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April 2023
Hello from Juneau,
Things are moving at a fast pace as we near the end of our session.
FY 2024 Budget
The House completed their amendments to the Operating Budget adding over $180 million to the Governor’s proposed budget and leaving an almost $600 million deficit that will need to be filled from savings or new revenue. Our Senate finance subcommittees have all closed out their hearings and provided their recommendations to the Senate Finance Committee.
The Senate Finance Committee also held hearings on the Capital Budget. The Dept. of Revenue’s Spring Revenue Forecast shows a decrease of $246 million in revenue for our current FY23 and a decrease of $679 million for FY24. Unfortunately, this will result in a leaner capital budget than last year when oil prices were higher.
Public testimony on the operating and capital budget is scheduled in Senate Finance April 20-21 (pending the House passing the budget over to the Senate).
There are 3 ways you can testify:
· Email committee: Senate.Finance.Committee@akleg.gov
· Call in from your own phone (OffNet): 1-844-586-9085
· Testify from your local LIO: https://akleg.gov/lios.php
The House and Senate Finance Committee and subcommittee budget reports are posted here once completed: legfin.akleg.gov.
Legislation Update
Education Funding is a priority for the Senate Majority. There are two bills to raise the Base Student Allocation (BSA):
Senate Bill 52 calls for a BSA increase of $1000 in FY24; an increase of $348 in FY25, and an inflation increase in FY26. It also requires new reporting on the Dept. of Education & Early Development website. This bill is being heard in Senate Finance. Thank you to everyone who called in and emailed public testimony recently.
House Bill 65 was changed in the House Education committee and now increases the BSA by $680 in FY24, with an additional increase of $120 in FY25 (total $800 increase by FY25). This bill is being heard in House Finance.
Senate Bill 88: Retirement Systems & Defined Benefit Option
I cosponsored SB 88, which creates a new defined benefit system for public employees and teachers and provides an option for current Tier IV employees to convert their defined compensation plan to the new retirement system. This bill is being heard in Senate Labor & Commerce.
Senate Bill 107: POMV/PFD Split 75/25
As part of a long-term sustainable plan to stabilize the state’s revenue, SB 107 would change how the state uses the annual Percent of Market Value (POMV) draw from the Permanent Fund. This change would allow for full budget funding, including the BSA increase, without the use of savings. SB 107 proposes that 75% of the POMV draw would go to the general fund to support services and 25% would go to PFDs. This bill is being heard in Senate Finance.
Senate Bill 114: Oil & Gas Production Tax / Corp Income Tax
SB 114 is another part of a sustainable revenue plan. This bill would reduce oil tax credits from $8 to $5 per barrel and credits would be capped at the amount of capital expenditures. It would also eliminate the current S corporation tax loophole and require private companies making more than $4 million per year to pay the same 9.4% income tax rate as public corporations. This bill would raise just under $540 million in new revenue. It is being heard in Senate Finance.
Senate Bill 89: E-Cig/Tobacco
I sponsored this bill to help address the increased vaping trend with Alaska students. This bill would increase the minimum age to buy, sell, and possess tobacco and E-cigarettes from 19 to 21 years old, and places a point-of-sale (retail sales) tax on electronic smoking products (ESPs). Updating Alaska statutes to mirror the federal minimum age of sale and possession of these products will allow our state enforcement program to become more effective and our state will be eligible for federal grant funding to support smoking cessation and health education programs. SB 89 will have public testimony in Senate Labor & Commerce on April 21. You can email testimony to: Senate.Labor.And.Commerce@akleg.gov.
Senate Bill 29: Civics Education
I sponsored this bill to add civics curriculum and assessment into public school statutes and create the Alaska Civics Education Commission. SB 29 is being heard in Senate Finance on April 18.
Food Security & Public Advocacy
The Senate and House passed, and the Governor signed the FY23 supplemental budget bill at the end of March. This supplemental bill included $3.7 million for SNAP benefits, $4.7 million for the Office of Public Advocacy & Public Defender Agency to meet staffing shortages, and a transfer of $365 million from the Constitutional Budget Reserve (CBR) savings account to cover the revenue shortfall through June 30th of this year. This is in addition to the $1.7 million the Governor recently redirected recently towards Alaska food banks to address current needs. The FY24 operating and capital budgets also contain funding to address the SNAP backlog and outdated computer systems.
Reminder: starting April 1, as part of their yearly renewal process, the Division of Public Assistance will be reaching out to households to verify information to renew Medicaid benefit coverage (including Denali Care and Denali Kid Care). You can help with this process by making sure your contact information is updated. Call the Medicaid Information Update Hotline: 1-833-441-1870. If you or someone you know is having trouble with their public assistance applications, please reach out to the department’s Virtual Call Center (VCC) at 1-800-478-7778, email them at hss.dpa.offices@alaska.gov, or call my office if you have difficulty getting through to the VCC. Information on community, health, and social services is also available at Alaska 211 by calling toll free: 1-800-478-2221 or online www.Alaska211.rog or email: Alaska211@ak.org
Follow Legislation
Senate District C’s Legislative Information Offices (LIOs)
· Cordova LIO (907) 424-5461 LIO.Cordova@akleg.gov
· Homer LIO (907) 235-7878 LIO.Homer@akleg.gov
· Kenai LIO (907) 283-2030 LIO.Kenai@akleg.gov
· Kodiak LIO (907) 486-8116 LIO.Kodiak@akleg.gov
· Seward LIO (907) 224-5066 LIO.Seward@akleg.gov
Gavel Alaska: 360north.org
Live TV - AKleg: akleg.gov/LiveNow.
Bills & Laws: akleg.gov/basis/Home/BillsandLaws
Bill Tracking at akleg.gov/basis/btmf
Please keep in touch!
I appreciate hearing from you about legislation and state budgets.
Phone: 907-465-4925
Toll Free: 1-800-821-4925
Email: Sen.Gary.Stevens@akleg.gov
Thank you to our local media for allowing me the opportunity to share this information.
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