SENATE FINANCE COMMITTEE April 16, 2026 9:01 a.m. 9:01:54 AM CALL TO ORDER Senator Kiehl called the Senate Finance Committee meeting to order at 9:01 a.m. MEMBERS PRESENT Senator Donny Olson, Co-Chair Senator Bert Stedman, Co-Chair Senator Mike Cronk Senator James Kaufman Senator Jesse Kiehl Senator Kelly Merrick MEMBERS ABSENT Senator Lyman Hoffman, Co-Chair ALSO PRESENT Ella Adkison, Staff, Senator Jesse Kiehl; Liz Harpold, Staff, Senator Donny Olson SUMMARY CSHB 78(FIN) am(efd fld) RETIREMENT SYSTEMS; DEFINED BENEFIT OPT. CSHB 78(FIN) am(efd fld) was HEARD and HELD in committee for further consideration. UNIVERSITY OF ALASKA FY 27 BUDGET CLOSEOUT ^UNIVERSITY OF ALASKA FY 27 BUDGET CLOSEOUT 9:02:57 AM ELLA ADKISON, STAFF, SENATOR JESSE KIEHL, explained the Budget Action items (copy on file): BUDGET ACTIONS: The Senate Finance Budget Subcommittee for the University of Alaska reviewed the governor's FY27 budget request. The following are highlights of the Subcommittee's action. Amended Budget Request: The Subcommittee accepted all items in the Governor's Amended budget. These items include: • $2,000.0 increase in University receipts to develop a land sale in Cordova. • $48,000.0 increase in various receipt authorities based on FY25 actuals. Subcommittee Additions, Reductions and Changes The Subcommittee reviewed the compensation increases for employees requested as the Board of Regent's highest priority budget item, critical for the stability of the University. The Subcommittee recommends the newly unionized staff compensation of $4,467.6 Unrestricted General Funds and $1,914.8 University receipts be added to the language section of the budget. The Subcommittee made the following changes: • $1,213.0 increase in Unrestricted General Funds and $1,037.0 of University receipts divided among the three major administrative units to support student recruitment and retention. • $1,800.0 increase in Unrestricted General Funds to fund Alaska Employee Healthcare cost increases. • $2,423.9 increase in Unrestricted General Funds, $970.1 in University receipts, and $68.8 Statutory Designated funds for non-union employee compensation increases. 9:05:09 AM Senator Cronk looked at the recruitment portion, and wondered about the differences between the regional campuses. Senator Kiehl replied that the report did not request the full regional requests for any of the three regional universities. He stated that the same proportion was applied between UGF and university receipts. Co-Chair Stedman MOVED the ATTACHED budget report. There being NO OBJECTION, it was so ordered. Senator Kiehl thanked the Legislative Finance Division. 9:07:25 AM RECESSED [ADJOURNED THE SUBCOMMITTE PORTION OF THE MEETING] 9:09:42 AM RECONVENED [CALLED TO ORDER THE BILL HEARING PORTION OF THE MEETING] CS FOR HOUSE BILL NO. 78(FIN) am(efd fld) "An Act relating to the public employees' retirement system and the teachers' retirement system; and providing certain employees an opportunity to choose between the defined benefit and defined contribution plans of the public employees' retirement system and the teachers' retirement system." 9:10:34 AM Senator Kiehl MOVED to ADOPT the committee substitute for CSHB 78(FIN) am(efd fld), Work Draft 34-LS0493\T (Wayne, 4/10/26). Co-Chair Stedman OBJECTED for discussion. 9:10:53 AM LIZ HARPOLD, STAFF, SENATOR DONNY OLSON, discussed the Explanation of Changes (copy on file): Section 8: Amends AS 14.25.050(e) to allow the Alaska Retirement Management (ARM) Board to adjust the contribution rate of Teacher Retirement System (TRS) defined benefit (DB) plan participants to a value above 12 percent but not below 8 percent. Section 33: Amends AS 14.25.480(a)(2) to require a TRS member who reaches normal retirement age, with at least 10 years of service but less than 25 years, to have been an active member for at least 12 months immediately before applying for retirement to receive medical benefits. Section 65: Amends AS 39.35.160(e) to allow the ARM Board to adjust the contribution rate of Public Employee Retirement System (PERS) DB plan participants to a value above 12 percent but not below 8 percent. Section 70: Amends AS 39.35.255(a)(1) to increase the upper limit of the PERS DB employer contribution rate from 22 percent to 24 percent. Section 92: Amends AS 39.35.870(a)(2) to require a PERS member, who reaches normal retirement age, with at least 10 years of service but less than 20 or 25 years, depending on occupation, to have been an active member for at least 12 months immediately before applying for retirement to receive medical benefits. 9:12:32 AM Co-Chair Stedman WITHDREW the OBJECTION. There being NO OBJECTION, it was so ordered. Co-Chair Stedman stated that the intent of adopting the CS was to ensure that the public testimony would be applied to the most recent version of the legislation. CSHB 78(FIN) am(efd fld) was HEARD and HELD in committee for further consideration. Co-Chair Stedman stated that the next meeting would be held the following Monday, and would be announced later the current day. ADJOURNMENT 9:14:17 AM The meeting was adjourned at 9:14 a.m.