April 26, 2024
The Senate Passes the Operating Budget Out of Committee and Plans for Floor Vote Next Week While the House Considers Capital Budget Changes
Budget
Yesterday morning, the Senate Finance Committee unanimously approved its committee substitute to the operating budget. The budget remains largely unchanged from the previous Senate Finance Committee substitute released last week. The only updated provision relevant to the University of Alaska is newly added intent language requesting that the UA Museum of the North facilitate the return of a quaternary mammal collection currently housed at the American Museum of Natural History. The provision was brought forward by Sen. Click Bishop (R-Fairbanks). Ultimately, the Senate Finance Committee substitute appropriates $331.3 million in unrestricted general funds to the university system.
From here, the operating budget will go to the Senate Floor, where members are expected to vote on the bill by May 2. Once the operating budget passes the Senate, the bill will be transmitted back to the House for “concurrence” approval. Traditionally, the House rejects the Senate changes, and a six-person “conference committee” comprised of members of both bodies is announced. The committee is ultimately responsible for identifying agreements on the budget and developing a final substitute. Once the substitute is created, it returns to both bodies’ floors for final passage. We anticipate a conference committee to be selected by May 6. Both bodies firmly believe they can finish the budget by May 14, the final day of the legislative session.
While the Senate Floor will consider the operating budget next week, the House Finance Committee will review the capital budget. It’s scheduled for twice-a-day hearings Tuesday-Friday. Theoretically, the House will pass the capital budget by May 9, allowing for a similar conference committee procedure.
In other budget news, the legislature has approved an extension of funds the university system is receiving for our economic development projects, including drones, critical minerals, heavy oil, and mariculture research. This allows these programs to continue to spend money originally appropriated for FY23 and FY24. The extension now stretches to June 30, 2026.
Priority Legislation
Earlier this week, the Senate Finance Committee heard House Bill 89 by Representative Julie Coulombe (R-Anchorage). The bill introduces a new tax credit for businesses offering childcare benefits or programs and extends the current tax structure, which includes education tax credits. The University of Alaska spoke to the committee about the benefits of the tax credits to the university system. Many partners around the state use these credits to directly fund the UA on workforce, research, and academic programs.
Notably, the Technical Vocational Education Program reauthorization bill, House Bill 55, has been scheduled for a hearing in House Finance next Tuesday. This bill, which is carried by Rep. Ashley Carrick (D-Fairbanks), is imperative for institutions receiving state funding for Alaska’s workforce development programs, including the university system. Last year, UA received approximately $6 million from the program. Without it, funding for over 80 UA programs will be in jeopardy. For the bill to pass the legislature, it needs to not only make it out of the House Finance Committee but also across the House Floor and through the entire Senate. This is a particularly large lift this late in the session; however, several lawmakers have identified HB 55 as a priority bill and expect to push it through.
In the Spotlight
The Office of Representative Andy Josephson (D-Anchorage).
Representative Andy Josephson
Represents: Anchorage: Campbell Park, Diamond Business District, East Sand Lake, Midtown, and Taku/Campbell
Membership: House University of Alaska Finance Subcommittee, House Finance, House Legislative Budget & Audit, House Select Committee on Legislative Ethics
Bill sponsorship:
- HB 11: Crime: Assault In The Presence Of A Child
- HB 12: Municipal Regulation Of Trapping
- HB 13: Applicability Of Human Rights Commission
- HB 14: Aggravating Factors At Sentencing
- HB 15: Peer Support Counseling Program
- HB 16: Medicaid Optional Svcs & Cost Containment
- HB 22: Peace Officer/Firefighter Retire Benefits
- HB 33: Oil Spills/Pollution: Penalties; Prevention
- HB 80: Incompetency; Civil Commitment
- HB 162: Gun Violence Protective Orders
- HB 238: Criminal Mischief 3rd Degree
- HB 239: Workers' Comp & Post-Traumatic Stress
- HB 240: Defense Of Pub. Officer: Ethics Complaint
- HB 241: Reproductive Health: Legal Protections
- HB 244: Refined Fuel Surcharge
- HB 248: Informed Consent For Pelvic Exams
- HB 261: Vehicular Homicide Offenses
- HB 262: Residential Rent Increase Notice
- HB 263: Affirm. Defense For Disabling Trap/Snare
- HB 354: Restrict Restaurant Use Of Polystyrene
- HCR 5: Preventing Orca Bycatch
- HCR 14: UAA Law School; Law School Partnerships
- HJR 1: Const. Am: Repeal Marriage Section
- HR 9: Rights Of Parents, Teachers, & Students
Representative Andy Josephson was born in Anchorage just after the 1964 Great Alaska Earthquake. Andy attended public schools and grew up in a politics and baseball household. Andy attended Whitman College, earning a BA in History in 1986, while spending one year at the University of York, England. His connection to Britain and friends there remains strong.
