02/24/2026 03:15 PM House STATE AFFAIRS

           HJR 23-CONST. AM: GOVERNOR'S PROPOSED BUDGET                                                                     
                                                                                                                                
4:19:25 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.                                                                                    
                                                                                                                                
4:19:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JUBILEE UNDERWOOD,  Alaska State  Legislature, as                                                               
prime sponsor reintroduced  HJR 23.  This is an  amendment to the                                                               
constitution   to   submit   a  balanced   budget   without   the                                                               
constitutional budget reserve (CBR).                                                                                            
                                                                                                                                
4:20:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HIMSCHOOT  asked  whether this  would  require  a                                                               
signature from the governor.                                                                                                    
                                                                                                                                
4:20:55 PM                                                                                                                    
                                                                                                                                
MR. WHITT, Staff, Representative  Jubilee Underwood, Alaska State                                                               
Legislature,  on   behalf  of  Representative   Underwood,  prime                                                               
sponsor of HJR 23, replied  that it requires a three-quarter vote                                                               
of the floor.  It does not require the governor's signature.                                                                    
                                                                                                                                
REPRESENTATIVE HIMSCHOOT  asked whether it  would have to  have a                                                               
three-quarter vote of each body.                                                                                                
                                                                                                                                
MR. WHITT replied yes.                                                                                                          
                                                                                                                                
4:21:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HOLLAND  said Alaskans  have been  concerned about                                                               
the  budgets with  a huge  deficit.   School  districts use  fund                                                               
accounts; individuals  use their savings; and  private businesses                                                               
use their  savings.  It  is very normal  to use savings  and fund                                                               
reserves.   He said that this  is an everyday strategy  that many                                                               
organizations  use.     This   resolution  is   a  constitutional                                                               
guardrail.    Alaska's  savings  were  intended  to  keep  things                                                               
balanced from year to year.                                                                                                     
                                                                                                                                
REPRESENTATIVE UNDERWOOD replied this  joint resolution would not                                                               
take away the power of the  legislature.  She said the purpose is                                                               
just to see if it is the will  of Alaskans to start out with more                                                               
constraints.  Again, it does  take away the legislature's ability                                                               
to appropriate and use the CBR.                                                                                                 
                                                                                                                                
MR.  WHITT replied  that  most jurisdictions  have  some sort  of                                                               
balancing  requirement.   The budgeting  process is  quite unique                                                               
with the expectation  of a large dividend.  This  is only for the                                                               
initial budget and doesn't take away the ability to appropriate.                                                                
                                                                                                                                
4:26:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VANCE expressed caution  about revenue sources for                                                               
appropriations  and  asked   for  clarification  regarding  those                                                               
listed under HJR 23.                                                                                                            
                                                                                                                                
MR.  WHITT responded  that by  law, the  legislation has  ways to                                                               
access the  permanent fund for  appropriation.  The power  of the                                                               
legislature is to determine how to appropriate.                                                                                 
                                                                                                                                
REPRESENTATIVE VANCE stated  right now the state  has the percent                                                               
of market value (POMV) draw  that deposits money into the general                                                               
fund  (GF).   The legislation  has the  authority to  appropriate                                                               
money  directly from  the earnings  reserve account  (ERA).   She                                                               
asked which one is this according to this legislation.                                                                          
                                                                                                                                
MR. WHITT said this legislation does not make these decisions.                                                                  
                                                                                                                                
REPRESENTATIVE VANCE stated that confusion  can come from what is                                                               
determined as income.  The legislature can use the POMV and ERA.                                                                
                                                                                                                                
MR.  WHITT  said  he  doesn't   have  the  ability  to  answer  a                                                               
hypothetical question.  The appropriations bill is its own bill.                                                                
                                                                                                                                
4:31:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VANCE said  a key factor is  the legislature holds                                                               
the power  of the purse  and can  make the appropriations.   This                                                               
legislature is putting  side bars on the governor.   She asked if                                                               
the courts put  any restrictions on using the ERA  as a source of                                                               
income.                                                                                                                         
                                                                                                                                
MR.  WHITT said  he doesn't  know  whether the  next governor  is                                                               
going  to  be  looking  at the  appropriation.    Currently,  the                                                               
legislature has been running off the POMV that has been passed.                                                                 
                                                                                                                                
CHAIR  CARRICK said  she appreciated  the discussion.   Regarding                                                               
Representative Vance's Points,  she said it could  be unclear for                                                               
the executive  branch.  She  said the trend of  upfront budgeting                                                               
using the  CBR seems dishonest.   Hopefully, the  House Judiciary                                                               
Standing Committee  will have a  further look  at case law.   She                                                               
said, "It  doesn't feel adequate  when you're in  the legislature                                                               
and then you get a budget that's a huge CBR draw."                                                                              
                                                                                                                                
4:35:45 PM                                                                                                                    
                                                                                                                                
CHAIR CARRICK announced that HJR 23 was held over.