The future of the Alaska Marine Highway and Higher Education Investment funds would be protected from the annual Constitutional Budget Reserve sweep under House Bill 322, which passed the Alaska House on Monday, May 2, on a vote of 25-15.
The legislation removes the AMHS Fund, the AMHS Vessel Replacement Fund and the Higher Education Investment Fund from the equation by moving them from the state’s general fund to the state treasury.
HB 322 now heads for the Senate for further consideration.
“A lot of Alaskans have never heard of the reverse sweep; however, they do expect ferries to operate and scholarships to be funded,” said Speaker Louise Stutes, R – Kodiak. “This legislation will enhance the stability of the Marine Highway System, as well as certainty for Alaska’s students, and I’m thrilled to see it move forward.”
“Protecting these particular accounts provides stability to the important programs and services they fund which greatly benefit Alaskans,” said Rep. Dan Ortiz, I-Ketchikan.
The Constitutional Budget Reserve sweep provision, established in the Alaska Constitution, requires that money in the general fund available for the appropriation at the end of each fiscal year be swept, or repaid, to the CBR.
While the sweep is reversible by a 3/4 vote of the Legislature, that outcome has become difficult to achieve in recent years. Moreover, funds previously held harmless from the annual repayment have since been interpreted as subject to the sweep, destabilizing crucial ongoing state services and longstanding funds.
