On March 31, 2025, the House Finance Committee in Juneau advanced its budget amendment discussions. Despite progress in some areas, significant disagreements persist regarding the allocation for school funding and the annual Permanent Fund Dividend (PFD). The legislature faces a $680 million deficit across two fiscal years under current spending plans. While Senate leadership supports specific appropriations, including a $1,400 dividend and additional school funding, the predominantly Democratic House majority advocates for more substantial education spending, which would deepen the deficit. This divergence complicates efforts to achieve consensus.

The Alaska Legislature's House Finance Committee is navigating complex budgetary decisions amidst sharp divisions over critical expenditures. As of late March 2025, the committee debated amendments but left unresolved key issues like the size of the school funding boost and the annual Permanent Fund dividend. The legislature confronts a $680 million deficit spanning two fiscal years, incorporating a roughly $1,400 dividend and increased educational allocations. While Senate leaders favor these appropriations, the House majority proposes significantly higher education spending—over $275 million annually—potentially widening the shortfall. Additionally, caucus leaders hint at supporting a reduced $1,000 dividend to bolster state revenue.

This delicate balance is further complicated by the narrow one-seat margin within the House majority. Efforts to secure sufficient support for essential components of their proposed budget, particularly concerning the dividend, have faltered. Certain House minority Republicans insist that decisions on school funding and the PFD be finalized before the budget advances beyond the finance committee for broader House consideration. Achieving agreement on both items proves challenging given the closely divided legislative landscape.

Speaker Bryce Edgmon highlighted the difficulties posed by the slim majority amid an austere fiscal environment. He emphasized the importance of delivering meaningful dividends while also enhancing educational resources, acknowledging the considerable effort required to reconcile these priorities. According to nonpartisan Legislative Finance Division figures, the House’s preliminary draft budget for the upcoming fiscal year beginning July 1 indicates a $167 million deficit. Without substantial cuts or alternative revenue streams, House Republicans question how the budget will achieve balance.

Two concurrent budget bills currently occupy the committee's attention: the operating budget for the next fiscal year, which funds numerous state programs and agencies alongside the annual PFD, and the supplemental budget addressing unexpected expenses for the current fiscal year. The latter seeks to address an anticipated $80 million shortfall due to declining oil revenues. Although movement on the supplemental budget appears imminent, securing enough backing from House members, especially minority Republicans, to tap into savings remains uncertain.

Amendment debates extended into the evening hours, progressing through nearly half of the prepared changes. However, substantive discussions on contentious topics such as the dividend and educational allocations remained pending. Representative Andy Josephson, managing the operating budget, suggested finalizing these amounts during subsequent stages of the legislative process extending into April and May. He argued against immediate resolution within the finance committee context.

Meanwhile, concerns persist regarding affordability and constitutional implications of certain proposals. For instance, Representative DeLena Johnson criticized incremental additions without clarity on funding sources. A previous $79 million unallocated cut directed Governor Mike Dunleavy to implement reductions wherever deemed appropriate, yet legal counsel warned this approach might violate constitutional stipulations without explicit guidance.

Ultimately, the draft operating budget includes provisions for either a recurring $1,000 Base Student Allocation enhancement costing $250 million yearly or a one-time payment if permanent increases fail passage this session. Attempts to modify these contingencies met firm resistance, underscoring entrenched positions within the committee.

Despite ongoing challenges, Speaker Edgmon expressed optimism about adhering to established timelines. Lawmakers aim to exchange budget bills between chambers by April 11, maintaining momentum toward resolution despite lingering disputes. Attention now turns to balancing the current fiscal year's budget via a potential $200 million withdrawal from the Constitutional Budget Reserve, contingent upon garnering necessary support thresholds.