Math problems, train track aspirations, and the $64,000 question about House Majority’s budget

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BY DAVID BOYLE

Because most of us don’t have the time nor the inclination to listen to Legislature’s meetings and press conferences, I’ve compiled some statements from the House Majority presser last week, which reflect their true feelings and beliefs regarding the Alaska budget.

The House Majority leadership, consisting of Reps. Bryce Edgmon, Chuck Kopp, Louise Stutes, and Andy Josephson, voiced their true feelings and beliefs at a press conference this week addressing the budget.

House Speaker Edgmon said there were “extenuating circumstances” that have caused the budget crisis. He blamed global issues such as the sharp decline in oil prices and changes in the federal government funding. Nowhere did he take responsibility for the current fiscal crisis, although he has been in office since 2007.

Edgmon said we need an increase in K-12 education funding because “our schools are telling us they are desperate to have.”  

Does that sound like reason enough to spend an additional $253 million on K-12 without any accountability on increasing student achievement?  Speaker Edgmon might also want to look at the Legislative Finance analysis, which states that the state has increased funding by 34% to K-12 since 2006, outpacing inflation.

Edgmon then went on to blame the House Minority on the House Finance Committee by saying, “We need to work together.” He was dismayed by the fact that the minority had so many members on that committee — five of the 11 are Republicans.

House Rules chairperson Stutes of Kodiak said that “all options are on the table.” I’m not sure if this meant a full PFD and no additional funding to the K-12 system or no PFD at all. (It was settled on Friday, with a drastically cut PFD.)

Rep. Kopp chimed in saying, “We are facing the $64,000 question.” He focused on the large statutory PFD saying, “The PFD is two times what K-12 spending is.”   

Kopp then said, “I ran supporting a balanced budget.”  

It’s nice that he supports that constitutional requirement. He has no other choice.

Kopp followed up by saying, “Do we need new revenue, or do we need to put a handle on the size of the PFD we are paying.” That may mean taxes on Alaskans and a smaller PFD which is also a tax. And that smaller PFD hurts the low income Alaskans the most.

Kopp closed by saying that, “We need a House Minority that’s willing to step up and take some very hard votes and agree that you can’t duck the question on the size of the dividend.”

Nothing like blaming the other side when you seem to be losing the game.

Rep. Josephson, House Finance chairman, stood up for his Finance Committee Democrats saying, “I’m proud of my committee. We had lots of meetings. I’m proud of this budget.” 

He continued, “We still have a dividend that is obviously unaffordable. I am troubled by that.” He blamed the lack of cooperation on the Minority Republican committee members.  

But he didn’t stop there. 

“We heard from scores of Anchorage citizens about the importance of HB 69 and we have their back. And we’re gonna, come hell or high water, stand for that principle,” Josephson said.  

It isn’t really clear what that “principle” is. Maybe the principle is funding K-12 education with no clear education reforms to improve student achievement. It probably also includes that he wants to ensure his reelection and gets support from the National Education Association.

The press conference moved to the question segment. The first question was concerning how much of this disagreement with the minority was about K-12 funding. The answer was, “BSA growth is not the problem in this budget.” 

That sums up the House Majority’s position. They would rather take the PFDs from Alaskans to pay school personnel more.  

Rep. Josephson talked about how he “respects” living in rural Alaska. He seemed to pander to the rural members in his caucus who favor a statutory PFD.  

“I am very sympathetic in the disparity in income” in the rural areas, he said. The trouble is, “We are not ready for Alaskans to invest in their state government.” He doesn’t seem to remember the PFDs that were reduced from the statutory requirement over the past few years were used to “invest in their state government.”

Josephson summed up his position by saying, “We just have a significant math problem.” Surely, he went to public school and had difficulties with the new math curriculum.

Then a reporter asked why should Alaskans pay more for government and not the oil companies. Rep. Kopp showed concern that current oil prices were going much lower but we also have new oil coming online. He did not want to jeopardize this revenue, both new and old, by imposing new taxes on oil. He knows where the money really comes from funding the state government.

Kopp then said, “I’m all for a needs-based dividend and do we need to inflation proof the dividend. Do we put a geographical differential in the dividend?” I guess that means that those in the rural areas would get a larger PFD than those who live in the urban areas. Remember, many of those living in the rural areas pay zero to fund their local schools.  He summed up by stating that he would file a bill tomorrow if he had the 21 votes on changing the PFD formula.

Rep. Josephson staunchly supported the current Percent Of Market Value formula by saying, “I will lay down on the train tracks for the 5% POMV.” Looks like the Alaska Railroad has a new mission!

Josephson further stated that, “We need to entertain cuts as well. It’s not going to be Medicaid cuts.  We need to look surgically what need to be cut.” Just pandering to his constituency. He voiced that in the final analysis he suspects that something more surgical will be done and that may include the state’s vacancy factors. He might just want to lead by example by suggesting cuts to his legislator pay. That would be “surgical.” 

These are some of the more important statements from the House Majority leaders which should give you an idea of what these various legislators stand for and the principles they embody.  

Speaker Edgmon blames the House Minority, the global downturn in oil prices, and listens to the education industry demands for more money.

Rep. Kopp believes the PFD is too large and it may have to be changed based on where one lives. He also believes we may need “new revenue” aka taxes.

Rep. Josephson just loves to have finance committee meetings. He also says he will die (on the railroad tracks) for the POMV!

Finally, Rep. Stutes only has one thought: Put all options on the table.

Listening to press conferences is much more entertaining than listening to those lengthy committee meetings. You might just want to try listening.

David Boyle is a writer for Must Read Alaska.