Bradners’ laska Legislative Digest A- Commentary on Alaska issues and policy PUBLISHERS: Mike Bradner, Tim Bradner / Business Office: (907) 440-6068 / 3037 South Circle Anchorage, AK 99507 / Fax: (907) 345-5683 Digest No. 8/2021 March 8, 2020 More fallout from failure of emergency declaration A new bill to deal with COVID-19 response may be introduced as early as Monday, Senate leaders said Friday in a briefing. It will deal with issues left dangling when the state emergency declaration ended Feb. 14, including authorization to shift vaccine supply between communities; telehealth authorization without a physical exam; liability issues; authorization for $8 million a month in federal food stamp funds; and authorization for school districts to have larger car- ry-over fund balances (the current limit is 10 percent). Those authorizations, and more, disap- peared when the emergency declaration expired. What we didn’t hear in the briefing was re-imposition of mandatory airport virus testing, which also expired (it is now voluntary), and any reference to waivers from federal regulations that also expired, and which are a huge issue for health care providers. The declaration was a mechanism to get the federal waivers for providers and the food stamp program extension, but the lack of mandatory airport testing is already being linked to a serious infection outbreak in Petersburg. – Continued on page 8 A Lora Reinbold and Donna Arduin duo in Juneau? The spat between conservative Sen. Lora Reinbold and Gov. Mike Dunleavy continues to provide entertainment in the Capitol. Late last week Reinbold read out a lengthy letter to the governor responding to his harsh criticism over Reinbold’s statement on pandemic response. The latest is a report that Reinbold wants to hire Donna Arduin, the conservative budget hawk fired by Dunleavy as Office of Budget Management director. Capitol hallway talk is this is part of a plan to discredit the governor and perhaps fuel a conservative opponent (maybe Reinbold?) to Dunleavy in a 2022 relection bid. Arduin’s hiring is up to Senate Rules chair Gary Stevens. – Continued on page 5 In this issue: Budget, Page 2; Election changes, Page 3; Status of bills, Pages 4-5; Education, Pg. 6; Rural water/sewer funding Our reports are protected by Copyright. Please do not forward to others without permission. © COPYRIGHT Email: [email protected] . State agencies/budget . Stedman: Senate operating budget will likely follow governor’s recommendations Don’t expect many changes to the governor’s agency operating budgets from the Senate’s budget subcommittees, Sen. Bert Stedman, R-Sitka, Finance committee cochair for the operating budget, said during the committee’s Nov. 4 budget briefing by the Legislative Finance Division. However, there’s no “closeout” date yet set for subcommittees. Senate President Peter Micciche, R-Kenai, said March 6 that the House, which traditionally originates the operating budget, will likely have its version to the Senate by the end of March. The House is behind schedule because of its late organization. The Senate is ready to close out its agency subcommittees but won’t until the House finishes its version. Traditionally the Senate leads on the capital budget, which will be very skinny this year, and can be expected to take the lead on the governor’s general obligation bonds bill. Other highlights from Senate Finance March 4 budget briefing: Historical review, from Legislative Finance: Agency operating budgets are down $700 million per year between FY 2015 (the last high revenue year) and the proposed FY 2022 budget, or about 15 percent. The big drop ($663 million) was between FY 2015 and FY 2018. Reductions have been less between FY 2018 and FY 2022. About 2,000 positions were eliminated between FY 2015 and FY 2018 with smaller decreases since, Legislative Finance said. Comment from cochair Stedman: Recent efforts at reductions, such as $60 million cut from the university, are offset by increases, like $60.5 million added to prisons spending. The Legislature seems stuck at a $4 billion operating budget. “We need other levers,” Stedman said, like statutory changes to eliminate whole programs. Sen. Natasha von Imhof, R-Anch., commented that the governor’s proposed extra draws from the Permanent Fund earnings reserve to pay extra dividends will total $1.2 billion in FY 2021 and $2 bil- lion in FY 2022, and when combined with the regular percent-of-market-value draw of $3 billion for the two years will total $9.2 billion taken from the Fund’s earnings reserve by the end of FY 2022. A little good news on the revenue front Rising crude oil prices mean there may be $249 million more revenue in the current Fiscal Year 2021 and $293 million more in FY 2022, the budget for which the Legislature is now preparing. The estimates, which are tentative, were given the Senate Finance Committee March 4 by the Legislative Finance Agency. But just as Lady Luck smiles, she frowns: The state’s Comprehensive Annual Fi- nancial Report for FY 2020 is just in, and it shows the year-end balance