April 22, 2022 

As Budget Negotiations Advance, Lawmakers Looking to Conclude Session in 120 Days or Less

With spring just around the corner, lawmakers are eyeballing the week of May 20th as the potential last week of session. However, to adjourn, legislators are constitutionally obligated to pass a budget. This week we take a look at the remaining steps to do just that.

In the State Legislature both the House and the Senate must review and pass the budget. To speed up the process each body starts with its own budget bill. This year, the House operating budgets bills are House Bills 281/282 and, in the Senate, Senate Bills 162/163. The bills pass through each bodies’ respective Finance Committee where members spend several weeks scrutinizing each state agency in the corresponding finance subcommittees. The subcommittees make recommendations to the Finance Committee of the Whole, which then amends their budget bill to reflect those recommendations. The Committee of the Whole considers the revised budget bill and eventually passes the bill out of committee. At that point, the bill travels to that body’s floor for a vote of the entire body. Any member of the body can introduce amendments during the floor process. 

Once a bill has been passed out of the floor, it is transmitted to the other body for holding while the other body completes its own operating budget review process. Once both bills have been passed out of their respective bodies a conference committee of 6 lawmakers is selected. Because the operating budgets passed out of the House and Senate rarely match, a conference committee with three members from each body, usually two majority and one minority member, is necessary to come to a final resolution on the budget. Notably, once a conference committee has been selected, the Legislature transitions into the “24-hour rule”. Unlike the rest of session, when bills hearings must be noticed the previous week, the 24-hour rule allows lawmakers to schedule hearings with as little as 24-hour notice. Once the 24-hour rule is in effect, legislation can move extremely quickly. 

As it currently stands, the House has passed an operating budget which has since been transmitted to the Senate. Meanwhile, the Senate Finance Committee is still in the process of considering budget amendments. This next week, we anticipate the committee to take up further amendments and likely hear the budget on the Senate Floor. The UA Government Relations team has had many positive conversations with Senate leadership and are optimistic. We are also cautiously optimistic that there will be a strong appetite for fulfilling many of our deferred maintenance needs.

Bills on the Move

Outside of the budget bills, several other pieces of important legislation still have legs and are moving through committees.

• Senator Begich’s Senate Bill 10, which gives workers who were considered essential during COVID-19 free college tuition, is currently in its final committee of referral. This week the House Finance Committee will consider the bill, and if it passes, the legislation will be transmitted to the House Floor for a vote of the entire House.

• House Bill 229 by Rep. Josephson, which protects the Higher Education Investment Fund, passed the House last week. It has been submitted to the Senate Education committee where we hope it receives quick attention.

• Two bills introduced by Senator Stevens await final review by the House. Senate Bill 32 would codify the Alaska Middle College programs, making college credit available for high school students. Senate Bill 36 would require the Board of Regents to report university accreditation status to the legislature. If passed by the House, both bills will go to the Governor for his signature before becoming law.

House Bill 132, introduced by the House Labor & Commerce Committee, expands Alaskan apprenticeship programs and establishes tax credits for participating employers. It also allows high school students to receive dual credit for career and technical education (CTE) programs and apprenticeships. The bill has been moved from the Senate Education Committee and awaits a hearing in Senate Labor & Commerce.

Next Week’s Calendar

Monday, April 25

• 1:00 p.m. – Senate Finance: “Presentation: Constitutional Budget Reserve Sweep & Reverse Sweep”

Tuesday, April 26

• 1:00 p.m. – Senate Finance: Senate Bill 164: “Appropriations: Capital; Reappropriations; Supplemental”

• 1:30 p.m. – Senate Transportation: Senate Bill 166: G.O. Bonds for Infrastructure Projects”

• 3:30 p.m. – Senate State Affairs: Senate Bill 220: “State Employees: State Residency” & Senate Bill 195: “Pay Increases for Exempt Employees”

Wednesday, April 27

• 1:00 p.m. – Senate Finance: House Bill 281: “Appropriations: Operating Budget/Loans/Funds” & House Bill 282: “Appropriations: Mental Health Budget”

• 1:30 p.m. – House Finance: House Bill 283: “Appropriations: Capital; Reappropriations; Supplemental”

• 1:30 p.m. – Senate Labor & Commerce: House Bill 132: “School Apprenticeships Programs; Tax Credits”

April 15, 2022 

The House Passes an Operating Budget and Key Legislation Protecting the Higher Education Investment Fund 

Over the weekend the House passed an operating budget. Following this monumental lift, several legislators and staff traveled to Anchorage to attend an Infrastructure Grants Symposium co-hosted by Senator Lisa Murkowski and local organizations. Back in Juneau, lawmakers in the House voted on key legislation relating to the Higher Education Investment Fund, and the Senate heard from the University of Alaska as well as industry and state agency partners about workforce development initiatives.  

Budget Movement

On Saturday, the House passed the operating and mental health budgets (House Bill 281 and House Bill 282). The operating budget includes $281.7 million in unrestricted general funds for the university system. This is a $9 million increase over the FY22 budget. Additionally, the budget includes funding for several university programs and research areas that were identified by the Board of Regents as priority investments that help all of Alaska: $10 million in support for our drone program, $7.8 million for important critical mineral and rare earth development, $5 million for heavy oil recovery, $3.75 million for health programs, and $7 million to support mariculture research and development, it also includes $635,900 for continued Alaska Library Network and Imagination Library support and $200,000 for Alaska Health Education Centers. The House also added $395 million to recapitalize the Higher Education Investment Fund (HEIF) for student scholarships and grants, and $1.6 million to expand the WWAMI Medical Education Program over two years.

The Senate did not take up the Senate version of the operating budget (Senate Bill 162) this week, however, they are expecting to consider amendments next week. The current Senate Committee Substitute includes $291.3 million in unrestricted general funds with $13.5 million for fixed and operating costs increases, $2 million for Alternative Energy Research, $1 million to support teacher practicums/student teaching pilot program, $1 million to support health care clinical pilot programs, $635,900 for continued Alaska Library Network and Imagination Library support and $357,600 for the Local 6070 1-year contract extension, as well as $881,800 in FY22 supplemental funding for the Alaska Technical and Vocational Education Program (TVEP). The Senate committee substitute is lacking funding for the drone program, critical minerals and rare earth development, heavy oil recovery, health programs, and mariculture research funded in the House version. These important projects are Board of Regents requests and we remain optimistic that they will receive support in upcoming versions of the budget. 

After the Senate hears and passes an operating budget, both bodies will nominate three lawmakers from their respective bodies to meet in conference to find consensus on the budget. Once a conference committee substitute is completed, the version will go back to both bodies for final approval.

Infrastructure Grants Symposium

University officials traveled to Anchorage to participate in a two-day Infrastructure Grant Symposium at the Dena’ina Center. On the first day of the symposium, Senator Lisa Murkowski spoke to a standing-room-only crowd of more than 1,000 people about the federal Infrastructure Investment and Jobs Act (IIJA) funds that will flow into the state. With those federal funds will come opportunities for upgrades to transportation, energy, water and sewer, and broadband infrastructure. Senator Murkowski called the fund injection a “generational opportunity” and she spoke of the thousands of new in-state jobs the infrastructure investments will create. She emphasized the need for a prepared workforce to handle the project demands.

The second day of the grant symposium, participants attended various workshops and panels relating to critical regional infrastructure needs, workforce development, and technical grant writing assistance. Several university experts led the discussion on workforce development. 

News coverage of the event can be found here.

Higher Education Investment Fund Update

On Thursday, the House passed Representative Josephson’s House Bill 229, the legislation protecting the Higher Education Investment Fund from being swept into the Constitutional Budget Reserve. While the current House version of the operating budget recapitalizes the fund with a one-time $395 million injection, the fund is currently still subject to a sweep into the Constitutional Budget Reserve if lawmakers fail to vote for a reverse sweep. Rep. Josephson’s legislation enshrines the HEIF, protecting it from the “sweep” in future years. House Bill 229 passed 23-9 with many lawmakers excused for the Easter Weekend. Watch the floor discussion here.

Workforce Development Presentation

On Wednesday in Senate Finance, President Pitney and AVP Workforce Development Teri Cothren joined with several industry partners along with the Department of Labor and Workforce Development (DOWLD) and the Department of Education and Early Development (DEED) to describe Alaskan workforce shortages in the areas of construction, maritime and health care. The university system representatives and partners emphasized current initiatives underway to remediate the situation. Watch the hearing here. 

Importantly, some budget proposals, including focusing on increasing the health workforce in Alaska (at UAA’s College of Health, for example), have been supported by the House.  We’re optimistic that the Senate and the Governor’s office sees the wisdom of that funding.

