Alaska Legislature Monday roundup: Pensions, budgets, Medicaid, and major policy bills

By SUZANNE DOWNING

Feb. 9, 2026 – It’s a full slate in the Alaska Legislature on Monday, Feb. 9, with lawmakers taking up major proposals on pensions, spending, criminal law, and energy infrastructure — several of them with long-term implications for the state’s finances and public policy direction.

The Senate Finance Committee will take up an overview of the Public Employees’ Retirement System and Teachers’ Retirement System, the latest step in the rapid movement of HB 78, legislation that would reopen the door to a traditional defined-benefit pension option for public employees.

Unions and Democrats say it would help with recruitment and retention, but factually it would burden Alaska with a costly retirement structure, not that much different than the one that left the state with billions in unfunded liabilities. The combined PERS/TRS unfunded pension obligation remains roughly $7.22 billion, and lawmakers are already debating new revenue [read: taxes] options this session.

The bill’s quick pace has raised concerns that the state may be rushing toward long-term financial commitments that could eventually drain what is left of Alaskans’ Permanent Fund dividends.

Also Monday, the House Finance Committee will hear two of the Legislature’s most significant annual spending bills:

• HB 263 — Operating Budget and Supplemental Appropriations

• HB 265 — Mental Health Budget

These bills shape the core funding priorities of state government, from agency operations to public services.

House Finance will also receive a Medicaid Rate Review Study presentation from Guidehouse, part of ongoing scrutiny of Medicaid costs and reimbursement structures, a major driver of Alaska’s overall budget growth.

In Senate Judiciary, lawmakers will hear HB 101, sponsored by Rep. Andrew Gray, which would raise Alaska’s age of consent to 18.

The bill would make it illegal for adults to engage in sexual relations with 16- and 17-year-olds, closing what Gray views as a gap in current law.

Meanwhile, Senate Labor and Commerce will hear:

• SB 81 — Public Employer Pension Contributions

This bill deals with how much public employers, and ultimately the state, contribute toward retirement obligations. With pension policy once again front and center this session, SB 81 fits into the broader debate over whether Alaska can afford expanded retirement commitments.

Energy policy is also on the agenda in Senate Resources with:

• SB 180 — LNG Import Facilities

The bill addresses the development and regulation of liquefied natural gas import infrastructure, an issue gaining attention as Alaska communities face high energy costs and long-term questions about supply and access.

Several of these measures could have lasting consequences for Alaska’s fiscal future, public safety laws, and economic development — and many are moving quickly through the process.

HB 78 heads to Senate Finance as Democrats push to revive pension-style retirement plan