Summer is here and the 2023 Legislative Session has come to an end. The completion of the budget was a little behind schedule, and as usual, there has been drama around finalizing and passing the operating and capital budget. I’ll explain more about that below, but aside from the budget, here’s some perspective on some other things that we have achieved: 

We passed our Senate Bill 25, which is meaningful legislation to sweep and close out unused accounts. This bill is a cousin of a bill that we passed last year to reduce and eliminate the number of redundant or unnecessary publications, documents and reports generated by our state government. SB 25 uses the same biennial review cycle as our previous bill, but instead of reports and publications, SB 25 focuses on eliminating accounts that are no longer needed. The impact of both of these documents over time will save money and simplify operations, and received unanimous passage in both bodies. These bills are examples of our continuing efforts to drive efficiency and economy in state operations. Read more here >>  

We also made life easier for those wanting to begin training for a commercial drivers license by carrying Senate Bill 123 to the finish line. This bill which removes an outdated barrier to entry, should help in filling the estimated shortage of 500 commercial drivers that the state of Alaska desperately needs to keep people and freight moving. It passed both bodies unanimously. Click here to read more >>

The third policy proposal that crossed the finish line was the companion to my SB 33 which permanently extended Alaska’s Renewable Energy Grant Fund. Thank you to Rep. Bryce Edgmon for carrying the vehicle which passed both bodies, HB 62. This program has distributed almost $300 million to renewable energy projects in Alaska since 2008 and goes a long ways towards reducing energy costs statewide. I believe in an all-of-the-above approach to energy and this bill ensures that a successful program can move forward. Click here to read more >>

We did a lot of great work on the Senate Transportation Committee which I chair, including passing bills to prevent electric bicycles from being regulated as motorized vehicles, ensured fuel barges can continue to operate in western Alaska, and removing barriers to entry for those seeking CDL’s as I described above. There is a lot of behind-the-scenes work that I done as chair as well. This work centers around doing what we can to drive improvements in the Department of Transportation, often by sharing best practices gained during my time in the private sector. Read more about our efforts with the Port of Alaska below and learn more about our work with the Alaska Marine Highway System and the Alaska Marine Highway Operations Board (which we helped create last year) here >>

The House and Senate passed SB 48, one of the governor’s highest priority bills. SB 48 allows the Department of Natural Resources to start leasing land or entering into contracts for carbon offset projects. The bill is seen as a way to potentially create revenue from vast tracts of state owned land that are otherwise useful for revenue sources. I am on the Senate Resources committee, where we worked to ensure that the land would be put to its best use, bids would be competitive, and that we wouldn’t be locking up land if valuable resources are found in the future. This bill helps us attract capital investment from those who might otherwise shy away from Alaska and help us secure approval for other resource development and production projects critical to our economy. Click here for a link to more information >>

Passing a couple of our continuous improvement bills unanimously through the legislature was great, but we also continued to work on our bigger pieces of of fiscal policy legislation including SB 21 (Strategic Operating Plans for State Agencies) and better budgeting and spending discipline with SJR 4/SB 20 which links our spending to our state economic performance as measured using a 5 year trailing average of our state domestic product. these are big ideas that will take work and time to enact, but I remain committed to the pursuit of continued reform, transparency and optimization of our state operations.

Finally, there where many other policies that we helped shape through our efforts on committees including bills heard in the following committees that I am on (Health & Social Services, Resources, Judiciary). Alongside those bills, I also cosponsored a number of bills that are striving to do good things in our state. View those bills here >>

Thank you for following along. Look out for e-newsletters throughout the interim and, as always, stay keep up on day to day things over on my Facebook page. As always, please reach out if there is anything I can do for you! 

I was honored to work with Senator Kelly Merrick to move forward legislation establishing a specialty license plate commemorating fallen peace officers. That language (originally in my SB 26) will now be heard in the House in Senator Merrick's SB 95.

What’s happening with the budget?

The budget process has been contentious as it is every year, and this is not a big year for revenue, so there are lots of last minute negotiations around the details of how we allocate a smaller pot of money. This isn’t a perfect budget, but it is a budget that doesn’t require new taxes, dipping into our savings accounts, or overdrawing the Permanent Fund.