Next Week’s Calendar

Tuesday, April 19

• 9:00 a.m. – Senate Finance: Senate Bill 241: “Appropriations: Supplemental; Capital”
• 11:00 a.m. - Joint Floor Session: Annual Address from U.S. Senator Dan Sullivan
• 1:00 p.m. - Senate Finance: Senate Bill 162: “Appropriations: Operating Budget/loans/funds” & Senate Bill 163: “Appropriations: Mental Health Budget” / House BIll 281: “Appropriations: Operating Budget/loans/funds” & House Bill 282: “Appropriations: Mental Health Budget”
• 1:30 p.m. – House Finance: House Bill 414: “Appropriations: Supplemental; Capital”

Wednesday, April 20

• 9:00 a.m. – House Finance: House Bill 21: “Add Faculty Member University Board of Regents”
• 9:00 a.m. – Senate Education: House BIll 132: “School Apprenticeship Programs; Tax Credits”
• 3:30 p.m. – Senate Resources: Senate Bill 177: “Microreactors”

Thursday, April 21

• 9:00 a.m. – Senate Finance: House Bill 127: “Municipal Bond Bank: UA, Loan and Bond Limits”
• 9:00 a.m. – House Finance: House Bill 220: “Retirement Systems; Defined Benefit Options”
• 1:00 p.m – Senate Finance: Senate Bill 162: “Appropriations: Operating Budget/loans/funds” & Senate Bill 163: “Appropriations: Mental Health Budget” / House Bill 281: “Appropriations: Operating Budget/loans/funds” & House Bill 282: “Appropriations: Mental Health Budget”

Friday, April 22

• 9:00 a.m. – Senate Finance: Senate Bill 162: “Appropriations: Operating Budget/loans/funds” & Senate Bill 163: “Appropriations: Mental Health Budget” / House BIll 281: “Appropriations: Operating Budget/loans/funds” & House BIll 282: “Appropriations: Mental Health Budget”
• 1:30 p.m. – House Finance: Senate Bill 10: “Free/reduced Tuition For Essential Workers”
  

April 8, 2022

Lawmakers consider the state operating budget and a newly introduced infrastructure appropriation bill  

After a one-week delay due to a COVID-19 outbreak, the members of the House debated the operating budget, House Bill 281, on the House floor. In total, 88 amendments were submitted, which lawmakers spent the full week discussing. Debate on the budget is expected to last through Saturday. During the amendment process funding for the University of Alaska has remained fully intact. Find a full list of budget amendments and the House’s actions here.

Meanwhile, the Senate Finance Committee adopted a committee substitute of the Senate’s version of the operating budget, Senate Bill 162, with the changes adopted last week during budget subcommittee closeouts. Those changes included adding the following amounts to the University of Alaska budget:

• $13.5 million for fixed and operating cost increases
• $2 million for Alternative Energy Research 
• $1 million to support teacher practicums/student teaching pilot
• $1 million to support health care clinicals - small pilot
• $635,900 to continue the Alaska Library Network and Imagination Library
• $881,800 in FY22 supplemental funding to have the correct Alaska Technical and Vocational Education Program funding available
• $357,600 for Local 6070 1-year contract extension.

Both the House and Senate operating budget bills include a provision to help offset increased fuel and utility costs. Similar to previous legislation, the amount distributed will be based on the year-to-date average price of oil and UA’s share of the funding will be between 12-18%.  

Notably, the Senate committee substitute lacks funding for drone, critical minerals, mariculture, health, and heavy oil research that is currently included in the House version. If differences still exist after both bodies pass their respective versions, the variances will be sorted out in a conference committee. We encourage the Senate to give the highest consideration to these special “economic recovery areas” as we believe they help all of Alaska. 

Separate from the operating budget, the Governor submitted to both bodies an appropriation bill related to funding associated with the bipartisan federal Infrastructure Investment and Jobs Act (IIJA). The bills (Senate Bill 241, House Bill 414) include the following funding for the university:

• $7.5 million federal funds and $2 million match for rare earth mineral security
• $500,000 for a rare earth elements demonstration facility

The funding for rare earth elements is complementary to the funding for critical mineral research currently included in the House version of the operating budget. University officials will continue to focus on federal infrastructure funding next week at the Infrastructure Grant Symposium hosted by Senator Murkowski’s office. 

Next Week’s Calendar

Monday, April 11

• 9:00 a.m. - Senate Education: House Bill 132: “School Apprenticeship Programs; Tax Credit”
• 1:30 p.m. - Senate Labor & Commerce: Senate Bill 225: Teacher Registered Apprentice Programs
• 3:30 p.m. - Senate Resources: Senate Bill 177: “Microreactors”

Wednesday, April 13

• 9:00 a.m. - Senate Finance: Senate Bill 241: “Appropriations: Supplemental; Capital”
• 9:00 a.m. - Senate Education: House Bill 132: “School Apprenticeship Programs; Tax Credit”
• 1:00 p.m. - Senate Finance: Presentation: “Workforce Development Issues Panel with Industry, Administration, and University of Alaska President Pat Pitney and Associate Vice President Teri Cothren”
• 1:30 p.m. - Senate Labor & Commerce: Senate Bill 232: “Intellectual Property of Employees”

Thursday, April 14

• 9:00 a.m. - Senate Finance: Senate Bill 162: “Appropriations: Operating Budget/loans/funds” Senate Bill 163: “Appropriations: Mental Health Budget”, & Senate Bill 164 “ Appropriations: Capital; Reappropriations; Supplemental”

Friday, April 15

• 9:00 a.m. - House Finance: House Bill 414: “Appropriations: Supplemental; Capital”
• 1:30 p.m. -  House Finance: House Bill 363: “Broadband: Office, Grants, Parity”

April 1, 2022

The Legislature Wrestles With COVID-19 and the University of Alaska Senate Subcommittee Budget Close Out Takes a Step Forward

This week a COVID-19 breakout in the Capitol caused significant delays in progress for both the House and the Senate. As early as Monday, the House began to cancel floor sessions - a trend that lasted all week. The delay is notable as the House was originally scheduled to vote on the operating budget. While many legislators remain optimistic that the legislative session will wrap up by the constitutionally mandated 121-day deadline, delays in budget hearings could mean that legislators remain in Juneau past the deadline on May 19th. Meanwhile, in the Senate, some meetings were canceled, however, the Senate Finance Committee still held budget subcommittee close-outs.

Importantly, on Friday, April 1, the University of Alaska Senate Finance Subcommittee was closed out.  The relevant budget documents can be found here.  

We’re grateful for the work of Senator Hoffman, Senator Stedman and Senator Bishop. Communication has been really thorough and positive.    

Some key additions to the Senate Finance Subcommittee version of the budget include:

• $9.5 million for fixed and operating cost increases
• $2 million for Alternative Energy Research 
• $1 million to support teacher practicums/student teaching pilot
• $1 million to support health care clinicals - small pilot
• $635,900 to continue the Alaska library Network and Imagination Library
• $881,800 to have the correct Alaska Technical and Vocational Education Program funding available (FY22 supplemental funding)

The Senate Subcommittee close out is an important step, however, there is still much work to be done as the budget travels and needs approval from both floors of the Senate and House. 

Noteworthy: Any differences in the budget will likely be worked out in the conference committee at the end of session.

Bills on the Move

Even while both bodies slowed down,  some committees continued to hear bills. In House Education, lawmakers voted to move Senate Bill 36 out of committee. The bill, sponsored by Senator Gary Stevens would require the Board of Regents to prepare and provide the Legislature with a biennial report of our universities’ accreditation statuses. The bill will now be transmitted to House State Affairs.

The Senate Education Committee separately passed out Senate Bill 225 relating to teacher residency  programs, limited teacher certificates, teacher apprenticeship programs, and teacher retention. Since the bill was introduced in early March, the Senate Education Committee spent seven hearings on the subject. Superintendents and principals from both urban and rural communities testified on the immediate need to train and retain teachers. Every district that testified reported having numerous vacant teaching positions they were unable to fill. Many stated that improving teacher training programs, teacher licensure, and teacher benefits would be welcome tools in recruiting new teachers to their districts. 

UA in the Capitol

The Alaska Council of School Administrators as well as the Alaska Association of Secondary School Principals were in Juneau for their annual legislative fly-in. UA State Relations Manager Sara Perman spoke to attendees about the university system’s focus on education-related legislation. She noted the importance of stabilizing the system’s budget as well as maintaining the Higher Education Investment Fund. Sara discussed the virtual and in-person middle college programs offered by all three universities, as well as dual credit CTE programs. Participants were also interested in the university system’s role in teacher training and retention efforts around the state.

