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If oil prices stay above $100 a barrel for the next 12 months, the state could end the fiscal year in June 2023 with about $2.3 billion in its savings accounts, not counting the Permanent Fund. It hasn’t had that much in savings since 2018. “That’s not enough cash,” Sitka Sen. Bert Stedman, co-chair of the Senate Finance Committee, said last Friday. The state treasury needs a healthier shock absorber to cushion against the inevitable periods of low oil prices, he said. It all depends on oil markets and prices. Alaska North Slope crude has ave...
This is the first year for ranked-choice voting in Alaska, and the changeover will start next week. Voting in the primary election to choose from among 48 candidates to fill the unexpired term of the late U.S. Rep. Don Young will close June 11. The top four vote-getters in the primary will advance to the Aug. 16 election, though voters need to remember they can cast a ballot for only one candidate in the primary. The general election is when voters will have the option to rank their top choices among the final four as 1, 2, 3 and 4, or just 1...
Former President Donald Trump, Texas Sen. Ted Cruz and other elected so-called leaders say the answer to protecting innocent students and teachers from attack is to turn schools into fortresses. High perimeter fencing, every entrance door locked but one, metal detectors, cameras, hardened doors to classrooms, armed security guards. Sounds like a prison, not a school for young children to learn, play and enjoy. And after speakers at last week’s National Rifle Association annual convention in Houston condemned the evil of the Uvalde school s...
High oil prices paid the way for legislators to spend more money on public services and construction, a little more on schools and a payout to Alaskans this fall almost triple the amount of last year’s dividend. Legislators and their constituents now wait to see if Gov. Mike Dunleavy decides to veto any of the spending for the fiscal year that starts July 1. Lawmakers went home last week after a late-night session on the final day May 18, when they approved about $2.1 billion — one-quarter of all state general fund spending in the budget yea...
The Legislature adjourned on time last week, a nice change from past special sessions that got in the way of summer fishing, watching baseball, eating anything off the grill (except eggplant) and sitting outdoors in the sun doing nothing. Lawmakers settled on a healthy and wealthy but not necessarily wise dividend that will put $12,800 into the hands of a family of four this fall. As expected months ago, that single issue consumed the largest amount of political negotiating in the Legislature’s final days. House and Senate members also p...
Lawmakers on the final day of the legislative session May 18 passed a bill to impose a tax on electronic smoking products, such as e-cigarettes, vaping sticks and refills. The tax, at 35% of the wholesale price, was in part a compromise between the original version of the bill, at 75%, and opponents who argued against taxing vaping products that could be a healthier alternative for smokers than traditional cigarettes, which are heavily taxed by the state and many municipalities. The new tax will take effect Jan. 1, 2023, unless Gov. Mike... Full story
The borough and Wrangell schools could receive about $4.5 million in state funds, and individuals could receive a fall dividend at least more than double the amount of last year’s payment as the Legislature is in the final day of its regular session on Wednesday. High oil prices — $50 per barrel above a year ago — have added billions to state revenues and made it easier for legislators to add money to the budget for schools, local public works projects and the annual Permanent Fund dividend. The Legislature faces a midnight Wednesday adjou...
It’s up to the Senate in the final days of the legislative session whether Alaskans will get a year of gasoline and diesel at the pump without the state tax of eight cents a gallon. The House by a 36-2 margin on May 4 passed the measure — which could save an average driver $30 to $50 a year in motor fuel taxes but cost the state about $35 million in lost revenues — sending it to the Senate for action in the final two weeks of the session. A week later, the Senate Transportation Committee moved the bill on May 11, sending it to its next stop,...
The community’s future depends on adequate, affordable housing, and the same for child care services. Without both, Wrangell will find it difficult to keep the businesses, jobs, school enrollment and services it has, much less grow. You could say the same for salmon returns, state and federal funds, a dependable ferry system and better weather, but all of those are outside the community’s control. Housing and child care are something Wrangell needs to confront, look for answers and even help pay to improve. Both are so basic to the wel...
The largest of the state ferries, the 499-passenger Columbia, was still listed as inactive on the Transportation Department website as of Monday, with no indication it will go back to work this summer as was planned nine months ago. Last August, the department’s draft summer 2022 schedule included the ship “penciled in” to run May 11 through Sept. 14, with weekly sailings to Southeast from Bellingham, Washington, “pending crew availability.” The run would have included weekly stops in Wrangell. After months of nationwide advertising for crew,...
Seattle-based Trident Seafoods will not open its Wrangell processing plant this summer, the third year in a row the operation has been closed. As in the past two years, the company cited weak chum salmon returns for its decision not to run the plant. Company officials did not return calls to the Sentinel last Friday or Monday. News of the plant closure was presented in Borough Manager Jeff Good’s report for Tuesday’s assembly meeting: “They have notified us that they do not intend on running this year but are hoping for next year.” “We wou...
Wrangell is moving closer to receiving at least a $4.1 million state grant to add to $11 million in federal funds for construction of a new $15.4 million water treatment plant. The House Finance Committee version of the state capital spending bill — the public works budget — includes a $5 million appropriation, while the Senate on Monday amended its version of the bill to include $4.1 million for the Wrangell project. Lawmakers will need to merge and reconcile the two versions of the capital budget in the next week. With money in both the Hou...
