è����Ƶ Budget

On Monday morning, the University of è����Ƶ House Finance Subcommittee had its first meeting to examine the UA budget for the upcoming 2026 fiscal year. President Pitney presented the operating budget requests put forth by the UA Board of Regents, while also highlighting capital budget items, the è����Ƶ’s increased enrollment numbers, and efforts aimed at further enhancing recruitment, retention, and graduation rates. The presentation is available to watch The next scheduled presentation in the House Finance Subcommittee (Monday, February 17) will focus on what the UA is doing on workforce development. 

On Tuesday, February 18, the Senate will hold its first UA finance subcommittee meeting to begin analyzing the è����Ƶ’s budget requests. Senator Jesse Kiehl, who represents Juneau and surrounding southeast communities, will chair the subcommittee this year. All six of his Senate Finance Committee colleagues will also serve on the subcommittee. The UA team is excited to work with Senator Kiehl, his staff, and each member of the subcommittee as the budget process gets underway. 

House Focuses on Public Employee Pensions

While the K-12 education funding debate continues to be the major topic in the legislature, this week, the House Finance Committee began hearing a bill to provide defined-benefit pensions to public employees in è����Ƶ. The committee has held multiple hearings on the proposal so far, as those for and against make their case on an issue that has become an annual conversation in the legislature. Along with K-12 education funding, the pension bill will be an ongoing focus this session. 

UA in the Capitol

President Pitney was in Juneau again this week to meet with legislators, testify in committee, and attend community events.  

She met with Representative Story, Co-Chair of the House Education Committee, to discuss postsecondary education and what can be done to bring back teachers and state employees to è����Ƶ. She also had a very fruitful discussion with Representative Galvin, Chair of the UA House Finance Subcommittee, to discuss increasing enrollment through recruitment, retention, and graduation funding, among many other budget items.   

President Pitney with Representative Alyse Galvin (right - holding the UA’s famous “Red Book,” which lists all the budget priorities approved by the Board of Regents) and her staff Lisa Keller (left)

The President also met with or is scheduled to meet with Rep. Himschoot, Sen. Kiehl, and Rep. Jimmie.  The UA looks forward to continuing those strong relationships.  

Director Jodie Anderson of UAF’s Institute of Agriculture, Natural Resources and Extension (IANRE) and Jenn Wagaman, Communications Manager for IANRE, were in the Capitol this week talking with lawmakers about food security, agriculture, budget priorities, and the innovative work their team is doing. Director Anderson was before the Senate Arctic Affairs Committee on Thursday to present on the unique challenges surrounding arctic agriculture, as well as highlight what IANRE does to help è����Ƶ. The presentation can be viewed .

Director Jodie Anderson testifies before the Senate Arctic Affairs Committee

Experts from UAA’s Institute of Social and Economic Research (ISER) were also in the Capitol throughout the week meeting with legislators and sharing their research on issues of particular interest to policymakers, including education spending and oil and gas taxes. 

In the Spotlight

President Pitney with UA Intern Chuol Both Mut

Chuol Both Mut - Senator Ted Stevens Legislative Intern

“My name is Chuol Both Mut and I am a legislative intern here at Senator Hughes’ office. Who am I? Well, as my name might sound so foreign to you, I am a Sudanese-Kenyan and British American. Let me break that down for a bit. I was born in Nairobi, Kenya to a Kenyan mother and Sudanese father and I have six siblings. We moved to Birmingham, England when I was seven years old.

I went to primary and secondary school (elementary and jr. high/high school) in the UK and moved to è����Ƶ by myself to attend the University of è����Ƶ, Anchorage. I hope to graduate in May with a bachelor’s degree in Political Science, with minors in both Communication and Environmental Science.

I am pursuing a career in United States foreign policy and international affairs with a hope of working for the State Department. It is a lifetime honor to serve as your intern. I hope to visit the district soon and would love to meet you! In the meantime, I am staffing Senator Hughes on the World Trade Committee, helping with SB 5 School/University Employee Health Insurance and a bill draft prohibiting certain land sales to foreign adversaries, as well as with constituent relations and calendaring.” - Chuol Both Mut

Senator Shelley Hughes - Palmer

“Hosting UA interns has been a delight during my legislative service! I have witnessed firsthand the dedication, creativity, and drive that these students bring to the table. Their eagerness to learn is inspiring, and their fresh perspective is helpful to the legislative process.  I am grateful to have a small hand in the growth of each intern, in helping them prepare for great opportunities ahead.