Next Week’s Calendar

Monday, April 4

• 1:00 p.m. - House Finance: House Bill 229: “Alaska Higher Education Investment Fund’

• 3:15 p.m. - House Labor & Commerce: House Bill 108: “Concurrent Secondary & Trade School”

Wednesday, April 6

• 1:00 p.m - Senate Finance: Senate Bill 162 : “Appropriations: Operating Budget/Loans/Funds”, & Senate Bill 163: “Appropriations: Mental Health Budget”, & “Appropriations: Infrastructure Bill” (Pending introduction & referral)

• 3:30 p.m. - Senate Resources: Senate Bill 177: “Microreactors”

Thursday, April 7

• 9:00 a.m. - Senate Finance: Public testimony from Interior, Fairbanks, Copper River Valley & Offnets on Senate Bill 162 : “Appropriations: Operating Budget/Loans/Funds”, & Senate Bill 163: “Appropriations: Mental Health Budget”, & Senate Bill 164: “Appropriations: Capital, Reappropriations, Supplemental”

• 1:00 p.m. - Senate Finance: Public testimony from Nome, Bethel, Kotzebue, Utqiaqvik, Unalaska, Dillingham & Offnets on Senate Bill 162 : “Appropriations: Operating Budget/Loans/Funds”, & Senate Bill 163: “Appropriations: Mental Health Budget”, & Senate Bill 164: “Appropriations: Capital, Reappropriations, Supplemental”

Friday, April 8

• 9:00 a.m. - Senate Finance: Public testimony from Southeast, Prince William SOunds, Kodiak & Offnets on Senate Bill 162 : “Appropriations: Operating Budget/Loans/Funds”, & Senate Bill 163: “Appropriations: Mental Health Budget”, & Senate Bill 164: “Appropriations: Capital, Reappropriations, Supplemental”

• 1:00 p.m. - Senate Finance: Public testimony from Kenai Peninsula, Anchorage, & Matanuska Susitna Valley on Senate Bill 162 : “Appropriations: Operating Budget/Loans/Funds”, & Senate Bill 163: “Appropriations: Mental Health Budget”, & Senate Bill 164: “Appropriations: Capital, Reappropriations, Supplemental”

The House prepares to take up the budget this week while the Senate closes out its finance subcommittees

March 28, 2022 

Last week the House Finance Committee met to take up operating budget amendments.  After four days of discussion, on Thursday the House Finance Committee passed out an amended operating budget which now goes to the House floor for debate.

The amended House Finance budget includes additional funding for the University of Alaska. Earlier this month, following the recommendations of the University of Alaska House Finance Subcommittee, the Finance Committee added $4 million for fixed and operating cost increases, $3.5 million for College of Health Program faculty, $250,000 for medical simulation equipment and technology, and $635,900 for the Alaska Library Network and the Imagination Library. In the newest version of the operating budget released on Friday, House members added funds for the following:

• $7 million for mariculture research and development including growing workforce capacity, expanding infrastructure, developing applications for kelp mariculture, and an ISER study researching the impact of economic shock on commercial fisheries.

• $200,000 for Alaska Area Health Education Centers to expand healthcare workforce development, particularly for rural and underserved communities.

In the Senate, lawmakers continued to hear from state agencies in finance subcommittees. The subcommittees are expected to close out this week. The University of Alaska Finance Subcommittee will meet at 9:00 a.m. on Friday morning for a final closeout. Expect to see the Senate’s budget priorities begin to materialize in this closeout.

UA in the Capitol

The University of Alaska Faculty Alliance was in Juneau last week. Members met with President Pitney over the weekend to discuss the university’s budget process and learn more about the System Office’s legislative priorities. Members separately met with legislators to share their perspectives on both the successes and challenges of the university system.

This Week’s Calendar

Monday, March 28

• 1:30 p.m. – Senate Labor & Commerce: Senate Bill 234: “Broadband: Office, Grants Parity”

• 3:15 p.m. – House Labor & Commerce: House Bill 108: “Concurrent Secondary & Trade School”

Wednesday, March 30

• 9:00 a.m. – Senate Education: Senate Bill 225: “Teacher Registered Apprentice Programs”  

• 1:30 p.m. – House Finance: House Bill 363: “Broadband: Office, Grants, Parity”

Friday, April 1

• 9:00 a.m. – Senate Finance University of Alaska Budget Subcommittee: Budget Closeout

March 18, 2022 

Lawmakers consider budget increases after receiving positive Spring 2022 Revenue Forecast

This week marks the halfway point for the constitutionally mandated 121-day legislative session. During the week lawmakers received an updated picture of the state’s finances and President Pitney spoke with Senate Finance Committee members about the university system’s current operations and our budget requests.

On Tuesday, the Department of Revenue released the much-anticipated Spring 2022 Revenue Forecast. The Revenue Forecast includes the department’s spring forecast of oil price, oil production, and state revenue. Lawmakers traditionally utilize the forecast as a fiscal outlook for the upcoming two years - it helps determine the bottom line lawmakers are willing to consider for the proposed budget. The updated forecast released on Tuesday projects that with updated oil prices, the state’s undesignated funds will climb by $3.6 billion over the next two years - an increase of $1.2 billion in FY22 and $2.4 billion in FY23 from the totals projected in the Fall 2021 Revenue Forecast. The newly released forecast was developed using Alaska North Slope crude (ANS) estimates of $91.68/barrel in FY22 and $101 in FY23, an average price based on the five day window between March 9-13. 

With the revenue forecast in hand, the House Finance Committee is now resuming conversations on the operating budget. With a potential budget surplus, legislators will have to decide how to best manage the excess. Conversations include funding deferred maintenance and critical infrastructure, boosting relief payments and PFDs, or putting dollars into the State’s savings accounts.  Notably, some legislators have shared that they are skeptical of the projected oil prices and are considering oil projections closer to $80/barrel. Even at $80/barrel, the state would still collect $6.7 billion in revenue in FY23 - a $770 million increase from last fall’s projections. The House Finance Committee will start considering amendments to the budget next week.

Positive revenue projections may bode well for the university system. On Monday afternoon, President Pitney presented a University of Alaska overview to the Senate Finance Committee. She reminded lawmakers of the drastic reductions the system has endured in the last decade. She shared the priorities for our universities moving forward and the strategies for meeting those goals. She highlighted the system’s budget requests and discussed the campuses’ deferred maintenance needs. Senators requested that President Pitney provide the committee with a list of the system's top $70 million in deferred maintenance priorities, a $20 million increase over the $50 million list of priorities initially provided. Senators expressed their concerns about the impacts of inflation if the university system does not tackle its deferred maintenance needs now.

Next Week’s Calendar

Monday, March 21

• 1:30 p.m. - House Finance: House Bill 281: “Appropriations: Operating budget/loans/funds” & House Bill 282: “Appropriations: Mental Health Budget”
• 3:30 p.m. - Senate Resources: Senate Bill 177: “Microreactors”

Tuesday, March 22

• 9:00 a.m. - House Finance: House Bill 281: “Appropriations: Operating budget/loans/funds” & House Bill 282: “Appropriations: Mental Health Budget”
• 1:30 p.m. - House Finance: House Bill 281: “Appropriations: Operating budget/loans/funds” & House Bill 282: “Appropriations: Mental Health Budget”

Wednesday, March 23

• 9:00 a.m. - House Finance: House Bill 281: “Appropriations: Operating budget/loans/funds” & House Bill 282: “Appropriations: Mental Health Budget”
• 9:00 a.m. - Senate Finance: Senate Bill 94: “Education & Supplemental Loan Program”
• 9:00 a.m. - Senate Education: Senate Bill 225: “Teacher Registered Apprentice Programs”
• 1:30 p.m. - House Finance: House Bill 281: “Appropriations: Operating budget/loans/funds” & House Bill 282: “Appropriations: Mental Health Budget”
• 1:30 p.m. - Senate Labor & Commerce: Senate Bill 234: “Broadband: Office, Grants, Parity”

Thursday, March 24

• 9:00 a.m. - House Finance: House Bill 281: “Appropriations: Operating budget/loans/funds”, House Bill 282: “Appropriations: Mental Health Budget” & House Bill 229: “Alaska Higher Education Investment Fund”
• 1:30 p.m. - House Finance: House Bill 281: “Appropriations: Operating budget/loans/funds”, House Bill 282: “Appropriations: Mental Health Budget” & House Bill 363: “Broadband: Office, Grants, Parity”

Friday, March 25

• 9:00 a.m. - House Finance: House Bill 281: “Appropriations: Operating budget/loans/funds” & House Bill 282: “Appropriations: Mental Health Budget”
• 1:30 p.m. -  House Finance:  House Bill 281: “Appropriations: Operating budget/loans/funds”, House Bill 282: “Appropriations: Mental Health Budget” & House Bill 283 “Appropriations: Capital, Reappropriations, Supplemental” 
• 1:30 p.m. -  Senate Labor & Commerce: Senate Bill 232: “Intellectual Property of Employees” & House Bill 133: “Alaska Education Savings Programs/eligibility”

Saturday, March 26

11:00 a.m. - House Finance: House Bill 281: “Appropriations: Operating budget/loans/funds” & House Bill 282: “Appropriations: Mental Health Budget”

Federal Updates

In this edition of the Capitol Report, University of Alaska Federal Relations Director John Latini provides a brief overview of legislative happenings in Washington D.C.

