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Win Gruening: Juneau School District edges closer to a balanced budget, but what’s next?

By WIN GRUENING

After a marathon public hearing last week, the Juneau School District Board of Education voted 5-2 to combine and close several schools. The preliminary plan envisions consolidating high school grades 9-12 at Juneau-Douglas High School and middle school grades 7-8 at Thunder Mountain High School. 6th graders will be housed in neighborhood elementary schools.

Floyd Dryden Middle School, Marie Drake, and the district office building would be closed and released back to the city. Optional and alternative programs would be located in remaining facilities.

This was an important and long overdue first step to resolving the school district’s financial challenges. The five courageous board members approving the plan deserve credit for their refusal to kick the can down the road any longer.

With projected savings and a possible increase in state funding, the district has whittled down their structural deficit considerably, at least for next year.

But the district is not out of the woods yet.

The FY25 school district deficit, originally estimated to be over $11 million, could theoretically fall to $1.5 million, if an increase in state funding and all projected changes occur as planned.

That’s not guaranteed.

Baked into the numbers is a pending $680 increase in the Base Student Allocation for state funding awaiting passage in the Legislature and requiring the Governor’s signature. That alone accounts for $5.2 million of the district’s deficit reduction.

It also includes $1.65 million contributed by the city to subsidize non-instructional costs (building utilities and maintenance) for next year. After scheduled public hearings, that appropriation awaits adoption at the city’s regular Assembly meeting on March 4.

Even if all this comes to pass, additional revenue and/or cuts in future years will be necessary beyond those needed to eliminate the remaining $1.5 million shortfall.

The city will also need to commit to continue paying some district non-instructional costs since the current subsidy is for next year only.

The district budget is not static. Regular merit and step salary increases for personnel can amount to millions of dollars. Inflation will increase other costs as well.

But the elephant in the room is the continued projected decline in Juneau’s student population. This will lead directly to lower state funding every year. 

Based on current enrollment in grades 5-8 and adjusting for attrition, total high school enrollment for grades 9-12 in four years will be reduced by hundreds of students and will be well below building  capacity for either Juneau-Douglas High School or Thunder Mountain High School.

The district’s 2022 demographic study estimated that Juneau would lose another 1,200 students in the school system by 2032.

This overriding fact dictates that school board decisions must be based on the long term, not just what public pressure demands today.

Much of the testimony at the public hearing centered around Career and Technical Education classroom space. If Juneau is serious about attracting and retaining students and providing them with tools to earn a living, it’s incumbent on elected officials to explore how this capacity can be expanded.

A recent national study tracking more than ten million people who entered the job market over the past decade suggests that 52% of graduates are underemployed – in jobs where their credentials are not needed or underutilized. Providing and retaining students with Career and Technical Education training and skills needed for a wide variety of careers that don’t require a traditional college degree should be a priority for our community.

The vision to accomplish that involves more than shop classes and other courses now offered at the downtown high school. It may mean, in fact, investing in a 21st century state-of-the-art facility in the Mendenhall Valley that could become a regional hub for Career and Technical Education curricula. This facility could offer programs in aviation, culinary arts, veterinary assisting, cosmetology, hospitality, healthcare technology or any of a myriad of fields that are needed today, especially in Juneau.

I’m betting Juneau voters would look kindly on approving a bond issue for a facility this essential instead of flashy arts and culture facilities or new city offices.

It’s easier to cling to the old ways but where has that gotten us?

It’s past time to do things differently in the future.

After retiring as the senior vice president in charge of business banking for Key Bank in Alaska, Win Gruening became a regular opinion page columnist for the Juneau Empire. He was born and raised in Juneau and graduated from the U.S. Air Force Academy in 1970. He is involved in various local and statewide organizations.

Explainer: Alaska’s March 5 Republican Presidential Preference Poll happens Super Tuesday

On Tuesday, March 5, Republicans in Alaska will head to the “polls” to cast a vote for their preference for president. They won’t be the regular Division of Election polls, staffed by state workers or paid volunteers working with state employee oversight. They won’t even be in the usual polling locations.