for the Constitutional Budget Reserve, the state’s main ready cash reserve at $1.4 billion, $400 million less than the $1.8 billion estimated. When the FY 2021 deficit is paid it will bring the CBR to about $500 million, the minimum needed to meet ongoing payment obligations during FY 2022. Page 2 Alaska Legislative Digest No. 8/2021 . Elections . Better Elections Initiative – Ballot Measure 2 – is now law The Better Elections Initiative passed in Ballot Measure 2 in the November General Election, went into effect on Feb.28. This makes fundamental changes in election procedures, most import- ant being an end to “closed” partisan primaries. Voters will cast their votes in a new nonpartisan “top four” primary election on Aug. 16, 2022, and a “ranked choice voting” (RCV) process for the Nov. 8, 2022 general election. The Division of Elections will soon issue updated candidate forms reflecting the new law. Additionally, DOE will adopt new and amended regulations necessary for implementing the new law. The process of fully converting Alaska’s current election system to the voter-approved new one is extensive and will take time. Major changes include: • Only one ballot in primaries. All candidates will be listed regardless of party or group affiliation. Only the top four candidates will advance to the general election. • No more petition candidates. Candidates may no longer skip the primary and petition to appear on the general election ballot. Candidates who did not run in the primary election can still run as a write-in candidate in the general election, however. • Different ballot design/instructions for the general election. Voters will be able to rank candidates and may choose as many or as few of the listed candidates (or write-ins) to rank. • Only first round results will be reported on election night, just as in prior elections. These will be unofficial results. • Additional tabulation of further rounds and retabulation for races where no candidate reaches 50 percent of votes will occur on the 15th day after the election, and after all eligible ballots have been received and counted. The ranked choice system is being done in some other states and is still new. One consequence: This will end the current closed Republican primary election The closed primary is where only certain voters, such as registered Republicans, can cast ballots. Since primaries typically have low turnouts this makes incumbent Republican legislators vulnerable to targeted efforts, where a small number of voters energized on a particular issue can have outsized effects. In the August 2020 closed Republican primary several experienced incumbents including Cathy Giessel, John Coghill, Jennifer Johnston and Chuck Kopp, were defeated. Had the primary been open, such as under the Ballot Measure 2 changes, more voters would have the option of cast- ing ballots for these veterans, and they would likely have been reelected. Bills active last week: • SB 74, general obligation bonds (Senate Transportation Comm., March 3) • HB 78, telehealth services (Senate Health and Social Services, March 2) Page 3 Alaska Legislative Digest No. 8/2021 . Status of Bills . Introduced in the House Coming this week in the Legislature Monday March 8 -- SB 70: Opioid overdose drugs (By S. H&SS)......... • SB 32, college credit in high school (Senate Education ......................................................................To H&SS Comm., 9 am) -- HB 117: Extend termination date of Board of Cer- • SB 65, liability, health care providers (Senate Judiciary tified Direct-Entry Midwives (By Ortiz) .................... Comm., 1:30 pm) ................................................................To L&C, FIN • SB 27, industrial hemp (Senate Labor and Commerce -- HB 118: State identification and driver’s licens- Comm., 1:30 pm) es of persons in Dept. of Correction custody (By Tuesday March 9 Kreiss-Tomkins) ...............................................To SA • Dept. H&SS reorganization (Senate Finance Comm., 9 am) -- HB 119: Medical assistance for recipients of adult • HB 115, aquatic farm sites, (House Fisheries Comm., 11 foster care services; adult foster care home license am) (By GOV) ...........................................To H&SS, FIN • HB 53, military children, school residency (H Mil. & Veter- -- HB 120: State land, Dept. of Education and Early ans’ Affairs Comm., 1 pm) Development dispose of state land (By GOV) ........... Wednesday, March 10 ................................................................To RES, FIN • Alaska Energy Authority update, (Senate Finance Comm., -- SB 24: Virtual meetings for corporations (By S. 9 am) L&C) .............................................................To L&C • HB 81, modify net profit royalty, oil and gas leases (House Resources Comm., 1:30; also in Senate Resources, 3:30 pm, -- HB 121: Education tax credits; employer child as SB 61) care cost (By Fields) .............................To L&C, FIN • SB 24, virtual meetings for corporations (House Labor and -- HB 122: Gun violence protective orders (By Tarr).