(The Center Square) – The Alaska Senate passed an operating budget this week that would include $1,582 in Permanent Fund Dividend, less than the House of Representatives recommended.
The House Finance Committee previously approved a PFD payout of $2,300. Last year’s PFD was $1,312.
The budget also includes an additional $174.7 million in additional education funding beyond the base student allocation, which equates to a one-time funding increase of $680 per student. The BSA increase was included in Senate Bill 140 which Gov. Mike Dunleavy vetoed early this year.
The 2025 fiscal year budget is based on an average cost of $78 per barrel of oil. The Senate proposed measures to split any surplus revenue between savings and energy relief checks for Alaska taxpayers that would be issued in the fall of 2025, according to a news release from the Senate Majority.
The energy relief payments would cap out at $500 per check.
Any surplus above $93 per barrel would go to the state’s main savings account, they said.
The $6.25 billion operating budget approved by the Senate leaves a surplus of $196 million for pending legislation.
“Our focus remains on delivering a balanced and reasonable budget that reflects our commitment to responsible fiscal management and positions the state for future economic growth,” said Senate President Gary Stevens, R-Kodiak. “We need to be prepared to ride through future oil revenue fluctuations and deliver the services Alaskans expect and deserve, including providing a healthy PFD.”
Senators also approved $7.3 million for additional school transportation costs, $5.2 million for the Alaska Reads Act which targets K-3 reading, and another $5.2 million for Head Start to match federal funds.
The budget would also put $30 million toward Community Assistance for 2025-2026 to help lower local property taxes, according to the bill.
In a move to increase access to childcare, the budget puts $7.5 million toward grants for childcare providers. It also includes $15 million for in-home and personal care assistant services.
The municipal homeless shelter in Anchorage would get $4 million for summer operations, and $1.3 million would be allocated for the Central Region to recruit and hire highway and aviation staff for snow removal, according to the bill.
“Our budget reflects our commitment to addressing pressing issues facing Alaskans,” said Senate Finance Co-Chair Sen. Bert Stedman, R-Sitka. “From providing over $190 million in additional dollars for education to enhancing many critical state services, we’ve done a good job allocating our limited resources to meet the diverse needs of our state. By delivering a balanced budget, we’re focused on enhancing the financial health of our state and preserving the long-term prosperity of Alaska.”
The budget is now back in the House where it originated. A conference committee will hash out the differences between the two chambers.
