The Alaska Legislature conference committee adopted an amendment authorizing a draw from the Constitutional Budget Reserve (CBR) to cover a shortfall in fiscal year 2025 and setting a contingency waterfall to use Alaska Industrial Development and Export Authority (AIDEA) balances and then the Higher Education Investment Fund if the CBR draw is not enacted.

The action came after Senator Tom Hoffman, vice chair of the conference committee, described the amendment: “this amendment authorizes a draw from the constitutional budget reserve fund for appropriations in fiscal year 20 25 and provides contingency language that authorizes using funds from the Alaskan Industrial Development and Export Authority and the Higher Education Investment Fund if the CBR draw fails to be enacted.”

Why it matters: The committee said FY25 faces roughly a $200 million shortfall driven primarily by lower-than-expected revenue estimates and several unanticipated costs. The amendment was presented as a mechanism to meet the state’s constitutional obligation to balance the budget if other approaches are not enacted.

During debate Representative H. Johnson objected on precautionary grounds, noting the risk of drawing from AIDEA receipts and the Higher Education Investment Fund and possible credit impacts. Senator Stedman and other members argued the CBR draw requires a three‑quarter vote in each chamber and is the standard tool to balance an immediate gap. Alexi Painter, Legislative Finance Division, outlined specific drivers of the shortfall, including a large public assistance settlement (about $12–13 million), a higher Medicaid general‑fund need (about $14 million), Department of Corrections costs, and capital items including marine highway maintenance already expended.

The amendment passed on the committee vote and was incorporated into the conference committee report for House Bill 53 (operating) and House Bill 55 (mental health). The committee recorded that using AIDEA or the Higher Education Investment Fund would occur only if the CBR draw was not enacted.

The committee did not specify final timing for any CBR request; any draw from the CBR would require subsequent legislative approval by the supermajority thresholds that apply to the CBR.