🕛 End of Regular Session

Wednesday, May 27th, 2026

I'm so thankful I could come home for Chugiak High School's anniversary! I got to present several citations to the school, sports teams, and to Principal Hatswell, the 2025 Region IV Principal of the Year. I was also able to be home to present neighbor Stacey, the 2026 School Nurse of Excellence, with a citation.

We had our annual Joint Armed Services Committee meeting to hear updates from the service branches in Alaska in early May.

Friends & Neighbors in District L --

Both chambers of the Legislature were adjourned before 10pm on Day 121, May 20th. At that point, we'd already received the Governor's call for a special session, which started on May 21st at 10am. I missed the start, having rushed to see my son graduate from High School. I am over the moon, so proud, teary-eyed, and can't wait to see where life takes him next (hopefully home)!

💸 FY2027 BUDGETS

The Governor has 15 days, excluding Sundays, to line-item veto the budgets after he receives them.

We passed a very reasonable operating budget based on an average oil price of $75 per barrel. Prices are anticipated to remain above that, and the budget includes several "waterfall" provisions tied to higher oil revenue. For example, if oil prices average above $80/barrel between July and the end of the year, an additional $10m will be appropriated to the Port of Alaska to help offset increasing surcharges. Other provisions include funding for certain education-related expenses.

These waterfall provisions also help us prepare for and fund the FY26 supplemental budget. Supplemental budgets are always difficult to predict because there are so many variables - from wildfires and natural disasters to unexpected emergency costs and rising operational expenses. Governor Dunleavy's FY25 supplemental budget request was approximately $500m, the largest in state history. Making sure we have funds available to meet those obligations at the end of the fiscal year was a critical consideration as we worked to build a responsible and balanced FY27 budget.

FY27 surplus – $44m left for next year's supplemental. The legislature did not accept the Governor's proposed deficit budget that would have relied significantly on savings to fund.

The capital budget (SB 214 ) is lean and focused on federal match and statewide deferred maintenance. Our schools, courts, university buildings have been sorely neglected over the years.

Unfortunately, there are no individual district projects (CAPSIS) in this year's capital budget. But all areas of the state will benefit from investing in infrastructure. Repairs only get much more expensive the longer they are put off.

Capital Budget Highlights:

$32.5m for University deferred maintenance – funds the top 18 projects requested
$93.6m for K-12 deferred maintenance – funds the top 33 projects requested
$15m for the Port of Alaska
$9+m for Workforce Development – prepping our workforce for a gasline
$2m each for ASMI and ATIA
$10+m for Mt. Edgecumbe – our state boarding school
$9.3 Renewable Energy Fund – top 9 projects requested
$500k for the Arctic Winter Games

🛢️ Special Session

This Special Session is centered on the liquid natural gas (LNG) pipeline project. The Governor submitted his bill in late March, and the Senate Resources committee had been working on the bill about 3 hours a day (at least!) for the last month of session. You can watch their 36 hearings her e. They passed out their version and the Senate Finance Committee was able to have one hearing before the end of the regular session.

Both Finance Committees started their work on the legislation today! The Senate will meet in the mornings and the House in the afternoons, so we can make best use of presenters' time. I'll be traveling back and forth between Juneau and home as needed.

⌚ SB26 - Eliminate Daylight Saving Time: Stalled in House Finance in the last week of session. This just wasn't a priority for House Leadership with the gasline bill finally before that committee. I'm incredibly disappointed it didn't pass, but will be raring to go again next year.
✒️ SB164 - Eliminate Tax Discounts: On the last day of session, the House passed this one, and it'll be on its way to the Governor shortly. This will increase revenue to the state without new taxes!
👮 SB242 - DPS & Muni Contracts: This legislation will help jurisdictions contract with the Troopers to increase public safety in their area. I will pre-file this bill again next year.

As Chair of Community & Regional Affairs, a few of the concepts we added into other bills also passed, lowering some municipal repayment interest rates and decreasing the city council size for small communities. These are great for local governments.

My office also worked on the increase to unemployment benefits, which haven't seen an increase in 17 years. The UI Trust Fund is overfunded; this money needs to be back in our economy when needed.

💭 THOUGHTS FROM YOU

I had many people reach out asking to override the Governor's veto of HB78, the pension bill. These mostly came after that vote had already taken place, but I did support the override, though it feel short of succeeding by seven votes.

I would love to hear from you! The best way to share your thoughts is to email me at sen.kelly.merrick@akleg.gov.

If I can be of service, please do not hesitate to contact me.