Instead, this is a privately run “caucus by ballot”systems that helps the party determine who its delegates will represent when they attend the Republican Nominating Convention in Milwaukee in July. This is grassroots caucusing, without having to stand in a gymnasium all day.

There will be three names on the March 5 Presidential Preference Poll ballot. They are the names of the three candidates who paid a fee to the party to be included, a fee that helps defray the cost of the statewide operation.

Those candidates are Donald Trump, Nikki Haley, and Vivek Ramaswamy, who announced Jan. 15 ago that he is no longer a candidate. The Republican Party has given no explanation for why Ramaswamy’s name will still appear on the PPP ballot, now that he has endorsed Trump.

Participating in a PPP takes a bit more effort than voting in a regular government-run election. There are not as many places to cast a preference ballot. This is the reality of being a grassroots organization and a function of how many volunteers the party was able to muster and train over the past several months. Also, the volunteers will be doing this for the first time since 2016, and the technologies have changed since that PPP.

Republicans can vote in this caucus-by-ballot exercise. You can register as a Republican on the spot to participate in the PPP. You’ll be asked to show identification, given a simple ballot, and you mark your preference, drop it in the ballot box, and be on your way.

Depending on weather and enthusiasm, lines may be long and may stretch outside the buildings where these PPPs are taking place.

Find your House district at the Alaska Division of Elections map page.

Here are the House districts where PPP voting locations are located:

District 1: 

3/5/2024 3PM-8PM 

2417 Tongass Ave. Ketchikan, AK

District 3:  

3/5/2024 3PM-8PM 

Nugget Mall – 8745 Glacier Hwy. Juneau, AK

District 4:  

3/5/2024 3PM-8PM 

Nugget Mall – 8745 Glacier Hwy. Juneau, AK

District 5: 

3/5/2024 3PM-8PM 403 

West Marine Hwy. Kodiak, AK

District 6:

Site 1: 3/5/2024 3PM-8PM 91

Sterling Hwy. Homer, AK

Site 2: 3/5/2024 3PM-8PM 51540

Mercantile Ave. Kasilof, AK

District 7:

Site 1: 3/5/2024 3PM-8PM

209 Princess Ln. Kenai, AK

Site 2: 3/5/2024 3PM-8PM 

161 Farnsworth Ave. Soldotna, AK

District 8: 

3/5/2024 3PM-8PM 

52075 Marie Ave. Nikiski, AK

District 9:

3/5/2024 3PM-8PM 

Anchorage Grace Church – 12407 Pintail St Anchorage, AK

District 10: 

3/5/2024 3PM-8PM

Anchorage Grace Church – 12407 Pintail St Anchorage, AK

District 11: 

3/5/2024 3PM-8PM 

Anchorage Grace Church – 12407 Pintail St Anchorage, AK

District 12: 

3/5/2024 3PM-8PM

Anchorage Grace Church – 12407 Pintail St 4025 W 88th Ave. Anchorage, AK

District 13: 

3/5/2024 3PM-8PM

Jewel Lake Community Church of the Nazarene – 4025 W 88th Ave. Anchorage, AK

District 14: 

3/5/2024 3PM-8PM 

Jewel Lake Community Church of the Nazarene – 4025 W 88th Ave. Anchorage, AK

District 15: 

3/5/2024 3PM-8PM 

Jewel Lake Community Church of the Nazarene – 4025 W 88th Ave. Anchorage, AK

District 16: 

3/5/2024 3PM-8PM

Jewel Lake Community Church of the Nazarene – 4025 W 88th Ave. Anchorage, AK

District 17:

3/5/2024 3PM-8PM

Jewel Lake Community Church of the Nazarene – 4025 W 88th Ave. Anchorage, AK

District 18:

3/5/2024 3PM-8PM

Mountain City Church – 6401 E Northern Lights Blvd. Anchorage, AK

District 19:

3/5/2024 3PM-8PM

Jewel Lake Community Church of the Nazarene – 4025 W 88th Ave, Anchorage, AK

District 20:

