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Hello from Juneau,
The legislative session has ended after a compromise between Senate and House members on the operating and capital budgets. The balanced budget is based on the spring revenue forecast of $78 per barrel of oil in FY25. Our budget includes funding for vital state services such as public safety, education, and health care; capital projects including schools, airports and AMHS ferries and docks; and provides for a combined $1650 PFD + Energy Relief Check this fall (the $295 Energy Relief Check portion should not be taxable).
The Senate and House compromise provides a reasonable and responsible budget that does not draw from savings. Similar to this year, if oil revenue exceeds projections in the upcoming Fiscal Year 2025, there is language in the budget to provide for another Energy Relief Check with our PFDs in 2025. The budget also included inflation proofing funds for the Permanent Fund principal to preserve its purchasing power and growth to benefit future generations.
The budget is now headed to the Governor where he can reduce or veto any line items. You can review the operating and capital budgets here: legfin.akleg.gov.
FY 2025 Operating Budget
Our balanced operating budget provides for public safety, health, food security, school bond debt reimbursement, the University and AVTEC, Senior Benefits, AK Performance Scholarships, Fish & Game, among many other important and vital services for our state.
Here are some items in the budget that District C constituents have contacted my office about:
- $11.8 million for the Dept. of Education Maintenance of Equity issue
- $5.2 million for K-3 AK Reads Act program
- $175 million one-time funding for education - equivalent to a $680 BSA increase
- $7.5 million for childcare grants to help with operating costs and employee salaries
- $10 million for Alaska Seafood Marketing Institute and an additional $3 million for ASMI & ATIA (Alaska Travel Industry Association) to jointly market AK seafood and Alaska as a tourism destination
- $5.2 million for Head Start
- $3 million for Food Banks and Pantries
- $20 million for AMHS in case federal grants are lower than what the Governor budgeted
- $3.7 million for Alaska Council on Domestic Violence & Sexual Assault
- $10 million for the Community Assistance Program to ensure a $30 million payment in FY 25 to communities
- $1.2 million for Public Radio targeted for rural stations which are important for emergency broadcasting
- $5 million for Alaska Travel Industry Association (ATIA)
- $1.5 million for Adult Day Care Services for grants to senior centers and $1.5 million for Senior and Disabilities Services, community based grants, meals on wheels, and senior transportation services
- $5 million General Fund and $5 million Federal increase for Medicaid Rate Rebasing for Developmental Disability and Personal Care Services with the intent that employers would use this rate increase to provide a 3% increase to employee wages.
FY 2025 Capital Budget
The Senate and House have passed the FY25 Capital and FY24 Supplemental Budget for a combined total of $550 million Unrestricted General Funds (UGF). Much of these funds are used as matching for over $3 billion in federal funding for our state. This capital budget is a balanced approach of prioritizing essential projects and critical infrastructure needs across the state while remaining within our fiscal means.
Funding was included for statewide programs that benefit our district and state including Village Safe Water, Housing & Weatherization, Senior Housing, Deferred and Major Maintenance for the top 26 school projects and top 8 University projects, School Construction, Code Blue match funds for our rural emergency medical programs, Food Security projects and grants, and Winter Trail Grooming Grants.
Over $75 million was included for infrastructure projects across the state. Here are projects important for District C:
- Seldovia’s Raw Water Transmission Line Replacement $250,000
- Kodiak-St. Herman’s Harbor Infrastructure Replacement $1 million
- Homer’s Harbor Expansion General Investigation project $288,523
- Quzinkie’s Phase 2 Alterative Energy project $50,000
- Ninilchik Senior Citizens – Kitchen Remodel & Expansion $136,000
- Cordova’s Rebuild of Eyak Skaters Cabin $212,000
- Kasilof Flashing Light at Intersection $1 million
- Seward Bear Creek Service Area Flood Mitigation $655,000
- Snowmads Caribou Lake Trail Access Mats for Wetlands $76,000
- UAA Kodiak Campus Maintenance $955,000
- Homer’s Kachemak Bay Drive Milepost 0-3.5 Reconstruction $300,000; Note this funding is part of a larger $6.65 million project which will reconstruct the sub subsurface of the road. An additional $3.3 million under the Pavement Preservation program will resurface the road.
