At the time of this writing, we are between the third and fourth special sessions. Scheduled to start on October 1st, 2021.
The Third Special Session began on August 16th following the completion of the Fiscal Policy Working Group’s Final Report. This group was formed at the end of the second special session in an attempt to agree on assumptions and components of a complete plan. I highly recommend you check out that report here: http://akleg.gov/docs/pdf/2021_Fiscal_Policy_Working_Group-Final_Report.pdf
It’s important to remember that special sessions are limited only to items that are specifically listed on the agenda. For a more in-depth update on the situation and agenda as the legislature rolled into the third special session check out my other update here: https://www.senatorkaufman.com/pre-third-special-session-updates/
Just a few days into special session number three, the governor amended the agenda to add an appropriation bill, HB 3003, to the original fiscal policy agenda items: revised spending cap, permanent fund calculation, and new revenue measures. This change added the payment of a dividend, WWAMI Funding, and a few other provisions. This bill arrived on the floor a little over a week and a half into the session.
The House and Senate collectively voted on narrow margins to pass HB 3003. The finished product included reversal of certain vetoes, payments of dividend, oil tax credits, education programs, and some other items that failed in the last budget. My “No” votes on amendments to provide a full statutory and “50/50” dividends were controversial but funding those larger dividends would have required withdrawing more than the 5% POMV amount, sometimes referred to as “overdrawing the earnings reserve”, while the $1100 dividend in the bill was within the 5% POMV provided by SB-26. These were difficult votes for me, but my core campaign promise was that I would not overdraw savings and would seek balanced budgets. This is a complex issue, and the legislature must come to an agreement on the various elements listed in the Fiscal Policy Working Group’s Report for the solution to be considered complete. The bill passed, but I voted no on the final passage of it for a variety of reasons including funding sources. The text of my article explaining my votes was published in ADN and Must-Read Alaska and can be found here: https://www.senatorkaufman.com/my-vote-on-hb-3003/
A few days after HB 3003 passed the house floor, the session agenda was amended to add provisions for coronavirus responses including telehealth, health care capacity, expanded background checks, and actions to facilitate bringing in outside healthcare providers. For more information see this link to the final amended call: https://gov.alaska.gov/wp-content/uploads/sites/2/1316_001.pdf
Progress during session 3 was very slow for most of the session, but then as is typical with the legislature, things started heating up towards the end of the session with more hearings on fiscal issues and HB 3006, the main coronavirus response bill.
My appropriation limit bill and resolution HB 3001/HJR 301 were heard in the House Ways and Means Committee, while the companion in the Senate, SJR 301 carried by Senator Myers, was amended, and passed through the Senate Judiciary Committee without objection. There is a possibility that we could continue to get traction in either or both bodies, but it is far from certain.
A well-structured spending cap that is tied to the correct factors that can prevent episodes of over-spending is a necessary piece of any comprehensive plan being put together. For some more thoughts on a spending cap, I recommend looking at this other blog post or the bill documents:
Blog post: https://www.senatorkaufman.com/productive-path-forward/
HJR 301: http://www.akleg.gov/basis/Bill/Detail/32?Root=HJR301
HB 3001: http://www.akleg.gov/basis/Bill/Detail/32?Root=HB3001
HB 3006 included important coronavirus response provisions but turned into a controversial piece of legislation as amendments put forth by the House Republican Caucus began to get traction and pass on the floor. The bill itself was intended to provide the ability to implement telehealth, bring in outside healthcare workers, and provide utilities such as increased capacity to do background checks. Many constituents and citizens raised concerns that without legislative protection of workers’ rights, healthcare companies could ignore workers’ concerns about the currently available vaccines, lay them off for noncompliance, and import workers from outside. The amendments that we proposed were focused on workers’ and patients’ rights. The House Majority ultimately pulled the bill from the floor and sent it back to the Rules Committee, which for all intents and purposes killed the bill, as there were only two days left in Special Session #3.
On the final day of the special session, the Senate voted 12-7 to approve and pass HB 3003, the appropriation bill with an $1100 dividend and other provisions mentioned earlier.
Special Session #4:
The Governor’s agenda for Special Session #4 is presently one, very broad item: “An act or acts relating to a fiscal plan”. I believe that nearly everything in the Fiscal Policy Working Group’s report could be addressed under that agenda item.
Governors call for Session #4: https://gov.alaska.gov/wp-content/uploads/sites/2/4th-Special-Session-Proclamation-9.14.21.pdf
It is uncertain at this time what the House Majority intends to do, if they will agree to work on the multiple elements of a fiscal plan or gavel out and adjourn at the first opportunity. It is my hope that we can continue to surface the issues, risks, and alternatives and that some compromise on a plan will be reached.
I’ll update you as soon as I get a sense of which way this fourth special session will go, probably within the first week of the session.
As always, if you have any questions about my positions, votes or just want to talk about what’s going on in the legislature you can contact me at my mobile number 907-538-5262 or by email to rep.james.kaufman@akleg.gov. The best combination to assure that I get back with you at the first opportunity is to send an email with a number for contacting you.
Best Regards, JK
