More money for Mat-Su schools in state budget, but governor’s approval still needed

There are three days remaining in the 2026 legislative session in Juneau and bills are moving fast in the state House and Senate, including many that are important to Mat-Su. Legislators have agreed on the state operating and capital spending budgets for next year, however.

One budget item in the House operating budget important to Mat-Su is a $115 million one-time appropriation for school districts that would work out to approximately $16 million for the Matanuska-Sustina Borough School District, according to calculations by the school district. There is an additional $2 million to help the district offset higher energy costs, so the total new money amounts to about $18 million.

This will take a big bite out of the district’s estimated deficit of $28 million for next year, but additional reductions are still needed, Mat-Su school officials said. Gov. Mike Dunleavy must still approve the state budget.

The school board had asked the borough assembly for a $6.1 million special appropriation beyond the borough’s required contribution to schools to help keep three schools open. The assembly was unable to meet the request, so the district is now proceeding with plans to close the Larson, Meadow Lakes and Glacier View elementary schools.

Whether having the $18 million in new state funds will lead the school board to keep the three schools open in unknown. The board must finalize the budget by June 3.

On another budget matter, the budget includes full funding for state support for municipal school debt service, or a portion of interest payments due on bonds sold to finance nee schools. This is important because last year the Legislature short-funded the state support, which left local taxpayers paying more on the bond debt service.

School bonds are a municipal obligation and once bonds are sold local governments and local taxpayers are legally obligated to make payments. The state support is not legally binding, however. If the state doesn’t make the full payment, which happened last year, local residents pick up the tab.

Other bills of local and regional interest have been approved or are in advanced stages of approval in the Legislature. Rep. DeLena Johnson, R-Palmer, has taken a bit of teasing over her House Bill 302, designating the giant cabbage as the official state vegetable. The bill passed the House unanimously on May 13 and is now in the Senate Rules Committee.

Johnson is a veteran legislator and is now Minority Leader in the state House. While not as important as other legislation, Johnson sees her bill as an economic development measure that focuses attention on agriculture in Alaska, where farmers are known for raising big vegetables during the long summer days. Constituents in her Palmer district asked her to introduce the bill, Johnson said during a hearing earlier this year.

A bill to step up training requirements for Certified Nurse Assistants, House Bill 244 by Rep. Elexie Moore, R-Wasilla, has passed the House is was scheduled to be given a final vote in the Senate on May 19.

Another bill, by Rep, Jubilee Underwood, R-Wasilla, would streamline the process of transfer of vehicle titles. House Bill 249 has also passed the House and was also scheduled May 19 for a final vote in the Senate.

Other bills by Mat-Su legislators are advancing but given the pending adjournment may not pass by Wednesday night. House Bill 325 by Rep. Kevin McCabe, R-Big Lake, would resolve legal uncertainties over whether industrial hemp grown in Alaska complies with changes in federal standards.

McCabe introduced the bill in late February and guided it through the House Labor and Commerce and Judiciary committees. HB 325 is now in the House Rules Committee, the final stop before being voted by the full House of Representatives. But even if it makes it through the House the bill must still pass the Senate which now appears doubtful given the short time left before adjournment.

McCabe did score a victory with his House Joint Resolution 14, supporting the completion of the Point MacKenzie rail extension and a northern rail extension from Fairbanks east to Fort Greely. The resolution passed the state House unanimously and was approved by the state Senate 18-2.

While resolutions do not have the force of law they are expressions of state support and important in securing federal grants for the rail extensions. An application for federal fund for the Port Mackenzie extension is pending.