APPROP: MENTAL HEALTH BUDGET

Enrolled HB 265
LAWS OF ALASKA

2026

Source Chapter No.
CCS HB 265 _______

AN ACT

Making appropriations for the operating and capital expenses of the state's integrated
comprehensive mental health program; and providing for an effective date.

_______________

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:

THE ACT FOLLOWS ON PAGE 1

-1- Enrolled HB 265

AN ACT

Making appropriations for the operating and capital expenses of the state's integrated 1
comprehensive mental health program; and providing for an effective date. 2
_______________ 3
(SECTION 1 OF THIS ACT BEGINS ON PAGE 2)4

CCS HB 265, Sec. 1
-2-

* Section 1. The following appropriation items are for operating expenditures from the 1
general fund or other funds as set out in the fiscal year 2027 budget summary for the 2
operating budget by funding source to the agencies named for the purposes expressed for the 3
fiscal year beginning July 1, 2026, and ending June 30, 2027, unless otherwise indicated. 4
Appropriation General Other 5
Allocations Items Funds Funds 6
* * * * * * * * * * 7
* * * * * Department of Administration * * * * * 8
* * * * * * * * * * 9
Legal and Advocacy Services 4,318,500 3,894,900 423,600 10
Office of Public Advocacy 2,892,500 11
Public Defender Agency 1,426,000 12
* * * * * * * * * * 13
* * * * * Department of Corrections * * * * * 14
* * * * * * * * * * 15
Community Residential Centers 6,970,500 6,970,500 16
Community Residential 6,970,500 17
Centers 18
Health and Rehabilitation Services 10,209,500 9,707,800 501,700 19
Behavioral Health Care 8,565,600 20
Substance Abuse Treatment 1,643,900 21
Program 22
* * * * * * * * * * 23
* * * * * Department of Education and Early Development * * * * * 24
* * * * * * * * * * 25
Education Support and Admin Services 532,200 377,800 154,400 26
Student and School 532,200 27
Achievement 28
* * * * * * * * * * 29
* * * * * Department of Family and Community Services * * * * * 30
* * * * * * * * * * 31
1 Appropriation General Other
2 Allocations Items Funds Funds
CCS HB 265, Sec. 1
-3-

Alaska Psychiatric Institute 22,237,600 22,237,600 3
Alaska Psychiatric 21,575,600 4
Institute 5
Facility Rent, Operations, 662,000 6
and Maintenance 7
Children's Services 2,226,900 2,226,900 8
Children's Services 69,500 9
Management 10
Front Line Social Workers 148,500 11
Family Preservation 726,000 12
Foster Care Augmented Rate 500,000 13
Foster Care Special Need 782,900 14
Juvenile Justice 1,770,900 1,670,900 100,000 15
McLaughlin Youth Center 989,800 16
Fairbanks Youth Facility 143,300 17
Bethel Youth Facility 211,800 18
Probation Services 326,000 19
Juvenile Justice Health 100,000 20
Care 21
Departmental Support Services 8,288,300 7,799,000 489,300 22
Coordinated Health and 8,288,300 23
Complex Care 24
* * * * * * * * * * 25
* * * * * Department of Health * * * * * 26
* * * * * * * * * * 27
Behavioral Health 58,842,700 57,033,100 1,809,600 28
Behavioral Health Treatment 36,461,100 29
and Recovery Grants 30
The amount appropriated by this appropriation includes the unexpended and unobligated 31
balance on June 30, 2026, of the Alcohol and Other Drug Abuse Treatment & Prevention 32
Fund, the Recidivism Reduction Fund, and the Marijuana Education & Treatment Fund for 33
1 Appropriation General Other
2 Allocations Items Funds Funds
CCS HB 265, Sec. 1
-4-

