Press Release

Court Rules in Favor of State in HEIF 'Sweep' Lawsuit

February 17, 2022

(Anchorage, AK) – An Anchorage Superior Court judge today upheld the legality of the State’s constitutionally required transfer of excess money from the Higher Education Investment Fund (HEIF) to the Constitutional Budget Reserve, the state’s savings account.

A group of students challenged in a lawsuit the “sweep” of the balance of the fund not used to fund scholarships in fiscal 2022 to the Constitutional Budget Reserve. The students argued the HEIF should not be subject to the sweep because money within the fund should be considered as designated for a specific use and not “available for appropriation” under the law.

However, Judge Adolf Zeman agreed with the State’s argument that the HEIF money is available for appropriation by the Legislature. Thus, the only way constitutionally for the Legislature to reverse the sweep would be to do so by a three-fourths vote. Legislators had done just that until last year.

The sweep has no impact on existing HEIF grants, as Governor Mike Dunleavy continues to make scholarship funding a budget priority. HEIF scholarships have been fully funded throughout the Governor’s administration, including in the fiscal 2023 budget.

Article IX, Section 17 of the Alaska Constitution mandates the annual sweep.

“The judge’s decision today cites the plain language of the Alaska Constitution and judicial precedent, and we appreciate the clarity provided by this expedited decision,” said Attorney General Treg Taylor. “This decision provides policymakers with the information they need as they determine budget priorities and make appropriations decisions for the next fiscal year.”

• Order Denying Plaintiffs' Motion, Madilyn Short, et al. v. Governor Michael Dunleavy, et al. - PDF (3.3MB)

# # #

Department Media Contacts: Communications Director Patty Sullivan at patty.sullivan@alaska.gov or (907) 269-6368. Information Officer Sam Curtis at sam.curtis@alaska.gov or (907) 269-6269.