Senator Kelly Merrick
Senate District L - Chugiak/Eagle River

34th Legislature, Second Session - By the Numbers:
Sen. Merrick attended 150+ Committee Meetings
The Legislature passed 75+ Bills & Resolutions

HB1 - Specie as Legal Tender
HB10 - Add Faculty Member to UA Board of Regents
HB13 - Municipal Property Tax Exemptions
HB14 - Repeal Catastrophic Illness/Med Assist
HB23 - State Commission for Civil Rights
HB25 - Disposable Food Service Ware
HB26 - Statewide Public & Community Transit Plan (Vetoed)
HB27 - Medical Major Emergencies; CPR Curriculum
HB28 - EDU: Schools/Teachers/School Bd/Loan Prgm
HB33 - Conflict of Interest: Bds Fisheries/Game
HB36 - Foster Children: Psych. Treatment/Homes
HB39 - Education for Deaf & Hard of Hearing
HB48 - Civil Legal Services Fund
HB50 - Snow Classics
HB52 - Minors & Psychiatric Hospitals
HB73 - Complex Care Residential Homes
HB78 - Retirement Systems; Defined Benefit Option (Vetoed)
HB79 - Vic Fischer Marine Park; Research Program
HB93 - Residency Req: Hunting, Trapping, Fishing
HB96 - Home Care Employment Standards Adv Board
HB110 - Social Work Licensure Compact
HB117 - Elec Monitor Trawl Fishery/Set Net Permit
HB126 - Reinstatement Native Corps/ANCSA Reports
HB133 - Payment of Contracts
HB176 - University of Alaska Fees
HB185 - AIDEA Workforce Housing Dev; Muni Tax
HB195 - Pharmacists; Physician Associates
HB216 - Transfer of Railroad Land to Whittier
HB221 - Arts & Culture Day
HB239 - Omnibus Crime Bill
HB244 - CNA Training
HB246 - Special Education Service Agency Funding
HB249 - Transfer Vehicle Title to Insurer
HB262 - Number of Superior Court Judges
HB265 - Mental Health Budget
HB278 - Alaska-Ireland Trade Commission
HB280 - Apportion Taxable Income
HB289 - Supplemental Budget
HB298 - Leg Ethics Committee & Proceedings
HB302 - Travel Insurance; UI Benefits
HB314 - Arch, Eng, Surveyors; Reg Int Design
HB363 - Alcohol: Patriotic Orgs; Club Licenses
SB9 - Surrender of Infants; Inf. Safety Device
SB21 - AK Work & Save Program; PFD Investment Acct
SB23 - Civics Education
SB24 - Tobacco/Nicotine/E-Cig Age; E-Cig Tax
SB29 - Big Game Comm. Svs Bd/Bd Dental Examiners
SB40 - Hispanic Heritage Month
SB41 - Public Schools: Mental Health Education
SB63 - Local Boundary Commission
SB64 - Elections (Vetoed)
SB79 - Payment of Wages; Payroll Card Account
SB86 - Money Transmission; Virtual Currency
SB89 - Physician Assistant Scope of Practice
SB104 - Vehicles/Boats; Transfer on Death Title
SB130 - Fisheries Prod Dev Tax Credit
SB143 - School Bd Terms, Training; City Councils
SB146 - REAA & Small Muni Fund; Mt. Edgecumbe
SB163 - Repeal Certain Inactive Funds/Accounts
SB164 - Eliminate Tax Discounts
SB167 - PFD Eligibility; PFD for Overturn Convic.
SB174 - Invasive Species Management
SB178 - Expand Early Intervention Services
SB181 - Employment Information Disclosure
SB187 - Prohibit Food Dyes
SB192 - Evacuation Designation Levels
SB200 - Muni: Svs Areas; Farm & Agricultural Land
SB208 - Agricultural Land; Hemp; State Vegetable
SB214 - Capital Budget
SB230 - Refuges/Habitat Areas/Public Use Area
SB237 - Electronic Driver's Licenses/Data Sharing
SB239 - Motor Vehicle Registration
SB249 - Virtual Currency Kiosks
SB252 - UCC: Secured Trans.; Electronic Records
SB258 - Contract: Licensing Software Applications
SB272 - Health Information Exchange
SB282 - Jt. Armed Services Committee
HCR4 - Myositis Awareness Month
HCR9 - Declaration of Independence Anniversary
HCR11 - Extend West Coast Storm Disaster
HJR14 - Port MacKenzie & Northern Rail Extension
HJR18 - Urging Support for AKLNG
HJR20 - Hiring of Apprentices/Veterans
HJR28 - Support Kids Online Safety Act
HJR29 - Ban on Russian Seafood
HJR32 - Rural Health Transformation Program
HJR38 - Public Safety Telecommunicators
HJR39 - Waive Visa Fees for Teachers
HJR44 - Support Native Corp Business Develop Prgm
HJR45 - Support Special Education Funding
HJR46 - Typhoon Halong; Support Comm. Relocation
SCR12 - Extend West Coast Storm Disaster
SCR17 - Regional Educational Attendance Areas
SCR19 - Extend West Coast Storm Disaster
SJR20 - Clean Up Marine Debris
SJR30 - Support Military & Increase Infrastructure
SJR30 - Military & Increase Infrastructure
SR4 - 250th Anniversary of United States

The Governor has not received most of these pieces of legislation and may still veto when he does.

The Permanent Fund Corporation has been publishing a series on Myths & Facts about the Fund in their newsletter. You can read them here.

907-465-3777
Alaska State Capitol, Room 504

Juneau, Alaska 99801

907-269-3630
ANC LIO, 1500 W. Benson Blvd., Ste. 216
Anchorage, AK 99503

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🕛 End of Regular Session

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