Dear Friends and Neighbors,
I hope this update finds you well and in good spirits. Now that session has concluded, I wanted to provide a brief recap of where things ended up in the final weeks.
First, let me say that I am proud of what the House Majority accomplished this year. With only 21 members and low state revenue, we passed education reform with a permanent BSA increase, we took care of essential services, and we adopted meaningful policy that will improve the lives of Alaskans. Just as importantly, my caucus members understand and support the services that my constituents rely on.
The Legislature was able to adjourn a day early on May 20 in, what I would describe, as a very smooth end to session. The governor’s veto to the education bill, HB 57, was overridden in joint session by a vote of 46-14. Moreover, legislators from both sides of the aisle were on the same page regarding priority legislation that needed to pass. There was little fanfare or filibustering that generally accompany the final days of session, and it was refreshing to see legislators of all stripes working together on behalf of Alaskans.
In the end, we were also able to pass a balanced budget that funded essential services without drawing from savings, which was no small feat given the state’s current fiscal picture. Outside of the uncertainty of federal dollars, the Alaska Marine Highway has adequate funding, the Alaska Seafood Marketing Institute received an additional $10 million in state funding, and ADF&G’s budget was slightly increased compared to last year.
The budget was transmitted to the governor for consideration on Tuesday. Gov. Mike Dunleavy has until June 19 to consider line-item vetoes and sign the budget into law. There will undoubtedly be vetoes, which could include education funding. I will be sure to update you again once the budget is signed.
As a word of caution, the budget is currently balanced based on a $66 barrel of oil. Whether that number goes up or down throughout the year will directly impact our ability to budget next year. As mentioned in my previous update, the Legislature needs to enact a fiscal plan in order to provide consistent service levels from year-to-year. State revenue will always be dependent, to a large extent, on oil; however, essential services and the PFD should not be driven solely based on the current price of oil. Alaskans deserve and require certainty, and the only realistic way to get there is by diversifying our revenue and building up our savings again. I will continue to do whatever I can to move the needle forward in that regard.
On to fisheries news, our very own Tom Carpenter was confirmed to the Board of Fisheries in joint session by a surprisingly narrow vote of 40-20. Tom has been a fair and universally respected board member, both by other members and the public. Unfortunately, there was a misinformation campaign in the building by some of the interior folks who wanted more in-river representation on the Board. I’d like to thank everyone from the community and the fishing industry for the letters of support for Tom that came pouring in during the final week; it truly made a difference.
I am very pleased to announce that three of my fisheries bills passed both bodies in the final days of session as well. HB 116 passed the Senate by a vote of 20-0 and is currently awaiting transmittal to the governor’s desk for signature. In a nutshell, this legislation will allow commercial fishermen owned insurance cooperatives based in Alaska to form without being regulated as an insurer by the state. Insurance pooling can provide a variety of benefits, including lower-cost, easier-to-access insurance for commercial fishermen, as well as policies tailored to meet the needs of local fleets. Please type bit.ly/4j9pt6J into your web browser to learn more about the bill or watch the committee hearings.
HB 31, which exempts commercial fishing vessels from the duplicative requirement of also having to register with the DMV, is also awaiting transmittal to the governor. I’m excited to finally put this issue to rest. Please type bit.ly/42iQlKb into your web browser to learn more about the bill or watch the committee hearings.
Last but not least, SB 156, which enables the Commercial Fishing and Agriculture Bank (CFAB) to refinance loans collateralized by limited entry permits with a lowered interest rate of 5.25%, passed on the final day of session. My office carried the companion bill, HB 199, and worked with the Senate sponsor to get the bill across the finish line. Before it hit the House Floor, SB 156 was amended in House Fisheries to remove a poison pill that would have shortened lower interest rates for the Commercial Fishing Revolving Loan Program by one year. The House passed the bill by a vote of 40-0 and the Senate concurred with the House’s amendment by a vote of 19-1. This legislation will hopefully keep CFAB in business and assist struggling fishermen during challenging times for the industry. To learn more about SB 156 or watch the committee hearings, please type bit.ly/43m9JI4 into your web browser.
There are a variety of fisheries bills that I am working on that did not pass this year, including HB 33 (conflict of interest for Board of Fisheries), HB 129 (seafood product development tax credit expansion), and SB 135 (increased revenue sharing with fishing communities).
I’m excited to hit the ground running on these bills next year.
Finally, I will be in Cordova next week for Copper River Nouveau from Friday through Sunday. The Speaker of House, Bryce Edgmon, and Representative Carolyn Hall will be joining me as my guests. I’m looking forward to seeing you all next week! If you would like to connect over coffee or at the Legislative Information Office, please let me know.
As always, remember that I work for you. Please feel free to reach out anytime if you need assistance or would like to discuss issues that are important to you and your family.
Sincerely,
Rep. Louise Stutes
Proudly Serving Kodiak, Cordova, and Seward
(907) 465-2487