Federal FY22 Appropriations Process Completed

Earlier this month, Congress passed and President Biden signed into law H.R. 2471, the Consolidated Appropriations Act, 2022. This $1.5 trillion consolidated legislation includes all 12 appropriations bills that fund the federal government. With passage and the President’s signature, this completes the FY22 federal budget and appropriations process, despite being well into the federal fiscal year already. A general summary of the consolidated measure can be found here and more specific information can be found here. The UA Office of Government Relations is working on a comprehensive summary of the Consolidated Appropriations Act which will be distributed at a later date.

For the first time in more than a dozen years, Congress included Congressionally Directed Spending (CDS), commonly referred to as earmarks, in the Consolidated Appropriations Act. UA secured nine earmarks for a total of approximately $20 million. UAF received five earmarks, UAA received three earmarks and UAS received one earmark. These federal funds will enable UA to conduct research on counter unmanned aerial system technologies to support law enforcement operations and preventing military suicides in remote areas including Alaska, and to expand the Alaska Native Science & Engineering Program (ANSEP). Senator Lisa Murkowski and Congressman Don Young were particularly supportive of UA’s earmark and general appropriations requests in FY22. Senator Dan Sullivan also worked to support UA by helping to secure funding for the Ted Stevens Center for Arctic Security Studies.

Federal FY23 Budget & Appropriations Process Outlook

Congress is likely to begin working on the FY23 budget and appropriations process right away. We expect the Congressional Appropriations Committees to release the rules governing the earmark and general appropriations request process for FY23 in the next week or two. The UA Office of Government Relations has received all UA’s earmark and appropriations priorities for FY23 and is working diligently to submit requests to the Alaska Congressional Delegation.

We expect the Biden Administration to release its FY23 budget request sometime between mid-April and mid-May but timing remains very fluid. Once the budget request is released, the UA Government Relations team will provide a robust summary of key priorities of interest to UA.

In the coming months, Congress will hold hearings and markup some of the FY23 appropriations bill that fund the federal government. However, given that Congress has not passed an appropriations bill on time in more than 20 years and it is an election year, we can expect a Continuing Resolution (CR) that will fund federal agencies at current FY22 levels until late November or December. The outcome of the midterm elections will be a key factor in determining when the FY23 budget and appropriations process could be completed. 

March 14, 2022 

The Legislature Anticipates Substantial Revenue Increases with the Release of the Spring Revenue Forecast, and UA Experts participate in Juneau for Alaska Aerospace Day

Legislators have postponed operating budget conversations while they wait for the release of the Spring Revenue Forecast later this week. In the meantime, the House has been considering deferred maintenance capital requests. Separately, last week representatives from the Geophysical Institute and the Alaska Center for Unmanned Aircraft System Integration (ACUASI) joined the Lieutenant Governor in Juneau to celebrate Alaska Aerospace Day.

Two weeks ago, the House Finance Committee introduced the committee substitute for the operating budget. This new version of the bill includes the amendments accepted by house finance subcommittees earlier in the week. Notably, the operating budget for the University of Alaska was increased from $871.4 million in the governor’s proposed budget to $879.8 million in the committee substitute. The changes included an additional $4 million for fixed and operating cost increases, $3.5 million for College of Health Program faculty, $250,000 for medical simulation equipment and technology, and $635,000 for the Alaska Library Network and the Imagination Library. The committee substitute also includes $1.6 million in the Department of Education and Early Development (DEED) budget to expand the WWAMI program. The $1.6 million may be carried forward until FY24 in order to give the program time to increase its capacity.

Budget negotiations have slowed as legislators wait for the March 15 updated revenue forecast. With Alaska crude oil prices hitting $125 last week, revenue projections are anticipated to be much higher than initially projected last fall. Legislators will utilize the spring revenue forecast to inform their upcoming budgetary decisions. In the meantime, the House Finance Committee is beginning to review capital budget requests. The Senate Finance Committee will start reviewing the operating budget again on Wednesday, March 16, starting with department overviews.

UA in the Capitol

The House Finance Committee is beginning its work considering the capital budget. Last Thursday the UA Government Relations team, as well as facility managers from our three universities, shared the deferred maintenance needs of the university system. Legislators responded positively to the request. You can watch the hearing here.

While most eyes were on the budget process, the university system had several other appearances in the Capitol last week. Last Wednesday, Lieutenant Governor Kevin Meyer invited experts from the university system to present in Senate Labor & Commerce for Alaska Aerospace Day. Dr. Cathy Cahill with the Alaska Center for Unmanned Aircraft System Integration (ACUASI) and Dr. Robert McCoy with the Geophysical Institute presented the relevant research being done at UAF. You can watch the hearing here. Lieutenant Governor Meyer invited Dr. Cahill and ACUASI Business Director Jimmy Parrish to his office after the event to hear more details on ACUASI programs.

Separately, Dr. Amy Vinelove, Director of the UAF School of Education, presented to the Senate Education Committee on Wednesday morning. Dr. Vinelove shared the university system’s efforts and pathways for training Alaskan teachers. Committee members were deeply interested in UAA’s teacher accreditation program. You can watch the hearing here.

Bills on the Move

Wednesday afternoon the House Labor & Commerce Committee considered Representative Bryce Edgmon’s (I- Dillingham) House Bill 363, relating to creating a broadband office and advisory board. The legislation, as written, includes a member from the University of Alaska on the advisory board. We support this legislation, as the university system is one of the largest users of broadband statewide. You can watch the hearing here.

Representative Andy Josephson’s (D-Anchorage) House Bill 229 relating to securing the Higher Education Investment Fund, was heard in House Finance on Thursday morning. UA Government Relations Director Chad Hutchison spoke in the committee to share the university system’s support for the legislation. You can watch the hearing here.

On Friday morning, the Senate Education committee heard Senate Bill 146 relating to textbook cost transparency and House Bill 132 – the “Alaska Apprenticeship Expansion Act”. The committee passed Senate Bill 146 out of committee. It is waiting for a referral to the next committee.

This Week’s Calendar

Monday, March 14

• 8:00a.m. – House Education: House Bill 36: “U of A Regents Reporting Requirements”
          House Bill 108: Concurrent Secondary & Trade School”

         House Bill 48: “Alaska Performance Scholarship; Eligibility”

• 9:00a.m. – Senate Education: Senate Bill 225: “Teacher Registered Apprenticeship Programs”

• 1:00p.m. - Senate Finance: Presentation: FY23 University of Alaska Budget Overview

• 1:00p.m. - House Resources: House Bill 299: “Microreactors”

Tuesday, March 15

• 8:00a.m. - House Community & Regional Affairs: House Bill 298: “Alaska Food Strategy Task Force”

• 3:15: House Labor & Commerce: House Bill 363: “Broadband; Office, Grants, Parity”

Wednesday, March 16

• 9:00 a.m.: House Finance: House Bill 281: “Appropriations: Operating Budget/Loans/Funds”
• 9:00 a.m.: Senate Education: Senate Bill 225: “Teacher Registered Apprenticeship Programs”
• 1:30 p.m.: House Finance: House Bill 281: “Appropriations: Operating Budget/Loans/Funds”

Thursday, March 17

• 1:30 p.m.: House Finance: House Bill 281: “Appropriations: Operating Budget/Loans/Funds”

Friday, March 18

• 8:00a.m. – House Education: Consideration of Governor’s Appointees: University of Alaska Board of Regents: Kali Spencer
• 9:00 a.m.: House Finance: House Bill 281: “Appropriations: Operating Budget/Loans/Funds”
• 9:00 a.m.: Senate Education: Senate Bill 225: “Teacher Registered Apprenticeship Programs”
• 1:30 p.m.: House Finance: House Bill 281: “Appropriations: Operating Budget/Loans/Funds”

March 4, 2022

The House begins public testimony on the operating budget and the University has a strong showing in Juneau

Today marks the 45th day of Legislative Session. Notably, in 2006, Alaska voters narrowly approved a ballot measure setting a 90-day limit for legislative sessions. However, the Alaska Constitution still specifies that the session may last up to 121 days. Lawmakers haven’t adjourned in 90 days since 2013. The length of the legislative session is a hot topic as the House Finance Committee begins public testimony on the operating budget. Many wonder if the Legislature will pass a budget and finish its work in 121 days.

