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Alaska Legislative Digest 1 - Continued on next page Bradners’ Alaska Legislative Digest - Special Commentary Report Publishers Tim and Mike Bradner - Tim: (907) 440-6068 or Mike: (907) 242-6572 [email protected] This quagmire, the more we look at it the worse it gets! Digest No. 43-19 July 22, 2019 - Sen. Finance Cochair Bert Stedman Senate approves the capital bill 19 to 0, then House minority kills it! On Saturday the Senate reconstituted the capital bill, passing it 19 to 0. However, on Sunday House Minority Leader Rep. Lance Pruitt and House Republicans killed it, denying the bill the three quarter vote needed for funding from the Constitutional Budget Reserve. The bad news is this? The bill will be back before the House today, Monday, July 22, under reconsideration. “The governor’s one-year plan has changed to a two-year plan, and more cuts Federal construction funds at risk are expected next year.” - Quote by OMB Director Donna Arduin - 7/12/19 If a bill doesn’t pass the state stands to lose almost $1 billion in federal construction funds for highway, aviation, and sewer and water projects. The state faces a July 31 deadline after Question to Ms. Arduin: So, tell us, what’s in the second year of this? which these funds would be dispersed to other states. The Associated General Contractors - See more page 3 (AGC) estimates a failed construction season could cost as many as 15,000 jobs. The failed bill also included a feature called the “reverse sweep,” which would salvage funding for rural energy programs, student scholarships, the WAMI medical program, maintenance of emergency medical vaccines, and a host of other programs. Seven minority members were absent What’s at stake for our subscribers? Access to the CBR requires a three-quarter vote, which is 30 of the House’s 40 members. Our subscribers are individuals, institutions, companies, and the people involved in The vote failed on a 25 to 8 vote. However, despite the critical importance of the bill seven building our State. They have an interest in orderly and efficient state government, not one of Rep. Pruitt’s minority members were absent. They included: Reps. George Rauscher and that is gasping for breath and forcing differing interests to fight desperately with each Mark Neuman, both of Mat-Su, Rep. Ben Carpenter, R-Kenai, Rep. David Talerico, R- other for what they need from state government. Healy, and Reps. Laddie Shaw, Sara Rasmussen, and Josh Revak, all of Anchorage. They recognize we have a problem with the politics of our Permanent Fund dividend, All majority members voted for the bill, as did Independent Rep. Gabrielle LeDoux. In and a politics that puts the dividend first before public service and infrastructure. Most addition, Rep. Kelly Merrick, R-Anchorage, a minority member, voted for the bill. also recognize no one wins with the kind of turmoil we have now. - Continued next page © Copyright: The Alaska Legislative Digest and the Alaska Economic Report are copyright publications. Please call (907) 440-6068 for permissions. 2 The capital bill will be back before the House at 10 a.m. today. - Continued from previous page from the Constitutional Budget Reserve (CBR), which left many programs Legislative leaders want to resolve the capital bill to make room for another unfunded, including the so called reverse sweep. effort, this to reenact funding for programs that Gov. Dunleavy vetoed, these including the draconian cut for the University, Medicaid, school construction debt The reverse sweep will permit funding of Power Coast Equalization (PCE), a support. Also school supplemental program cuts may be revisited. subsidy for rural energy costs, the WAMI program for Alaska medical, scholarships from the Higher Education Fund, funding for the Department of Health and Social Also as lawmakers debate again the capital bill, the University Board of Regents Services vaccine reserve program, and permit funding for forest fires and other will be meeting to again consider declaration of a fiscal exigency uncontrollable expenses. The dividend? Also in the next round of legislation will be the issue of the dividend. The governor’s one-year plan has changed to a two-year plan, and more cuts are expected next year. - - Quote by Donna Arduin, OMB Director - Continued on next page Page 2 Alaska Legislative Digest, No. 43/19 Alaska Legislative Digest, No. 2/18 .
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