To all past, present, and future legislative interns out there: keep pushing forward with confidence and curiosity. Your ideas, energy, and determination will shape the world in ways we can only imagine. Stay committed to learning, embrace challenges as opportunities, and never underestimate the impact you can make.  è����Ƶ is and will be brighter and better because of you!” - Senator Hughes

What We’re Watching

Monday, February 17

• 8:00 a.m. - House Education: : Teacher/State Employee Student Loan Program
• 9:00 a.m. - House University of è����Ƶ Finance Subcommittee: Presentation: UA’s Impact on è����Ƶ’s Workforce by Teri Cothren, Associate Vice President, UA Workforce Development
• 1:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental
• 3:30 p.m. - Senate Education: Presentation: è����Ƶ’s per pupil spending in context: 2022 and 2023 updates by Dayna Jean DeFeo, Director, Center for è����Ƶ Education Research, ISER; Matthew Berman, Professor of Economics, ISER

Tuesday, February 18

• 9:00 a.m. - Senate Finance: Senate University of è����Ƶ Finance Subcommittee: FY26 Budget Overview Presentation
• 12:00 p.m. - Lunch & Learn: Earthquake Early Warning for è����Ƶ by Elisabeth Nadin, UAF è����Ƶ Earthquake Center

Wednesday, February 19

• 1:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental

Thursday, February 20

• 3:15 p.m. - House State Affairs: : Add Faculty Member University Board of Regents
• 3:30 p.m. - Senate State Affairs: Presentation: Adding a faculty member to the UA Board of Regents by Jill Dumesnil, Statewide President, United Academics; Jackie Cason, UAA Faculty Senate President

Friday, February 21

• 1:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental

February 7, 2025

Legislature Continues Work on Budget while Examining State’s Fiscal Picture

The third week of the 2025 legislative session saw continued hearings on the FY26 budget and presentations on the state's challenging fiscal environment. 

Lawmakers, particularly those on each of the finance committees, are grappling with the news that previous budget-balancing methods may not be sufficient to cover costs in the upcoming fiscal year. Stagnating oil prices have led to decreased revenue for the state, which is especially difficult given the increased demand for state dollars.

Governor, Legislators Focus on K-12 Education

This week the governor’s staff and legislators from each of the four caucuses began meeting to negotiate a compromise on K-12 education funding and policy. There is certainly a strong appetite to increase education funding this year, but budget constraints will no doubt play a role in where those negotiations end up. Much like last year, education funding will continue to be a big topic throughout this session.

UA in the Capitol

Yesterday the UA team met with Senator Stedman’s office to discuss deferred maintenance projects for the è����Ƶ. Since Senator Stedman is in charge of the capital budget this year, infrastructure projects like the ones on UA’s deferred maintenance list will be reviewed by his office as they work on developing the FY26 capital budget. Taking care of the è����Ƶ’s facilities is a priority for UA and we look forward to continuing these conversations with legislators. 

The top three projects include:

• UAA - Residential campus building envelope and system renewal

• UAF - Critical roof and envelope renewal:  Cutler housing, UA Museum of the North, and the University Park Building

• UAS - Juneau campus renewal of utilities, mechanical, roofing and safety improvements

The Senate Arctic Affairs Committee heard a presentation on Thursday from Dr. Jeff Libby, Principal Investigator for the Arctic Domain Awareness Center (ADAC-ARCTIC), which is housed at UAA and conducts innovative Arctic research as part of a collaboration with the Department of è����Ƶland Security. Dr. Libby’s presentation can be viewed 

UA Board of Regent member Karen Perdue was in the Capitol this week and met with both co-chairs of the House Education Committee, Representatives Andi Story and Rebecca Himschoot. Regent Perdue has been reappointed to the Board of Regents and will be up for a confirmation vote later this session, which is expected to go smoothly given the good work she has done on the board thus far, and the positive conversations she continues to have with legislators. 

Challenges facing è����Ƶ’s fishing industry continue to be a hot topic. The UA is working with the offices of Senator Stevens and Representative Stutes about potential state solutions, which include both policy and the budget.   will likely play an important role.  

Multiple legislators have asked for more information on the UA’s funding requests for the athletic programs at UAA and UAF. We’re encouraged by the feedback thus far. Many of our requests may likely depend on the disposition of the K-12 debate, the defined benefit package, and the amount of the Permanent Fund Dividend. Senate leadership is adamant that they are not going to dip into the Constitutional Budget Reserve, and even with “pressured” oil prices, they can still deliver a balanced budget.

