END of SESSION UPDATE - May 20, 2024

Dear Friends and Neighbors,

… And it’s a wrap! What a whirlwind it was this past week. After a flurry of bills were scheduled for floor votes and an unusually large number of amendments were offered on the floor in the final stretch – many more than normal – the Senate adjourned sine die within the constitutional constraints. Although the liberal House Minority tried its best to prolong the House over an hour past the constitutional limit in order to pass a very left-leaning election bill, they ultimately failed, and the House adjourned sine die too.

In this wrap-up edition of my session newsletters, we’ll talk about the budget outcome, some of the bills that crossed the finish line, and an update on the status of and drama surrounding public correspondence schooling (initiated by NEA and a judge who should have done his homework). In the meantime, let’s look at what occurred in the waning hours of the second session of the Thirty-Third Legislature.

The Bell Tolls at Midnight

The merging of bills as the clock ticked toward midnight was a sight to behold this year. As you’re likely aware, in the second year of the two-year legislative cycle, bills that don’t pass die at adjournment. This makes for a bit of mayhem as legislators attempt to amend bills into other bills with like subject matter that are on the floor and up for a vote. Sometimes, the intersection of the bill topics can be a bit of a stretch, but unless the matter is challenged in court, if the bill is not vetoed, the law will go and remain on the books.

From my perspective as a Senate Minority member, the number of amendments offered in the Senate were high in the final stretch, considering that Majority members typically respect their fellow Majority Committee Chairs and the condition of the bills they release from their committees as well as respect what bills their Chairs chose not to release from their committees. That wasn’t the case this year as far as the Senate Majority. You could tell it on the scoreboard (the voting board) as votes were all over the map; chairs opposed amendments by their own majority members which is not typical.

Speeches of opposition made that clear as a bell too. Some amendments were defeated. Others passed to the obvious frustration of some and to the complete satisfaction of others. Some were withdrawn or rescinded because the net result would have been to kill the underlying bill (as the House would have refused to concur with the change). Any reports that harmony was alive and well in the Senate Majority as the legislature drew to a close, well, simply put: those reports are hogwash.

Now as far as the myriad of bills that passed in the last 48 hours, note that if the governor chooses to veto any of them after the adjournment of a second regular session of a Legislature, the veto will only be addressed if a special session is called. With the high bar of support that this requires in the legislature (two-thirds of the membership must responds in the affirmative to a poll conducted by the presiding officer of each house to hold a special session) and the fact that this is an election year for all 40 members of the House and 10 of the 20 members of the Senate, a special session to attempt to override any vetoes is highly unlikely in my view.

Budgets Conferenced and Passed

The Conference Committee issued reports on the Operating, the Mental Health, and Capital budgets which were approved by the legislature. For the upcoming year (FY2025) the grand total appropriated (all funds, including federal funds) on the operating budget was $12.4 billion and $3.6 billion for the capital budget.

That’s $16 billion to run our state government, folks!

Of these grandiose amounts, let’s break out the federal dollars and see what the state dollar numbers are. Out of $12.4 billion for the operating budget, $3.6 billion is federal funding and $8.7 billion is state funding. Out of the $3.6 billion for the capital budget $2.9 billion is federal funding and $700 million is state funding.

In other words, $9.4 billion in state dollars were appropriated to run our state government (and $6.5 billion in federal dollars). Whoa, that’s a lot of bucks.

Ouch, That Hurts: Comparing to Last Year

Now, you may wonder how that compares to last year. We aim to provide you with information you might want, so we looked into this for you.

In summary, the operating budget is up over last year by about $160 million or 3.3% which is approximately in line with inflation.

On the other hand, the capital budget is up considerably more due to two things: 1) $1 billion in federal funds for broadband deployment statewide (note that this is over a 5-year period); and 2) an unrestricted general fund (UGF) increase from $360 million to $550 million over last year, or $190 million. These are not insignificant increases.

The $190 million UGF increase in capital spending is a 53% increase for this year over last year. Those are not small potatoes. Why such a jump?

The $190 million UGF increase is discretionary spending for districts and included maintenance of some schools. Dare I make a political observation at this point? Yes, of course, I will do so! I believe this large discretionary spending increase of state dollars was to appease legislators in order to get their agreement on the budget to wrap up the session on time.

Why might that be?

Note that all this budget wrangling is during a period when more and more of the draw from the Earnings Reserve of the Permanent Fund is being applied to government spending rather than to the PFD. It’s no wonder that some would want to “encourage” votes for the budget when the pressure on the PFD is pressing downward.

Bear in mind that the PFD framers intended half the draw for government and half for the PFD. This year 75% of the draw went to government as the Senate Finance table proposed. The House Finance Committee preferred 70% over 75% going to government but the Senate Finance Committee ultimately prevailed.

Note that neither chamber proposed 50% for the government and 50% for PFD. Neither proposed a 50/50 split. Why is that?

What Happened to the 50/50 Split Concept?

