The Senate Finance Department of Corrections Subcommittee cut funding for community and regional jails by half Wednesday and directed the state to explore housing Alaska inmates outside the state.

The panel reduced House-approved jail funding from approximately $5.6 million to $2.8 million for fiscal year 2027. The subcommittee also included intent language requesting information on sending inmates to out-of-state facilities, a move that could mark a significant shift in Alaska corrections policy.

"The subcommittee reduced the House add for community and regional jails by 50%, which makes the number going forward, $2,795,000," legislative staff told the panel. "The subcommittee also includes intent language to issue a request for information regarding housing inmates outside Alaska."

The subcommittee advanced the Department of Corrections operating budget with $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 maintains 2,127 permanent positions.

The panel recommended the full Senate Finance Committee fund an independent study to examine what drives corrections costs. "The last recommendation is to the full Senate Finance Committee to add funds to Legislative Budget and Audit to procure an outside firm to conduct an independent cost driver study for the department," staff said.

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

The budget now moves to the full Senate Finance Committee. The House had added the community jail funding to support local detention facilities across Alaska. The Senate subcommittee's 50 percent reduction signals different priorities between the two chambers.

The request for information on out-of-state inmate housing represents a potential policy shift. Alaska has not regularly housed inmates outside the state in recent years, though some states contract with private facilities in other jurisdictions to manage prison populations.

The subcommittee accepted all of the governor's budget requests for the department. The meeting adjourned at 5:16 p.m.