Alaska Legislature Forms Conference Committee on $14B Operating Budget

Six Alaska lawmakers met Monday afternoon to hammer out differences between House and Senate versions of the state's fiscal year 2027 operating budget and mental health funding. The conference committee formed after the House rejected Senate changes to House Bill 265, leading House Speaker Bryce Edgmon to appoint three House members to negotiate with three senators.

The committee will work through remaining gaps in House Bill 263, the roughly $14 billion operating budget, and House Bill 265, which covers mental health appropriations. The meeting started at 4:01 p.m. on May 11, 2026. Senator Lyman Hoffman chairs the committee, with Representative Andy Josephson as vice chair.

The conference committee stage comes after both chambers passed their own versions of the bills. Differences now need negotiation between the House and Senate. In summer 2021, the Legislature created a bipartisan Fiscal Policy Working Group to tackle long-term budget sustainability after years of falling oil revenues.

Committee Adopts Matching Items

The committee first approved all appropriations and language that matched in both versions. Hoffman then moved to request limited powers from the Speaker of the House and the Senate President to negotiate what remains.

"Under limited powers, the Conference Committee may adopt any amount between zero and the high number of either the House or the Senate version of each item subject to the conference," Hoffman said.

The committee approved letters to the Speaker and Senate President requesting those powers. Legislative Finance Division staff will prepare motion sheets showing the differences between the two versions. Those sheets will be posted on the Legislative Finance Division website and updated after each meeting.

Public Testimony Window Closed

Hoffman said the committee will not take additional public input. "Both House and Senate budget processes followed for public testimony," he said. "That portion of the process is now concluded. The conference committee will not be accepting public testimony."

Only conference committee members may join the discussion or sit at the table unless the chair invites others. The committee includes Senators Bert Steadman and Mike Cronk with Hoffman from the Senate, and Representatives Calvin Schragge and Will Stapp with Josephson from the House.

Next Steps

The committee will meet again once it receives the requested negotiating powers from legislative leadership. Future meetings will be posted on the Legislature's BASIS system to give 24-hour public notice under uniform rules. Each action needs a majority vote from both the House and Senate members of the committee.