First, the legislature must pass a balanced budget each year (unlike the federal government that can rack up debt and print money!); spending at the state level cannot exceed revenue. With oil production less than it used to be and without sky-high oil prices, the set amount of revenue available meant that one of two things would have to occur for a 50/50 split: either very significant reductions in spending or very significant increases in revenue, i.e., very significant new taxes and/or higher existing taxes.

If you’ve followed me, you know that I’m a fan of working on the former over time rather than the latter. You also would have heard me tout the fact that the multiplier effect of a PFD dollar far exceeds that of a government dollar as far as strengthening our economy and opening up opportunities in our private sector, especially in the realm of small business, property ownership, and educational pursuits.

Unfortunately, these past eight years (since Gov. Walker put the PFD at risk), there have not been the votes in the legislature to put in place a reasonable fiscal plan with an adjusted spending cap to keep government growth in check, with a settled PFD solution, and with revenue/spending balancing measures.

There have neither been the votes to significantly reduce spending or to impose new or raise existing taxes. As a result, the legislature has turned on the PFD spigot to fill the government spending bucket. It matters who sits in legislative seats. It matters who Alaskans choose to send to Juneau.

Items and Vetoes and Bears, Oh My!

Back to the budget and my quick summary of the totals and the breakouts of the state versus federal dollars. Of course, the numbers I presented to you are all before any vetoes by the governor. I expect there will be some. The governor is neither up for election nor for a recall. At the same time, you can be sure the Finance Committees included some padding in the budget with the expectation that there will be vetoes.

Below are a few of the items included in the FY 2025 budget.

Operating:

• $914.3M PFD of $1,655.00 per person in October 2024
• $174.4M school funding increase: equivalent to $680/student BSA increase
• $7.3M pupil transportation
• $5.2M K-3 reading
• $5.2M Head Start (federal fund match)
• $1.5M Senior and Disabilities
• $3.7M Council on Domestic Violence and Sexual Assault
• $30M community assistance (offsets some mandatory property exemptions)

Capital (we still need to verify which of these survived the conference committee process)

• $300K Hatcher Alpine Xperience Snowmaking Infrastructure
• $1.5M Palmer Food Bank New Facility Construction
• $7.2M Palmer Courthouse
• $1.9M Mat-Su College Mechanical, Electrical, and Interior Systems
• $2.8M Alaska Addiction Rehabilitation Services Expansion Project (out at Pt. MacKenzie)
• $2M MSB City Water Connect
• $2.5M MSB Floor & Erosion Mitigation
• $2.5M MSB Enhance Fisheries
• $750K MSB Road Improvement Upgrades
• $700K MSB Willow Fire/EMS Station
• $750K Wasilla Water and Wastewater System Upgrades
• $16.7M Big Lake Road Rehabilitation
• $727K Bogard Rd N Earl Dr to Engstrom
• $1.9M Glenn Hwy Mile 49 Safety & Capacity
• $818K Hemmer Rd Extension
• $2.5M Hermon Rd Extension
• $359K Inner/Outer Springer Lp Pathway
• $260K Palmer-Fishhook Pathway Trunk to Edgerton
• $1.2M Seldon Beverly Lakes to Pittman
• $45K Trunk Rd (Nelson) Rehabilitation and Bridge Replacement
• $50M Wasilla to Fishhook Main St Rehabilitation
• $20M West Susitna Access Road
• $68M UA deferred maintenance and K-12
• $7.5M food security measures

We discussed “vetoes” and pointed out “items”, but we didn’t talk about “bears” as the subtitle hinted we would. Since I needed the word “bears” for my Wizard-of-Oz-sounding phrase, I won’t disappoint!

Be aware that bears are most active mid-May to mid-September as they’re out scouting for food sources. We’ve hit mid-May so we’re in that season! And now with that knowledge under your belt, here’s your safety reminder: bears do not like surprises!

Bears do not like surprises

1. Make noise, sing, talk loudly, carry bear bells, recite your multiplication tables, or play music.
2. Try to stay in open areas where you can be seen. When in thick vegetation, be extra loud.
3. The more the merrier. Be part of a group and don’t go it alone. Bears detect groups more easily.
4. Walk in the same direction as the wind rather than against it if possible.

Bills, Bills, and More Bills

The legislature passed relatively significant legislation addressing important items including public safety, agriculture/food security, the Cook Inlet gas shortage, and energy. As a legislature, we also took a hard look at our education system. We’ll cover a few areas where yours truly invested focus, time, and work. The other big topics are covered in plenty of other media outlets, so I won’t be repetitive here (although they are still very, very important matters).

Public Correspondence

In the end, we kept public correspondence schools from falling off the cliff; I am proud of the work by a group of us who pressed this issue to the point that those (who appeared to want to trip up this group of students and families) ultimately failed at this juncture. My amendment to incorporate HB 400 into an education bill was duplicated by the Senate Majority with an added district reporting requirement and used to amend another bill. Bottom line: we made sure to keep our public correspondence schools up and running in the process. (See section further down on this topic as far as the lawsuit and the time frame for a ruling and regulations.)