taxes collected under AS 43.60.010 and AS 43.61.010. 3
Alcohol Safety Action 1,311,100 4
Program (ASAP) 5
Behavioral Health 10,720,300 6
Administration 7
Behavioral Health 6,710,300 8
Prevention and Early 9
Intervention Grants 10
Alaska Mental Health Board 1,036,300 11
and Advisory Board on 12
Alcohol and Drug Abuse 13
Suicide Prevention Council 626,200 14
Residential Child Care 1,614,400 15
Behavioral Health Facility 363,000 16
Operations and Maintenance 17
Health Care Services 283,000 283,000 18
Health Facilities Licensing 128,700 19
and Certification 20
The amount allocated for Health Facilities Licensing and Certification includes the 21
unexpended and unobligated balance on June 30, 2026, of general fund program receipts 22
collected for biennial license fees issued under AS 47.32.050. 23
Residential Licensing 154,300 24
Public Health 5,133,000 4,516,200 616,800 25
Women, Children and Family 2,181,000 26
Health 27
Emergency Programs 700 28
Chronic Disease Prevention 2,604,800 29
and Health Promotion 30
Bureau of Vital Statistics 74,500 31
Public Health Facility 272,000 32
Operations and Maintenance 33
1 Appropriation General Other
2 Allocations Items Funds Funds
CCS HB 265, Sec. 1
-5-

Senior and Disabilities Services 18,309,200 16,506,300 1,802,900 3
Senior and Disabilities 1,180,600 4
Community Based Grants 5
Early Intervention/Infant 13,444,500 6
Learning Programs 7
Senior and Disabilities 2,155,900 8
Services Administration 9
General Relief/Temporary 740,300 10
Assisted Living 11
Commission on Aging 271,000 12
Governor's Council on 474,400 13
Disabilities and Special 14
Education 15
Senior and Disabilities 42,500 16
Services Facility 17
Operations and Maintenance 18
Medicaid Services 82,155,800 82,155,800 19
Medicaid Services 82,155,800 20
It is the intent of the legislature that the Department of Health augment the rates for 21
adolescent behavioral health treatment services provided by Level 3 residential programs as 22
certified by the American Society of Addiction Medicine to reflect the additional costs of 23
caring for youth. 24
It is the intent of the legislature that the Department of Health increase the rate per service 25
increment of private duty nursing services from $20.00 to $30.00 for Registered Nurses, and 26
from $18.75 to $26.25 for Licensed Practical or Vocational Nurses. 27
* * * * * * * * * * 28
* * * * * Department of Labor and Workforce Development * * * * * 29
* * * * * * * * * * 30
Commissioner and Administrative 25,900 25,900 31
Services 32
Labor Market Information 25,900 33
1 Appropriation General Other
2 Allocations Items Funds Funds
CCS HB 265, Sec. 1
-6-

Vocational Rehabilitation 100,000 100,000 3
Vocational Rehabilitation 100,000 4
Administration 5
The amount allocated for Vocational Rehabilitation Administration includes the unexpended 6
and unobligated balance on June 30, 2026, of receipts from all prior fiscal years collected 7
under the Department of Labor and Workforce Development's federal indirect cost plan for 8
expenditures incurred by the Department of Labor and Workforce Development. 9
* * * * * * * * * * 10
* * * * * Department of Law * * * * * 11
* * * * * * * * * * 12
Civil Division 100,100 100,100 13
The amount appropriated by this appropriation includes the unexpended and unobligated 14
balance on June 30, 2026, of inter -agency receipts collected in the Department of Law's 15
federally approved cost allocation plan. 16
Health, Safety & Welfare 100,100 17
* * * * * * * * * * 18
* * * * * Department of Natural Resources * * * * * 19
* * * * * * * * * * 20
Administration & Support Services 6,438,200 6,438,200 21
Mental Health Trust Lands 5,542,400 22
Administration 23
Mental Health Trust Lands 895,800 24
Facility Operations and 25
Maintenance 26
* * * * * * * * * * 27
* * * * * Department of Public Safety * * * * * 28
* * * * * * * * * * 29
Alaska State Troopers 60,000 60,000 30
Alaska State Trooper 60,000 31
Detachments 32
Alaska Police Standards Council 80,000 80,000 33
1 Appropriation General Other
2 Allocations Items Funds Funds
CCS HB 265, Sec. 1
-7-

