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Juneau spoke: ‘We want taxes, less dividend’

FIRST HOUSE FINANCE HEARING BRINGS DOZENS TO MIC

If Juneau has any say in it, there will be a progressive state income tax, smaller or no Permanent Fund dividends, and government that is about the same or bigger.

Sixty-eight people testified Friday night in the first of the House Finance Committee’s series of traveling public hearings that will pop up across the state this weekend.

Some said that the Dunleavy budget was amoral, that it would force them to leave the state, and that they support funding for education, health care, and ferries.

Friday’s hearing occurred on a beautiful Spring evening in Juneau, and some speakers noted that they thought twice about coming to testify on such a rare evening, when many would choose to enjoy the lengthening days. But they came to the Capitol anyway, out of love for the way of life they have and concern for their family’s future.

Helen Alten of Haines said that if the budget cuts go through, her family will have to move from Haines because her job as the director of the Haines Shelson museum would be cut, and she’s the sole supporter of her family, which includes her disabled husband who cannot work. Lesley Lyman, a retired teacher, likened the budget cuts to hacking up a human body, and Marc Wheeler, a business owner, said he could already see the effect of threatened cuts on his coffee shop, as uncertainty clouds the horizon. Heather Parker was concerned that people won’t have access to health care and will actually die.

“This is a self-created crisis, and there’s a solution. Invest in Alaska,” she said.

Many of those who testified expressed appreciation for the opportunity to voice their opinions on the budget proposed by Gov. Dunleavy, which matches the actual revenues the state has, and is $1.6 billion smaller than the budget paying for state services in the current fiscal year.

The hearings continue around the state this weekend according to this schedule:

Ketchikan: Saturday, March 23 from 12-3 p.m. in Ted Ferry Civic Center, 888 Venentia Avenue, Ketchikan

Mat-Su: Saturday, March 23 from 12-4 p.m. at the Mat-Su LIO, 600 E. Railroad Avenue, Wasilla

Bethel: Saturday, March 23 from 2-5 p.m. at the Yupiit Piciryarait Cultural Center, 401 Chief Eddie Hoffman Highway, Bethel

Kenai: Saturday, March 23 from 5:30-8:30 p.m. at Soldotna Sports Center, 538 Arena Avenue, Soldotna

Anchorage: Sunday, March 24 from 2-5 p.m. at the Anchorage LIO, 1500 W. Benson Boulevard, Anchorage

Sitka: Sunday, March 24 from 2-5 p.m. at Centennial Hall Assembly Chambers, 330 Harbor Drive, Sitka

Fairbanks: Sunday, March 24 from 2-5 p.m. at the Fairbanks LIO, 1292 Sadler Way, Suite 308, Fairbanks

UAA Eagle River campus lease won’t be renewed

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FALL CLASSES WILL MOVE TO ANCHORAGE SCHOOL DISTRICT BUILDINGS

The University of Alaska Anchorage’s Chugiak-Eagle River campus is on the short list for closures as the university system as a whole faces a 17 percent cut to its overall budget.

UAA Chancellor Cathy Sandeen said in a notice today at the UAA website that the lease won’t be renewed for fall classes, although spring and summer classes will continue. In the fall, the university will turn to Anchorage School District facilities in Eagle River, she said.

“UAA is committed to maintaining a presence in Eagle River, however, we have decided not to renew the lease on the existing Chugiak-Eagle River Campus building. Spring and summer classes will continue as planned in the building, but beginning in fall 2019 UAA will offer classes in available Anchorage School District facilities in Eagle River.

“Understandably, you may be concerned about what the course offerings will be and where those classes will occur. We are working through the details of this change and will share updates with you as we have them.

“We appreciate your understanding and look forward to a smooth transition,” she wrote.

Last month, Sandeen gave a speech to the Chugiak-Eagle River Chamber of Commerce, in which she said the university would maintain its presence in the district, but she didn’t commit to the actual building.

Dunleavy, Edgmon take their debate to Twitter

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WHO NEEDS TOWN HALLS WHEN YOU HAVE #AKLEG?

Gov. Michael Dunleavy has taken a new tone on Twitter, an indication he’s taken over the messaging platform from his more circumspect communication team and is now sending out the messages himself, sometimes with capital letters, and now with the hashtag #DoYourResearch to what is known to be the true liberal hangout of social media platforms. Who knew Dunleavy could tweet like a Trump?