Andy completed a Master of Arts in Teaching at UAA in 1992, and taught in rural Alaska from 1991-1994 in Kalskag, Alaska for the Kuspuk School District. He gave up his first passion (history) and attended law school at Penn State from 1994-1997, returning to Alaska and serving as a law clerk to two superior court judges in Fairbanks and Kenai. After his clerkships, Andy joined the District Attorney’s office, principally serving as a prosecutor in Kotzebue. He then worked in private practice in Anchorage from 2001-2012. Since 2012, Andy has worked exclusively as a state representative. He lives with his wife, Donna, a Lutheran School teacher, in midtown Anchorage.
Alexander Schroeder
Alex is a Finance and Policy Analyst in Juneau fighting for adequately funded education, both at the K-12 and collegiate levels. Funding for the university faced significant budget reductions while Alex was still an undergraduate student at UAA. Now, after a decade of flat funding, K-12 education is causing school districts all around Alaska to consider closing schools and discontinuing programs like IGNITE. Alex believes that Alaska's best investment is educating our youth and young adults. In his words, “Without this, the state will continue to see a steady decline in talent and innovation as people look elsewhere to start their future.”
For these reasons, Alex became the first person in his family to receive a master's degree, and returned to Alaska as a freshly-minted political theorist. He says that “a robust and well-funded public education system is largely responsible for my academic success. I thank the fantastic educators at Bartlett High School who prepared me for college. Go Golden Bears! Now, it is my turn to return the favor and utilize government to adequately fund public education so that Alaskans from any background can succeed.”
Lisa Keller
Lisa Keller was born and raised in Anchorage and graduated from Bettye Davis East Anchorage High School. She attended the University of Oregon, Eugene, earning a B.A. in political science. She owns Multisport Training of Alaska, is the General Manager of Running Free Alaska, and is a host of Outdoor Explorer on Alaska Public Media. She is a founding board member of the Alaska Run for Women, YWCA Alaska, the Alaska Triathlon Club, and Running Free Alaska. She has spent most of her adult life in the fitness and outdoor world, but true to her political science degree, she has never shied away from political activity. Lisa has two daughters who both graduated from Bettye Davis East Anchorage High School. Her older daughter left for warmer climates and never looked back, graduating from the University of Arizona in Tucson, where she lives with her husband and twin boys. Her younger daughter is currently enrolled at the University of Alaska Anchorage and is an Alaska girl through and through, just like her mom.
For more information about bill sponsorship or other topics, you can reach Representative Josephson’s office directly by phone: (907)-465-4939, or by email: Representative.Andy.Josephson@akleg.gov
What We’re Watching
Tuesday, April 30
- 10:00 a.m. - House Finance: House Bill 187: “Appropriations; Capital; Reappropriations; Supplemental” / House Bill 55: “Extend Workforce Investment Board Allocations”
- 11:00 a.m. - Senate Floor - House Bill 144: “Repeal Education Tax Credits Sunset”
- 1:30 p.m. - House Finance: House Bill 187: “Appropriations; Capital; Reappropriations; Supplemental”
Wednesday, May 1
- 9:00 a.m. - House Finance: House Bill 187: “Appropriations; Capital; Reappropriations; Supplemental”
- 1:30 p.m. - House Finance: House Bill 187: “Appropriations; Capital; Reappropriations; Supplemental”
Thursday, May 2
- 10:00 a.m. - House Finance: House Bill 187: “Appropriations; Capital; Reappropriations; Supplemental”
- 1:30 p.m. - House Finance: House Bill 187: “Appropriations; Capital; Reappropriations; Supplemental”
Friday, May 3
- 9:00 a.m. - House Finance: House Bill 187: “Appropriations; Capital; Reappropriations; Supplemental”
- 1:30 p.m. - House Finance: House Bill 187: “Appropriations; Capital; Reappropriations; Supplemental”
For more information, contact Director of State Relations for the University of Alaska System Chad Hutchison, cell 907-378-3946, email clhutchison@alaska.edu. You can also follow the University of Alaska Government Relations on our Twitter page.