Appropriations panel splits over whether to lock $250 million into permanent savings or keep it available
Loading...
Summary
Lawmakers in the Joint Appropriations Committee debated a governor request to deposit $250 million into permanent savings, with proponents saying it protects future generations and opponents arguing the Legislature should retain access to funds for near‑term education needs. The committee voted on an amendment to direct the money to the Legislative Stabilization and Reserve Account (LISRA); that amendment passed and the original governor recommendation did not.
Chairman Baer and members of the Joint Appropriations Committee spent more than an hour debating governor’s Letter No. 1, a proposal to deposit $250 million into the state’s permanent savings account. The chair argued the money should instead be placed in the Legislative Stabilization and Reserve Account (LISRA) so future legislatures could access it if education or other priorities face shortfalls.
Proponents of permanent savings warned against departing from a long‑standing policy of putting excess revenue into constitutionally protected accounts. Senator Gru said the permanent fund was created to smooth boom‑and‑bust cycles and to pass wealth to future generations. “We have been miraculously and wildly successful, thanks to their foresight and vision,” he said, pointing to large recent investment income.
Opponents, including Chairman Baer and Representative Pendergraft, argued that locking the funds permanently would remove legislative flexibility to address an education shortfall or municipal needs that could arise in the next biennium. The chair described an amendment to direct the funds to LISRA and invest them for higher short‑term returns, so the Legislature would retain discretion; that amendment carried when the committee voted.
Senator Driscoll, who opposed the amendment, framed his remarks around intergenerational equity: “These are taxpayer dollars. These are the policy decisions we’re having,” he said, urging preservation for grandchildren and future generations. Others warned that future legislatures could change course and spend temporary savings, while proponents of LISRA said elected officials should retain the choice to use funds in response to unforeseen revenue declines.
Outcome and next steps: The committee approved an amendment routing the $250 million into LISRA for the near term; the governor’s original recommendation to deposit the same amount directly into permanent savings did not carry. The chair instructed staff to capture the committee’s direction in the budget bill language and to circulate final numbers for the committee’s review before final adoption.