The discussion took off from there…

 

 

Not to be outdone, House Speaker Bryce Edgmon sent his pointed message directly to the governor on Twitter today:

And finally, the House Republican Minority managed to get a word in edgewise this afternoon, telling everyone they look forward to working with the House Democrats as soon as they finish playing with last year’s budget.

 

Ferry study proposals extended to April 2

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HOUSE MAJORITY PUTS TEARFUL VIDEO UP ON FACEBOOK

The Department of Transportation extended the deadline for a “request for proposal” to come up with options for the Alaska Marine Highway System.

The original deadline of March 11 brought only one respondent, but other entities said they would respond if the timeline was more than the 10-day window they were given. The new deadline is April 2.

The winner of the RFP will provide a detailed report by Oct. 15 recommending changes to the Alaska Marine Highway System — privatizing, selling it off, or “identify potential reduction of the state’s financial obligation and/or liability as related to the AMHS.”

The state’s fare structure for the ferries currently only recovers 35 percent of the cost of running the service. Low passenger and vehicle ridership has made the AMHS an increasingly expensive system to operate, with the state subsidizing per-passenger trips at $4.78 per mile.

The Alaska Marine Highway System could keep the ferries afloat by charging passengers the actual cost of running them.

The governor’s budget, which cut ferry spending by 75 percent, has brought howls of protests from coastal communities, and prompted Rep. Louise Stutes to have the House Majority press office produce a Facebook video that romanticizes the ferry-bound lifestyle.

The video, paid for with State funds, includes wistful music, footage of disabled ferry passengers, and an up-close vignette of a child who is crying about the loss of the ferry system. A voice asks, “It is so easy to take away from us. Why?”

Watch Rep. Louise Stutes’ ferry video here.

 

This weekend: House Finance takes Capitol to the people

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REP. CARPENTER: WHY NOT DO THAT EVERY YEAR?

The House Finance Committee’s schedule for public hearings in communities outside of Juneau were announced earlier this week.

“While the committee typically holds public input hearings in the Alaska State Capitol in Juneau, the proposals contained in the governor’s budget this year would fundamentally change life for many Alaskans: everything from the university and K-12 schools to the Alaska Marine Highway System and Pioneer Homes are slated for deep cuts under Governor Mike Dunleavy’s proposal,” the House Democrat-led coalition stated in a press release.

“Given the historic nature of the decisions before policymakers and the fact that our savings accounts have been spent down, the committee is going above and beyond to listen directly to Alaskans. The hearings are the first of their kind in Alaska’s history.”

Rep. Ben Carpenter, Nikiski

Rep. Ben Carpenter of Nikiski used that Majority statement as a launching pad to promote moving the Legislature altogether:

“Our state has invested a significant amount of resources into top-of-the-line teleconferencing equipment to allow people around Alaska to participate in the legislative process,” said Carpenter. “Rather than add my name to the long list of legislators traveling to these events at the taxpayers’ expense, I’ll be participating via our state’s teleconferencing system.”

He noted that the House Finance Committee announced their series of meetings in stages, after hearing the plans of the governor’s plans to hold community conversations around the state. The governor has a packed schedule of public meetings, radio shows, and other appearances that began on Wednesday in Juneau.

[Read: Governor begins public meetings on budget]

“While I disagree with the amount of public money being spent to promote political agendas ahead of the governor’s events, Speaker Edgmon and the Majority do appear to have recognized the impracticality of Juneau for most legislative meetings,” Carpenter said in his statement to the press. “If this is the Majority’s attempt to start moving the legislature to the road system, I’ll consider it money well spent.”

[Read: Dueling roadshows as governor, House Finance head to communities]

Carpenter also mentioned the pending ballot initiative, “Equal Access Alaska”, which aims at moving the legislature to the road system. That initiative awaits approval by the lieutenant governor to move forward to the signature-gathering stage.

“I’ll be supporting the pending initiative, should it be approved by the Lieutenant Governor, and I’m glad to know that so many of my colleagues are ready to support moving legislative business to the road system.  The people have been denied access to the public process for too long,” Carpenter said.

