Capitol Report: March 20, 2026

Capitol Report: March 20, 2026

March 20, 2026

Higher Oil Prices Improve State's Revenue Outlook as Legislative Session Reaches Halfway Point; House and Senate Seek Path Forward on Supplemental Budget; Rep. Josephson Selected to Have Legislative Records Preserved for UAA's Alaska Leaders Archive

Since the release of the 2026 Spring Revenue Forecastfrom the Department of Revenue (DOR) last Friday, the prospect of additional revenue to the state has changed some of the budget conversations in Juneau this session. The price of oil is up considerably due to the ongoing military action in Iran, and estimated projections from DOR show $545 million in anticipated additional revenue for the remainder of FY26, the fiscal year we are currently in, and a potential increase of $510 million for FY27, the fiscal year that begins July 1 of this year. While DOR has cautioned lawmakers that the extreme volatility created by the conflict in the Middle East means there is still a considerable degree of uncertainty with these latest revenue projections, the improved fiscal outlook has legislators reevaluating decisions surrounding the state budget.

Passage of the FY26 supplemental budget, HB 289, has been delayed over disagreements between the House majority and minority caucuses on whether spending from savings is still needed given the revised revenue outlook. The bill as currently written requires a three-quarter vote to draw from savings in order to fund the time-sensitive items in the supplemental budget, including repayment of the Higher Education Investment Fund (HEIF), but the 19-member House minority caucus has expressed that the savings draw is not needed due to the expected increase in revenue.

With the House unable to reach an agreement and obtain the necessary three-quarter vote, a conference committee on HB 289 has been appointed to resolve the differences. The six-member conference committee includes Senators Hoffman, Stedman, and Cronk, as well as Representatives Josephson, Schrage, and Stapp. With two majority members and one minority member from both the Senate and House, the committee is tasked with reaching a compromise that will enable the supplemental budget to successfully pass the legislature and get to the governor's desk as quickly as possible so these critical, timely funding needs can be met.

Rep. Andy Josephson Selected for Records Preservation at UAA's Alaska Leaders Archive

Rep. Andy Josephson, an important figure in Alaska's history, will not seek re-election this upcoming cycle. He has been a significant voice in the State House since 2013. His public service, and legislative work product, both to the state and university, have risen to a level worthy of being included in UAA's Alaska Leaders Archive. He is a protector of the Higher Education Investment Fund (HEIF), among many other achievements.

In the next few months, after session, UAA will work with Rep. Josephson to ensure the records can be shared with the generations to come.

UAF Reaffirms Alaska Native Language Center Will Continue Operations

UAF leadership this week addressedrecent rumors regarding the Alaska Native Language Center (ANLC), reaffirming that the center is not closing and will continue its work without reductions. In a message to the UAF community on Thursday, Interim Chancellor Mike Sfraga emphasized ANLC's statutory mission, its statewide impact in preserving Alaska Native languages and culture, and the university's continued investment in its growth. Read Interim Chancellor Sfraga's full message here.

Legislation Supported by ISER Passes SenateSenate Bill 181, championed by the Legislative Task Force Evaluating Alaska's Seafood Industry, would streamline data sharing between state agencies, specifically the state's Department of Labor and UAA's Institute of Social and Economic Research (ISER), in order to bolster research into Alaska's economic and employment data. The Senate unanimously passed the bill today and will now transmit it to the House, where it will continue making its way through the legislative process.

On Saturday, the Anchorage delegation met at UAA to have a listening session with constituents. Attendance was very good, with testifiers raising a voice on K-12 and potential revenue sources. UAA Alumni Leader Skye Nevada thanked the delegation for their support of UA funding requests, including on compensation, public safety, and mental health services.

UAA Hosts Anchorage Delegation Town Hall

On Saturday, the Anchorage delegation met at UAA to have a listening session with constituents. Attendance was very good, with testifiers raising a voice on K-12 and potential revenue sources. UAA Alumni Leader Skye Nevada thanked the delegation for their support of UA funding requests, including on compensation, public safety, and mental health services.

What We're Watching

Monday, March 23

• 1:30 p.m. - House Finance: House Bill 133: Payment of Contracts.
• 1:30 p.m. - Senate Labor & Commerce: Senate Bill 217: Employer Contributions.
• 3:30 p.m. - Senate Education: Senate Concurrent Resolution 11: Legislative Commission on State Seal.

Tuesday, March 24

• 9:00 a.m. - House Finance: House Bill 263: Appropriations: Operating Budget; Amend; Supplemental. Committee Substitute Introduction.
• 12:00 p.m. - Lunch & Learn: 65 Years of ISER (Institute of Social and Economic Research) by Diane Hirshberg and ISER faculty team. Sponsored by Representative Mears.

Wednesday, March 25

• 8:00 a.m. - House Education: Presentation: Career and Technical Education in Alaska by Alaska Workforce Investment Board.

Thursday, March 26

• 9:00 a.m. - Senate Finance: Senate Bill 55: TRS Contribution Rate; PERS/TRS Social Security or SBS.
• 1:00 p.m. - House Energy: Presentation: Alaska Center for Energy and Power: Alaska Energy Data Gateway by Vanessa Raymond, Jeremy Kasper, and Diane Hirshberg.
• 1:30 p.m. - House Finance: Monetary Terms of Agreement - Department of Law.

Friday, March 27

• 12:00 p.m. - Lunch & Learn: The Importance of Energy Data by University of Alaska Anchorage's Institute of Social and Economic Research and University of Alaska Fairbanks' Alaska Center for Energy and Power. Sponsored by Senator Giessel.
• 1:00 p.m. - House Resources: Presentation: History of Railbelt Electrification by Philip Wight, PhD, Associate Professor of History, University of Alaska Fairbanks.