UA House Finance Subcommittee

On Monday, February 10, at 9:00 a.m., the University of è����Ƶ House Finance Subcommittee will have its first meeting to hear an overview of the FY26 UA budget. President Pitney will be before the subcommittee to give the overview presentation and answer questions from members.

Expected topics will also likely include:  

• Enrollment
• UA’s teacher education programs
• Health
• R1 status at UAF 

Unlike the subcommittees for each of the state’s executive branch departments, which are chaired by one member of the finance committee and have non-finance committee members, the UA subcommittee is a committee of the whole, meaning all House Finance Committee members will meet to review details of the è����Ƶ budget. The UA team will have many conversations with subcommittee chair Representative Alyse Galvin, as well as all members of the House Finance Committee, over the coming weeks as the budget process moves forward. 

Seated: Katrina Matheny, Sen. Gary Stevens; Back row (from left):  Anne Rittgers, Tim Lamkin, Jenny Martin

In the Spotlight: The Office of Senate President Stevens

Senator Gary Stevens - Kodiak

Senator Gary Stevens serves Senate District C in the è����Ƶ State Legislature, which encompasses numerous coastal communities including Kodiak, è����Ƶr, Seward, and Cordova. Now in his 25th year in the legislature, he is again serving as the Senate President after serving as President from 2009-2013 and 2023-2024. He currently Co-Chairs the Special Committee on World Trade and Special Committee on Arctic Affairs, and is Vice Chair of Senate Education, Legislative Council, and the Senate Rules committee. For the past five months, he chaired the Task Force Evaluating the è����Ƶ Seafood Industry which recently presented its final report to the legislature. Senator Stevens earned his PhD from the University of Oregon and was a Full Tenured Professor of History and Humanities at the University of è����Ƶ for 25 years. He served the United States as an Army Intelligence officer and spent 13 years in local government as Mayor of the City of Kodiak, and the Kodiak Island Borough; and President of the Kodiak School Board. Senator Stevens and his wife, Rita, are parents to three children and grandparents to three grandchildren. He was born in McMinnville, Oregon and has lived in è����Ƶ for over 50 years.

Katrina Matheny  - Chief of Staff

Katrina is from Juneau and has worked with Sen. Stevens his entire legislative career.

Tim Lamkin – Legislation & Policy

Tim grew up in Anchorage and Wasilla and is now based seasonally out of Fairbanks and Juneau. He has worked in the legislature since 1997, and with Senator Stevens since 2006. He is a proud alumni of UAF, served as ASUAF President (1989-90), UA Student Regent (1991-93), and is currently serving on the board for the UAF Alumni Association.

Jenny Martin – Scheduler & Constituent Services

Jenny is from è����Ƶr and has worked for Sen. Stevens for the last three years. She is a graduate of UAA with a Bachelors in Psychology.  She also took classes and worked at the UAA - Kenai Peninsula College - Kachemak Bay Campus.

Anne Rittgers – Legislative Aide

Anne lives in Fairbanks and is the newest staff member on Sen. Stevens’ team. She has worked in the legislature since 2018 and is a UAF graduate with an MA in Arctic and Northern Studies. Anne also previously worked as the first Program Coordinator for GeoFORCE è����Ƶ at UAF.

UA Interns Join Legislative Bowling League

Each year, the Ted Stevens Legislative Internship Program sends a group of exceptional University of è����Ƶ students to the Capitol to gain valuable experience working in a legislative office during session, while also attending a weekly class and completing a research project by the end of the semester. In addition to earning credit hours toward their degree, many interns have launched successful careers as legislative staff after going through the program. 

This year, there are 14 interns in the program, and the legislature has welcomed them into not only the Capitol, but also the bipartisan legislative bowling league. For decades, those who work in the Capitol have gathered together each week to socialize while competing in a friendly bowling competition. The newest team this session is the “Pinterns,” a group of UA interns who will undoubtedly add some stiff competition to the league. 

