SESSION UPDATE - April 8, 2024

Dear Friends and Neighbors,

This week may be tax-filing season at your house but in the People’s House here in Juneau, it is tax-spending season. As you send a precious part of your hard-earned income off to Washington, DC, as you pay your federal taxes, your state legislators are in the thick of it, figuring out how to wrangle the state budget, where to spend state taxes to keep your state government up and running to serve you.

Before we delve into the work in Juneau, I want to thank all who attended the great constituent meeting in Palmer Saturday on two separate topics: Education and Artificial Intelligence. We had a great turn-out. A big shout of thanks to DEED Commissioner Deena Bishop and to State Deputy Chief Information Officer Niel Smith. A very informative discussion was had by all!

Budget-Wrangling Season in the People’s House

The House version of the operating budget bill is sitting at approximately $12.3 billion (including the PFD).

Where do we get the revenue to cover those costs? $3.7 billion from the 5% percent-of-market (POMV) draw from the Permanent Fund, $2.8 billion from oil and other taxes, and the remaining $5.8 billion in revenue is made up of federal funding ($3.5 billion) with the rest primarily coming from pots of funds established in the past (tied to statutes) and various user-type fees.

What will remain in savings with this spending plan? A.) $2.2 billion uncommitted in the Earnings Reserves Account (ERA) of the Permanent Fund, and B.) $2.6 billion in our Constitutional Budget Reserve (CBR).

One significant budget-related factoid I think it’s important for you to know: roughly $3 billion of the $12.3 billion operating budget is allocated for personnel costs for about 21,000 employees. That $3 billion comprises half of our state’s discretionary funds (UGF or unrestricted general funds).

- The Budget Roadmap -

Already in flux, a plan to gavel out of the 33rd Legislature on May 14 points to an exchange of the operating and capital budget bills between the House and the Senate later this week – on Friday, April 12, with the budget conference committee process beginning about 3 weeks later, on May 6. With the House setting a higher PFD amount than the Senate Majority favors, the agreement on the size of the capital budget is already a sticking point. 

- A PFD Detour -

The House Finance Committee’s proposed PFD is 30% ($1.1 billion) of the POMV draw from the Permanent Fund and with the energy rebate (estimated $500 million) is at about $2300/PFD. The Senate Majority prefers a 25% POMV ($.9 billion) draw for an approximate $1600 PFD with the rebate included. (Note that a 50% POMV draw – $1.8 billion – for a PFD with the rebate would net a $2900 PFD. A statutory PFD based on the formula relied upon from 1982 to 2015 would require 63% of the POMV draw – $2.3 billion – and with the energy rebate be a $3700 PFD.)

Because the courts decreed in 2017 that the legislature is not bound to the PFD formula in statute, the PFD has been a moving target and a point of contention for the legislature in recent years. The court ruling essentially means that funds that before would have only going to the PFD are now up for grabs for other spending – and oh, is the battle for those dollars is intense.

Crafting and passing a budget has never been an easy task for 60 elected officials in Juneau, all with different ideas. But in recent years since the court ruling, it’s absolutely ridiculous. With multiple tug-of-wars over hundreds of millions of dollars in play, settling on what dollars will go where in a timely manner is not occurring. I am a huge supporter of settling the PFD once and for all. Not only will it prevent chaos but it will give us fiscal certainty and a better ability to prepare and plan for both current and future budgets.

- Infrastructure Takes Hit -

Fortunately, bridges in Alaska aren’t collapsing but unfortunately, because Alaska continues to be a top per capita spender on its operating budget, the result is we are at the low end on capital spending.

We are not investing in infrastructure like we should be.

It is incredibly, incredibly frustrating that our operating budget has grown to about $12.3 billion (again, about $3.5 billion in federal funds, the rest state funds) while our capital budget will likely only be around $3.5 billion (about $3 billion of that in federal funds).

In other words, we’re spending nearly $8 billion in state funds on operations and only about $500 million or so in state funds on infrastructure. In a relatively young state, an extremely large state with little infrastructure, our operations spending versus our capital spending is off-track.

Our state spending imbalance and problem points to the needed fix to our existing but useless constitutional spending cap. We need to limit/control operational spending and ensure adequate funding for capital spending; a constitutional remedy would get us there. Note too that this remedy would also prevent runaway taxes. Infrastructure will help grow our economy to help keep our taxes low. State operations growth will do the opposite.

