The Alaska Senate Finance Committee adopted a $13.83 billion operating budget Thursday that includes $150 energy relief payments for every Alaskan and up to $100 million in one-time grants to school districts.

The committee structured the budget to maintain a $50 million reserve for fiscal year 2027 supplementals by using a conservative oil price assumption of $73 per barrel rather than the $75 forecast. That $2 difference reduces projected revenue by $68.8 million, creating a cushion against the volatility that has plagued recent budget cycles. The approach leaves the Senate with a surplus of $51.3 million compared to the House's deficit of $385.6 million.

Pete Eklund, staff to the committee chair, walked members through the changes. The energy relief payment of $96 million will be added to the October Permanent Fund dividend. After that payment, up to $100 million will go to school districts as grants distributed through the adjusted average daily membership formula, the same method used for base student allocation funding but outside the regular formula.

"In Section 11(a)(1), there's a $150 per person energy relief payment added to the October Permanent Fund dividend at a cost of $96 million of general funds," Eklund said. "In Section 11(a)(2), after the appropriation made in (a)(1), up to $100 million of general funds to the Department of Education and Early Development to be distributed as grants to school districts following the adjusted average daily membership formula."

The budget includes an additional $29.1 million in energy relief specifically for school districts. Legislative Finance calculated the amount by taking each district's highest reported energy costs over the past three years and multiplying by 30 percent.

Alexei Painter, director of the Legislative Finance Division, presented updated fiscal projections showing how the energy and education payments would work in practice. The actual amount school districts receive depends on final revenue numbers, which will be determined using preliminary actuals as of August 31.

Under current revenue projections, school districts would receive $59.3 million of the available $100 million. If oil prices average $95 per barrel for the remainder of the fiscal year, districts would receive the full $100 million, with any surplus going to the statutory budget reserve.

The budget increases retirement system payments to meet actuarially determined contribution rates. The on-behalf payment for the Public Employees Retirement System unfunded liability rises from $75.3 million to $106.3 million, while the Teachers Retirement System payment increases from $157.2 million to $164.1 million.

The committee added $50 million to the Community Assistance Fund, bringing its fiscal year 2027 ending balance to $90 million. That ensures a $30 million payout for fiscal year 2028. An additional $20 million will fund a separate community assistance base payment intended to help communities with high fuel and shipping costs.