Passing this budget required a one-day special session. A few changes were made to the Senate version of the budget, the House then voted to concur with those changes, and both the Senate and the House gaveled out. 

The Operating Budget this year provides a path for Alaska to pay back our savings, educate our children, work through executive branch backlogs, attract tourism, and possibly increase the state’s credit rating.

The capital budget accomplishes six main goals:

  1. Balance the budget
  2. Maximize federal funds and provide grant writers for communities the ability to secure federal grants
  3. Establish food security and resource preservation
  4. Strengthen statewide energy programs
  5. Address our deferred maintenance needs
  6. Fund a number of projects important to communities around the state, two of which are in our district! (see below)


Here’s some details of what is in the final, revised concurrence budget: 

  • Balanced budget with a small surplus, assuming revenue at $73 a barrel 
  • Not drawing from our savings (Assuring $2.4 billion in CBR currently).
  • If oil revenue does come in higher than projected, we would have the opportunity to invest that extra revenue in capital projects next Spring.
  • The Senate’s budget does not require new taxes nor dipping into savings to balance.
  • Three highlights of the the capital budget: 
    • $75 Million for the Port of Alaska modernization project.
    • (In our district) $447,500 for Hillside Limited Road Service Area drainage and ditching projects.
    • (In our district) $200,000 for critical fire prevention and mitigation projects on the Hillside
  • A $175 million increase for K-12 funding outside of the foundation formula (equal to a one-time $680 BSA increase).
  • A roughly $1,304 Permanent Fund Dividend.
  • “Waterfall” language: If oil prices are higher than Spring Forecast ($73 barrel), $636.4 million gets split between an energy relief payment (up to $500 per person) and the state’s Constitutional Budget Reserve.

Senate Transportation in the Interim

Senate Transportation Committee meetings are done for the session. During the coming interim, I will be doubling down on the Port of Alaska and the Alaska Marine Highway issues that we have been working on all year.

Last year, I was closely involved in the effort to secure $200 million in state grants distributed over two years to the Port modernization project. Since the first year’s funding went out, further federal grants have been leveraged and the a new phase of the project is beginning. I am happy to report that the last lump sum of $75 million in state capital grants is in the final version of the budget that passed yesterday. That grant will be distributed beginning July 1st.

While the project has been through rocky times in the past, the Port managers have made huge strides over the last year to ensure that federal, state, and municipal funds will be expended efficiently, effectively, and under a solid management plan. I look forward to continuing to work with the Municipality and the Port project managers to ensure the project continues to progress well. 

Three Bills Passed!

I am excited to report that three of my bills passed this session and are now on their way to the Governor’s desk to be signed into law! For each I want to thank the community members, constituents, staff, and my House colleagues who sponsored companion legislation for working so hard to get these great pieces of legislation to the finish line.

Repeal of a Barrier to Entry for Prospective Truck Drivers | SB 123 | PASSED
SB 123, sponsored by the Senate Transportation Committee, removes an unnecessary barrier to obtaining a Commercial Driver’s License to help address the over 500 trucker shortage in Alaska. Now, whether you are coming in from a remote community of Alaska with limited DMV access, new to the country, or just waited longer than normal to get your regular driver’s license, you will be able to begin pursuing your Commercial Driver’s License without holding that regular license for a year. Alaskans are ready to work, and this bill helps our state attract drivers to fill jobs in industries critical for food security, construction, transportation of goods, mining, oil, and gas. Click here to learn more >>

Repeal of Unused Funds and Accounts | SB 25 | PASSED
This bill cleans up our books, deleting fund accounts that we no longer use and establishes a mechanism to repeat this clean up process every two years to help get our books up-to-date. It passed both the House and Senate unanimously and is now on its way to the Governor’s desk! Check out the bill documents here >>

Renewable Energy Grant Fund | SB 33/HB 62 | PASSED 
The Renewable Energy Grant Fund (REF) ensures that communities facing higher-than-average energy prices can continue leveraging REF Grants to pursue cheaper renewable alternatives. Rep. Edgmon’s House version of my bill passed both legislative bodies and is now headed to the Governor’s desk!

