K-12 education is the largest program in the state, at $1.3 billion this year. K-12 funding pays for 13 grade levels, including salaries for teachers and support staff, building maintenance, books, transportation, etc. A per student formula (Base Student Allocation, or BSA) is used to distribute funds to school districts. Some additional funding is added for other factors such as cost-of-living differences. School districts also receive funding from local and federal funds.

There had been no substantive funding increases to the BSA since FY 2015. For this year, there was a one-time $340 increase to the BSA that brings the basic allotment to $5,960 per student (that then is adjusted for factors such as school location, special need students, pupil transportation cost). One national study estimated that Alaska’s K-12 spending per student is $18,732 per year, which would be 7th in the nation.

Last year the State spent $5.7 million for grants to school districts to develop/provide voluntary pre-Kindergarten programs; another $2.3 million is being spent this year. Studies show early education before kids enter kindergarten can improve school readiness and increase reading proficiency.

Full implementation of the Pre-K component of the “Alaska Reads Act” will require the State to spend $17 million, which will serve approximately 80% of 4-year-olds in voluntary Pre-K programs.

UA offers a variety of programs from vocational training to doctorates at 15 campuses and training centers around the state. Regional campuses allow people to stay close to home where they can continue to be part of their families and communities, during and after graduation.

Currently there are over 21,000 students enrolled and about 4,000 graduates annually. UA received $371 million in state funds in fiscal year 2015; between 2016 and 2022, the university’s budget was reduced $94 million. The university received some increases over the last two years and its budget now totals $308 million in state general funds. Student tuition has risen steadily over the last ten years with periodic increases of around 5%; however, tuition has largely remained frozen the last two years.

Medicaid provides health coverage and long-term care services for low-income Alaskans. It is jointly (federal and state) funded and administered by the state within federal guidelines. The State’s cost for the Medicaid program is $694 million plus an additional $1.8 billion in Federal funds.

As of last January, 262,114 Alaskans were enrolled in the program. Post-COVID, some no longer are eligible for coverage, which will reduce some costs going forward; however, the rate that the State must match Federal funds is increasing from 50% to 56.2%. At the same time and due to a lack of funding, more than 400 Alaskans with disabilities are on a waitlist to receive Home and Community Based Services.

In recent years Medicaid reform legislation has resulted in over $150 million in state cost savings annually through program efficiencies, federal tribal reimbursement, drug price negotiations, and targeted case management.

While the Federal government mandates certain services be covered under Medicaid including nursing home care when needed, it also has other services considered "optional," which range from dental services, at-home personal care services, to prescription drugs. These can be less expensive than what would otherwise be a mandatory alternative such as home care versus nursing home care or preventive dental care versus emergency. Over 90,000 Alaskans have been able to access optional services.

The Division of Senior and Disabilities Services makes grants to senior centers and other non-profits to provide community based supportive services to families and individuals experiencing Developmental Disabilities (DD), Alzheimer's Disease and related Disorders (ADRD), family caregivers of seniors aged 60 and over, grandparents raising grandchildren aged 55 or over, seniors aged 60 and over, and/or frail or disable seniors who need assistance in the home. These services are available to individuals who are waiting or do not qualify for Home and Community Based services under the Medicaid Waiver program, or who only require minimal support that can be provided by the grant services.

The Behavioral Health Division provides services that range from prevention and screening to brief intervention and acute psychiatric care at API. The State awards $11 million to organizations to provide mental health and substance misuse services.

Children’s Services is focused on ensuring the safety, permanency, and well-being of Alaska’s children by working with families and communities. The State is spending $107 million for these programs, which includes $46 million for social workers focused on child protective services, and $32 million for foster care and subsidized adoptions. Foster care subsidies are paid to families to assist with the care of children placed with them; rates are augmented for a child with special needs.

Corrections’ budget is $367 million; it operates 13 correctional centers, halfway houses, and probation/parole services. With increasing pressure to take action against growing crime, Alaska’s prisons currently are at around 80% capacity, of which about 55% are those that are awaiting trial or sentencing. Last year Alaska’s cost per prisoner was about $176/day.

About 78% of the Department of Public Safety's $242 million budget is for the Alaska State Troopers ($168 million) and Village Public Safety Officers ($21 million). The department also operates the Crime Lab ($8 million) and provides $15 million in state funds for the Council on Domestic Violence and Sexual Assault. Alaska has one of the nation’s highest rates for domestic violence. The Council awards grants for emergency shelter, victim assistance, and battery intervention programs.

The Law Department's Criminal Division prosecutes violations of state criminal law committed by adults and a large portion of the serious crimes committed by juveniles. Its budget is $46 million. The Public Defender (PD) Agency and Office of Public Advocacy (OPA) provide court-directed legal advocacy and guardian services to vulnerable Alaskans and constitutionally mandated legal representation to indigent clients charged with a crime; its budget is $74.4 million. As crime increases and more arrests made, their respective workloads increase.

The Court System’s $136 million budget includes operation of the state’s appellate, trial, and therapeutic courts. Offices and courtrooms are in 40 communities throughout the State. The system is still struggling to catch up on court cases that were delayed due to COVID.

The department's job is to protect, maintain, improve, manage, and develop the state’s fish, game, and aquatic plant resources. This is to be done in the best interest of the economy, the well-being of Alaskans, and consistent with the sustained yield principle.

Last year’s budget totaled $233 million, with only $61 million coming from the state’s general fund. The largest program is management of commercial fisheries, with a budget of $42 million in state funds; the Anchorage and Fairbanks hatcheries cost about $4.9 million in state funds. Other department programs are almost fully self-supporting through license and permit fees.

The Department of Transportation and Public Facilities has responsibility for state roads, airports, state-owned buildings, and the ferry system. This year’s budget is $168 million in general funds, of which 52% ($87 million) is for maintenance of highways, aviation, and facilities, and $70 million is to run the ferry system. Inflation is dramatically driving up costs of the commodities the department uses; when costs exceed the amount budgeted, the only option the department has is to do less maintenance, fewer repairs, and/or reduce ferry service.

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