- Seward’s AK Sealife Center Roof Replacement $700,000
- Seldovia Material for Safe Roads Project $88,000
- Cordova’s Second St. Reconstruction $363,880
- Kodiak Airport Drainage & Ramp Repave Stage 2 $31.8 million
- Homer Society of Natural History – Pratt Museum Roof System Replacement $250,000
- Seward Hwy. Milepost 14 Railroad Crossing Reconstruction $18.3 million
- Kodiak’s Chiniak Hwy. Milepost 15-31 Rehabilitation $1.5 million
- Homer All-Ages & Abilities Pedestrian Pathway (HAPP) project $208,800
- Seward – Bear Creek Fire Station Asphalt Surfacing $450,00
- Kodiak’s Otmeloi Way Reconstruction $6 million
- M/V Tustumena Replacement Vessell $23 million (Toll Credits) and $92 million (Federal)
- Kenai Peninsula Food Bank – Refrigeration and Freezer Upgrade $10,000
- Kalifornsky Beach Road Drainage Improvements $2.7 million
- Homer Electric Association St. Augustine Geothermal Exploration $700,000
- Kenai Peninsula Borough – Improve Substandard Roads $700,000
Here are some statewide projects that District C constituents have contacted my office about:
- Harbor Facility Grant Fund $7 million
- Statewide Pavement & Bridge Preservation Program projects $121.5 Million
- AMHS: $22 million to support vessel overhauls, annual certification and shoreside facilities rehabilitation
- Grid Resilience & Innovation Partnerships (GRIP) Grant $216.9 million – project will construct a High Voltage Direct Current submarine cable to serve as parallel transmission route from Kenai to Anchorage and provide funding for multiple battery energy storage systems
- Federal funding for Energy Efficiency, Renewable Energy, and Rural Power Systems Upgrades
- Broadband Digital Equity Capacity Grant and Development programs and Community Block Grants
- Food security: $7.5 million for SeaShare Seafood to purchase oversupply of seafood for food banks as well as additional funds for Food Safety & Sanitation Programs and Micro Grants
- Alaska Native Tribal Health Consortium (ANTHC) $15 million to help fund a new nursing facility
Energy
The legislature passed several bills on the last day to address the energy needs facing our state. HB 50 will allow the state to lease depleted gas wells to store carbon dioxide. The bill will also allow the state to regulate natural gas storage to prevent price gouging, and provide loans to producers based on their gas reserves.
HB 307 intends to provide low cost power across the Railbelt grid and integrate more renewable energy into the system. Renewable energy producers would be exempt from municipal property sales taxes on new projects. The bill will also phase out “wheeling rates” which are charged by utilities to transmit power across their section of the grid. While the bill passed, I and other Kenai Peninsula legislators voted against the bill based on the recommendation of Homer Electric Association and their concerns that constituents on the peninsula would not benefit from lower utility bills in the short term.
HB 273 creates a “green bank” at the AK Housing Finance Corporation which will apply for federal funding to offer as loans for renewable energy projects.
Education
The legislature was able to include $175 million of one-time funding into the operating budget for K-12 education which is equal to a $680 BSA increase. The Governor has told us he will not veto this amount as he did last year. While I’m disappointed that the legislature and Governor could not come to an agreement on a statute BSA increase this session, I and my colleagues in the Senate will continue to work towards this goal.
The Senate included an amendment into another bill, HB 202, to continue our correspondence education programs “as is” for one more year. This bill passed on the last day of session and now awaits transmittal to the Governor for his signature. This temporary fix will allow for the Supreme Court to provide their decision on the Superior Court case that ruled two correspondence program statutes violated the state constitutional prohibition on spending public funds at private or religious schools. You can read the correspondence program amendment here. If the Supreme Court upholds the lower court’s decision, I will work with legislators to ensure our correspondence students and families can continue their education programs with minimal disruptions.
