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Conference committee moves vehicle‑rental and AHCC receipts to derelict‑vessel and region allocations; amendment adopted

5211668 · May 18, 2025

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Summary

The committee adopted an amendment that reallocated vehicle‑rental tax receipts and one‑time AHCC funds to northern and central regional highways and aviation allocations, using derelict‑vessel prevention funds for the central region and stating intent to replace one‑time funds with general funds in FY2027.

The conference committee adopted an amendment that restructured fund sources in the Department of Transportation and Public Facilities budget, moving certain vehicle‑rental tax receipts and one‑time Alaska Housing Capital Corporation (AHCC) funds into regional highway and aviation allocations and adding a derelict‑vessel prevention program increment for the central region.

Senator Tom Hoffman moved the amendment, which: adds $2.1 million in vehicle rental tax receipts and a $1.3 million one‑time increment from AHCC to the Northern Region Highways and Aviation allocation while deleting $3.4 million in unrestricted general fund (UGF); and adds a $1.4 million one‑time increment from the Derelict Vessel Prevention Program for the Central Region while deleting $1.4 million in UGF. The amendment states the committee’s intent that the AHCC and derelict‑vessel one‑time increments be replaced with general funds in fiscal year 2027.

Senator Kaufman objected to repurposing vehicle rental tax receipts toward derelict‑vessel and unrelated purposes and said funds should remain directed to transportation impacts associated with vehicle rentals. After debate and a roll call, the committee adopted the amendment and closed the Department of Transportation and Public Facilities items.