What We’re Watching

Monday, February 10

• 9:00 a.m. - House University of è����Ƶ Finance Subcommittee: Presentation: University of è����Ƶ Operating Budget FY26 by President Pat Pitney

• 1:30 p.m. - House Finance: : Retirement Systems; Defined Benefit Option

• 3:15 p.m. - House Labor & Commerce: : è����Ƶ Innovation Council

Tuesday, February 11

• 10:30 a.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental

• 1:30 p.m. - House Finance: : Retirement Systems; Defined Benefit Option

Wednesday, February 12

• 8:00 a.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental

• 9:00 a.m. - Senate Finance: : Appropriations: Operating Budget; Capital; Supplemental

• 1:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental

• 1:30 p.m. - Senate Labor & Commerce: : TRS Contribution Rate; PERS/TRS Social Security or SBS

Thursday, February 13

• 1:30 p.m. - Senate Arctic Affairs: Presentation: Farming in the North: Partnering Research and Industry for è����Ƶ by Jodie Anderson, Director, UAF Institute of Agriculture, Natural Resources and Extension; Scott Mugrage, President, è����Ƶ Farm Bureau; Amy Seitz, Policy Director, è����Ƶ Farm Bureau; Rita Jo Shoultz, Secretary/Treasurer, è����Ƶ Farm Bureau; Ken Hoffman, è����Ƶ Farm Bureau

• 1:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental

• 3:15 p.m. - House State Affairs: : Add Faculty Member University Board of Regents

Friday, February 14

• 1:00 p.m. - House Judiciary: Presentation: è����Ƶ Crime Trends by Brad Mystrol, University of è����Ƶ, Anchorage Justice Center

• 1:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental. : Appropriations: Capital/Supplemental/Funds

• 3:15 p.m. - House Labor & Commerce: : è����Ƶ Innovation Council

• 3:30 p.m. - Senate Education: Presentation: è����Ƶ’s Per Pupil Spending in Context: 2022 and 2023 Updates by Matthew Berman, Professor of Economics, Institute of Social and Economic Research, UAA

January 31, 2025

President Pitney Delivers Annual State of the University Address in Juneau

University of è����Ƶ President Pat Pitney gave the keynote speech at the è����Ƶ Chamber’s Legislative Fly-in Luncheon on Thursday, where she highlighted the many ways our strong and growing è����Ƶ is helping to move all of è����Ƶ forward.

Attendees, many of whom represent businesses across the state, heard how critical UA is to meeting the state’s workforce needs, with 90% of UA graduates remaining and working in è����Ƶ right after graduation. President Pitney spoke about key partnerships with local high schools, which help students by providing college credit opportunities, while also helping the è����Ƶ attract more students and funnel them into è����Ƶ’s workforce. 

One of the è����Ƶ Chamber’s 2025 state priorities is a strong UA system: “A vibrant è����Ƶ that addresses è����Ƶ’s workforce requirements is vital for the education of our citizenry, the development of a highly trained workforce, and the research and development endeavors necessary to address the state’s critical challenges.”

If you missed President Pitney’s State of the University Address, the recording is available to watch  

State of the State

On Tuesday, Governor Dunleavy delivered his annual State of the State address, expressing optimism about è����Ƶ’s future and focusing on the bright opportunities ahead for our state. As he expressed in his address, the potential for more resource development projects in è����Ƶ continues to be a major focus for the governor, and the need for a skilled workforce to fill those jobs is an essential piece of that. The è����Ƶ looks forward to continuing to work closely with Governor Dunleavy on strengthening our economy through workforce development, valuable research, and recruiting and retaining the best and brightest in è����Ƶ.

UA in the Capitol 

The Senate Arctic Affairs Committee, co-chaired by Senator Cathy Giessel, heard a presentation from Senior Researcher Gwen Holdmann of UAF’S è����Ƶ Center for Energy and Power (ACEP). The presentation focused on energy and electric power not only in è����Ƶ, but also throughout the entire Arctic region. Energy security and affordability continue to be a big topic of discussion in the legislature this session, so the important work being done at ACEP is especially relevant. 

Watch the Senate Arctic Affairs Committee meeting featuring ACEP 

President Pitney, on Thursday and Friday, met with or is scheduled to meet with legislators in the Capitol, including Senate President Gary Stevens, Rep. Neal Foster’s Office, Rep. Schrage, Rep. Josephson, Sen. Giessel, Rep. Stutes, Rep. Edgmon, and Rep. Gray. Budget items and è����Ƶ needs are the most common topics of discussion.  

Noteworthy: President Pitney is warmly greeted by all who see her. Oftentimes she’ll have unscheduled conversations in the Capitol halls that prove to be every bit as valuable as her scheduled conversations. Those conversations happen with legislators, staff, business leaders, lobbyists, and many more.