- Better Route -

Until we settle the PFD once and for all – such as through HJR 7 – and until we fix the broken and meaningless spending cap in our state constitution – such as through SJR 4 – to control our operating budget, our ability to fund needed infrastructure to grow our economy is very limited.

A Message to Education Reform-Resisters

If you believe Alaska’s K-12 low academic rankings are solely due to lack of funding, please allow me to point out that if this were the only reason, we wouldn’t have any schools in Alaska succeeding. And yet, there are some schools in Alaska where the vast majority of students are indeed gaining grade level proficiency and above year after year. This indicates problems besides funding in the many other schools where a majority of students are not achieving proficiency. There are proven policy reforms that will help our students and our teachers in these schools, and because it is our constitutional duty to address the poor outcomes, it is time to institute these changes.

Those of us who initially were focused on policy reforms have stated on the record that we will agree to a BSA increase. Those who only want the BSA increase have stated, however, that the policy reforms are “nonstarters” and “that there are lines that cannot be crossed”. The BSA increase is up to this group at this point. The “reformers” are willing to “fund”; now we need the “funders” to be willing to “reform”.

The old guard education establishment and their lobbyists lining their pockets are fighting for the status quo by promoting misleading talking points to resist the reforms. The truth is the reform policies will not decimate neighborhood public schools. In other states, similar policies have improved neighborhood schools and increased student achievement overall.

We’ve got a problem in Alaska that money alone will not fix.

Tell the Senate Majority and the House Minority to come back to the table so we can pass a package before the end of the legislative session that will improve student outcomes, better compensate teachers for sticking with their game-changing profession and help districts and schools with their operational costs. 

Upcoming Attractions

Hope you join us this evening as we broadcast live from the Capitol, Room 7. Monday evenings at 6pm during the session, we come to you via Facebook Live to discuss the hot issues and overview the upcoming bill hearings and public testimony opportunities. Your comments and questions are always part of the conversation, so hop on my page and engage!

Until We Meet Again

My responsibility to you is always front and center, whether I am on the Senate floor, drafting policy, in a meeting, out and about in our community, or communicating with you. I will strive to be available in multiple ways to hear from you and what concerns you most. I am on Facebook, Instagram, and Twitter at AKShelleyHughes (links at bottom of email). You can also email me at Sen.Shelley.Hughes@akleg.com or call my office (907)465-3743 (Session) or (907)376-3725 (Interim) to get in touch.

As I state on my Facebook Senator page, mention in live broadcasts, and tell many of you in one-on-one conversations, with the volume of contacts I receive daily (multiple hundreds), my staff and I work hard to read and listen to everything so I can understand what you, our district, and the rest of the state is thinking. If you would like to ensure you receive my feedback on your issue and ideas, please call my office to set up a phone call with me or come by one of my constituent meetings so we can connect in-person. Hearing your input continues to be a top priority to me!

Working on your behalf,

Use DOT&PF’s Alaska Project Exchange tools to learn more about all of DOT&PF’s active construction projects statewide!

Want to know how construction will impact road traffic?

Visit 511.alaska.gov.

It's a First in Alaska and It's Needed: Artificial Intelligence Bill

Introducing SB 177: AI, Data Privacy, Cybersecurity, Deepfakes

A Call for Responsibility: Rejecting SB88 and Prioritizing No-Risk Solutions

Where have all the fiscal conservatives gone?

SB 173 Safe Schools Act Will Deter Active Shooters Taking Lives

When seconds matter for students

Evil Lurks – Trafficking Is Occurring in Alaska

We must pass HB 68 - doing what I can to get the bill moving in the Senate.

Food Security Focus Continues In 2024

Supporting the agriculture industry, promoting locally products, and increasing food security.

Senator Hughes is frequently in the news and mention of the projects from our office also show up from time to time. She is typically on the radio once per week or more on a variety of shows. Below are some links to recent news items.

CEO of Anchorage Community Land Trust, Kirk Rose, came in to meet with Senator Hughes about food security and a planned industrial kitchen for entrepreneurs

Constituent Deborah Schneider stopped in while in Juneau to express her thoughts on the Board of Midwives legislation that is currently being considered in the Capitol.

