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 ÐÓ°ÉÔ°æ's Seafood Industry
Referred: Education, Labor and Commerce Committees
Purpose: Amends ÐÓ°ÉÔ°æ 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 ÐÓ°ÉÔ°æ, 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 ÐÓ°ÉÔ°æ, 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 ÐÓ°ÉÔ°æ 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 ÐÓ°ÉÔ°æ’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 ÐÓ°ÉÔ°æ’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 ÐÓ°ÉÔ°æ Senate Finance Subcommittee, meaning the reductions to ÐÓ°ÉÔ°æ 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 ÐÓ°ÉÔ°æ 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
For more information, contact Director of State Relations for the University of ÐÓ°ÉÔ°æ System Chad Hutchison, cell 907-378-3946, email clhutchison@alaska.edu. You can also follow the University of ÐÓ°ÉÔ°æ Government Relations on our .