The Legislature is working toward the largest capital budget in a long time. Municipalities are hearing “yes” instead of years of “no” to some of their public works funding requests. In addition, more state money is headed to schools. And Alaskans are likely to get a check from the state this fall more than double the amount of last year’s Permanent Fund dividend. All thanks to elevated oil prices — more than 50% higher than a year ago — and the large tax and royalty payments that are flowing to the treasury from North Slope oil producers. Lawm...
The state House has passed legislation that would suspend Alaska’s 8-cents-a-gallon motor fuel tax for a year to help consumers pinched by high prices at the pump. The bill was scheduled for its first committee hearing in the Senate this week as lawmakers push toward their May 18 adjournment deadline. The measure also would suspend to June 30, 2023, the state tax on marine fuel (5 cents a gallon) and aviation gas (4.7 cents a gallon). The legislation says dealers “shall reduce the cost of fuel to the final consumer” by the amount of the tax bre...
Unless the Legislature acts, Alaska nonprofits will have to stop selling raffle tickets online June 30. The state has allowed online sales by registered nonprofits since early summer 2020, as the pandemic shut down or made difficult group events and in-person ticket sales. Temporary legislation allowing charitable groups to sell and draw winning tickets online expires in less than two months, though a bill under consideration would make the provision permanent. The legislation “will modernize Alaska’s charitable gaming program,” Deb Moore, exec...
Anyone who wants to get a pizza midweek at the Marine Bar or a steak or burger at the Elks Lodge knows that worker shortages have forced employers to reduce their days and cut back on offerings. “This worker shortage is real, and it’s not going away anytime soon,” Dan Robinson, research chief at the Alaska Department of Labor, told legislators last month. “For nine years in a row, more people have left the state than have come here,” he told the Senate Finance Committee. The population has been stable as births have outpaced deaths, but the y...
The Permanent Fund dividend ranks among the most divisive issues in Alaska politics, along with such longstanding battles as oil taxes, salmon fisheries catch allocations and subsistence rights. Sadly, the dividend has grown in political importance in recent years, overwhelming all other issues confronting the state. Candidates scramble to find a dividend flag large enough to wrap around themselves for campaign speeches, reasonable voices get drowned out by chants of “I want my PFD,” and state budget work is held hostage by advocates for a sup...
Legislation to restore and increase the state licensing fee on sportfishing guides and operators ran into problems in the Senate Finance Committee last week, as lawmakers questioned why out-of-state boat owners who bring up guests are not required to get a license and pay the fee. “My district has got to be one of the top guided areas in the state,” said Committee Co-Chair Sen. Bert Stedman, whose district stretches from Sitka to Prince of Wales Island, including Wrangell. And while that means a lot of non-residents pay local operators for fis...
Alaska property owners have paid more than four times as much in premiums than they received back in claims under the National Flood Insurance Program going back to 1980. “It’s kind of ugly,” Lori Wing-Heier, the state’s insurance division director, told legislators this spring. “We don’t have the storms they get in Texas or Louisiana.” The nationwide program, which is voluntary for states and communities, has been around for more than half a century. It pools together property owners from all the states and territories, much like group he...
In a two-page letter to the community, Schools Superintendent Bill Burr on Friday cautioned that ongoing staffing shortages, particularly aides and substitute teachers, could push the schools into considering a move to distance learning in lieu of in-person instruction. “As we have had a number of unfilled positions over the last month, we need to continue looking at the need to move toward distance learning,” he wrote in his letter Friday. “We have worked very hard to keep our schools open during (COVID) mitigation and adversity, but without o...
Just as other communities, Wrangell is enduring a springtime bloom of COVID-19 cases. As of April 20, the state health department reported 79 new cases in the community in the past 30 days. Most of those were reported to the state in late March and early April, with new infections declining in the past week. The spread of the highly infectious disease is of particular concern at the schools. “We have had an increase in COVID and other illnesses during the past month and the schools have been struggling to find ways to stay open,” Sup...
The borough assembly has started work on its budget for the fiscal year that will start July 1 and will need to decide on a school district request for more funding in addition to paying higher fuel and property insurance costs and spending on necessary maintenance of public facilities. Revenues are up, however, with more money coming in from sales taxes and federal payments in lieu of property taxes on national forest lands. Borough staff and assembly members started their budget review during a work session April 20. The borough’s annual c...
This isn’t about a time-out for misbehaving children; it’s about adults who behave as children, or worse. The federal law requiring face masks on airplanes is no longer in effect. That means big changes for flyers. For travelers who had grown tired of masking up before heading into airports and boarding planes, they are free to show their smiles and put away or throw away their masks. For travelers who remain concerned about catching COVID-19, they are free to keep wearing masks in their best efforts to protect themselves and others. What it sh...
The borough could receive about $300,000 under a Senate Finance Committee plan to pay back municipalities across Alaska for years of short-funding of the state’s share of local school construction bond debt. The committee version of the state budget includes $221 million to pay back municipalities for incomplete state reimbursement payments going back five years. Years of low oil prices and large state budget deficits prompted governors to short-fund the reimbursements, with legislators lacking enough votes to override budget vetoes. This y...
Global supply chain shortages and delays have extended past grocery stores, car dealers and electronics to the Alaska Marine Highway System. The state ferry Kennicott was delayed coming out of winter overhaul. Instead of returning to service last week, as had been scheduled, the ship was rescheduled to leave Ketchikan on Thursday for a trip to Juneau, Yakutat and Kodiak before sailing into Bellingham, Washington, to fully start its summer runs. The Kennicott’s scheduled return to service was delayed due to supply chain issues, labor constraints...