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

February 7, 2025

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. 

�鶹��ý in the Capitol

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

The top three projects include:

• �鶹��ýA - Residential campus building envelope and system renewal
• �鶹��ýF - Critical roof and envelope renewal:  Cutler housing, �鶹��ý Museum of the North, and the University Park Building
• �鶹��ýS - 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 �鶹��ýA and conducts innovative Arctic research as part of a collaboration with the Department of �鶹��ýland Security. Dr. Libby’s presentation can be viewed

�鶹��ý 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 Alaska’s fishing industry continue to be a hot topic. The �鶹��ý 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 �鶹��ý’s funding requests for the athletic programs at �鶹��ýA and �鶹��ýF. 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.  

�鶹��ý House Finance Subcommittee

On Monday, February 10, at 9:00 a.m., the �鶹��ý House Finance Subcommittee will have its first meeting to hear an overview of the FY26 �鶹��ý 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
• �鶹��ý’s teacher education programs
• Health
• R1 status at �鶹��ýF 

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 �鶹��ý subcommittee is a committee of the whole, meaning all House Finance Committee members will meet to review details of the university budget. The �鶹��ý 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. 

In the Spotlight: Office of Senate President Stevens

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

Senator Gary Stevens - Kodiak

Senator Gary Stevens serves Senate District C in the Alaska State Legislature, which encompasses numerous coastal communities including Kodiak, �鶹��ýr, 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 Alaska 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 �鶹��ý 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 Alaska 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 �鶹��ýF, served as AS�鶹��ýF President (1989-90), �鶹��ý Student Regent (1991-93), and is currently serving on the board for the �鶹��ýF Alumni Association.

Jenny Martin – Scheduler & Constituent Services

Jenny is from �鶹��ýr and has worked for Sen. Stevens for the last three years. She is a graduate of �鶹��ýA with a Bachelors in Psychology.  She also took classes and worked at the �鶹��ýA - 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 �鶹��ýF graduate with an MA in Arctic and Northern Studies. Anne also previously worked as the first Program Coordinator for GeoFORCE Alaska at �鶹��ýF.

�鶹��ý Interns Join Legislative Bowling League

Each year, the Ted Stevens Legislative Internship Program sends a group of exceptional �鶹��ý 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 �鶹��ý interns who will undoubtedly add some stiff competition to the league. 

The Pinterns (from left to right): Seated at table: Henry Thompson (�鶹��ýS - Working for Rep. Stapp), Kip Angaiak (�鶹��ýF - Working for Rep. Dibert), Cadence Connor (�鶹��ýF - Working for Rep. Carrick), Nicole Larango (�鶹��ýF - Working for Rep. Gray)
Back: Hahlen Benken (�鶹��ýF - Working for Sen. Dunbar), Chuol Mut (�鶹��ýA - Working for Sen. Hughes)

What We’re Watching

Monday, February 10

• 9:00 a.m. - House �鶹��ý Finance Subcommittee: Presentation: University of Alaska 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: : Alaska 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 Alaska by Jodie Anderson, Director, �鶹��ýF Institute of Agriculture, Natural Resources and Extension; Scott Mugrage, President, Alaska Farm Bureau; Amy Seitz, Policy Director, Alaska Farm Bureau; Rita Jo Shoultz, Secretary/Treasurer, Alaska Farm Bureau; Ken Hoffman, Alaska 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: Alaska Crime Trends by Brad Mystrol, University of Alaska, 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: : Alaska Innovation Council
• 3:30 p.m. - Senate Education: Presentation: Alaska’s Per Pupil Spending in Context: 2022 and 2023 Updates by Matthew Berman, Professor of Economics, Institute of Social and Economic Research, �鶹��ýA