End of Session Bill Status Report

I have a number of other bills that have been making their way through the process. We will continue to work on them over the interim and look forward to having further committee hearings next January. 

GDP-Based Spending Cap | SJR 4/SB 20 & HJR 2 / HB 38
Senate Bill 20 is a functional state spending cap, which constructively links our private sector performance (measured by GDP) and government spending. An effective limit like this one creates stability and predictability in our budgeting process – in economic boom years, extra revenues are pushed forward, preventing the need for drastic cuts in economic bust years. This bill contributes to steady capital projects which allow Alaska to train and retain qualified labor while catching up on building our state.

Senate Bill 20 was heard by the Senate Judiciary Committee on April 5th. You can watch the meeting here and can find all the documents online here.

The House Companion legislation, HJR 2 and HB 38, carried by Representative Will Stapp is currently in the last step of House Finance and is priority of the Speaker of the House. We look forward to continuing to work this and hopefully can get it passed next year.

The Executive Budget Act | SB 21
Senate Bill 21 restructures strategic planning, performance management, and budgeting processes to help make state government more efficient. SB 21 was moved out of the Senate State Affairs Committee and will have its first hearing in the Senate Finance Committee next session. 

Citizens’ Advisory Commission on Federal Areas | SB 34
For decades (until it sunset last year), CACFA monitored federal actions and ensured that individual Alaskans had a resource to understand and engage constructively with federal decisions that effected them. Senate Bill 34 was moved out of the Senate Resources and is now awaiting its second hearing in the Senate Finance Committee. Learn more here >>

Fallen Peace Officer Memorial License Plates | SB 26 & SB 95
In honor of Alaska Law Enforcement Week, Senator Kelly Merrick and I worked together to put my bill creating specialty license plates honoring fallen peace officers into her Senate Bill 95, which passed the Senate with resounding support on May 16th. I am honored to be able to lead my Senate Colleagues to take this timely action in support of the men and women who gave their lives protecting our communities. Senate Bill 95 will be heard in its first House committee next session.   

Insurance Data Security | SB 134
Cyberattacks are an unfortunate reality in our increasingly digitized world. Senate Bill 134 is intended to address this issue by protecting the sensitive personal information that many Alaskans entrust to private insurance companies. We look forward to hearings on it next session.

State Lottery Board | SB 150
With all of the talk of new revenues and new taxes, I proposed the creation of a State Lottery Board. This is a safe way to raise voluntary revenues through the participation in multi-state lotteries. This will be developed further as we move forward.

Permanent Fund + Dividend Constitutional Resolution | SJR 9
This would provide constitutional clarity surrounding a firm limit on the amount of money that could be spent from the Permanent Fund in a given year, and the dividend would be guaranteed by a state law. Any modifications to the law must be approved by voters.

Take a Moment to Catch Up:

Congratulations to our Service High and South High Class of 2023 Graduates! Proud of these young adults for their years of hard work that led to this achievement. 

You can see archived livestreams of each graduation here >>

 
Congratulations to the first class of 2023 Alaska Military Youth Academy Graduates. Your hard work has paid off!  

 

Volunteer Opportunity: National Trails Day – Gasline Trail Brushing

What: Volunteers will be brushing out trail corridor on this well-used trail in Chugach State Park. Volunteers will meet at the Prospect Heights Trailhead.
When: Saturday, June 3rd, 2023, 9am – 1pm
Where: Gasline Trail, Prospect Heights Trailhead, Anchorage, AK 99516, USA
Learn more and RSVP here >>

 

Volunteer Opportunity: Falls Creek Trail Brushing Day

What: Volunteers will help clear brush off this beautiful trail that leads to an alpine lake and incredible views of the mountains and Turnagain Arm.
When: Saturday, June 17, 2023
Time: 10am – 4pm
Where: Falls Creek Trail, Falls Creek Trail, Seward Hwy, Anchorage, AK 99540
Learn more and RSVP here >>

 

May 15 was Peace Officer Memorial Day. Everyday, the brave men and women who protect our communities put themselves in harm’s way to keep the rest of us safe. I join my fellow Alaskans in remembering those who gave their lives and thanking all who continue serve.

Read more about the 69 peace officers who have died in the line of duty >>

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