On January 29, the  wrapped up its months-long work. The UA has been in on discussion and will be looked upon in multiple ways. The final report recommends enhanced data sharing (likely done through legislation) by the Department of Labor to the UA and encouraging the UA to adopt strategic goals prioritizing applied research aimed at solving technical and operational challenges in fisheries. 

Conversations continue with legislators, orbiting around capital improvements for floating labs at UAS, heightened potential investment in UAF’s Seward Marine Center, and research into UAF’s carbon monitoring capabilities.

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In the Spotlight:

The Office of Representative Alyse Galvin

The UA team looks forward to working closely with Representative Galvin this session as she chairs the UA budget subcommittee. 

Representative Alyse Galvin – Represents District 14, Midtown Anchorage (Center)

Representative Galvin was raised in Anchorage, è����Ƶ. Rep. Galvin and her husband have four children who have taken various courses through University of è����Ƶ Anchorage (UAA). She is an education champion and advocate and a co-founder of Great è����Ƶ Schools, who has spoken at many conferences for and at UAA. Representative Galvin deeply understands the value of education and in her ongoing work in the è����Ƶ State Legislature, she is determined to show her continued support. Currently, she serves as the chair of the University of Finance Subcommittee, and is a member of the House Finance Committee. 

Lisa Keller – Senior Staffer (Left front)

Lisa is the glue and master organizer of the office, ensuring the team pulls necessary research together and gets answers and assistance to constituents in a timely way. She first came North with a shaky beginning, arriving in è����Ƶ in utero in 1963 and surviving the '64 earthquake, riding it out in her mom's arms as the end of their street went into the Inlet. Lisa is the mother of two daughters who both graduated from Bettye Davis East Anchorage High School, just as she did. Her youngest daughter, Ciana, is studying psychology and neuroscience at University of è����Ƶ Anchorage. She is the grandmother of twin boys, and just like her, they like to do dangerous things.

David Jiang – Policy Analyst (Left Back)

David is dedicated to supporting and advocating for the residents of House District 14 and ensuring our office is prepared for details related to budget analysis and bill preparation. Originally from New England and a graduate of Tufts University, David relocated to Anchorage with the è����Ƶ Fellows Program and now calls Midtown and Spenard home. He likes cooking, playing the piano, wildlife, geography, and going on Costco runs.

“Support your kid’s talents and interests to the best you can, no matter how unusual you think they are. You never know where life can lead them, that is the fun in the journey!” - David

Mónica Schwingendorf - Constitutional Relations & Communications (Right Back)

 Mónica is originally from Cidra, Puerto Rico, and traveled across many seas to reside in Northeast Anchorage, è����Ƶ with her Air Force family. She graduated with a Bachelor in Psychology from the University of è����Ƶ Anchorage honors program. Soon after she continued her education in East London & obtained her Master of Applied Psychology. 

“I send my deepest appreciation to all the UAA professors who believed in me. Without their support & guidance, I would not be where I am today. UAA Strong!” – Mónica

Lacey Matula – UAA Intern (Right Front)

Lacey is our fantastic office intern from the University of è����Ƶ Anchorage (UAA). She is “piecing together” a bright future by majoring in criminal justice and minoring in political science. Lacey is passionate about criminal justice reform, education, and medicine. When she is not studying or interning, Lacey enjoys reading, solving puzzles, and spending time with friends and family.

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What We’re Watching

Tuesday, February 4

• 1:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental

Wednesday, February 5

• 1:30 p.m. - House Finance: : Appropriations: Operating Budget; Capital; Supplemental

Thursday, February 6

• 1:30 p.m. - Senate Arctic Affairs: Presentation: Arctic Domain Awareness Center by Jeffrey Libby, Executive Director, ADAC-Arctic 

• 3:15 p.m. - House State Affairs: : Add Faculty Member University Board of Regents

January 24, 2025

The 34th è����Ƶ Legislature Convenes in Juneau

New and returning legislators were sworn into office before gaveling in on Tuesday, January 21st to kick off the 2025 legislative session. There are 15 new lawmakers this year - two in the Senate and 13 joining the House - which has altered the caucus organizations in both bodies.   

House Leadership Changes Hands

Following the 2024 election results, a new 21-member House Majority caucus formed, led by Speaker of the House Bryce Edgmon (I-Dillingham), Majority Leader Chuck Kopp (R-Anchorage), Rules Committee Chair Louise Stutes (R-Kodiak), and House Finance Committee Co-Chairs Andy Josephson (D-Anchorage), Neal Foster (D-Nome), and Calvin Schrage (I-Anchorage). 