3/5/2024 3PM-8PM

Mountain City Church – 6401 E Northern Lights Blvd, Anchorage, AK

District 21:

3/5/2024 3PM-8PM

Mountain City Church – 6401 E Northern Lights Blvd, Anchorage, AK

District 22:

3/5/2024 3PM-8PM

Mountain City Church – 6401 E Northern Lights Blvd, Anchorage, AK

District 23:

3/5/2024 3PM-8PM

12001 Business Blvd, Eagle River, AK

District 24:

3/5/2024 3PM-8PM

12001 Business Blvd, Eagle River, AK

District 25:    

3/5/2024 3PM-8PM

655 South Valley Way, Palmer, AK

District 26:    

3/5/2024 3PM-8PM

655 South Valley Way, Palmer, AK

District 27:

3/5/2024 3PM-8PM

Wasilla Senior Center – 1301 S. Century Cir, Wasilla, AK

District 28:

Site 1: 3/5/2024 3PM-8PM

655 South Valley Way, Palmer, AK

Site 2: 3/5/2024 3PM-8PM

Wasilla Senior Center – 1301 S. Century Cir, Wasilla, AK

District 29:

Site 1: 3/5/2024 3PM-8PM        

Valdez Convention and Civic Center – 314 Clifton Ct, Valdez, AK

Site 2: 3/5/2024 3PM-8PM        

Wasilla Senior Center – 1301 S Century Cir, Wasilla, AK

District 30:

3/5/2024 3PM-8PM

Wasilla Senior Center – 1301 S Century Cir, Wasilla, AK

District 31:

3/5/2024 3PM-8PM

Carlson Center – 2010 2nd Ave, Fairbanks, AK

District 32:

3/5/2024 3PM-8PM

Carlson Center – 2010 2nd Ave, Fairbanks, AK

District 33:

3/5/2024 3PM-8PM

Carlson Center – 2010 2nd Ave, Fairbanks, AK

District 34:

3/5/2024 3PM-8PM

Carlson Center – 2010 2nd Ave, Fairbanks, AK

District 35:

3/5/2024 3PM-8PM

Carlson Center – 2010 2nd Ave, Fairbanks, AK

District 36:

Site 1: 3/5/2024 3PM-8PM

Carlson Center – 2010 2nd Ave, Fairbanks, AK

Site 2: 3/5/2024 3PM-8PM

Delta Junction Community Center – 2287 Deborah St, Delta Junction, AK

Ronna McDaniel gives her two-week notice

The chair of the National Republican Committee has given her two-week notice. Ronna McDaniel, 50, made the announcement in the New York Times, saying she plans to resign on March 8.

“Some of my proudest accomplishments include firing Nancy Pelosi, winning the popular vote in 2022, creating an Election Integrity Department, building the committee’s first small dollar grassroots donor program, strengthening our state parties through our Growing Republican Organizations to Win program, expanding the Party through minority outreach at our community centers, and launching Bank Your Vote to get Republicans to commit to voting early,” she told the New York Times. “I have decided to step aside at our Spring Training on March 8 in Houston to allow our nominee to select a Chair of their choosing. The RNC has historically undergone change once we have a nominee and it has always been my intention to honor that tradition.”

Trump, who is the apparent GOP nominee, made it clear at CPAC, the conservative conference in Washington, D.C. over the weekend, that as far as he was concerned, McDaniel could leave today. He spoke to the pro-Trump crowd for an hour and 42 minutes without notes, mostly bashing President Joe Biden.

Rumors swirled a few weeks ago that McDaniel would resign after the South Carolina primary on Feb. 24. But now, it appears she will wait until after Super Tuesday.

Over the weekend, Americans For Prosperity Action said it will no longer put time or money into supporting Nikki Haley for president, after her poor showing in the South Carolina primary, where she lost to Trump, 60-40. AFP Action is a conservative group that is active in 35 states, including Alaska.

Tshibaka named chair of Trump campaign in Alaska

Kelly Tshibaka, former candidate for U.S. Senate and now host of the podcast, TV, and radio show STAND, has been named Alaska state chair for Donald Trump’s 2024 presidential campaign.