SB 177, Sen. Hughes' bill regarding Artificial Intelligence and political deepfakes, was given a second hearing this last Thursday. Staffer Stephen Knouse read changes made to the original bill in the committee substitute later adopted by the Senate State Affairs Committee.

Saturday was our last scheduled Coffee Chat during session. It was held at Colony Cafe with a great turnout and guests speakers DEED Commissioner Deena Bishop and Deputy CIO Niel Smith.

"I would like to thank you and commend you for your effort to inform the public and your colleagues about the changing landscape of rural telecommunications. I can say this is the only time in…30+ years that I can recall this happening (perhaps with the exception of the late Senator Ted Stevens when he fought to bring competition to the long-distance industry back in the late 80s)."

"I'm licensed to carry, I've been through multiple NRA gun training classes, and I feel I should be allowed to protect myself and my students."

"Rather than focusing on reactive measures like arming individuals, it is more effective to invest in proactive measures like mental health support, anti-bullying programs, and conflict resolution education that address the root causes of violence."

"An Article V convention is unnecessary, unwelcome, and could severely harm our nation. Work to stop it…"

"Keep up the good fight. I appreciate it. And your efforts to modify Senate Bill 24 were appreciated, too."

"By supporting Governor Dunleavy's veto, you have put our children, the most important assets for our state's future, at risk."

"I appreciate many of the floor speeches were in favor of finding alternate routes to increase education funding. I hold you accountable to these promises and urge you to make education, and our children, a priority!"

"I heard your segment…on 650 KENI radio…. Thank you so much for being a voice of reason. I wish we had more like you."

"Why did you change your mind and vote to kill the education bill?"

"Thank you for being the first and being clear that although SB140 was a small step forward, that it was wholly inadequate and you'd support a veto if that happened to go back and improve it. Our schools are failing! You nailed it. Anybody who thinks it's just about funding has their head in the sand. Keep fighting for our kids, Senator."

"Senator Shelley Hughes you did the right thing [regarding SB 140]. Keep up the good work👏"

O P P O R T U N I T I E S   F O R   Y O U   T O   W E I G H   I N   T H I S   W E E K

If you’d like to provide public testimony for any bill, enter the bill number (for example "HB 22") into the search bar here to learn the date and time. Scroll down toward the bottom of this newsletter or view the highlighted bill images to find the public testimony call-in phone numbers.

The following "News from Hughes Alerts" are highlighted bills for this week but please note that this is not an exhaustive list. 

🖱️ Click on the image to view the referenced bill.

Click the button below to see all public testimony opportunities occurring within the next seven days.

The 📣 indicates that the topic is slated to be accepting public testimony at its hearing.

TUESDAY, APRIL 9, 1:00pm

HOUSE TRANSPORTATION COMMITTEE

Consideration of Governor’s Appointees:

Board of Marine Pilots: Andrew Mew

WEDNESDAY, APRIL 10, 3:30pm

SENATE RESOURCES COMMITTEE

Consideration of Governor’s Appointees:

Board of Game: Jake Garner, James Baichtal

Board of Fisheries: Curtis Chamberlain

FRIDAY, APRIL 12, 3:30pm

SENATE RESOURCES COMMITTEE

Consideration of Governor’s Appointees:

Regulatory Commission of Alaska: John Espindola

Board of Fisheries: Märit Carlson-Van Dort

Check out articles from our senators as we post them, take surveys, and more by clicking the picture above.

Then check out and follow our social media platforms

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Senate Assignments:

• Senate Minority, Ranking Member
• Alaska Food Strategy Task Force, Chair
• Food and Farm Caucus, Co-Chair
• Special Committee on World Trade
• Victims’ Advocate Selection Committee
• Law Finance Subcommittee

Other Appointments and Assignments:

• NCSL Law and Public Safety Committee, Vice Chair
• State Agricultural and Rural Leaders, National Board Member
• Article V Phoenix Correspondence Commission, National Commissioner
• NCSL Cybersecurity Task Force
• CSG-West Canada Relations
• CSG Interbranch Committee

Click the bill code in green to see more details and follow the individual bill's progress online.

Health Insurance Info; Incentives /Agreements

The bill includes the Alaska Health Care Consumers Right to Shop Act as well as authorizes Direct Primary Care Agreements in order to nudge down the cost of healthcare in Alaska by introducing competition and free market principles.