The House Majority advertised its Anchorage hearing by noting the “PROPOSED BUDGET WOULD CHANGE LIFE IN ALASKA.”

HOUSE HEARING SCHEDULE

The schedule of the public hearings by the House Finance Committee are as follows:

JUNEAU: Friday, March 22 from 5-8 p.m. in Room 519 of the Alaska State Capitol, 120 4th Street, Juneau

KETCHIKAN: Saturday, March 23 from 12-3 p.m. in Ted Ferry Civic Center, 888 Venentia Avenue, Ketchikan

MAT-SU: Saturday, March 23 from 12-4 p.m. at the Mat-Su LIO, 600 E. Railroad Avenue, Wasilla

BETHEL: Saturday, March 23 from 2-5 p.m. at the Yupiit Piciryarait Cultural Center, 401 Chief Eddie Hoffman Highway, Bethel

KENAI: Saturday, March 23 from 5:30-8:30 p.m. at Soldotna Sports Center, 538 Arena Avenue, Soldotna

ANCHORAGE: Sunday, March 24 from 2-5 p.m. at the Anchorage LIO, 1500 W. Benson Boulevard, Anchorage

SITKA: Sunday, March 24 from 2-5 p.m. at Centennial Hall Assembly Chambers, 330 Harbor Drive, Sitka

FAIRBANKS: Sunday, March 24 from 2-5 p.m. at the Fairbanks LIO, 1292 Sadler Way, Suite 308, Fairbanks

Dunleavy won’t get boxed in on judge pick for Palmer

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DECLINES TO APPOINT JUDGE

Gov. Michael Dunleavy filled four judgeships for Alaska Superior and District Courts in Utqiagvik, Kodiak, Anchorage, and Palmer.

But when it came to a second judge for the Palmer Superior Court, Dunleavy took a pass.

The Alaska Judicial Council had only given him three names for two seats in Palmer. Dunleavy thought that odd, since 11 people had applied for the Palmer Superior Court. With just three candidates for two positions, the Judicial Council was appearing to try to force the governor’s hand for this court, and it appeared to violate the spirit of the law.

The council had, after all, offered 8 names for the one Anchorage seat.

“Alaska’s constitutional judicial selection process is supposed to be merit and qualifications based. The list you provided me does not appear to uphold this important standard,” Dunleavy wrote in a letter to the Judicial Council.

“My authority to appoint members to the bench carries with it the obligation to exercise that authority thoughtfully and responsibly. My office has requested more information from the Council on candidates that were not recommended, including the Council’s reasoning for excluding some candidates,” Dunleavy wrote. “I would like an opportunity to review and consider the Council’s reasoning to determine whether additional qualified candidates could be nominated by the Council for this position.”

[Read Dunleavy’s full letter to the Alaska Judicial Council.]

Dunleavy’s judicial appointments are:

John C. Cagle is appointed to the Palmer Superior Court. Cagle has been an Alaska resident for 8½ years and has practiced law for 14 years. He graduated from Gonzaga University School of Law in 2003 and is currently an assistant district attorney in Anchorage.

Nelson Traverso is appointed to the Utqiagvik Superior Court. Traverso has been an Alaska resident for 36 years and has practiced law for 35 years. He graduated from Northeastern University School of Law in 1981 and is currently in private practice in Fairbanks.

Stephen B. Wallace is appointed to Kodiak Superior Court. Wallace has been an Alaska resident for 36 years and has practiced law for 29 ½ years. He graduated from the University of Oregon School of Law in 1988 and is currently the district attorney in Bethel.

David Nesbett is appointed to the Anchorage District Court. Nesbett has been an Alaska resident for 47 years and has practiced law for 20 years. He graduated from the University of the Pacific, McGeorge School of Law, in 1998, and is currently in private practice in Anchorage. Nesbett is a third-generation Alaskan whose grandfather, Buell Nesbett, was the first Alaska Supreme Court Justice; the state courthouse on 4th Street in Anchorage bears his name.

Property taxes just went up in Anchorage for schools

STUDENT POPULATION DECLINING, BUDGET INCREASING

The Anchorage Assembly this week approved a 1.3 percent property tax increase that will bring the Municipality another $3.3 million to fund the growing Anchorage School District budget.

