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Dear Friends and Neighbors,
This is Day 1 of the First Special Session.
We are officially in Special Session called by the Governor.
This is laid out in the Alaska Constitution.
Article 2, section 9 – Special Sessions. “Special sessions may be called by the governor or by vote of two-thirds of the legislators. The vote may be conducted by the legislative council or as prescribe by law. At special sessions called by the governor, legislation shall be limited to subjects designated in his proclamation calling the session, to subjects presented by him, and the reconsideration of bills vetoed by him after adjournment of the last regular session. Special sessions are limited to thirty days.”
During Day 1, the Senate and House leadership continued our hard work to find solutions to the Operating & Capital Budget. We accomplished that.
As a result of long discussions and compromise, the Senate and House agreed to $32.4 Million additional expenditures in the Operating & Capital Budget. The expenditures are spread over the state, from small communities to large. Remaining Surplus of $34 Million of expected state revenue.
With a vote of 26-14,tonight (May 18) the House accepted this addition to the Operating & Capital Budget and concurred with the FY24 Budget. This ended the First Special Session of the 33rd Legislature on Day 1.
Senate Work in First Session
The First Session of the 33rd Legislature was very productive for the Bipartisan Senate Majority. (And so was the 1st, very brief, Special Session.)
1. We had a very productive, collegial Majority Caucus. We don’t all agree on some topics (generally “social” issues). But we are very unified on the values and policies that most Alaskans align with.
2. We passed a fully funded (balanced) budget that did not withdraw any funds from savings or overdraw funds from the Permanent Fund Earnings Reserve Account. We wholeheartedly support the Percent of Market Value (POMV) Spending Cap. No new taxes required.
3. The Senate Majority worked closely with the House Majority and Minority. We didn’t always see eye-to-eye but we didn’t give up. We found middle ground and passed a responsible, fully funded budget to the Governor, including a Dividend of about $1304 per person, with no new taxes.
4. The Senate passed a funded BSA increase for one year. This is the largest increase to K-12 in Alaska history, But even better, we passed legislation to the House for consideration that would increase the BSA in the formula permanently. The House will run it through their committee process.
5. The Senate supports a shared risk, new defined benefit pension system for state employees. We have solid evidence that a defined benefit system would greatly improve recruitment and retention of quality state employees. Right now, all departments are struggling to hire and retain a workforce. This is costing the state in decreased services to Alaskans and Federal penalties for poor performance of mandated work product. SB 88 will continue to be heard in Senate meetings around the state during summer and fall, so that the public can become familiar with the proposed system and the actuaries can look at costs.
6. The Senate proposed important improvements to our Elections system: Things like the witness signature on absentee ballots, “ballot curing” (allow voter to correct errors), ballot tracking and more.
7. Carbon Offset projects were proposed by the Governor and the Senate passed the enabling legislation. The House agreed with our amendments to tighten up the procurement, reporting and finances.
8. Alaska small sawmill authority to do lumber grading enables small businesses to create new local markets for “Alaska grown” products.
9. Increased Head Start grants by $5 million.
10. Added $7.5 for child-care block grants to increase wages for childcare workers and provide more childcare services to help people get back to work
11. Added $7.5 Million in state funds and $7.5 in Federal receipt of funds for increased reimbursement to home and community-based services to keep those who need assistance out of more costly institutions.
These are just a FEW of the many things accomplished this year by the Bipartisan Senate Majority. I am proud to work with such a dedicated group of state senators whose heart is to make Alaska the best place to live, work and raise families.
Carbon Offset Program
I get a lot of questions about the Carbon Offset bill also. Some people are very afraid that this will close down access to state lands.
Senate Bill 48, Governor Mike Dunleavy’s carbon offset legislation was passed on Tuesday May 16th, by the Alaska Legislature following a successful floor vote in the Alaska House of Representatives. https://radiokenai.com/legislature-passes-governor-dunleavys-carbon-offset-legislation/
You should know that the Senate Resources and Finance committees put in safeguards that protect the access to our state lands, even if the trees are being used as carbon offset. Access to mineral resources under the ground will take priority. Financially, there must be an open, public procurement process, meaning that Alaskans can know who is bidding on the use of the offsets on our lands, with public annual reports on how its going. We also limited the commissions that could be awarded to brokers to only 30%.
We authorized the Alaska Oil & Gas Conservation Commission to begin the process of procuring Class VI well Primacy. Class VI wells are injection wells; this related to the second carbon bill that the Governor submitted to us. The bill would capture carbon and sequester it underground in empty oil or gas reservoirs. An example is in Cook Inlet. We are already using emptied reservoirs to inject natural gas for use in Southcentral when we have really cold weather and demand goes up. The CINGSA storage facility has been in operation for several years. (Cook Inlet Natural Gas Storage – CINGSA)
So, I believe that the Carbon Offset project could be positive for Alaska.
Items in this Newsletter:
· Current Topics, Economy, Health Care, Energy
· Oil and Permanent Fund Resources
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