Rep. Andy Josephson's Newsletter

It has been a few weeks since my last update to you and I apologize for that. There are a lot of events to cover, so this update will be slightly longer than others. I hope you enjoy it and learn something about what has been happening in Juneau since the Legislature was supposed to adjourn on April 19th.

The House and Senate Majorities could not get their work done in a timely manner. As a consequence, the statutory deadline was ignored and we moved into the "constitutional" deadline, or a 120-day session. This session lasted about 8 days longer than the statutory deadline and "adjourned" on the night of Monday, April 27th. The adjournment was “real” but became yesterday’s news when the Governor—properly—called for a Special Session. The budget is “fake”. It does not fund government operations by a long shot.

As noted, for the first time in anyone's memory, the Alaska Legislature passed an unfunded budget. Indeed, the House and Senate Majorities lack about $3.2 billion in revenue to fund their budgets. Note that I refer to the budgets as "their" budgets. Arguably, the "budgets" are "our" budgets and even "your" budgets. However, not a single minority member voted to fund the operating budgets.

Why Did the House and Senate Minorities Fail to Vote for the Operating Budget, and What Does That Mean?

In the spring of 1990, the Alaska Legislature passed a resolution calling for a Constitutional Budget Reserve. This Resolution was put before the Alaska voters and they approved it. The Constitutional Budget Reserve (or CBR) is complicated. The finest legal and finance minds don't agree on what it means or what its implications are. However, the general lay understanding is that, where the amount available for "appropriations" is less in Fiscal Year B than was available in the previous Fiscal Year (Fiscal Year A), the CBR can be "tapped" and used for state expenditures.

The CBR provision of our State Constitution requires that 3/4 of each chamber of the Legislature (House and Senate) vote to "tap" or use CBR monies. This means, in the State Senate, the majority needs 15 "positive" or "yes" votes. (The Senate achieved this number). In the State House, the majority needs 30 "positive" or "yes" votes. (The House Majority failed to achieve this number, as they only obtained 26 votes). In summary, the Independent-Democratic Caucus refused to allow the CBR to be tapped at this time.

The first important point to realize about spending from the CBR is this: 59 out of 60 legislators want--right now, today--to use money from the CBR to fund government. Perhaps one legislator, a House member from Eagle River, would object to using these monies today. (You may have read that her objection to spending issues put her in disfavor with the House Majority and she was stripped of staff, a chairmanship and most committee assignments). I note this to emphasize that nearly everyone agrees that we must use CBR monies to fund our government in the coming Fiscal Year. The House and Senate Majorities wish to use about $3.2 billion from those accounts to fund government. Arguably, the House Independent-Democrats would like to use "more", perhaps $3.30-$3.35 billion. Instead of $3.2 billion. However--and importantly--we believe that the extra spending can be paid for by: (1) Postponing tax credits for oil companies; (2) Re-appropriating monies for the UMED By-Pass Road; (3) Re-appropriating monies from the Susitna-Watana Dam; (4) Delaying other megaprojects like the Knik Arm Crossing and the Juneau Access Road; and (5) by not occupying the fancy new 4th Avenue office building designed for the Legislature.

What is it that the Independent Democratic Caucus wants prior to casting "Yes" votes on the CBR? While there are many ways in which we would write a different budget--we think a better budget--and one that would reflect yours and our values more directly, there are perhaps 4 things that our caucus has been focused on. First and foremost, we want the Legislature to appropriate funds (spend money) that will cover our promise to fully fund education. These promises came from House Bill 278 and are referred to as "Keep the Promise" monies. Note that this was not a "liberal" bill. In fact, the bill was mostly a product of the conservative caucuses in the State Legislature last year. Indeed, many Democrats opposed the bill last year. It had many, many facets to it. But, it promised to slightly increase the Base Student Allocation and to provide one-time monies in FY 2014, 2015 and 2016. All the Independent-Democrats want relative to education...all we want...is restoration of those monies. Again, it’s not MORE money. It’s the Republican education budget from last year.

Second, we believe, as does the Governor, that cuts to the Alaska Marine Highway System are too devastating. We seek restoration of some of its funding.

Third, we believe, as does the Governor, that Alaskans keep their promises and are bound by their word. Two years ago, our public employees agreed to take wage increases that did NOT keep up with inflation. They agreed that in FY14, they would receive a 1% raise, in FY15, they would receive a 1% raise, and in FY16, they would receive a 2.5% raise. The House and Senator Majorities proposal is to strip away this raise and violate the collective bargaining agreement, or contract. We believe that this is bad policy. To be clear, it would be my recommendation that in upcoming negotiations with bargaining units, the state drive a fairly hard bargain and that labor's expectations be very, very modest. Very modest. I think labor understands this.

Fourth, and perhaps most important (call it a draw or tie with public education funding), we believe that both the House and Senate should have a Floor vote on the question of Medicaid Expansion. For most of the members of my caucus, the supporters of Medicaid Expansion far, far outweigh those opposed. The Legislature has already completed 26 hearings on Medicaid Expansion. 26 hearings! Every day that ticks away without Medicaid Expansion, the State of Alaska waives the right to collect $400,000 from the federal government to cover uninsured Alaskans who cannot afford to purchase health insurance. Think of that! That is $6.0 million just since April 19th, the day we were supposed to adjourn. If we don't receive these funds, we must still pay for the other 49 states' receipt of funds. We're paying our share, regardless! Shouldn’t we get something for that?

Minutes after the House and Senate adjourned, Governor Walker issued an Executive Proclamation that called the Legislature into a Special Session to address: the budget, Medicaid reform and expansion (HB 148), and the Alaska Safe Children’s Act (HB 44)—“Erin’s Law.”

However, last week the Majority caucuses in both bodies voted on a resolution to take a vacation, even though they refuse to call it that. I and the other members of the House Independent Democratic Coalition spoke against the resolution and voted to stay in Juneau until our work is completed. The resolution passed on caucus lines and now the remainder of the special session will take place in the new Anchorage LIO. There will be some committee meetings happening between now and May 12th (when we are scheduled to continue working in Juneau). You can click here to see what committees are meeting when and where.

Your vote is your voice as an American citizen and as an Alaskan. It is your opportunity to be heard, to hold elected officials accountable and to have a say in important issues that affect your community. If you haven’t voted yet you can vote now at:

If you choose to vote on election day, I encourage you to confirm your polling place and make a plan to vote. As you know, elections in Alaska can come down to a single vote. Please don’t miss your chance to have your voice heard. Every vote counts.

Call 243-VOTE if you have any questions about early or election day voting.

Click here to find your polling place.

As always, please call or email with any thoughts, ideas, or concerns.

Representative Andy Josephson
State Capitol Bldg. Room 430
Phone: 907-465-4939