The new majority is a coalition consisting of 14 Democrats, five independents, and two Republicans, flipping control of the House from the predominantly Republican-led organization that had been in charge the previous two years. The new House Minority caucus is made up of 19 Republicans, with Minority Leader Mia Costello (R-Anchorage) at the helm.

Here are the members of each caucus:

Senate Majority Retains Control

On the Senate side, the bipartisan majority caucus went from 17 members to 17, though the same leadership team remains in charge: Senate President Gary Stevens (R-Kodiak), Majority Leader Cathy Giessel (R-Anchorage), Rules Committee Chair Bill Wielechowski (D-Anchorage), and Senate Finance Committee Co-Chairs Lyman Hoffman (D-Bethel), Bert Stedman (R-Sitka), and Donny Olson (D-Golovin). In contrast to previous years, however, Senator Hoffman will co-chair the operating budget, rather than Senator Stedman, who is now managing the capital budget. 

The Senate Minority caucus gained three additional members after being joined by newly-elected Senators Mike Cronk (R-Tok) and Rob Yundt (R-Wasilla), as well as incumbent Senator James Kaufman (R-Anchorage), who left the majority. With a six-member caucus, the minority now has two seats on the powerful Senate Finance Committee. Senate Minority Leader Mike Shower (R-Wasilla) was chosen to lead the caucus.

The Senate is organized into the following caucuses:

Generally, we are encouraged by the makeup of the legislature. Many are interested in higher education and understand that the UA System is è����Ƶ's primary workforce provider. In the eyes of many legislators and Governor Dunleavy, UA can boost è����Ƶ’s working-age population by helping retain in-state students and recruiting out-of-state and international students.

New Addition to UA Government Relations

Katie McCall has joined the UA Government Relations team as the Government Relations Manager and will work alongside State Relations Director Chad Hutchison in Juneau to advocate for UA throughout the legislative session. 

Katie has lived in è����Ƶ her whole life. She was raised in Palmer but now lives in Anchorage. She graduated from UAA with a BA in Political Science and a minor in Economics. 

Before joining the è����Ƶ, Katie worked as a staffer in the è����Ƶ Legislature beginning in 2020, where she had the opportunity to manage leadership offices in both the House and Senate. Katie’s career as a legislative staffer immediately followed her participation in the Senator Ted Stevens Legislative Internship Program, which was instrumental in laying the groundwork for the many strong, positive relationships she has within the Capitol.

UA Starting Off on the Right Foot

Communications with the Governor’s office have been ongoing for many months, prior to the Governor releasing his budget in December 2024.  Those communications have been encouraging. The Governor’s proposed budget is the starting point for the legislature, and there are good signs, including:  

• Governor Dunleavy funded the Board of Regents’ entire compensation request for our employee groups across the system, totaling $20.1 million.  
• Our fixed cost increases, with a state funding request totaling $4 million, were almost entirely funded at $3.9 million.

There are outstanding requests, including funds to meet recruiting and retention goals and deferred maintenance, but we expect those requests to be given good debate during the legislative process.   

Capitol Activity

The UA Government Relations team met with House leaders this week, including Representative Josephson and Representative Galvin’s offices, in preparation for the UA FY26 operating budget review. We’ve also been working with Rep. Schrage’s office to ensure he has all the information relevant to our deferred maintenance requests (which amount to $60 million this year, just to keep up with inflationary pressures). 

There is an anticipation of committee time, including finance committee time, being devoted to the fields of “education” and “health.” So, we’re making preparations to participate actively in those discussions.

Legislation

 has been involved in the Joint Legislative Seafood Task Force during the interim, and the UA is anticipating that they may be part of a bill that allows for better data sharing, particularly with the è����Ƶ Department of Labor. Some anticipate that the bill may be read across the Senate floor as early as next week.    

Other Happenings

President Pitney, who is respected for her budget acumen, will be in Juneau on January 30 to give her annual “State of the University” address. The address, which will be given at noon in Centennial Hall in partnership with the è����Ƶ Chamber of Commerce, will be live-streamed at .  

Helpful Resources

Visit the Government Relations advocacy materials webpage for an overview of UA’s fiscal year 2026 budget priorities, helpful tips for meeting with legislators, and other information about the è����Ƶ system. 

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For more information, contact Director of State Relations for the University of è����Ƶ System Chad Hutchison, cell 907-378-3946, email clhutchison@alaska.edu. You can also follow the University of è����Ƶ Government Relations on our .