Appropriations committee gives due pass to bill to add funds to public employees retirement system

The House Appropriations Committee voted to give a due pass to House Bill 12‑34, a bill that would provide a one‑time infusion of state funds to reduce the unfunded liability of the public employees retirement system (PERS).

Representative Craig Hedlund (District 29) told the committee the bill would “put an infusion of dollars into the public employees retirement fund” and that the Finance and Tax Committee previously moved the measure using Strategic Investment Fund (SIF) dollars rather than general fund or gaming proceeds.

Why it matters: Committee members said addressing PERS’ unfunded liability affects long‑term state and local government budgets. Representative Jason Doctor (District 7), who serves on the PERS board, told the committee about the distribution of liabilities: “I believe … around 60% of the unfunded liability is for political subs and the remainder is for the state,” a ratio members cited when discussing local property‑tax implications.

Committee members reviewed prior infusions and described the current proposal as a placeholder to be refined later in the session. Representatives summarized prior steps: an earlier infusion of $65 million plus an additional $135 million proposed in this package would total roughly $200 million in one‑time funding, and members said separate calculations in the second half of session could adjust final numbers. Representative Lausser asked whether the package would cover an approximately $88 million ADEC figure; sponsors said the proposal would contribute toward that amount but final totals remained to be decided.

Representative Steeman moved a due pass on the engrossed bill and Representative Swantek seconded. The committee took a roll call; the chair declared the motion carried and said the bill would be sent back to the policy carrier for the next steps.

Discussion vs. decision: The committee’s action was a procedural advance (a due pass), not the final appropriation. Members repeatedly described the $200 million as a placeholder and said the final allocation and any split between state and political subdivision liabilities would be settled later in the legislative process.

What’s next: Sponsors and leadership indicated the numeric details will be revisited during the remainder of the session and when related PERS and budget work continues.

Ending note: The bill passed the committee by voice/roll call and will move back to its policy carrier; members flagged the need for continued review of the final dollar figure and the share between state and political‑subdivision liabilities.