This week the university system has had an increased presence in Juneau. The University of Alaska Foundation held its quarterly Board of Directors meeting. The Foundation also hosted a legislative reception at University of Alaska Southeast’s Technical Education Center. Separately, UA President Pitney presented the State of the University address to the Juneau Chamber of Commerce and the general public.

University of Alaska Foundation’s Legislative Reception

The University of Alaska Foundation Board of Directors, in association with UA President Pitney and UAS Chancellor Karen Carey, invited policymakers to visit the UAS Technical Education Center for an evening showcasing the university’s career education programs. Several lawmakers and legislative staff attended the event where they had the opportunity to tour the facilities and check out state-of-the-art simulators. By all accounts, the evening was a great success and legislators shared their support for UA’s efforts to expand the state’s workforce.

State of the University Address

President Pitney presented the annual State of the University address at the March 3 Juneau Chamber of Commerce luncheon. The event was televised on Gavel Alaska as well as live streamed to the University of Alaska website. President Pitney highlighted areas of success across the system, including student and faculty accomplishments. She also discussed the university system's critical role in enhancing and expanding the state’s workforce. Pitney touted the university system’s research in critical earth minerals, heavy oil extraction and unmanned aircraft systems. She concluded by emphasizing the importance of higher education, noting the universities’ roles in boosting economic development in the state.

Budget Actions

The House Finance Committee began the week with budget close-outs. The entire House Finance Committee came together to hear the actions taken in budget subcommittees. The University Subcommittee added just over $8.45 million to the governor’s proposed FY22 budget. The increase includes an additional $4 million for fixed costs increases to match the amount requested by the Board of Regents. Notably, even with this $4 million and the initial $4 million in the governor’s proposed budget, UA is still $3.1 million short of the total fixed cost increases, and the university system will need to continue to identify additional efficiencies across the system to fund the operating cost increases. Also included in the subcommittee’s budget increases is $3.75 million for expanded health care education programs and technology at UAA, $635.9 thousand for the Alaska Library Network to preserve funding for the Statewide Electronic Doorway (SLED) databases and to support the Alaska Library Catalog and the Imagination Library, and a $72.3 thousand increase in funding for the Technical and Vocational Education Program.

After subcommittee budget closeouts, the House Finance Committee opened up public testimony on the budget. Testimony was heard Thursday and will continue Friday and Saturday.

Friday, March 4

Public Testimony – 1:30 - 3:30 p.m.     
Callers: Fairbanks, Kenai, Mat-Su, Anchorage, Bethel, Cordova, Kotzebue, Nome, Utqiagvik     

Saturday, March 5

11:00 a.m. - 2:00 p.m.       
Callers: Off Net Testifiers             

To publicly testify, you can go to your respective legislative information office or call in:

• From Juneau – (907) 586-9085
• From Anchorage – (907) 563-9085
• From the rest of the state – 1 (844) 586-9085

Next Week’s Calendar

Monday, March 7

• 1:30 p.m. - House Finance: House BIll 220: “Retirement Systems; Defined Benefit Options”

Tuesday, March 8

• 3:30 p.m. - Senate Community & Regional Affairs: Senate Bill 177: "Microreactors"

Wednesday, March 9

• 9:00 a.m. - Senate Education: Presentation by the University of Alaska: Teacher Programs

• 1:30 p.m. - Senate Labor and Commerce: Presentation: Alaska Aerospace Day with Dr. Cathy Cahill and Dr. Robert McCoy

• 3:15 p.m. - House Labor & Commerce: House Bill 363: "Broadband: Office, Grants, Parity"

Thursday, March 10

• 9:00 a.m. - House Finance: House BIll 229: “Alaska Higher Education Investment Fund

• 1:30 p.m. - House Finance: Presentation by the University of Alaska: Deferred Maintenance

Friday, March 11

• 9:00 a.m. - Senate Education: Senate Bill 146: “University: Textbooks/Materials Cost" & House Bill 132: “School Apprenticeship Programs; Tax Credits”

• 1:00 p.m. - House Resources: House Bill 299: “Microreactors"

February 25, 2022

Lisa Murkowski addresses the Legislature and the House considers Budget Amendments

Today marks the 39th day of the legislative session. U.S. Senator Lisa Murkowski was in Juneau earlier this week to give her annual joint legislative address to lawmakers. Legislators were also busy updating the Capitol’s COVID-19 policies and closing out the House budget subcommittees. 

Lisa Murkowski’s Address

Alaska’s senior U.S. Senator Lisa Murkowski addressed the Legislature on Tuesday morning. During her hour-long address she discussed relevant topics including Alaska’s strategic military placement, the federal infrastructure bill, and workforce development. One of the key takeaways from her address was the critical nature of investing in and building up Alaska’s workforce. Federal dollars will be pouring into the state for infrastructure-related projects over the next few years, but it’s imperative the state has the people available to do the associated jobs. She praised the Career and Technical Education programs currently available but maintained that the state needs to do even more to expand our workforce.  Listen to Murkowski’s address here.  

For Those Planning a Capitol Visit: COVID-19 Policy Update

The Legislative Council, a joint committee of senators and representatives that considers legislative affairs, met on Wednesday morning and voted to amend the Capitol’s COVID-19 policies. Effective immediately, masks and regular testing are no longer mandatory in the Capitol complex. However, individual offices may opt to continue enforcement within their own offices.

Personal Legislation Deadline

Friday, February 18,  was the deadline for legislators to submit their own personal legislation. Starting this week, new bills may only be introduced by way of a committee sponsor. Committee sponsored bills are introduced at the will of the committee chair and may require approval of members of the committee prior to introduction. At this point, we can expect to see far fewer bills introduced as committee sponsorship is usually reserved for high priority items.

In the House, 48 new personal bills were introduced; in the Senate, another 23. Notably, several bills related to broadband were introduced. The University Government Relations team is keeping a close eye on broadband-related topics as the state is poised to receive a significant influx of federal dollars to upgrade and expand broadband capacity statewide. As one of the largest users of broadband in the state, we are mindful of efforts to reduce costs and make broadband more accessible in rural communities. 

• House Majority Rules Chair Representative Bryce Edgmon (I-Dillingham) introduced House Bill 363, “Broadband: Office, Grants, Parity,” to establish a statewide broadband office, advisory board, and create a broadband parity adjustment fund to offset costs to broadband consumers. Notably, the creation of a statewide broadband office is mandatory in order for the state to receive federal broadband dollars.  We would like to thank Representative Edgmon and Representative Grier Hopkins (D-Fairbanks) for making sure the university system is part of the Broadband Advisory Board.
   

• Separately, House Bill 370, “Alaska Energy and Broadband Authority,” introduced by House Majority Leader Representative Chris Tuck (D- Anchorage), would expand the Alaska Energy Authority to the Alaska Energy and Broadband Authority”, and give it the authority to upgrade and finance effective broadband systems, as well as increase and improve availability, affordability and performance of broadband data and internet services.
      

• Representative Tuck also introduced House Bill 371, “Broadband Cost Equalization Fund,” which would create an equalization fund to align the cost of broadband services statewide to a level similar to costs paid in Anchorage, Fairbanks and Juneau. The fund is set up similar to the Power Cost Equalization fund which brings down energy costs for power consumers in rural areas.

Legislation Spotlight:

At the request of a Capitol Report reader, we shed additional light on a bill introduced last year. House Bill 220, “Retirement Systems, Defined Benefit Options,” introduced by Representative  Hopkins, would give certain public employees and teachers the option to choose between a defined benefit or defined contribution retirement plan. This legislation applies specifically to Tier IV PERS employees and Tier III TRS employees. Currently, these employees are subject to a defined contribution plan – a plan that puts the onus on employees to contribute and invest in their retirement accounts. HB 220 would allow  these same employees to opt into a new plan, one that would utilize a defined benefit plan, commonly known as a traditional pension plan. The modest pension is projected to be cost neutral to the state. University employees and faculty would be eligible for this new contribution system as long as they aren’t enrolled in the University of Alaska’s Optional Retirement Plan (ORP). Individuals would have 90 days to opt in once the new tier was established, and in doing so, they would be able to roll over their deferred compensation plan into the new defined benefits plan.  

House Bill 220 has two committee referrals in the House. It made it through the first committee of referral, and it currently is in the House Finance Committee. If the House passes the legislation, it will then go to the Senate where it will receive additional committee referrals. With limited time left in the session, there is discussion of committees beginning to conclude business by mid-March. If this comes to pass, it is likely that only legislation deemed priority legislation by House and Senate leadership will continue to receive hearings.

