The Alaska Supreme Court decision means some scholarships do not have a dedicated funding source, but an effort by the Legislature may reinstate a separate account.
The intent of Senate Bill 224 is to keep any money in the accounts from being swept into a state piggy bank, the Constitutional Budget Reserve.
Lawyers for four Alaska university students and the state government presented their arguments to Superior Court Judge Adolf Zeman on Tuesday to determine the future of the Alaska Higher Education Investment Fund.
The Legislative Council voted 12-1 to approve filing a legal brief backing the lawsuit.
The Alaska Higher Education Investment Fund has been under threat of being emptied of more than $400 million as a result of legislative budget fights.
Barnes first met Safi in 2009, when Safi was an East High exchange student.
The mostly Democratic House majority didn’t have enough members present to reach a quorum.
State budget director Neil Steininger said the governor still wants the Legislature to pass the constitutional amendments he’s proposed, to enshrine the PFD in the state constitution and lower the state’s spending limit.
Without the move, it was possible Alaskans wouldn’t receive PFDs this fall for the first time in 40 years.
Students and others involved in health care in Alaska asked lawmakers to agree to fund the program in the upcoming special session.