Happening now. Oral arguments in AFN's lawsuit challenging the Dunleavy administration's expansion of the Constitutional Budget Reserve sweep to include the Power Cost Equalization program.
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Watch:
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Watch:
The key issue here is what is/isn't subject to the sweep. Previous decision said it has to be in the general fund AND available for appropriation by the #akleg.
Under a 2019 opinion by former AG Clarkson, Gov decided if it was LIKE the general fund, then it was the general fund.
Under a 2019 opinion by former AG Clarkson, Gov decided if it was LIKE the general fund, then it was the general fund.
Unsurprisingly, this hasn't been implemented equally across the board with a lot of questions about whether Clarkson's expanded understanding would also mean the Alaska Permanent Fund's earnings reserve account and several others should also be swept.
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#akleg
Former AG Jahna Lindemuth is arguing on behalf of AFN and the plaintiffs. She says the governor's expansion of the sweep to include Power Cost Equalization by the Dunleavy administration is "completely arbitrary and political."
She says it's deeply flawed.
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She says it's deeply flawed.
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In some questioning by Judge Garton, Lindemuth argues the constitution clearly grants the Legislature the ability to set up funds separate from the general fund. She notes that the Wielechowski PFD lawsuit found the Alaska Permanent Fund's ERA was separate by statute.
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#akleg
Lindemuth argues that the Dunleavy administration/Clarkson are conflating the state treasury with the general fund. She even says that Clarkson's original opinion gave away the game when it said the PCE was LIKE the general fund.
Like does not mean the same, she says.
#akleg
Like does not mean the same, she says.
#akleg
Lindemuth: "The governor as the executive effectuating laws cannot ignore words of the statute."
She says under Dunleavy's reading of law, the ONLY way for the #akleg to set up new accounts would be through a constitutional amendment. She says that's clearly wrong.
She says under Dunleavy's reading of law, the ONLY way for the #akleg to set up new accounts would be through a constitutional amendment. She says that's clearly wrong.
Garton asks, then, if the #akleg can "circumvent" the CBR rules by creating several other different accounts.
Lindemuth says the Legislature clearly has the ability to put state funds to use as they see fit. PCE's endowment fund is there as an endowment to fund PCE.
Lindemuth says the Legislature clearly has the ability to put state funds to use as they see fit. PCE's endowment fund is there as an endowment to fund PCE.
Lindemuth says the #akleg set up the Power Cost Equalization endowment fund as "a terminal appropriation.
"It's the same if they invested it into a hydro dam for urban Alaska."
"It's the same if they invested it into a hydro dam for urban Alaska."
Lindemuth says the governor's interpretation of the sweep would actually lead to more damaging consequences. Instead of socking money away into endowments like this, the #akleg would be incentivized to just spend everything they can before the CBR sweep.
Garton asks with the delayed special session, if that impacts the timing of this case. Lindemuth says they want a fast resolution because if they rule against the plaintiffs they need time to appeal to the Alaska Supreme Court.
Katherine Demarest is arguing on behalf of the state. (Sidenote: Demarest and Lindemuth worked together on the Fairbanks Four innocence project.)
She says the ONLY question is whether or not the funding is in the general fund, says the Wielechowski suit isn't relevant.
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She says the ONLY question is whether or not the funding is in the general fund, says the Wielechowski suit isn't relevant.
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Demarest says all the #akleg would have to do to avoid the sweep under the plaintiff's argument is put "a little sticky note that says separate fund."
Demarest says, basically, the #akleg being able to set up separate funds would undermine the Constitutional Budget Reserve fund's pay back provisions completely.
Demarest says the #akleg could, simply, just fund the Power Cost Equalization through an ad hoc funding or by simply getting the 3/4 vote to reverse the sweep.
"It could reevaluate its policy priorities out of ordinary funding options."
"It could reevaluate its policy priorities out of ordinary funding options."
Lindemuth is back up. She says the conflation of the dedicated funds prohibition with the power cost equalization fund is essentially just a distraction and wasn't even briefed by the administration.
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#akleg
Lindemuth notes that the prohibition of dedicate funds ONLY applies to the dedication of revenues to certain causes. She says that's not at play with the PCE Endowment Fund.
Lindemuth going over the governor's thinking on the sweep, using phrases like "defies logic" and "defies common sense."
She says the state's position is not supported and they're grasping.
#akleg
She says the state's position is not supported and they're grasping.
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In closing Lindemuth says the administration has no basis for refusing to authorize this year's power cost equalization funding. She says the appropriations needed only a simple majority (which it got) and asks for an order ordering PCE be funded.
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#akleg
The state says if the payment is ordered, they will not seek an injunction but reserve the ability to appeal the ruling to the Alaska Supreme Court.
Garton says she'll have a decision out "quickly."
#akleg
Garton says she'll have a decision out "quickly."
#akleg
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