House Finance advances education fund amendment, rejects gas pipeline revenue tie

The Alaska House Finance Committee advanced a constitutional amendment Monday that would create a dedicated public education fund, but lawmakers rejected tying the fund to future gas pipeline revenues.

Senate Joint Resolution 29 passed the committee 8-3 after members voted down an amendment that would have directed 75 percent of major gas pipeline revenues to education. The rejected amendment failed 2-9.

The measure had previously stalled in Senate Finance amid process objections before passing the full Senate on third reading April 1. The resolution now moves to the House floor.

Representative Jeremy Bynum, who proposed the gas pipeline amendment, estimated the state could see roughly $700 million per year from a major gas line project. He argued the revenue stream would create public pressure to develop Alaska's gas resources while providing stable education funding.

"Year after year we talk about wanting to have a dedicated streaming source of revenue into the education, and this will do that," Bynum said.

But Representative Sara Hannan opposed linking the constitutional amendment to a specific revenue source. She worried voters might see the education fund as dependent on gas line development.

"I want to make sure that when voters are talking and thinking about voting on a constitutional amendment, that it's not tied to another thing being the critical feature," Hannan said.

Representative Will Stapp cited Alaska's constitutional framers, who he said repeatedly rejected dedicated funding formulas in the state constitution.

"I can tell you that it is incredibly clear that the fathers of Alaska's constitution repeatedly rejected constitutional earmarks," Stapp said. "Education was treated as a constitutional duty and intentionally not a fiscal formula with a dedicated fund."

The resolution as amended allows the legislature to dedicate taxes and fees to education but does not specify funding amounts or sources. An earlier amendment adopted by the committee preserved that flexibility while preventing the legislature from later redirecting dedicated education revenues.

Representative Jamie Allard raised concerns about reducing legislative budget flexibility. She noted Alaska's constitution gives the legislature unusually broad budget authority compared to most states.

If approved by voters, the measure would amend Article 9 of the Alaska Constitution to authorize creation of an education fund in the state treasury.