
By Greg Knight, News of the North
A bill rejecting pay increases for state department heads, legislators, Lt. Gov. Nancy Dahlstrom and Gov. Mike Dunleavy passed the Alaska House of Representatives unanimously on Friday.
Senate Bill 87 rejects the raises recommended by the Alaska State Officers Compensation Commission. Last month, the commission recommended the governor, the lieutenant governor, department heads and legislators all receive pay increases tied to the Anchorage Consumer Price Index.
Had the increase been accepted by the legislature, the raises would have been received during the 2027 fiscal year. By statute, the legislature needed to act within 60 days, or by March 31, to reject the pay raise, or else it would have gone into effect.
“The state is currently having difficulty funding basic services, and providing to our constituents,” Rep. Louise Stutes said during final debate on the bill. “Simply put, it’s very poor timing and a very poor idea for us, as well as department heads and the lieutenant governor and governor to receive a pay increase.”
The Alaska Legislative Finance Division estimated the total cost of increasing the salaries in fiscal year 2027 to be just more than $500,000.
The Alaska State Officers Compensation Commission is directed by law to review the salaries, benefits, and allowances of members of the legislature, the governor, the lieutenant governor, and each executive department head and prepare a report on its findings at least once every two years.