Alaska conference committee closes FY26 operating and mental‑health budgets, raises one‑time PFD and funds energy relief

The Alaska Legislature’s conference committee on the FY26 operating bill (House Bill 263) and the mental‑health appropriation bill (House Bill 265) met May 17 and closed open conferencing items across executive departments before reporting both bills out of committee.

Representative Andy Josephson, appearing for the House conferees, moved a series of unanimous‑consent motions to adopt department budget recommendations, covering Administration; Commerce, Community and Economic Development; Corrections; Education and Early Development (including a $376,600 change to interagency receipts for one line item); Environmental Conservation; Family and Community Services; Fish and Game; the Office of the Governor; Health; Labor and Workforce Development; Military and Veterans Affairs; Natural Resources; Public Safety; Revenue (including a $500,000 permanent‑fund gross receipts change); Transportation and Public Facilities; the University of Alaska (including several UGF reductions and a position modification); the legislature’s own budget; miscellaneous items; state retirement payments; and fund capitalization. Chairman Hoffman asked for objections on each motion and, where none were voiced, the committee closed the conferencible items.

On Health, the committee approved multiple line adjustments and added an intent provision tying the tobacco‑use education and cessation fund balance to appropriations under Alaska Statute 37.05.058. The committee also endorsed language directing the Department of Health to increase private duty nursing rates, raising the per‑service increment for registered nurses from $20 to $30 and for licensed practical or vocational nurses from $18.75 to $26.25.

A more contested moment came in the permanent‑fund transfer item. Senator Mike Cronk registered an objection arguing for a larger dividend, saying, "I'm thinking the largest BFD that we could pay would be the best choice for Alaskans." Alexei Painter of the Legislative Finance Division told the committee the Senate position funded "the amount necessary to pay a $1,000 dividend." The committee held a roll call; recorded nays were noted and, after the vote, the motion passed and the conference closed that item.

The committee adopted a supplemental operating amendment labeled EA2 that changes the FY26 energy relief permanent fund dividend payment from $150 per person to $200 per person. Representative Josephson described EA2’s fiscal effects: an estimated total cost of $127,300,000; an increase in the outside the BSA payment from $111,000,000 to $115,000,000; and a $15,000,000 appropriation to the bulk fuel revolving loan fund (placed as new conference committee item 26). Representative Stapp asked about capitalization of the bulk fuel loan fund; Legislative Finance staff said the $15,000,000 is plausible as roughly a 50 percent increase in usage but that the exact need is unclear and depends on existing fund balances.

The committee considered Packet 1, a fiscal note packet that adds a new Section 2 to both HB 263 and HB 265 to fund bills listed in the packet and reduce appropriations if any listed bill fails, is vetoed, or is otherwise not enacted. Amendment 2 to the packet replaced two conference committee fiscal notes with administration fiscal notes at slightly higher cost (both for Department of Corrections line items) and added a corrected fiscal note for House Bill 193; the committee passed the amendment and then adopted the fiscal‑note packet as amended.

Representatives voted to grant legislative finance and legislative legal services authority to make technical and conforming adjustments to the conference committee substitutes for both HB 263 and HB 265. The committee then reported out conference committee substitutes for HB 263 and HB 265 with individual recommendations, took a brief at ease to sign the reports, and adjourned.

Chairman Hoffman closed the meeting by thanking Representative Josephson, conferees and staff (singling out Alexei Painter and others) and the committee adjourned. Representative Stapp offered farewell remarks and well wishes to retiring members.

What happens next: the conference committee reported its substitutes and signed reports; the bills move on to the next procedural steps in the Legislature with the technical edits and conforming adjustments authorized by the committee.