University Budget
The University of Alaska House Finance Subcommittee met this morning to consider members’ amendments to the University of Alaska’s budget. Four amendments were introduced:

1. Amendment 1 from Representative Wool (D-Fairbanks) adds $4 million to help meet additional fixed cost increase impacts for UA. This $4 million would bring the UA operating budget in line with the Board of Regents initial budget request.

2. Amendment 2 from Representative Wool adds $3.75 million for health care programming at UAA, including updating program technology and medical manikins.

3. Amendment 3 from Representative Wool adds $635,000 in funding to preserve the Statewide Library Electronic Doorway (SLED) databases as well as support the Alaska Library Catalog and the Imagination Library. This funding will support the system that serves 92% of K-12 libraries throughout Alaska.    

4. Amendment 4 from Representative LeBon (R-Fairbanks) adds $7 million to support UA’s mariculture programs including UAS’  undergraduate fisheries and overall workforce capacity expansion.

The subcommittee passed the first three amendments and they recommended the fourth concerning mariculture, should  be taken up by the House Finance Committee where members would have the ability for a more in-depth discussion about it. 

Next Week’s Calendar

Tuesday, March 1

• 9:00 a.m. -  Senate Finance: Senate Bill 224: “Funds Subject to CBR Sweep Provision”
• 10:15 a.m. - House Energy: House Bill 299: “Microreactors”
• 1:30 p.m. -   House Finance: House Bill 281: “Appropriations: Operating Budget/Loans/Funds”
• 1:30 p.m. -   House Finance: House Bill 282: “Appropriations: Mental Health Budget”

Wednesday, March 2

• 9:00 a.m. - House Finance: House Bill 281: “Appropriations: Operating Budget/Loans/Funds”
• 9:00 a.m. - House Finance: House Bill 282: “Appropriations: Mental Health Budget”
• 1:30 p.m. - House Finance: House Bill 281: “Appropriations: Operating Budget/Loans/Funds”
• 1:30 p.m. - House Finance: House Bill 282: “Appropriations: Mental Health Budget”
• 3:15 p.m. - House Labor & Commerce: Presentation: “Workforce development in Rural Alaska”

Thursday, March 3

• 9:00 a.m. - House Finance: House Bill 281: “Appropriations: Operating Budget/Loans/Funds”
• 9:00 a.m. - House Finance: House Bill 282: “Appropriations: Mental Health Budget”
• 1:30 p.m. -   House Finance: House Bill 281: “Appropriations: Operating Budget/Loans/Funds”
• 1:30 p.m. -   House Finance: House Bill 282: “Appropriations: Mental Health Budget”

Friday, March 4

• 8:00 a.m. - House Education: House Bill 108: “Concurrent Secondary & Trade School”
• 8:00 a.m. - House Education: House Bill 48: “Alaska Performance Scholarship; Eligibility”

Saturday, March 4

• 11:00 a.m. - House Finance: House Bill 281: “Appropriations: Operating Budget/Loans/Funds”
• 11:00 a.m. - House Finance: House Bill 282: “Appropriations: Mental Health Budget”

February 18, 2022

The Governor introduces an amended budget with $2.5 million for Alaska Center for Energy and Power’s (ACEP) micro nuclear reactor research

This week the governor’s amended budget was introduced with a set-aside for UAF’s Alaska Center for Energy and Power. Additionally, student leaders from around the state came to the Capitol to advocate on behalf of the university system, and UA System leadership was invited to speak on a panel about federal infrastructure spending at the annual Alaska Municipal League legislative conference.

On Monday, the governor introduced his amended FY23 operating and capital budget requests. The amended operating budget is increased by more than $27 million with an added $14.8 million in Unrestricted General Fund (UGF) spending.  The amended capital budget is increased by $19.35 million with a UGF spending increase of $3.7 million. Notably, the governor’s amended capital budget contains a $2.5 million increase for “emerging energy opportunities in Alaska.'' The proposed funds would go to the Alaska Center for Energy and Power (ACEP) at UAF to “address important gaps in our understanding of emerging energy technologies and applications for Alaska.” Specifically, the addition would allow ACEP to conduct further research on microreactors - transportable nuclear reactors. The governor is bullish on using micro nuclear reactor power in the state. In fact, the administration recently released two bills, Senate Bill 177 and House Bill 299, to remove barriers to microreactor development, including requirements for legislative land approval and agency regulations studies. Both bills had hearings this week. Listen to the hearings here and here, respectively.   

In other news, the Capitol has been full of advocacy groups this week. With the Capitol Building open to the public again, many groups from around the state are hosting fly-ins to visit with lawmakers. Notably, the University of Alaska Coalition of Student Leaders met with legislators on Monday and Tuesday this week. Students had the opportunity to meet their own representatives and advocate on behalf of the UA System’s three universities on important issues like the budget.

The Alaska Municipal League hosted its annual winter legislative conference this week. Municipal leaders from around the state were in town to hear from state agency officials, visit with legislators, and advocate for key priority issues.  University system leadership including Interim President Pat Pitney and government relations staff were invited to speak to the conference attendees during a panel on infrastructure spending. They joined representatives from the Alaska Federation of Natives, the Denali Commission, the Alaska Telecom Association and the Alaska Power Association to speak on being an “infrastructure partner” as federal Infrastructure Investment and Jobs Act (IIJA) funds enter the state. State Government Relations Director Hutchison and UA Interim President Pitney discussed the critical importance of developing Alaska’s workforce to meet the labor demands associated with the infrastructure bill. UAA’s Institute of Social and Economic Research (ISER) recently predicted that IIJA could add 14,000 jobs to Alaska’s economy. Our universities are poised to train workers in key industries such as construction and IT. 

Higher Education Investment Fund Update

The Alaska Superior Court released a decision yesterday ruling in favor of the administrations’ decision to sweep the Higher Education Investment Fund (HEIF) into the Constitutional Budget Reserve. The plaintiffs intend to appeal to the Supreme Court.  University system leaders have been watching the litigation closely. The decision is disappointing, however, there is legislative movement to pursue a statutory solution that would remove HEIF from being swept into the CBR entirely. Representative Josephson’s House Bill 229 continues to move through the legislature. We continue to support the efforts of Rep. Josephson and the legislature to create stability for the HEIF.

Next Week’s Calendar

Tuesday, February 22

• 11:00 a.m. - Joint Floor Session - Annual legislative address by U.S Senator Lisa Murkowski
• 12:00 p.m. - Lunch & Learn - Affordable, Sustainable Housing - Cold Climate Research Center

Wednesday, February 23

• 3:30 p.m. - House Education - Senate Bill 10: “Free/reduced tuition for essential worker” / House Bill 108: “Concurrent secondary & trade school”

Thursday, February 24

• 3:30 p.m. - Senate Community and Regional Affairs - Senate Bill 177: “Microreactors”

Friday, February 25

• 9:00 a.m. - House University of Alaska Finance Subcommittee - Budget Closeout
• 9:00 a.m. - House Education - House Bill 48: “Alaska Performance Scholarship; eligibility”
• 9:00 a.m. - Senate Education - Senate Bill 146: “University: textbooks/materials cost”

February 11, 2022

Lawmakers take an in-depth look at the university’s capital requests, the Higher Education Investment Fund, and free tuition for essential workers

The pace is quickly picking up in the Capitol building. Standing committees and finance subcommittees are in full swing. The university system was featured heavily this week with several prominent hearings. In the Senate, lawmakers spoke with student regent Kali Spencer during an initial appointment confirmation hearing. Senators also took a closer look at the university’s deferred maintenance requests in the Senate Finance Committee. In the House, legislators heard bills relating to the Higher Education Investment Fund and free tuition for essential workers. The University of Alaska Finance Subcommittee also invited Interim President Pat Pitney to share the university’s 10-year plan.

UA in the Capitol

In the Senate, the Education Committee held a confirmation hearing for student regent appointee, Kali Spencer. Kali is student body president at UAS where she is currently pursuing a Bachelor of Liberal Arts in interdisciplinary studies with emphasis in political science, psychology, and philosophy. Her regent term runs from 2021-2023. Members of the committee noted her experience with student leadership and were impressed by her letters of recommendation from faculty. The Senators voted unanimously to forward Ms. Spencer’s name to a joint session between the House and Senate for approval. Watch the hearing here.

The Senate Finance Committee took an in-depth look at the university’s capital requests. The university’s deferred maintenance requests received bipartisan support. Committee members specifically noted the urgent need for the Moore and Bartlett residence halls renewal. However, Senate Bill 166, the general obligation bond bill and the current vehicle for funding the project, looks unlikely to pass the Legislature. Instead, lawmakers are considering funding the requests in the annual capital budget. Senators also discussed financing options for the university’s request for $20 million in student information technology upgrade. The IT system upgrades and the renewal of Moore and Bartlett are Interim President Pat Pitney’s highest priorities this session. Watch the hearing here.

