Juneau -- The Alaska House of Representatives Thursday passed House Bill 161, which will allow administrators to reduce payments in benefit programs to match the appropriated level of funding. HB 161 passed 22-14.

"As things stand now, administrators feel such payments must be made at a prescribed level without reference to appropriation," said Representative Eldon Mulder (R-Anchorage), Co-Chair of the House Finance Committee, which sponsors HB 161. "If the enrollment exceeds affordable levels, this bill clearly tells administrators that they will be allowed to manage within the appropriated resources. Currently, administrators feel their only options are to either request a supplemental appropriation or shut a program down when the funding runs out."

"House Bill 161 provides a reasonable budgetary tool to the administration and to the legislature," said Representative Gene Therriault (R-Fairbanks), Co-Chair of the House Finance Committee. "It is important to note this bill does not break new ground; many programs, such as Medicaid, school funding, and Power Cost Equalization, already have such a mechanism in place and are not affected by HB 161."

A Notice of Reconsideration has been filed and HB 161 will be reconsidered by the House.

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= Eldon Mulder, 81 K