Alaska Sunset Commission

SB 9 establishes the Alaska Sunset Commission, an independent entity charged with meticulously reviewing each state agency to make recommendations to legislature to improve the efficacy of, or disband, that agency. The agency auto-sunsets if legislature doesn't take up recommendations in bill form. S State Affairs heard SB 9 March 2023. H Ways & Means Committee filed companion HB 190 , moved the bill out February 14, 2024 and H State Affairs heard it March 12 and will again on Tuesday.

Constitutional Amendment: Abortion/Funding

This proposed constitutional amendment will prevent judges from ruling that statutes which protect babies in the womb are unconstitutional. A hearing request was submitted March 2023 to Senate Judiciary Chair Matt Claman.

School/University Employee Health Insurance

SB 110 gives districts the option to participate in the state employee health plan, AlaskaCare. If passed, Senate Bill 110 could ease the financial burden of school districts and give the State of Alaska more leverage to negotiate with healthcare providers, improving services, and leaving more funds for classroom use. Senate Education hearings held April 2023.

Rejecting Commission's Recommendation to Raise Salaries

SB 111 rejects the recent recommendation in the Alaska State Officers Compensation Commission report to raise legislators' salaries by 67%. It rejects the salary increases and provides a vehicle for changes to the compensation commission process. Hearing request submitted to Senate Finance March 2023.

Extending Alaska Senior Benefits

This bill would extend senior benefits in Alaska for one decade to June 30, 2034 to prevent the program from expiring. Our office has submitted hearing request to Sen. Olson, Senate Finance Co-Chair. A similar bill, SB 170 passed the Senate that removes the sunset date of June 20, 2024.

Safe Schools Act

We must not wait until an active shooter tragedy occurs in one of our schools to start the policy discussion on how to protect lives. This bill requires districts to assign one or more highly trained, stable and responsible individuals to conceal-carry on school grounds and coordinate with local law enforcement. Every second makes a difference. An on-site immediate response will save lives. Second hearing held March 1 by Senate Labor & Commerce. Public testimony held. Amendment adopted for state to reimburse districts for training costs. Bill moved to the next committee, Senate Judiciary. A hearing has been requested.

Artificial Intelligence

This bill works to protect individuals from potential harm due to use of artificial intelligence by state entities, regulates personal data storage and collection, and use of deepfakes in political media. First hearing was in front of Senate State Affairs February 1st with quite a line-up of expert testimonies. Another hearing is scheduled for April 4th at 3:30pm.

For Information on bills I'm co-sponsoring

For information on all bills filed during this session

Keep up with updates, notices, news, and photos throughout the week and live broadcasts every Monday evening at 6pm

Join Shelley on Facebook Live each week to ask questions and give input.

We typically broadcast Mondays at 6:00 pm, but watch for a notification on Facebook as the day/time is subject to change.

Be sure to "like" the "Senator Shelley Hughes" Facebook page www.facebook.com/AKShelleyHughes

so you'll get a heads-up each time we air! 

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Alaska State Legislature web site is the place to track bills, locate and contact your legislators, and access committee information. Questions? Try the help wizard or call 1-800-478-4648.

SMS Bill Tracking! Once you know what bill(s) you want to monitor, here’s a convenient way to track what’s happening. Text any bill number (ex: SB1) to 559-245-2529 to enroll in text alerts for that particular piece of legislation. You’ll receive an enrollment confirmation as well as instructions on how to unsubscribe.

How to Get in Touch with Shelley! Give our office a call at 907-465-3743 or 800-565-3743 or send an email to Sen.Shelley.Hughes@akleg.gov. If you need assistance, want a response, or need other follow-up, please call rather than email.

Anneliese Roberts

Chief of Staff

Anneliese.Roberts@akleg.gov

907-465-5025

Stephen Knouse

Legislative Aide

Stephen.Knouse@akleg.gov

907-465-3743

Lisa Murkowski - Senator

Anchorage: 907-271-3735

Mat-Su: 907-376-7665

Dan Sullivan - Senator

Anchorage: 907-271-5915

Mat-Su: 907-357-9956

Mary Peltola - Representative

Anchorage: 907-921-6675

You can watch senate floor sessions, typically Mondays and Wednesdays at 11:00 am and Fridays at 10:30 am online or on your local 360North television channel.

Best regards,

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