Over in the House, in the Education Committee, lawmakers heard Representative Josephson’s (D-Anchorage) House Bill 229 and Senator Begich’s (D-Anchorage) Senate Bill 10.  

Josephson’s House Bill 229 would allow the Alaska Student Loan Corporation to create subsidiaries managing the financing and facilitation of the Alaska Performance Scholarship, the Alaska Education Grant and the WWAMI medical scholarships. Representatives asked questions about the capacity of the WWAMI program, and the limitations of HEIF scholarships. The bill passed out of the committee with an amendment changing the fund to the Higher Education Investment Trust Fund - a change that would further strengthen the argument that the fund is not sweepable. Watch the hearings here and here.

Begich’s Senate Bill 10 would give those who were considered “essential workers” during the initial stages of the COVID-19 pandemic access to free or reduced tuition at Alaska’s post-secondary education institutions. Eligible workers would be able to apply for education grants for up to four years, until 2025. The university government relations team gave a short presentation on the value of higher education and the university’s role in growing the state’s workforce. Lawmakers expressed interest in the limitations of the grant program and asked about accountability measures. Watch the hearing here.

University of Alaska Interim President Pat Pitney presented to the House UA Finance Subcommittee this morning. She shared the university system’s 10-year plan with lawmakers. She discussed the university’s budget projections as well as strategic initiatives. Notably, she highlighted the Board of Regents 5 strategic goals and discussed UA’s priorities to increase student enrollment, develop the Alaska workforce, promote arctic policies and research, advance the Alaska Native Successive Initiative, expand the finance industry workforce, Increase fisheries and ocean science in southeast, and revise the university’s business models for modernization and efficiency. Committee members were interested in the status of the university’s teacher education programs, the impact of the Higher Education Investment Fund on in-state student enrollment, and the potential outcomes of budget increases. Watch today's hearing here.

Other news:

In addition to talking about the university’s capital requests, members of Senate Finance heard from Neil Steininger, director of Office Management and Budget, about the Governor’s supplemental request to the FY22 operating budget. The total supplemental budget amounted to approximately $901 million. Among the items in the supplemental are funds for reducing staffing shortages in the Department of Corrections, restoring jury trials, implementing election security measures, and settling various lawsuits, as well as $795.6 million for a PFD back-payment. Lawmakers took the opportunity to investigate previously vetoed budget items that were resurrected in this supplemental budget. Watch the hearing here.

On Wednesday, both bodies convened in a joint session to listen to the State of the Judiciary, an annual address from the judicial branch. Chief Justice Daniel Winfree spoke to lawmakers about both the triumphs and the setbacks the judicial branch has experienced since the onset of the pandemic. He spoke about the courts’ adaptation to remote hearings in early 2020, but noted the significant backlog of jury trial cases. Winfree emphasized that the governor’s supplemental budget includes $1.8 million to address the backlog and he thanked the Legislature for considering the request. He also noted a request for just over $1 million in computer software and network upgrades following the cyberattack the court system experienced last year. He concluded his speech with a special note to Alaska’s young people: “Be concerned; be active; be involved in government. You too can be a governor; a legislator; or a judge or justice. Live your dreams and make Alaska an even better place”. Watch the State of the Judiciary here.

Bills on the Move

Monday, February 14

• 8:00 - House Education - Senate Bill 10 - Free/reduced Tuition for Essential Workers

• 1:30 - House Finance - House Bill 281 - Appropriations: Operating Budgets/Loans/Fund

Tuesday, February 15

• 10:15 - House Energy - House Bill 299 - Microreactors

• 1:30 - Senate Transportation - Senate Bill 166 - G.O. Bonds for Infrastructure Projects

• 1:30 - Senate Health and Social Services - House Bill 133 - Alaska Education Savings Programs/Eligibility

• 3:30 - Senate Community and Regional Affairs - Senate Bill 177 - Microreactors

Wednesday, February 16

• 9:00 - Senate Finance - Senate Bill 164: Appropriations: Capital; Reappropriations; Supplemental

Thursday, February 17

• 1:30 - House Finance - House Bill 281 - Appropriations: Operating Budgets/Loans/Fund

• 3::30 - Senate Community and Regional Affairs - Senate Bill 177 - Microreactors

Friday, February 18

1:30 - House Finance - House Bill 281 - Appropriations: Operating Budgets/Loans/Funds

February 4, 2022

COVID-19 in the Capitol as legislators take in-depth look at Operating Budget

Capitol COVID-19 Outbreak:

The House held a technical floor session on Wednesday and several standing committees were canceled after one or more members of the House tested positive for COVID-19. Many representatives were close contacts and were asked to quarantine outside of the building until they could safely return. The outbreak proved disruptive as it pushed the business of the House back by several days. Many planned hearings have been postponed until next week.

UA in the Capitol

Fortunately, the House University of Alaska Finance Subcommittee was still able to meet earlier today to review the university’s budget additions. Committee members heard from UA experts about the drone program, our heavy oil recovery method research and development, and our critical minerals and rare earth elements research. Committee members were interested in the difference between the university’s drones and those used by the U.S. military, the refinery process for heavy oil, and the environmental impacts of processing critical earth minerals. See today’s presentations here.

The Senate Finance Committee has been meeting to review the state’s finances closely. This week they first heard the State’s 10-year plan from Neil Steininger, director of the Office of Management and Budget (OMB). Following Mr. Steininger’s presentation, the committee heard an overview of Senate Bill 162, the operating budget, by Legislative Finance Director Alexei Painter. Notably, when reviewing the Constitutional Budget Reserve (CBR), Senator Bert Stedman (R-Sitka) said that he would like to separate the Higher Education Investment Fund (HEIF) from the remaining CBR funds, indicating that the Senate Finance Committee intends to preserve HEIF funds and separate them, either by law or litigation. Later, in the same presentation, Mr. Painter discussed the federal COVID-19 and infrastructure funds coming to the state. The university’s $20M capital request updating student information technology systems is currently funded from the State’s federal coronavirus capital projects fund and Mr. Painter believes it meets the federal funding guidelines because it falls under “projects enabling remote work, education, and health monitoring.” 

Upcoming Events

The university Government Relations team will have the opportunity to highlight our drones program, critical earth minerals research, heavy oil recovery research and ACEP’s work in microreactors this afternoon during an informal discussion with legislators and staff. UA experts in attendance include Dr. Cathy Cahill and Director Gwen Holdmann. 

Monday, February 7

• 9:00 a.m.: Senate Education Committee - Consideration of Governor's Appointee: Kali Spencer to University of Alaska Board of Regents

Tuesday, Feb 8

• 10:15 a.m.: House Energy Committee - “An Act on Microreactors” (Pending introduction & referral)

Wednesday, Feb 9

• 9:00 a.m.: Senate Bill 10 - “Free/Reduced Tuition for Essential Workers”

• 11:00 a.m.: Joint Session - State of the Judiciary Address by Chief Justice Winfree

• 1:30 p.m.: House Bill 281 - “Approp: Operating Budget/Loans/Fund”

Thursday, Feb 10

• 10:15 a.m. : House Energy Committee - “An Act on Microreactors” (Pending introduction & referral)

Friday, Feb 11

• 9:00 a.m.: House University of Alaska Finance Subcommittee - Discussion of FY 23 Research and Development Project Requests / Presentation: University of Alaska 10-Year Vision

• 9:00 a.m.: House Bill 229 - “Alaska Higher Education Investment Fund”

President Pitney Testifies in Juneau and Governor Dunleavy Outlines Vision for Alaska in Annual State of the State Address

In the second week of the regular legislative session, UA Interim President Pat Pitney spent time in Juneau presenting to several legislative committees, and Governor Mike Dunleavy outlined his visions for Alaska’s future in his State of the State address.

President Pitney in Juneau

On Monday, UA Interim President Pat Pitney spoke to the Senate Education Committee where she provided an up-to-date overview of the University of Alaska System. In the presentation, President Pitney discussed current enrollment numbers, the impacts of COVID-19 and UA’s role in meeting Alaska’s workforce needs. Senators asked great questions about teacher education programs and online education opportunities. They expressed an appetite for continued partnerships between the universities and private industry wherever possible. Watch the Senate Education hearing here.

The same day, President Pitney also presented UA’s workforce reports to the Senate Labor and Commerce Committee. Noting the aging of the Alaska workforce, Pitney discussed the university system’s role in preparing students to work in construction, administration & finance, aviation, fisheries & marine science, health, information technology, mining, oil & gas, and education. The committee heard about the successes of the Technical and Vocational Education Program (TVEP) in preparing students with career skills needed in Alaska’s highest demand industries. Senators noted the continued need to expand capacity in the nursing program. President Pitney explained that the university is asking for health care program funding in the operating budget in order to stabilize and ultimately expand the program. At the end of the hearing, all committee members expressed their support for the university and its important role in improving both the lives of Alaskans and the economic outlook of the state. Watch the Senate Labor and Commerce hearing here. 

