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.
These people are idiots…all of them.
I watch the House and Senate Majorities press conferences and Sara Palin’s image of “lipstick pigs” keeps flashing through my mind.
It’s unfortunate for Alaska that the image is so very accurate.
Wouldn’t be more humane in the long run, allowing these lunatics free reign to destroy Alaska, and start over? Death by a thousand cuts is no way to die. Just ask any Londoner.
A needs based dividend would no longer be a dividend. It would be welfare. Don’t go there. That’s like saying, the interest you receive on your saving account or stock dividends will now be adjusted depending on your need for those proceeds.
Interestingly, the dividend is serving its purpose of holding legislators accountable for spending as was envisioned.
Dave,
I agree with you, but I would add that these money grabbing marxist legislators (term very loosely applied) have been stealing Alaskan’s PFDs ever since Walker and the so-called “coalitions in the legislature” ran to some corrupt judges in the Southeast and confiscated our “guaranteed by state law-FULL PFD” and gave themselves the right to chop it down every year, or now it appears, confiscate the whole damn thing; Every year Dunleavy says he wants Alaskans to get the full PFD and every year the Alaskan senate rapidly votes to “not allow Alaskans to vote to rightfully get their full PFD back’ let me say that again, our money-grubbing so-called representatives, WILL NOT ALLOW ALASKANS TO VOTE TO RETURN TO THEIR CONSTITUTIONAL RIGHT OF A FULL PFD. A FULL PFD IS WHAT ALASKANS WERE PROMISED WHEN WE CREATED THE PERMANENT FUND IN THE FIRST PLACE. I know, I voted to create the permanent fund and the PFD in the first place. Very few of the wandering (mentally challenged) state representatives (??) were not even born yet. Alaskans, should push really hard with this group of thieves, to get a ballot initiative on the November Ballot this year!!!!! This would allow Alaskans to decide to get back what they are legally entitled to receive. Then we can get the damn legislature the hell out of it for good.
note: Josephson has never been for a full PFD, he was unfortunately our district representative for way too long, and always pushed to cut the PFD. Don’t ever put Josephson, Copp, Stutes, and a good number of other representatives in the full PFD column.
Done, for now.
Bring the State Capital to the people where it was voted to be! You can use my dividend for the next 5 years to finance that move.
I don’t care what you call it, you are stealing from the people without their ability to actually make change every time you steal from the dividend amount.
Concerning school funding, have any of you down there in Juneau noted the loss of enrollment throughout the State of school age children? In Anchorage alone, they are looking at closing and consolidating several schools, yet you are caving in to the Teachers Union concerning school funding. Why are we funding more for less? It doesn’t make sense.
The original permanent fund set up 50% for government to run and 50% to be dispersed to to Alaskans! Here’s a novel idea!
Shrink politicians paychecks for the overages
Bet the budget would balance quickly!
The Buget is not out of balance because of the Dividend. It the legislature’s unwillingness to do their job and wisely spend the money that they that they have at their disposal. By state law the dividend is not part of those funds.
The idea that the dividend is not sustainable is as stupid a position as anyone could make. The dividend, at this point in time has nothing to do with the price of oil or thru put of the pipeline. It is a percentage of the income of the Permanent Fund. Therefore as long as our managers do their job there will be a dividend. Some years it will be bigger than others but it is smoothed over 5 years to help with that issue.
If taxes on residents are necessary so be it.
Only MRAK trolls believe removing guaranteed basic income from the budget is a tax
“We just have a significant math problem.” Now there’s an understatement if I ever heard one, the math problem these clowns have is they don’t know how to do it.
“I’m all for a needs-based dividend” Sure sounds like “from each according to his ability, to each according to his need”
The “extenuating circumstances” are that these legislators aren’t serious people, they do not understand reality.
“our schools are telling us they are desperate to have.” It’s interesting that they don’t consider the general public, the majority which supports a statutory PFD.
“I’m proud of my committee. We had lots of meetings. I’m proud of this budget.” Sometimes you just can’t fix stupid.
“all options are on the table.” All options except not spending money you don’t have and spending cuts that is.
What conveniently eludes these people is that the PFD calculation is in the Alaska Constitution ala Jay Hammond. Spending what you don’t have is not. Kopp wants a Balanced Budget but achieves that not by cutting spending but, by bastardizing the Constitutionally-mandated formula. While the PFD should not be looked upon as a cash cow or entitlement, it’s still something that spikes the local economies in the state. As for Frank Rast, where in this article is “guaranteed basic income”? Guaranteed Basic Income, in recent discussions, is a payment to people who do nothing more than breath and, additionally, would garner votes for politicians who negotiate such things. GBI is also divisive in that some receive it while others do not; the PFD uses no such calculus.
Mighty generous of the legislature to let us have a whopping’ $1400 PFD this year…using the math I was taught many years ago, that comes out to approximately $116.67 per month! WOW! As the old saying goes…”don’t spend it all in one place”…unless of course you need groceries or something and that $116 bucks goes pretty fast. Now, let’s compare that with the dregs that we hand out to those hard working legislature types…Did you know they get (on top of their $50,000 salary) $307 PER DAY in per diem payments AND additional amounts for travel and moving costs… Mr. Edgmon raked in $38,000 in those expenses in 2023! Now, my math may be a little rusty but $307 x 30 days is a little bit more than $116.67 (which the legislators also receive by the way….snd the don’t even have to pay taxes on there $30,000 plus in per diem…. The schools get the increase in the student allowance “because they asked for it”! Well, I’m pretty sure if the legislators would listen beyond the well paid lobbyists…they might hear some citizens asking to be paid the Constitutional amount for their PFD’s!!!
Education-industry mobsters seem to have the legislators’ testicular lockbox firmly under their control.
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Whether legislators of either gender are granted access to the contents remains to be seen.
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And until citizens regain control of their grand-jury and election systems, there’s not a damned thing they can do about it.
Can someone tell me why the raiding of the PFD hasn’t been challenged in court?
Eleven other US states are implementing a form of DOGE and I bet we would come across the real ‘reason’ the legislators want to waste $1000 per pupil instead of truly cutting back the budget to stay within our budget. Alaska needs our version of DOGE.