The amount appropriated by this appropriation includes the unexpended and unobligated 3
balance on June 30, 2026, of the receipts collected under AS 12.25.195(c), AS 12.55.039, AS 4
28.05.151, and AS 29.25.074 and receipts collected under AS 18.65.220(7). 5
Alaska Police Standards 80,000 6
Council 7
Integrated Victim Assistance 1,617,500 1,617,500 8
Council on Domestic 1,617,500 9
Violence and Sexual Assault 10
* * * * * * * * * * 11
* * * * * Department of Revenue * * * * * 12
* * * * * * * * * * 13
Alaska Mental Health Trust Authority 6,718,500 787,100 5,931,400 14
Mental Health Trust 5,931,400 15
Operations 16
Long Term Care Ombudsman 787,100 17
Office 18
Alaska Housing Finance Corporation 200,000 200,000 19
AHFC Operations 200,000 20
* * * * * * * * * * 21
* * * * * University of Alaska * * * * * 22
* * * * * * * * * * 23
University of Alaska 3,431,800 805,800 2,626,000 24
Anchorage Campus 3,381,800 25
Troth Yeddha' Campus 50,000 26
* * * * * * * * * * 27
* * * * * Judiciary * * * * * 28
* * * * * * * * * * 29
Alaska Court System 634,800 532,800 102,000 30
Trial Courts 634,800 31
Therapeutic Courts 4,678,200 4,519,900 158,300 32
Therapeutic Courts 4,678,200 33
1 Appropriation General Other
2 Allocations Items Funds Funds
CCS HB 265, Sec. 1
-8-

(SECTION 2 OF THIS ACT BEGINS ON THE NEXT PAGE) 3

CCS HB 265, Sec. 2
-9-

* Sec. 2. The following appropriation items are for operating expenditures from the general 1
fund or other funds as set out in sec. 3 of this Act to the state agencies named and for the 2
purposes set out in the new legislation for the fiscal year beginning July 1, 2026 and ending 3
June 30, 2027, unless otherwise indicated. The appropriations in this section fund legislation 4
assumed to have passed during the second regular session of the thirty -fourth legislature. If a 5
measure listed in this section fails to pass and its substance is not incorporated in some other 6
measure, or is vetoed by the governor, the appropriation for that measure shall be reduced 7
accordingly. 8
Appropriation 9
SB 178 EXPAND EARLY INTERVENTION SERVICES 10
Department of Health 11
Senior and Disabilities Services 12
Senior and Disabilities Services Administration 13
1037 GF/MH 454,500 14
*** Total New Legislation Funding *** 454,500 15
(SECTION 3 OF THIS ACT BEGINS ON THE NEXT PAGE) 16

CCS HB 265, Sec. 3
-10-

* Sec. 3. The following sets out the funding by agency for the appropriations made in sec. 1 1
and sec. 2 of this Act. 2
New 3
Funding Source Operating Legislation Total 4
Department of Administration 5
1037 General Fund / Mental Health 3,894,900 0 3,894,900 6
1092 Mental Health Trust Authority 423,600 0 423,600 7
Authorized Receipts 8
*** Total Agency Funding *** 4,318,500 0 4,318,500 9
Department of Corrections 10
1037 General Fund / Mental Health 9,707,800 0 9,707,800 11
1092 Mental Health Trust Authority 501,700 0 501,700 12
Authorized Receipts 13
1246 Recidivism Reduction Fund 6,970,500 0 6,970,500 14
*** Total Agency Funding *** 17,180,000 0 17,180,000 15
Department of Education and Early Development 16
1037 General Fund / Mental Health 377,800 0 377,800 17
1092 Mental Health Trust Authority 154,400 0 154,400 18
Authorized Receipts 19
*** Total Agency Funding *** 532,200 0 532,200 20
Department of Family and Community Services 21
1037 General Fund / Mental Health 33,934,400 0 33,934,400 22
1092 Mental Health Trust Authority 589,300 0 589,300 23
Authorized Receipts 24
*** Total Agency Funding *** 34,523,700 0 34,523,700 25
Department of Health 26
1037 General Fund / Mental Health 129,463,000 454,500 129,917,500 27
1092 Mental Health Trust Authority 4,229,300 0 4,229,300 28
Authorized Receipts 29
1180 Alcohol and Other Drug Abuse 20,100,000 0 20,100,000 30
Treatment & Prevention Fund 31
1 New
2 Operating Legislation Total
CCS HB 265, Sec. 3
-11-

