AK SB56

SB 56 - Alaska FY2026 Operating Budget

• Total budget of $9.03 billion for state government operating and loan program expenses for fiscal year July 1, 2025 through June 30, 2026, with $3.13 billion from unrestricted general funds and $3.40 billion from federal receipts

• Permanent Fund dividend appropriation of $2.50 billion from the earnings reserve account to the dividend fund for payment of permanent fund dividends, with an additional $1.29 billion transferred to the general fund

• Major department allocations include: Department of Health at $3.37 billion (primarily Medicaid services at $2.75 billion), University of Alaska at $1.10 billion, and Department of Transportation and Public Facilities at $644.6 million

• Retirement system contributions totaling $220 million: $79.8 million for the public employees' retirement system and $139 million for the teachers' retirement system as additional state contributions

• Authorizes up to $200 million from the Constitutional Budget Reserve Fund if unrestricted state revenue is insufficient to cover FY2025 general fund appropriations, with additional authority for FY2026 shortfalls