Trump has received endorsements from other Alaska leaders, including Sen. Dan Sullivan, Gov. Mike Dunleavy, Lt. Gov. Nancy Dahlstrom, as well as congressional candidate Nick Begich.

Rep. Mary Peltola, on the other hand, has endorsed President Joe Biden, and Sen. Lisa Murkowski said she is not endorsing either Biden or Trump. She told reporters earlier this month that she was holding out hope for Nikki Haley, who has just lost her home state South Carolina’s primary.

Tshibaka ran as the Republican nominee for U.S. Senate in 2022 against Murkowski. She co-hosts STAND with husband Niki Tshibaka. The show is dedicated to making courage contagious.

“President Trump boldly stands for freedom, truth, and government led by the people of America,” she said. “He alone inspires confidence that we can restore hope, unity, and prosperity after the destruction caused by Joe Biden and the Left over these past four years.”

Trump recently called into the Republican Women of Fairbanks’ Lincoln Day Dinner and spoke to the crowd via the cell phone of Gov. Mike Dunleavy, who was in attendance at the Westmark Hotel gala.

Alaska Republicans will have the opportunity to state their preference among the candidates participating in the March 5th Presidential Preference Poll, which is a type of caucus that is by ballot. It is run by volunteers of the Republican Party of Alaska, and those who want to participate who are not Republicans can change their voter registration at the door. The locations are at this link. The Alaska Republican Party has not announced who will be on its March 5 caucus ballot, but Trump and Haley are believed to have signed up, and Haley shows no signs of pulling out.

Find your House district at the Division of Elections website

Anchorage Assembly to vote on resolution calling for cease fire in Gaza

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The Anchorage Assembly, at its regular meeting on Tuesday will vote on a resolution calling on Alaska’s congressional delegation to support an “immediate bilateral ceasefire, the release of all hostages, the safe passage of food, water, medical supplies, and other life-saving humanitarian aid into Gaza, and ultimately long-term peace and security for the people of Israel and Palestine.”

In so many words, it is what the Anchorage Party for Socialism and Liberation has been calling for during recent assembly meetings.

The resolution is being sponsored by Assemblywoman Karen Bronga and Assemblymen George Martinez and Felix Rivera. The resolution does not condemn Hamas for starting the conflict, but takes a conciliatory approach. It also states the Anchorage School District student body has over 100 languages spoken in it and that Anchorage is a “welcoming city;” the addition of those Whereas items is unclear in the context of the war in Gaza and the funding of terrorism by Iran. Iran as an instigator and terrorism funder in the conflict is not mentioned anywhere in the resolution.

The Anchorage Assembly meetings start at 5 pm on the ground floor of the Loussac Library, at 36th Avenue and Denali Street.

Read the resolution at this link.

Socialist group to protest Dunleavy’s transportation safety bill on Monday in Anchorage

The radical Party for Socialism and Liberation in Anchorage is upset about a bill that has been offered by the governor, which makes it illegal to block roadways in protest without a permit. And they’re going to do something sure to get the media’s attention: They’re going to block roadways.

Across the country, radicals have taken over roadways and runways, sitting in the middle of the road, gluing their skin to the asphalt, holding banners across runways, and generally creating a snarl in traffic and transportation. They’ve shut down I-5 in Seattle and blocked traffic in every major city. Sometimes it’s about Israel and sometime it’s about the environment, but it’s not being done with a permit to disrupt public transportation.

It happened this month, when PSL protestors took over Fireweed Lane in Anchorage to express their displeasure with Israel’s defense against Hamas’ attack on Israeli citizens.

The PSL, which is a communist party, is now planning to take over the street in front of the Atwood Building on March 1, in what they call an “unpermitted protest against Dunleavy.” The Atwood building is the state office building in anchorage on 7th Avenue.

House Bill 386 is intended to address the possibility of a road or runway being blocked by protesters, while a fire is burning or a child is dying, and life-saving personnel can’t get to the scene.

