Enacted Budget – Fiscal Year 2026
Alaska Governor Mike Dunleavy signed the state’s fiscal 2027 budget into law on June 26, while announcing a series of line-item vetoes. Total appropriations form all fund sources, including both operating and capital, are $15.63 billion, a 3.1 percent increase from fiscal 2026. The budget provides for total operating expenditures (excluding capital) of $13.10 billion in fiscal 2027, a 4.7 percent decrease from fiscal 2026. The enacted budget includes $5.57 billion in unrestricted general funds spending (a 2.5 percent decrease), $931.9 million in designated general fund spending (a 5.2 percent decrease), $2.06 billion in other spending (a 0.6 percent decrease), and $4.54 billion in federal spending (an 8.8 percent decrease). The budget also includes Permanent Fund appropriations of $782.7 million in fiscal 2027 and a Constitutional Budget Reserve of $3.02 billion (as of May 31, 2026). Additionally, the budget provides $57 million for the Disaster Relief Fund and $60.6 million for the Fire Suppression Fund. Total state revenue is estimated at $16.67 billion in fiscal 2027, a 16.7 percent decrease from estimated fiscal 2026. While unrestricted general fund revenue is projected to grow 3.6 percent in fiscal 2027, total restricted revenue is projected to decrease 26.5 percent.
The enacted budget provides needed investments in school infrastructure and additional funding to districts to offset increased energy and related costs. In signing the budget, the governor noted that unforeseen events in the Persian Gulf led to a temporary increase in oil prices, leading to higher-than-expected revenues. However, the higher oil prices also resulted in higher costs for energy and increased expenses tied to freight, construction materials, and essential maintenance. As a result, a portion of the state’s one-time revenue was directed towards addressing energy-related costs and overdue capital needs in schools.