1246 Recidivism Reduction Fund 4,412,000 0 4,412,000 3
1254 Marijuana Education and 6,519,400 0 6,519,400 4
Treatment Fund 5
*** Total Agency Funding *** 164,723,700 454,500 165,178,200 6
Department of Labor and Workforce Development 7
1092 Mental Health Trust Authority 125,900 0 125,900 8
Authorized Receipts 9
*** Total Agency Funding *** 125,900 0 125,900 10
Department of Law 11
1037 General Fund / Mental Health 100,100 0 100,100 12
*** Total Agency Funding *** 100,100 0 100,100 13
Department of Natural Resources 14
1092 Mental Health Trust Authority 6,438,200 0 6,438,200 15
Authorized Receipts 16
*** Total Agency Funding *** 6,438,200 0 6,438,200 17
Department of Public Safety 18
1092 Mental Health Trust Authority 140,000 0 140,000 19
Authorized Receipts 20
1246 Recidivism Reduction Fund 1,617,500 0 1,617,500 21
*** Total Agency Funding *** 1,757,500 0 1,757,500 22
Department of Revenue 23
1037 General Fund / Mental Health 787,100 0 787,100 24
1092 Mental Health Trust Authority 200,000 0 200,000 25
Authorized Receipts 26
1094 Mental Health Trust 5,931,400 0 5,931,400 27
Administration 28
*** Total Agency Funding *** 6,918,500 0 6,918,500 29
University of Alaska 30
1037 General Fund / Mental Health 805,800 0 805,800 31
1092 Mental Health Trust Authority 2,626,000 0 2,626,000 32
Authorized Receipts 33
1 New
2 Operating Legislation Total
CCS HB 265, Sec. 3
-12-

*** Total Agency Funding *** 3,431,800 0 3,431,800 3
Judiciary 4
1037 General Fund / Mental Health 5,052,700 0 5,052,700 5
1092 Mental Health Trust Authority 260,300 0 260,300 6
Authorized Receipts 7
*** Total Agency Funding *** 5,313,000 0 5,313,000 8
* * * * * Total Budget * * * * * 245,363,100 454,500 245,817,600 9
(SECTION 4 OF THIS ACT BEGINS ON THE NEXT PAGE) 10

CCS HB 265, Sec. 4
-13-

* Sec. 4. The following sets out the statewide funding for the appropriations made in sec. 1 1
and sec. 2 of this Act. 2
New 3
Funding Source Operating Legislation Total 4
Unrestricted General 5
1037 General Fund / Mental Health 184,123,600 454,500 184,578,100 6
*** Total Unrestricted General *** 184,123,600 454,500 184,578,100 7
Designated General 8
1180 Alcohol and Other Drug Abuse 20,100,000 0 20,100,000 9
Treatment & Prevention Fund 10
1246 Recidivism Reduction Fund 13,000,000 0 13,000,000 11
1254 Marijuana Education and 6,519,400 0 6,519,400 12
Treatment Fund 13
*** Total Designated General *** 39,619,400 0 39,619,400 14
Other Non-Duplicated 15
1092 Mental Health Trust Authority 15,688,700 0 15,688,700 16
Authorized Receipts 17
1094 Mental Health Trust 5,931,400 0 5,931,400 18
Administration 19
*** Total Other Non-Duplicated *** 21,620,100 0 21,620,100 20
(SECTION 5 OF THIS ACT BEGINS ON THE NEXT PAGE) 21

