The Senate Finance Department of Corrections Subcommittee approved a $535 million operating budget for the Department of Corrections on Wednesday, cutting in half the funding the House had added for community and regional jails.

The fiscal year 2027 budget includes $486.9 million in unrestricted general funds, $14.2 million in designated general funds, $24.3 million in other funds, and $9.6 million in federal funds. The budget supports 2,127 full-time permanent positions.

The subcommittee accepted all of the governor's budget requests but reduced the House addition for community and regional jails by 50 percent, bringing that allocation to $2.8 million. Kelly Goods, staff to Senator Olson, presented the subcommittee's recommendations.

The panel also included intent language directing the department to issue a request for information regarding housing inmates outside Alaska. The subcommittee recommended that the full Senate Finance Committee add funds to Legislative Budget and Audit to hire an outside firm to conduct an independent cost driver study for the department.

Senator Tobin moved to advance the budget from subcommittee with the attached legislative finance budget and action sheet dated April 15, 2026. The motion passed without objection.

The budget now moves to the full Senate Finance Committee for consideration.