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Almost two weeks after Gov. Mike Dunleavy told lawmakers he would propose a new sales tax, legislators have yet to see the governor’s bill — and are still far from reaching agreement on the state’s fiscal future. Lawmakers broadly agree on the need for new revenue sources amid declining oil taxes. But any proposal from the governor, along with other revenue measures considered by lawmakers this year, are unlikely to pass with only two weeks until the constitutional deadline marking the end of the regular legislative session, key lawma...
Gov. Mike Dunleavy told legislators in a pair of closed-door meetings last week that he will introduce a state sales tax as a component of a budget-balancing, long-term fiscal plan. But with just three weeks left in the legislative session, with no details about the governor’s tax bill as of Monday, and with strong opposition from lawmakers who represent communities with a local sales tax, the odds of passage this year are extremely low. If the governor goes ahead with a sales tax bill, it would join more than a dozen proposals offered by H...
Alaska is 30 years into state budget deficits, borrowing billions from savings to pay the bills. Gov. Mike Dunleavy is five years into the job, still pledging mega Permanent Fund dividends even if the money isn’t there. Three months ago, Dunleavy in his State of the State address couldn’t even manage to acknowledge the need for a long-term fiscal plan, despite the budget math that adds up otherwise. Then the governor had an epiphany last week. Not a religious one, a fiscal one. He said the word “taxes.” Only he didn’t say it in public. That wou...
The budget battle between the Alaska House of Representatives, the Senate and the governor is shaping up as a fight between the size of the Permanent Fund dividend and a proposed increase to public school spending after years of flat funding. Dozens of education advocates rallied on the Alaska State Capitol steps last Thursday evening in support of a substantial increase to the state’s per-student funding formula. The formula has not been significantly increased since 2017, and school administrators have reported struggling to balance their b...
Alaska posted the nation’s highest rate of increase in electronic cigarette use by young adults from 2016 to 2021, according to a report tracking patterns in all 50 states. The rate of e-cigarette use by Alaskans in that age group more than tripled, from 4.8% in 2019 — the lowest rate in the nation at the time — to 15.8% in 2021, according to the report. The sponsor of a bill in the Alaska Legislature to impose a tax on e-cigarettes, vape sticks and other electronic smoking devices has said the tax is intended to deter young people from vapin...
After waiting six months for a license to operate, an Anchorage psychologist asked Senate Majority Leader Cathy Giessel for help. But when the Anchorage Republican called the licensing office, she was greeted by voicemail. The person in charge of answering the phones had quit and wasn’t replaced. “Professional licenses are required to get people to work. That division doesn’t have enough people to even answer the phone,” Giessel said last month. That person wasn’t alone — last year, the state reported that 39 occupational license-exa...
With four weeks left before the May 17 adjournment deadline, legislators are focusing on the state budget and how to resolve big differences between the House and Senate over school funding and the amount of this year’s Permanent Fund dividend. The House approved its version of the budget on Monday, sending it to the Senate for certain changes. And while the major disputes are over how much to spend on education and dividends, and how to pay for the spending this year, many lawmakers also are kicking around ideas to generate new revenues in t...
Will Carol Beecher, who was appointed to serve as director of the Alaska Division of Elections, comply with Alaska state statutes in the future? The relevant statute clearly states that the elections director must be nonpartisan and may not make political contributions. The Sentinel reported Feb. 22 that Beecher made recent contributions to the campaigns of Republican candidates including Donald Trump, Alaska Gov. Mike Dunleavy and Lt. Gov. Nancy Dahlstrom. Four months later, Dahlstrom appointed Beecher as director of the Alaska Division of...
Gov. Mike Dunleavy said he does not support a request to add millions of dollars to the state budget to help child care providers, instead announcing the formation of a task force to examine the issue and provide policy recommendations by the end of the year. Child care, expensive and in short supply in Alaska, has benefited from more than $50 million in federal pandemic aid paid as grants to providers since 2020. With the end of federal funding, child care advocates have asked legislators to add $15 million to the state budget to boost...
For the third time in as many legislative sessions, Kodiak Sen. Gary Stevens is leading the push to get a tax on e-cigarettes and vaping products into state law. “Taxes have been proven to reduce youth tobacco use, resulting in fewer kids becoming life-long smokers,” Stevens said in offering his legislation, which would add a 25% state tax to the sales price to dissuade youth from vaping. Senate Bill 89 also would raise the legal age to buy vape sticks, electronic smoking devices and other similar nicotine products in Alaska to 21, mat...
The governor last Friday signed an emergency funding bill to help resolve the crisis-level backlog of food stamp applications from needy Alaskans. The Legislature had approved the measure days earlier. The budget bill includes $3.1 million for overtime pay and to hire about 30 new employees to help with the applications backlog at the Division of Public Assistance, which processes food stamps and other benefits including Medicaid. Deb Etheridge, the division’s director, told lawmakers that the end of the backlog that has affected at least 8...
A state senator wants to direct a larger share of filing fees paid to the court system toward a nonprofit legal aid organization that helps several thousand Alaskans a year with their domestic violence, family law, housing, elder advocacy and other cases. The 56-year-old Alaska Legal Services Corp. “is part of our social safety net,” helping the most vulnerable community members, particularly survivors of domestic violence, said Anchorage Sen. Forrest Dunbar, sponsor of the legislation. Senate Bill 104 would amend state law to direct up to 25%...