School Funding

We also said yes to a temporary school funding increase but no to a permanent one unless it is accompanied by policy changes focused on improving student outcomes.

If you’ve followed me the last few years, you know well that improving student outcomes has been a top priority of mine. I was an early advocate of this approach before it was popular, and I did it not because I’m anybody special but because I care deeply about students and the important role teachers have. Voicing this and promoting this was a natural offshoot of what I know deep down. I’m not sure how many floor speeches I made on this topic, but it was more than a few.

It’s all about directing dollars to teachers and classroom instruction, to proven strategies and student options that work. It’s not about NEA’s control, power, or agenda. Had we given in and passed a permanent increase with no reforms, it would have been akin to giving a child who’s having a tantrum candy to get them quiet.

I am proud that others joined in on the student outcome theme and that we have momentum to make good changes that will help our students in the upcoming session.

Human/Sex Trafficking

We took initial steps to begin work on human/sex trafficking and although there is much work ahead, I am extremely proud and happy to have pressed this issue in the Senate in the last few days via an amendment so that we at least started the task.

Food Security

Our work on food security was not in vain either. It’s surprising what a Senate Minority member can get done working together with others if it’s not about taking personal credit and having their own name on a bill or amendment or worrying politically about who the sponsor of either is, whether the members is in the House or Senate, in the Majority or Minority, or are a Republican or Democrat!  

As the Chair of the Alaska Food Strategy Task Force and Co-Chair of the Legislative Food & Farm Caucus, I am proud to report that we passed a number of ag-related items. Among them are the following: we updated the Agricultural Revolving Loan Fund to make capital more accessible to farmers; we expanded tax exemptions for agriculture; we opened up opportunities for the cottage food industry and meat and dairy shares; we shored up aquaculture farming; we successfully encouraged Congress to address the failing weather observation systems at rural airports to help prevent shipment delays and thus food spoilage.

Current Status and Ongoing Drama in Courts

Public Correspondence Schools

This past Friday, the Alaska Supreme Court (ASC) denied the extension of the stay (suspension) past June 30 regarding the public correspondence school lawsuit. ASC will be hearing oral arguments on June 27, but I've seen nothing about how quickly they'll issue their decision. I guess they figure since we adopted the HB400 amendment giving DEED the authority to write regulations to keep the program afloat, that this will suffice.

The problem with this assumption is that normally the regulations process takes about 6 months – the writing, putting the proposal out for public comment, and then any rewrites and final approval. Without the extension, to avoid a gap filled with uncertainty for homeschool families, either DEED will need to write emergency regs which don't follow the more thorough public process, or the ASC will need to be in high gear and issue a rushed ruling by June 30. Scroll down the newsletter to see images of the reg process.



I think the ASC was foolish to not extend the stay at least long enough for the proper reg writing/adoption process or for adequate time for the court to issue a non-rushed ruling. After all, it took Judge Zeman in the lower court nearly 14 months to issue his decision. If the ASC rushes their decision to issue it before June 30, I hope they get it right and don’t upend all the related areas – such as public funds routed through Alaska Performance Scholarships, Alaska Student Loans, and Alaska Education Grants (needs-based) for tuition at private and religious institutions, public funds appropriated to private Head Start preschools and private vocational educational institutions, and public funds school districts route to entities such as BYU and Sylvan Learning.

Upcoming Attractions

Hope to see you around the District or elsewhere in Mat-Su! Remember Colony Days is June 7-9 this year in Palmer. It’s so good to be home!

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,

Click the image for more information

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.

ALASKA BEACON

Backside of Capitol. Photo credit Alaska Landmine

Saying goodbye to the view out my apartment window on Douglas Island across from downtown Juneau where the State Capitol is located. 

After flying back from Juneau, what greeted me in Mat-Su - my little granddaughter cowgirl - as family gathered at the Trout House Cafe. She’s still working on growing a head of hair but cute as a button without it!

Nothing left to quote this week

We'll resume next session...

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.

END OF SESSION

No confirmation hearings

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Visit the new central hub to access all things Hughes. See articles, past newsletters, links to legislative activity, and other information.

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 AI & 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, and H State Affairs heard it March 12 and 19. The House Finance Committee is hearing HB 190 today at 9am.

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. This bill would free up millions for districts. Unfortunately the Education Chair has chosen to not advance the bill. NEA has not supported the legislation. The companion bill in the House (HB 21) awaits a hearing in the House Finance Committee.

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 but the Chair has indicated he had no plans to move the bill. The Senate voted 7 to 12 to not discharge the bill from committee this past week.

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 occurred April 4th, adopting a committee substitute with brief opportunity for amendment. Bill was passed out of committee April 23 with an updated committee substitute and is now headed to Senate Judiciary. We have filed for a hearing.

For Information on bills I'm co-sponsoring

For information on all bills filed during this session

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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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