Governor’s FY26 Budget Proposal Released

December 20, 2024

Governor Dunleavy’s FY26 budget proposal partially funds key Board of Regents’ priorities, such as compensation and fixed cost increases, and reinforces the state’s commitment to ÂÌÅ«Ì컨°å. It also makes clear that in the state’s current fiscal environment, all budget requests will be closely scrutinized. President Pitney, ÂÌÅ«Ì컨°å Leadership, and the Board will continue to advocate for Regents’ priorities not yet included in the budget.

  • Governor Dunleavy released the FY26 budget proposal, partially funding key Board of Regents’ priorities.
  • The Governor’s budget proposal is a starting point for discussions in the upcoming legislative session, and funding for some priorities remains unresolved. Funding currently included:
    • Operating Budget:
      • The full amount of $24.1 million needed in state funds to support negotiated compensation increases for faculty and staff, and other rising fixed costs, and
      • $0 million of $10.4 million requested by the Regents to support efforts to bolster student recruitment, retention, and graduation, as well as athletics and economic growth in Alaska. 
    • Capital Budget:
      • $3.25 million of $24.6 million needed in state funds for facilities and major renewals, 
      • $14 million to support research programs and priorities of Governor Dunleavy.
  • The Governor’s budget proposal also reminds us of the state’s fiscal environment, where all budget requests will be scrutinized. 
    • This year’s balanced state budget may not hold if oil prices decline. 
    • Furthermore, state funding won’t fully offset ÂÌÅ«Ì컨°å’s inflationary and fixed cost pressures, but continued durability provides time for operational changes.
  • President Pitney and the Board are grateful for state support and will continue to advocate for Regents’ priorities not included in the budget with the Legislature.
  • ÂÌÅ«Ì컨°å is key to growing Alaska’s population, and needs to be supported with an emphasis on future growth, even if K-12 populations decline. 
    • ÂÌÅ«Ì컨°å has the unique ability to draw in out-of-state and international students to help build and empower Alaska.