The Alaska House of Representatives could vote this week or next on a bill that would block a 67% pay raise for state legislators and a 20% raise for the governor and top members of the executive branch. Passage of the bill is anticipated — multiple members of the House Republican-led majority coalition and Democratic-led minority have already expressed their support of the idea — but leading members of the Senate said the idea is dead on arrival when it crosses the building and arrives in their chamber. Under state law, the raises will go ahe...
More than 100 Alaskans spoke out against a “parental rights” bill proposed by Gov. Mike Dunleavy, in a wave of opposition to the legislation that many said would harm already vulnerable transgender youths. Of the 119 Alaskans who spoke during the nearly five-hour hearing held last Thursday evening by the House Education Committee, 103 opposed the bill and only 16 were in favor of it. Apayauq Reitan, the first openly transgender woman to run the Iditarod Trail Sled Dog Race, was one of many gender nonconforming individuals who said the bill wou...
ANCHORAGE — A judge has dismissed a sex abuse case against former acting Alaska Attorney General Clyde “Ed” Sniffen, citing the statute of limitations that were in place when the alleged abuse happened more than 30 years ago. The case, thrown out on Friday, involved allegations that Sniffen, now 58, sexually abused a then-17-year-old student in 1991 when he was 27 and was the alleged victim’s coach of her high school’s mock trial competition team in Anchorage. Sniffen had pleaded not guilty. Alaska does not currently have a statute of limita...
It’s embarrassing that it took billions of dollars in losses for some legislators to acknowledge that the state’s fiscal house is leaking worse than a broken downspout on a Southeast Alaska roof. It’s too bad Gov. Mike Dunleavy acts like he has barely noticed the growing pool of mud at his feet. Start with the Permanent Fund, which generates investment earnings that have become the largest single source of revenue in the state budget. Last year was painful for most every investor, and Alaska was not immune to the downturn. The fund dropp...
The Alaska House advanced a targeted spending bill March 22, intended to address the state’s unprecedented backlog of unanswered applications for food stamp benefits and a shortage of public defenders in criminal cases. The budget bill is being fast-tracked through the Legislature so that the money can be made available quickly. It contains provisions to draw from the $2.3 billion Constitutional Budget Reserve — the state’s main savings account — to spend a maximum of $115 million for unanticipated spending needs for the fiscal year that en...
The Alaska Legislature is preparing to examine two new tax proposals after a state revenue forecast showed significant long-term budget deficits even with a sharply reduced Permanent Fund dividend. One proposal, introduced Friday by Anchorage Democrat Sen. Bill Wielechowski, would cut a popular oil production tax credit and expand the applicability of the state’s corporate income tax to privately owned oil and gas producers. The second proposal, filed Monday by Nikiski Republican Rep. Ben Carpenter, would impose a 2% state sales tax. The s...
Alaska legislators will get a 67% pay raise next January — from $50,000 to $84,000 a year — and the governor and state department heads will receive a 20% boost effective July 1. The wage hikes come after Gov. Mike Dunleavy replaced an independent salary commission that was unable to agree on a pay hike for lawmakers, with the new members convening on short notice to recommend the raises. An entirely new five-member commission met March 15 and added the legislators’ pay increase to an earlier recommendation that the governor, lieutenant governo...
Some state lawmakers have signaled their opposition to the nomination of the leader of a conservative advocacy organization to serve on the University of Alaska Board of Regents. Bethany Marcum is executive director of the Alaska Policy Forum, which advocates for limiting government and reducing state spending, including on education. Gov. Mike Dunleavy nominated Marcum for the board earlier this year. Her appointment is subject to confirmation by the entire Legislature, which will vote on the governor’s nominations in April or May. The H...
A crowded field of proposals to address the annual debate over the amount of the Permanent Fund dividend became even more so on Friday as the Senate Finance Committee proposed a new formula for setting the payment. In the first 60 days of the 2023 legislative session, lawmakers have introduced six different proposals to set a new dividend formula in either state law or the constitution. Four other bills or resolutions would substantially affect the amount of money available for dividends without specifically setting a new formula. Legislators...
After years of legislative debate over the size of the Permanent Fund dividend, reasonable voices are starting to grow louder, maybe even hopefully strong enough to outvote the irresponsible catcalls for an unaffordable dividend. It’s a welcome change. A bill in the House would restore dividend sanity by setting the free-money check at a percentage of the annual draw of Permanent Fund earnings, producing about a $1,300 PFD this year and growing from there. That would be about equal to the average dividend of the past decade, before the e...
The Senate Education Committee on March 13 advanced a bill to increase state funding for public schools, clearing the bill’s first legislative hurdle. The bill to increase the base student allocation, the per-student formula used to calculate school funding, heads next to the Senate Finance Committee. The Senate bipartisan majority has named increasing public school funding as one of their top goals for the legislative session, and the measure has support from a broad coalition of education advocacy groups who are warning that districts will b...
In an unannounced move, the State Board of Education unanimously passed a resolution March 14 that urges the Alaska Department of Education to limit the participation of transgender girls in girls school sports. The resolution, which is non-binding, encourages the department to adopt a policy that would ban transgender girls from competing alongside girls who are cisgender — meaning their gender identity matches their sex assigned at birth — in school sports. The resolution asks the department to create two sports divisions: one exc...
The first legislative hearing on Gov. Mike Dunleavy’s proposal to restrict discussion of sex and gender in schools included testimony from only two invited public guests, both supportive of the measure. The bill, which Senate leaders say is unlikely to pass that chamber, got enthusiastic backing from those invited to testify during the House Education Committee meeting March 13. Aside from two top state Department of Education officials who provided details of the bill, testimony was limited to two retired teachers supportive of conservative c...