It’s an increase that city fathers say taxpayers will hardly notice.

The Assembly also approved spending $885 million on the school district’s operating budget, a 13 percent increase over last year.

The associated mill rate for schools will hit 7.15, a 3.5 percent increase over the current rate. For comparison, the school portion of the mill rate was 6.79 in 2007. By 2017, it had crept up to 6.92.

Overall, the current mill rate for Anchorage real properties is about 16.4, for all local government and school services.

WHAT DOES THIS MEAN TO YOU?

According to Realtor Connie Yoshimura, the tax on a $350,000 home in Anchorage is $5,740 while a $500,000 home owes $8,200 to the Muni, excluding any exemptions entitled to the Anchorage property owner.

The increased school tax will add between $74 and $107 to the property taxes of homes in this valuation range.

The school district’s final budget won’t be final until after the State budget is signed, which is expected before the beginning of the State’s fiscal year beginning July 1.

Anchorage schools are primarily funded through the State of Alaska “foundation funding formula” and local property taxes.  Federal revenue come from Federal Impact Aid and reimbursements for JRTOTC instructors, and Medicaid. A small amount of revenue is generated by things like facility rentals.

However, Gov. Michael Dunleavy has proposed pulling back the state’s reimbursement of local school construction bonds, which now reimburses locally approved projects.

That would leave those due payments on bonds to Anchorage property taxpayers, and could cost them an average of $430 per homeowner.

The Anchorage School District budget is predicated on assumptions that there will be no change to the state’s base student allocation, which is $5,930 per student, or foundation funding formula. The district was also counting on an additional $8.4 million that was in House Bill 287, passed in by the 2018 Legislature, which gave extra funding outside the foundation formula. The district assumes there will be no decrease in the State’s debt reimbursement.

Meanwhile, Anchorage voters are facing another tax increase in a ballot proposition in the current municipal ballot, which would have voters approve another $59.1 million in capital spending for schools. A homeowner with a $300,000 valuation would pay an additional $40 a year in property taxes if this bond passes. Ballots are due in by April 2.

[Read: Five things you should know about the Anchorage bond package]

SAGGING ENROLLMENT IN ANCHORAGE
The school district has gone from having 48,707 students in 2007, to 46,949 in 2018, a decrease of 3.61 percent over 11 years. Administrators predict a loss of another 580 students in the fall of 2019.
Also, in the 2007-2008 school year, the district received 65.39 percent of its budget from the State of Alaska; now it’s receiving 58 percent of its funding from the State. As spending has increased, the state portion has become a smaller portion of overall spending, which is being picked up by local taxpayers.
The school district is expecting to reduce the number of teachers and staff allocated for the coming year, including a reduction of 46 full time equivalent (FTE) elementary school teachers. The middle school teacher allocation is being reduced by 13.8 FTE, an average of 1.4 FTE per school. High school teacher allocation is being reduced by 19.1 FTE, an average of 2.4 per school due to lower anticipated enrollment next year.

Seattle is dying; will Anchorage follow suit?

ANCHORAGE DAILY PLANET

Watching a Seattle television station’s take on homelessness in the Emerald City is shocking and makes us wonder about Anchorage’s future.

The latest in KOMO-TV’s raw, gritty trilogy on homelessness and addiction in the city – “Seattle is Dying” – is sometimes stunning, sometimes sad, sometimes infuriating.

The city is losing its battle with homelessness despite more than a billion dollars being spent on the problem in the Puget Sound area. The more Seattle spends, the worse its problem becomes.

We wonder how Anchorage would fare if a local television station – and we are not holding our breath – invested the time and money to honestly detail and document our city’s homeless problem. That report likely would be stunning, sad and infuriating, too.

From where we sit, in Seattle and Anchorage – and other cities, as well – the old adage certainly is true: If you want more of something, subsidize it.

In Anchorage, the Assembly and Mayor Ethan Berkowitz are hawking Proposition 9, a 5 percent retail alcohol tax they managed to place on the April 2 ballot, along with a charter change to allow its adoption with less than the normally required 60 percent supermajority vote.

Watch the KOMO special here.

Read the rest of the editorial at:

http://www.anchoragedailyplanet.com/151709/seattle-is-dying-is-anchorage/