CCS HB 265, Sec. 5
-14-

* Sec. 5. The following appropriations are for capital projects and grants from the general 1
fund or other funds as set out in sec. 5 of this Act by funding source to the agencies named for 2
the purposes expressed. They lapse under AS 37.25.020, unless otherwise noted. 3
Appropriation General Other 4
Allocations Items Funds Funds 5
* * * * * * * * * * 6
* * * * * Department of Health * * * * * 7
* * * * * * * * * * 8
MH Trust: Deferred Maintenance and 500,000 500,000 9
Accessibility Improvements (HD 1-40) 10
MH Trust: Home Modification and 1,150,000 1,150,000 11
Upgrades to Retain Housing (HD 1-40) 12
MH Trust: Person Centered 250,000 250,000 13
Transportation (HD 1-40) 14
MH Trust: Universal Changing Spaces 250,000 250,000 15
Assistance Fund (HD 1-40) 16
* * * * * * * * * * 17
* * * * * Department of Revenue * * * * * 18
* * * * * * * * * * 19
Alaska Housing Finance Corporation 20
MH Trust: AHFC Homeless Assistance 10,150,000 9,200,000 950,000 21
Program (HD 1-40) 22
MH Trust: AHFC Beneficiary and Special 1,950,000 1,750,000 200,000 23
Needs Housing (HD 1-40) 24
MH Trust: AHFC Rural Housing 135,000 135,000 25
Coordinator - Ketchikan (HD 1-40) 26
* * * * * * * * * * 27
* * * * * Department of Transportation and Public Facilities * * * * * 28
* * * * * * * * * * 29
MH Trust: Coordinated Transportation 700,000 700,000 30
and Vehicles (HD 1-40) 31
1 Appropriation General Other
2 Allocations Items Funds Funds
CCS HB 265, Sec. 5
-15-

(SECTION 6 OF THIS ACT BEGINS ON THE NEXT PAGE) 3

CCS HB 265, Sec. 6
-16-

* Sec. 6. The following sets out the funding by agency for the appropriations made in sec. 5 of 1
this Act. 2
Funding Source Amount 3
Department of Health 4
1037 General Fund / Mental Health 1,150,000 5
1092 Mental Health Trust Authority Authorized Receipts 1,000,000 6
*** Total Agency Funding *** 2,150,000 7
Department of Revenue 8
1092 Mental Health Trust Authority Authorized Receipts 1,285,000 9
1139 Alaska Housing Finance Corporation Dividend 10,950,000 10
*** Total Agency Funding *** 12,235,000 11
Department of Transportation and Public Facilities 12
1037 General Fund / Mental Health 700,000 13
*** Total Agency Funding *** 700,000 14
* * * * * Total Budget * * * * * 15,085,000 15
(SECTION 7 OF THIS ACT BEGINS ON THE NEXT PAGE) 16

CCS HB 265, Sec. 7
-17-

* Sec. 7. The following sets out the statewide funding for the appropriations made in sec. 5 of 1
this Act. 2
Funding Source Amount 3
Unrestricted General 4
1037 General Fund / Mental Health 1,850,000 5
1139 Alaska Housing Finance Corporation Dividend 10,950,000 6
*** Total Unrestricted General *** 12,800,000 7
Other Non-Duplicated 8
1092 Mental Health Trust Authority Authorized Receipts 2,285,000 9
*** Total Other Non-Duplicated *** 2,285,000 10
(SECTION 8 OF THIS ACT BEGINS ON THE NEXT PAGE) 11

