02/21/2026 03:15 PM House STATE AFFAIRS

          HJR 23-CONST. AM: GOVERNOR'S PROPOSED BUDGET                                                                      
                                                                                                                              
3:59:42 PM                                                                                                                    
                                                                                                                                
CHAIR CARRICK announced that the  next order of business would be                                                               
HOUSE  JOINT RESOLUTION  NO. 23,  Proposing an  amendment to  the                                                               
Constitution of  the State  of Alaska  requiring the  governor to                                                               
submit a balanced budget to the legislature.                                                                                    
                                                                                                                                
REPRESENTATIVE  JUBILEE UNDERWOOD,  Alaska State  Legislature, as                                                               
prime  sponsor introduced  HJR 23.   This  resolution proposes  a                                                               
constitutional  amendment focused  on the  structure of  Alaska's                                                               
budget process.   It  addresses how the  process begins  with the                                                               
governor's  budget   and  accompanying   revenue  bills.     This                                                               
resolution  asks  whether  Alaska would  benefit  from  statutory                                                               
changes and  whether the  fiscal framework  should be  changed to                                                               
improve the structure for the future.                                                                                           
                                                                                                                                
4:02:00 PM                                                                                                                    
                                                                                                                                
BUDDY  WHITT,  Staff,  Representative Jubilee  Underwood,  Alaska                                                               
State   Legislature,  presented   on   HJR  23,   on  behalf   of                                                               
Representative   Underwood,  prime   sponsor.     He  said   this                                                               
resolution   is  simple,   and   the   presentation  shares   the                                                               
constitutional   framework  and   requirements.     He  began   a                                                               
PowerPoint  [hard copy  included in  the committee  packet].   He                                                               
shared  the constitutional  requirements  under Art.  IX, Sec  12                                                               
shown on slide 2.   Statutory timing requirements are outlined on                                                               
slide  3.   On slide  4,  required bill  separation and  balanced                                                               
budget  requirement are  shared as  outlined in  statute.   Long-                                                               
range  planning  is  addressed, including  the  six-year  capital                                                               
improvements program  and the 10-year fiscal  plan projections on                                                               
slide  5.   On slide  6,  the format  and supporting  information                                                               
required in  AS 37.07.050 is  presented.  He shared  amendments &                                                               
supplemental budgets information  on slide 7.   The governor must                                                               
submit a balanced budget that  doesn't include the constitutional                                                               
budget reserve (CBR)  which is outlined on slide 8.   In closing,                                                               
he stated that the bill  sponsor believes the budget should begin                                                               
with a plan on slide 9.  On  slide 10, he stated that HJR 23 does                                                               
not dictate policy.                                                                                                             
                                                                                                                                
4:07:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ST. CLAIR  said  that  expenditures don't  exceed                                                               
revenue.  He asked what sources are being used as revenue.                                                                      
                                                                                                                                
MR.  WHITT replied  that the  legislation doesn't  try to  answer                                                               
that  question.   The  resolution  requires  a budget  that  must                                                               
balance and not use the CBR.                                                                                                    
                                                                                                                                
REPRESENTATIVE VANCE  said she appreciates the  additional charts                                                               
that show  the budget,  revenue, and deficits  for the  last nine                                                               
years.   She wondered why  the supplemental budget is  not listed                                                               
and whether HJR 23 would impact the supplemental budget.                                                                        
                                                                                                                                
MR.  WHITT replied  that the  bill  sponsor's intent  is that  it                                                               
would lower supplemental budgets.   He said budgets would be more                                                               
accurate on  expenditures and revenues.   This resolution  is not                                                               
focused on  the supplemental  budget but  focused on  the initial                                                               
governor's budget.                                                                                                              
                                                                                                                                
4:12:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE UNDERWOOD  replied that  simply not starting  in a                                                               
deficit and  having a  good starting point  is the  whole intent.                                                               
She said it is fiscally responsible to not start in a deficit.                                                                  
                                                                                                                                
REPRESENTATIVE MCCABE  asked whether this would  be on November's                                                               
ballot for the voters.                                                                                                          
                                                                                                                                
REPRESENTATIVE  UNDERWOOD  replied  yes, if  everything  goes  as                                                               
planned.                                                                                                                        
                                                                                                                                
REPRESENTATIVE MCCABE stated there  have been 28 ballot measures;                                                               
12 have been rejected and the last one passed 22 years ago.                                                                     
                                                                                                                                
4:14:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STORY  asked  whether   the  long-range  plan  is                                                               
supposed  to  be balanced  and  whether  other states  require  a                                                               
balanced budget with the accompanying revenue bills.                                                                            
                                                                                                                                
MR. WHITT  replied he  doesn't know about  other states  but will                                                               
get  back to  the committee.   Long-range  plans are  a statutory                                                               
requirement.   This legislation doesn't  touch on  the long-range                                                               
plan and any of the requirements.                                                                                               
                                                                                                                                
4:16:39 PM                                                                                                                    
                                                                                                                                
CHAIR  CARRICK  asks  if  currently the  governor  can  submit  a                                                               
deficit  budget  if he  provides  revenue  measures to  fill  the                                                               
deficit.                                                                                                                        
                                                                                                                                
MR. WHITT replied yes.  The  governor must offer revenue bills if                                                               
needed.                                                                                                                         
                                                                                                                                
CHAIR CARRICK  stated those revenue  bills are supposed  to cover                                                               
the deficit.   She asked whether  there has ever been  a governor                                                               
who has done this.                                                                                                              
                                                                                                                                
MR. WHITT  replied he doesn't  have the information but  will get                                                               
it.                                                                                                                             
                                                                                                                                
4:18:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HIMSCHOOT  said  that  she served  on  the  local                                                               
assembly.    The  assembly  budget  would  be  balanced  but  the                                                               
opportunity  cuts would  be included.   She  asked whether  other                                                               
levels of government were required to  do this as well.  She said                                                               
it is common practice to know the gap.                                                                                          
                                                                                                                                
REPRESENTATIVE UNDERWOOD  responded that  in her  experience from                                                               
the school  board budget, it  was presented with a  few different                                                               
options.   The budget was built  backwards and at the  end of the                                                               
day it was a balanced budget.                                                                                                   
                                                                                                                                
4:21:00 PM                                                                                                                    
                                                                                                                                
CHAIR CARRICK opened public testimony on HJR 23.                                                                                
                                                                                                                                
LARISA FONOV, representing self, testified  in support of HJR 23.                                                               
She stated that starting with  a balanced budget that doesn't use                                                               
the savings  will ensure  a more  stable future.   She  asked the                                                               
committee to pass HCR 23 out of the committee.                                                                                  
                                                                                                                                
ED MARTIN, representing self, testified  that he does not support                                                               
HJR 23.  He said he e-mailed his testimony to the committee.                                                                    
                                                                                                                                
RYAN SHELDON, representing self, testified  in support of HJR 23.                                                               
As a businessperson,  he said, it makes sense to  work within the                                                               
budget.  He said HJR 23 has great bipartisan support.                                                                           
                                                                                                                                
4:26:59 PM                                                                                                                    
                                                                                                                                
CHAIR CARRICK after ascertaining  there was no further testimony,                                                               
she closed public testimony on HJR 23.                                                                                          
                                                                                                                                
4:27:15 PM                                                                                                                    
                                                                                                                                
CHAIR CARRICK announced HJR 23 was held over.