State of the State Address

On Tuesday evening the Legislature came together in a joint session of the House and Senate to welcome Governor Dunleavy in presenting the annual State of the State Address. In a 54-minute speech, the Governor highlighted several Alaskans, including Olympian Lydia Jacoby and Alaska’s own Miss America, Emma Broyles. He shared his vision for Alaska’s future, including increased funding for the university and an expansion to the WWAMI program. He emphasized his proposed budget increases for the drone program and critical earth minerals research. The Governor also addressed bolstering public safety, renewing the trans-Alaska natural gas pipeline, and creating a Food Security Task Force to examine self-reliance in local agriculture.

Budget Proceedings

The UA Government Relations team presented a university budget overview to the House Finance University budget subcommittee on Friday morning. The committee heard that the Governor’s Proposed FY23 university budget includes a slight increase of $4.1M or 1.5% from the FY22 budget. However, it is worth noting that this is less than the $8M increase that the Board of Regents requested. The proposed budget includes $22.8M in one-time FY23 discretionary federal funds from the American Rescue Plan Act (ARPA) for the UA Drone Program, and research into critical and rare earth minerals, as well as heavy oil recovery methods. The committee also learned about the university’s proposed capital requests, specifically the UAF Bartlett and Moore Hall Modernization and Renewal, the Student Information Technology System upgrades, and construction of new dockside infrastructure at the Seward Marine Center for the research vessel Sikuliaq. Members of the committee expressed interest in student enrollment numbers, middle college programs, and the funding mechanisms for the capital requests. You can watch the hearinghere.

Bills on the Move

Senate Bill 166, approving general obligation bonds for infrastructure projects, was heard in the Senate Transportation committee on Thursday. Representatives from the university discussed the proposed $18.7M Moore-Bartlett Halls building renovations. The committee held the bill for further review. Watch the hearing here. A similar hearing will be held in House Finance for the House’s companion bill, House Bill 285, this afternoon. You can watch it here.

House Bill 21, relating to adding a faculty member to the Board of Regents, passed out of the House Education committee on Wednesday. It has been referred to House State Affairs where it currently awaits scheduling. 

Senate Bill 32, establishing a statutory statewide middle college program, was heard in House State Affairs on Thursday. The committee held the bill for further review. A subsequent hearing will be held next Thursday, February 3, at 3:00pm.

House Bill 229, protecting the Higher Education Investment Fund, has been scheduled for a first hearing next Wednesday, February 2, at 3:30pm in House Education.

January 21, 2022

The 2nd Regular Session of the 32nd Legislature Convenes

The 2nd regular session of the 32nd Legislature began Tuesday, Jan. 18. However, even before the official “gavel-in,” legislators were holding committee hearings on hot button issues including the Capitol’s COVID-19 policies.

Martin Luther King Jr. Day was a particularly busy day in the capitol. The Joint Legislative Council Committee met and members voted to keep the Capitol Building open to the public while continuing to require masks and frequent testing for lawmakers and staff. 

For now, the general public is welcome in the building as long as they wear masks. Testing for the public is based on the honor system. This is something for student and alumni groups to keep in mind as they plan Juneau advocacy trips this year.    

Legislative Council also voted in favor of filing an amicus brief (“Friend of the Court”) in the recent lawsuit filed by four university students to restore funding to the Higher Education Investment Fund.  The amicus brief supports the students. The same afternoon the Joint Legislative Budget and Audit Committee met and approved $60M in FY22 supplemental federal receipt authority for the university relating to new federal contracts at UAF’s University Affiliated Research Center (UARC). This is great news for the university. 

The session officially kicked off Tuesday afternoon when the House and Senate gaveled in. In a speech from the dais, Speaker Louise Stutes requested a return to decorum in the House after a year filled with budget stand-offs and extended special sessions. Pre-filed legislation was then referred to committees for upcoming hearings. Notably:

• House Bill 21 by Rep. Wool (D-Fairbanks), would add a faculty member to the UA Board of Regents, and was referred to House Education where it was heard this morning.
• House Bill 229 by Rep. Josephson (D-Anchorage) would protect the Higher Education Investment Fund (HEIF) and students who rely on scholarships, needs based grants, and the WWAMI medical program. The bill would create subsidiaries under the Alaska Student Loan Corporation to manage the Higher Education Investment Fund, effectively protecting the fund from annual sweeps into the Constitutional Budget reserve and keep the scholarships secure during annual legislative budget negotiations. HB 229 was referred to the House Education committee where it remains to be scheduled. 
• House Bill 250 by Rep. Wool would fully restore funds to sub accounts of the General Fund that were swept into the Constitutional Budget Reserve in FY21 and was referred to the House Finance Committee. It has not yet been scheduled. This bill is really about protecting the HEIF.

Thanks to Rep. Josephson and Rep. Wool for their leadership roles in protecting our student scholarship funding.

Budget Proceedings

Senate and House Finance committees began the week listening to revenue forecast from the Department of Revenue (DOR). The revenue forecast, published in fall of 2021, projects that Unrestricted General Fund revenue will be $5.7B in FY22 and $5.9B in FY23. Notably, oil prices have gone up since the revenue forecast was published. DOR currently projects FY22 oil prices at $80/barrel (as opposed to the $75 originally published) and $78 (as opposed to $71) in FY23. The variation amounts to an additional revenue of $281M in FY22 and $470M in FY23. 

UA in the Capitol

University representatives will be testifying in several meetings over the next week:

• Monday, January 24: 
• 9:00am Senate Education: 
• “Update from the University of Alaska”
• 1:30pm Senate Labor and Commerce: 
• “Presentation on Workforce Development Programs”
• Wednesday, January 26:
• 8:00am House Education: 
• House Bill 21 - “Add Faculty Member to University Board of Regents”
• House Bill 114 - “Education and Supplemental Loan Programs”
• Thursday, January 27:
• 3:00pm House State Affairs: 
• Senate Bill 32 - “College Credit for High School Students”
• Friday, January 28:
• 9:00am University of Alaska House Finance Subcommittee: 
• University budget overview

January 14, 2022

As the Legislature returns to the Capitol, the state budget and protecting the Higher Education Investment Fund remain university’s top legislative priorities

The second session of the 32nd legislature opens next Tuesday, January 18. Legislators and staff have begun to arrive in Juneau from districts across the state. In the last weeks before session begins, new pieces of legislation are being pre-filed for introduction. The first batch of pre-filed bills was released to the public on Friday, Jan 7. Another handful was released today. 

Among the newly filed bills are several that relate to the university system. Of particular interest is House Bill 229, introduced by Representative Andy Josephson (D-Anchorage). HB 229 would allow the Alaska Student Loan Corporation to create subsidiaries to manage the financing and facilitation of the Alaska Performance Scholarship, the Alaska Education Grant and the WWAMI medical scholarships. Rep. Josephson’s legislation is timely after four University of Alaska students recently filed a lawsuit challenging the “sweep” of the unspent funds of the Higher Education Investment Fund (HEIF) into the Constitutional Budget Reserve (CBR). The HEIF, currently valued at approximately $410 million, is the current source of funding for the Alaska Performance Scholarship, Alaska Education Grants and the WWAMI medical scholarships. Each year, roughly 5,400 students receive $15.1 million in financial aid from these programs. 

During the 2022 legislative session, legislators also will be reviewing the governor’s proposed FY23 budget. Notably, this year the governor added $26.8 million to the UA’s budget. The governor’s budget for the university includes a $4 million increase toward stabilizing state general fund operating support and $22.8 million in one-time federal American Rescue Plan Act (ARPA) funding for specific areas of investment that will contribute to the state’s economic recovery. These investment areas include $7.8 million for critical minerals and rare earth elements research, $5 million for heavy oil recovery method research, and $10 million for the drone program. The capital budget also includes $20 million for updated IT systems, funded with the state’s coronavirus capital projects fund. Additionally, the governor’s budget includes $94.4 million in federal budget authority for UAF's R/V Sikuliaq Seward Infrastructure project and a $300 million general obligation transportation and infrastructure bond that has $18.65 million for the University of Alaska Fairbanks - Bartlett Hall and Moore Hall Modernization and Renewal project.

During the session, the university will continue to promote accessible higher education by raising its voice in UA’s best interests. Your voice is also important during this process. Please reach out to your state senators and representatives and share with them how the University of Alaska is important to you. Senators and representatives’ contact information can be found here: Alaska Legislature’s homepage.