The House of Representatives on Saturday passed an operating budget. It focuses on the state’s education system, funding essential services, and helps Alaskans recover from inflation and high energy prices by including a $1,300 Energy Relief Check in addition to a Permanent Fund Dividend. House Bill 281 passed on a 25-14 vote.
Rep. Neal Foster (Nome) said:
“This budget is one of the most diverse and encompassing of all political ideologies that I’ve seen. While nobody is going to be completely happy with the budget before us, I think nearly all of us can identify major items that are important to our districts.
He highlighted some of what’s in House Bill 281:
“With regard to education, we included a contingent $57 million increase to K-12 schools, and it becomes effective only if legislation then increases the Base Student Allocation by the same amount does not pass. We forward funded education to give our schools budget stability since the state and our schools are on different budget cycles. We refilled the higher education fund with $395 million so that earnings can be used to pay for scholarships. We included $1.6 million to increase the number of medical professionals coming back to Alaska under what’s known as the WWAMI program. We fully funded the school bond debt and REAA programs with $167 million to pay for schools built in urban areas such as the Mat-Su which has been growing substantially as well as in rural areas where school buildings are falling apart.”
The budget also includes:
- In addition to a $1,250 dividend payment, each Alaskan will also receive a $1,300 Energy Relief Check to help those struggling with high fuel prices and record inflation
- $2.2 billion total will be left in the Statutory Budget Reserve, with $1.5 billion in FY22 and $657 million in FY23, helping our state prepare for a drop in revenue when the price of oil drops
- $1.2 billion will be spent for forward funding education, which will prevent teachers from receiving pink slips and provide certainty to Alaskan families and educators that classes will start on time, with adequate funding
- $395 million will be spent to refill the Higher Education Investment Fund, which helps Alaskan students looking to further their education, both for merit scholarships and needs-based assistance
- The Alaska Marine Highway will be fully funded for the price of $141 million, with $82 million coming out of federal infrastructure funds. An additional $18 million will be put towards AMHS Vessel Replacement
- $60 million will be utilized to pay the unfunded 50% of oil and gas tax credits that were not funded in FY22 due to the failed 3/4 CBR vote. $349 million will be spent to pay our obligation for this fiscal year
- $2.5 million for Pre-K for two years, for a total of $5 million, giving Alaskan children entering school a head start in their learning and better preparing them for every stage of their education
The bill now heads to the state Senate for consideration.
Transcribed audio courtesy of KTOO 360TV.
Click here for more on House Bill 281.
