The Alaska House of Representatives passed legislation designed to protect the Alaska Marine Highway and Higher Education Investment Funds from the annual Constitutional Budget Reserve sweep. The Constitutional Budget Reserve sweep provision, established in the state’s constitution, requires that money in the general fund available for the appropriation at the end of each fiscal year be swept, or repaid, to the CBR.
Rep. Dan Ortiz (Ketchikan) said:
“House Bill 322, as amended, moves the Alaska Marine Highway System fund, the AMHS Vessel Replacement fund, and the Higher Education Investment Fund to the state treasury from the general fund, making them not subject to the Constitutional Sweep. Contrary to some of the discussion that took place on the floor around the amendment process, the bill does not create a dedicated fund. The legislature still maintains its ability to appropriate these funds for any purpose.”
Rep. Ortiz adds:
“Ongoing crucial state services such as the Alaska Marine Highway System should not suffer the destabilizing affects that may result from the sweep of the funds. With HB 322, making them unsweepable, it creates needed certainty for both the Higher Education Fund and for the Alaska Marine Highway System itself.”
The sweep is reversible by a 3/4 vote in the Legislature but has become difficult in recent years. Additionally, funds previously protected from the annual repayment have since been interpreted as subject to the sweep, destabilizing longstanding funds and ongoing state services.
House Bill 322 passed on a 25-15 vote and moves to the Senate for consideration.
Transcribed audio courtesy of KTOO 360TV.