February 5, 2026 Seward Folly by Senator Stevens

Contact: Sen.Gary.Stevens@akleg.gov   1-907-465-4925   Toll Free: 1-800-821-4925

I continue with the honor of serving as Senate President. Our 14 of 20 member Senate Majority Coalition is made up of diverse members of both parties from across the state. We have reaffirmed our mutual priorities and begin this year with a clear responsibility: passing a fiscally prudent, balanced budget that supports the needs of Alaskans. While our state continues to have even tighter revenues and increasing demands, our focus will remain on fiscal discipline, protecting essential services, and ensuring the state makes responsible decisions that Alaskans can afford now and in the future.

The Senate is already starting off strong on this process and looks forward to working with the Governor, the House, and other stakeholders to achieve these goals. We anticipate a productive and collaborative legislative session that encourages public participation and thorough debate. While the path forward may be challenging, it is imperative that we get it right.

This is my final year serving in the legislature. My term will be up in early January 2027.  I want to thank you for your passion and willingness to share your comments, personal stories, and even criticism with me over the years as we worked together to improve Alaska’s future.  I have tried my best to support all my constituents over the years whether you voted for me or not.  I appreciate the great honor it has been.

Gasline

The Senate Majority is already conducting hearings and meetings with Glenfarne and other stakeholders regarding the proposed AK LNG gasline.  Over the next several months, we will seek clarity on where the Alaska gasline project stands, what steps remain ahead, and its economic viability. Given the potential long-term implications for Alaska’s economy and fiscal future, it is critical that legislators and the public have accurate, transparent information as decisions move forward.

Education Funding

Education will continue to be a central priority this session. The Education Task Force began meeting this fall and will continue its work to find ways to improve our public education system. Alaskans expect stability and predictability in our education system, and the Senate is committed to examining how best to support students, educators, and school districts across the state.

New Revenue

Since the Governor’s budget proposal depends on drawing down about half of our remaining savings, it is crucial that any long-term fiscal plan clearly outlines how Alaska will stabilize its revenues and prevent depletion of our limited reserves. 

The Institute of Social and Economic Research (ISER) provided a presentation to all legislators on January 29^th regarding various fiscal plan options. The researchers noted how various budget decisions could impact wages, employment, and other outcomes in our state and shared differences between this year’s report compared to a similar one they did in 2016. Eventually, the presentation along with an interactive fiscal model (excel document) will be available on ISER’s website and we will share a link in a future Capitol Report newsletter.

The Governor’s 10-year fiscal plan anticipates $1.6 billion in new revenue, however the fiscal plan bills he introduced this past week only raise a maximum of $972 million.  The Governor’s plan is based on the idea that a gas pipeline and increased oil production will provide enough revenue by 2031 that new revenues will not be necessary beyond that year.  

The Senate will evaluate the Governor’s fiscal package and balance it with the needs of Alaskans. A sustainable path forward will require open communication and collaboration between both the administration and the Legislature. Any solution to our fiscal crisis must be practical and in the best interest of Alaskan families, and it will require all of us working together to achieve that.

FY 2027 Budget

Committees in both legislative bodies have begun discussions on the FY 2027 budget. The starting point in the debate is the governor’s budget proposal which draws $1.8 billion from our state’s Constitutional Budget Reserve (CBR) savings account. I feel we need to grow our savings to be more financially secure for future generations, instead of tapping into it to fill the deficit. Our Senate majority will work to develop a budget that avoids depleting our savings while helping to address the critical infrastructure needs of our communities and state. 

The Dept. of Revenue is again projecting declining oil prices over the next several years; a decrease of $181 million for the current year and a $119 million decrease for Fiscal Year 2027. Unfortunately, this means less money for our capital budget.  The Governor’s proposed Fiscal Year 2027 Capital Budget does include over $150 million in matching funds for $1.7 billion in Federal project funding.  It also includes $27.5 million for the Marine Highway Fund for vessel shoreside facility maintenance and $15 million from cruise ship head tax fees to support electrification of cruise ship terminals.  There is no funding for school and university maintenance, or other capital school district needs in the Governor’s budget, something which our Senate Finance members will work to correct. 

The Governor proposed restoring $70 million in matching funds for the current year DOT projects that he vetoed last year. He proposes paying for it from the CBR savings account which requires a ¾ vote of legislators.  It is likely this will be part of our final budget passed at the end of session which includes compromises between all the caucuses to ensure enough votes.  

The operating and capital budgets will be carefully vetted and will see changes as they go through the legislative process. You can find out more about the governor’s budget proposal at omb.alaska.gov and on legfin.akleg.gov

Fisheries

Legislation from our 2025 Seafood Taskforce continues to move through the legislature. 

Last year,  HB 116  Commercial Fishing Insurance Co-Op passed both bodies and was signed by the Governor.  This bill allows the commercial fishing industry to establish an insurance pool. 

Other bills are still working their way through the capitol, such as SB 135 Refund of Fish Business Tax to Municipalities.  This bill increases a municipality’s share of fish tax revenue for ten years.  It is the intent of this legislation that municipalities use the additional revenue to improve their harbor facilities.

Please keep in touch!

I appreciate hearing from you about legislation, budgets, and other state issues. Please do not hesitate to reach out to my office if we can be of assistance to you with state agency matters. 

Phones:

907-465-4925 (Juneau)

800-821-4925 (toll free) 

907-235-0690 (Homer)  

907-486-4925 (Kodiak) 

Email:  Sen.Gary.Stevens@akleg.gov

Sincerely,

Sen. Gary Stevens

District C