Legislation that Passed both the Senate & House
SCR 10 Creates the Joint Legislative Seafood Industry Task Force which will address elements of the Alaska seafood industry crisis that may be addressed through governmental policy and/or through action in the private sector. The 8-member task force will be made up of myself as Chair and 3 other Senators appointed by my office and 4 Representatives appointed by the Speaker of the House. I anticipate the other members being selected by later this summer and meetings to begin towards early fall after our busy summer fishing season is wrapped up. I look forward to working with all members of our seafood industry to identify and address concerns to help this vital industry.
SJR 14 Support State Seafood Industry Resolution calls on the U.S. Congress and all federal agencies to adopt policies and engage in efforts to improve the competitiveness and resiliency of Alaska’s seafood industry. The resolution has now been shared with the U.S. President and Vice President, members of the U.S. Congress and Senate, and various federal agencies including NOAA, the Secretaries of Agriculture and Commerce, Marine Fisheries Commission, and our Alaska Federal delegation.
HB 19 Registration of Boats exempts active commercial fishing vessels from duplicative registration requirements created by the passage of the Derelict Vessel Act in 2018. The bill also repeals the Derelict Vessel Prevention Program Fund and removes the registration fee paid to the Commercial Fisheries Entry Commission. HB 19 now awaits the Governor’s signature, or he can veto, or let it become law without his vote.
HB 193 Internet for Schools enhances connectivity for eligible schools by raising the minimum download speed from 25 Mbps to 100 Mbps through the School Broadband Assistance Grant (BAG) program. Many schools in District C will benefit from this change. This bill has already passed both bodies and has been signed into law by the Governor.
SB 152 Community Energy / Net Metering Program establishes a virtual net metering program for small-scale renewable energy generation and helps lower electric bills for some ratepayers such as people who rent or own condos, so they can also benefit from solar panels and wind turbines. This bill passed both bodies and awaits transmittal to the Governor for his signature.
SB 170 Senior Benefits extends the senior benefit program for 10 more years to 2034. The senior benefit program provides support to low-income seniors across the state to help with expenses like food, heating, transportation, and medication. This bill was rolled into SB 147 which passed both bodies and now awaits transmittal to the Governor for his signature.
SB 189 Expand the Alaska Commission on Aging for 8 more years until 2032. This commission plays a crucial role in addressing challenges faced by seniors, proposing solutions and serves as an advisory council for federal funding. During the last days of session several other bills were rolled into SB 189 including one expand eligibility for child care benefits, and create incentives for employers to develop on-site or near-site child care. SB 120 Extend Education Tax Credits was also rolled into SB 189. This bill expands and extends the AK Education Tax Credit program which provides tax credits to businesses who donate to eligible education programs in the state. SB 149 Supplemental Nutrition Assistance Program (SNAP) Eligibility Adjustments was also rolled into SB 189. This bill will help eliminate the “benefits cliff” where earning slightly more can lead to a loss in benefits, discouraging self-sufficiency. SB 189 passed both bodies and awaits transmittal to the Governor for his signature.
Legislation to take up next year
SB 29 Civics Education & SB 89 E-Cigarettes: During the last days of session other bills will rolled into both my civics bill and e-cigarette bill which caused serious concern for unintended consequences. It was my decision to hold both bills with the plan to reintroduce them next session.
We will also need to address our retirement system to attract teachers, police, firemen and other state employees. I’m sure this will be a priority for the Senate Majority next year.
For Updates on Legislation & Budgets
Gavel Alaska: 360north.org
Live TV - AKleg: akleg.gov/LiveNow.
Bills & Laws: akleg.gov/basis/Home/BillsandLaws
Bill Tracking at akleg.gov/basis/btmf
Legislative Finance: legfin.akleg.gov.
Please keep in touch!
I appreciate hearing from you about legislation, budgets and other state issues. Should we be called in for a special session or if any other important issues comes up, I’ll be sure to update you in another Capitol Report. For now, I hope you all enjoy a fun and safe summer!
Phone: 907-465-4925
Toll Free: 1-800-821-4925
Email: Sen.Gary.Stevens@akleg.gov
Sincerely,
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