Enrolled HB 265 -18-
* Sec. 8. PURPOSE. In accordance with AS 37.14.003 and 37.14.005, the appropriations 1
made in this Act are for the state's integrated comprehensive mental health program. 2
* Sec. 9. NONGENERAL FUND RECEIPTS. (a) Alaska Mental Health Trust Authority 3
authorized receipts (AS 37.14.036) or administration receipts (AS 37.14.036) that exceed the 4
amounts appropriated in this Act are appropriated conditioned upon compliance with the 5
program review provisions of AS 37.07.080(h). 6
(b) If Alaska Mental Health Trust Authority authorized receipts (AS 37.14.036) or 7
administration receipts (AS 37.14.036) fall short of the estimates used as the basis of the 8
appropriation, the affected appropriation is reduced by the amount of the shortfall in receipts. 9
* Sec. 10. SALARY AND BENEFIT ADJUSTMENTS. (a) The appropriations made in sec. 10
1 of this Act include amounts for salary and benefit adjustments for public officials, officers, 11
and employees of the executive branch, Alaska Court System employees, employees of the 12
legislature, and legislators and to implement the monetary terms for the fiscal year ending 13
June 30, 2027, of the following ongoing collective bargaining agreements: 14
(1) Public Employees Local 71, for the labor, trades, and crafts unit; 15
(2) Alaska Public Employees Association, for the supervisory unit; 16
(3) Teachers' Education Association of Mt. Edgecumbe, representing the 17
teachers of Mt. Edgecumbe High School; 18
(4) Alaska Vocational Technical Center Teachers' Association, National 19
Education Association, representing the employees of the Alaska Vocational Technical 20
Center; 21
(5) International Organization of Masters, Mates, and Pilots, representing the 22
masters, mates, and pilots unit; 23
(6) Alaska State Employees Association, for the general government unit; 24
(7) Marine Engineers' Beneficial Association, representing licensed engineers 25
employed by the Alaska marine highway system; 26
(8) Confidential Employees Association, representing the confidential unit; 27
(9) Inlandboatmen's Union of the Pacific, Alaska Region, representing the 28
unlicensed marine unit; 29
(10) A laska Correctional Officers Association, representing the correctional 30
officers unit; 31

-19- Enrolled HB 265
(11) Public Safety Employees Association, representing the regularly 1
commissioned public safety officers unit members within the Department of Transportation 2
and Public Facilities; 3
(12) Public Safety Employees Association, representing the regularly 4
commissioned public safety officers unit members within the Department of Public Safety. 5
(b) The appropriations made to the University of Alaska in sec. 1 of this Act include 6
amounts for salary and benefit adjustments to implement the monetary terms for the fiscal 7
year ending June 30, 2027, of the following collective bargaining agreements: 8
(1) Alaska Graduate Workers Association/UAW; 9
(2) United Academics - American Association of University Professors, 10
American Federation of Teachers; 11
(3) United Academic - Adjuncts - American Association of University 12
Professors, American Federation of Teachers; 13
(4) Alaska Higher Education Crafts and Trades Employees, Local 6070; 14
(5) Fairbanks Firefighters Union, IAFF Local 1324. 15
(c) If a collective bargaining agreement listed in (a) of this section is not ratified by 16
the membership of the respective collective bargaining unit, the appropriations made in this 17
Act applicable to the collective bargaining unit's agreement are adjusted proportionately by 18
the amount for that collective bargaining agreement, and the corresponding funding source 19
amounts are adjusted accordingly. 20
(d) If a collective bargaining agreement listed in (b) of this section is not ratified by 21
the membership of the respective collective bargaining unit and approved by the Board of 22
Regents of the University of Alaska, the appropriations made in this Act applicable to the 23
collective bargaining unit's agreement are adjusted proportionately by the amount for that 24
collective bargaining agreement, and the corresponding funding source amounts are adjusted 25
accordingly. 26
(e) Appropriations made in sec. 1 of this Act for salary and benefit adjustments as 27
described in (a) and (b) of this section are for the benefit of the state's integrated 28
comprehensive mental health program only and do not necessarily affect every group of 29
noncovered employees or every collective bargaining unit listed in (a) and (b) of this section. 30
* Sec. 11. This Act takes effect July 1, 2026. 31