The communist group says this bill infringes on their First Amendment rights.

The protest, planned for 6 pm, is long after most state workers have left the area, and before people head downtown for the bar scene. The sun will be setting at about 6:30 p.m. on March 1 and the temperature outside is expected to be between 1-10 degrees Fahrenheit.

This is the same group that hosted a meeting during which Anchorage Assemblyman Felix Rivera was a guest speaker last year.

Toxic turmoil? Peltola goes from fifth to second place in staff turnover in just three months

Rep. Mary Peltola was rated as a congressional representative with a striking amount of turnover in her staff. In November, she was fifth highest for turnover among the 435 members of Congress.

Now, her office ranks second highest for turnover, not including the sudden recent departure of her former press secretary/communication director, Sam Erickson, who lasted one year.

That’s according to Legistorm, a website that tracks staff comings and goings on Capitol Hill.

While Peltola’s supporters say that it’s because she started with several Republican staff members, something her detractors also point out ended soon, after she drove them out, insiders say that Peltola is known for her uncontrollable temper, shouting, and belittling of staff who work for her.

Must Read Alaska has received reports from those close to the office of disturbing occurrences, but has not been able to verify the accounts and the House Office of Employee Advocacy keeps such complaints private.

Also, Peltola has now been in office since September of 2022, and her staff turnover is much worse than the last Legistorm assessment in the fall of 2023, when most of the Republicans, such as state director Josh Revak, had already left her employment.

It is a stark contrast from the late Congressman Don Young, who had staff stay with him for many years, sometimes over a decade.

At Legistorm, under the story “Worst Bosses,” Peltola is only better than Rep. Jonathan Jackson of Illinois, who is the son of Rev. Jesse Jackson and former national spokesman for the Rainbow/PUSH Coalition.

“Offices with the most staff turnover might also include some of the worst bosses. Some members of Congress get a reputation for being hard to work for, whether due to anger management, shady ethics, poor pay, demanding too much or creating a toxic work environment,” Legistorm explains. “Whatever the reason, the resulting office dysfunction can lead to high turnover, helping to make a member of Congress more ineffectual. One possible side-effect of high turnover is making an office less responsive to constituents while being more dependent on lobbyists for advice.”

U.S. Customs and Border Patrol wins one against American fish-shipping companies for violating antiquated Jones Act

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Two seafood shipping companies have settled a lawsuit challenging penalties and fines levied by U.S. Customs and Border Protection for violating the Jones Act, a more than 100-year old law requiring merchandise be transported by U.S. flagged vessels between U.S. ports.

An exception to the U.S. flagged vessel requirement allows seafood from Alaska to be transported to the mainland U.S. if it travels via Canadian rail. 

The companies challenged the penalties and fines in the U.S. District Court of Alaska, saying they did not violate the Jones Act while transporting seafood from Alaska to the mainland U.S. because it was “transported” by Canadian rail.

According to court documents, Kloosterboer International Forwarding LLC (KIF) and Alaska Reefer Management LLC (ARM) arranged transportation and related services to move frozen seafood from Alaska to the East Coast via ocean shipping. For over a decade, the companies moved seafood from Dutch Harbor, Alaska, to a port in New Brunswick, Canada, on foreign-flagged vessels. 

Once in Canada, KIF arranged for the seafood to be offloaded from the vessel onto trucks in the port.

The trucks were then driven onto a flatbed rail car on the Bayside Canadian Railway, a roughly 100-foot length of railroad track located entirely within the Port of Bayside, where they rode the length of the rail and back before being driven off the train cars and proceeding directly to a border crossing in Maine for final transport to the mainland U.S. 

The Bayside Canadian Railway was specifically built and exclusively used to move the seafood to get around the Jones Act by using the rail in Canada.

Customs and Border Patrol began investigating the companies’ use of foreign-flagged vessels to transport merchandise in this manner, and decided there was a violation because ths short 100-feet of rail didn’t meet the Canadian rail exception. Several penalty notices were issued, and the companies responded with a lawsuit agains the federal government, claiming they were within the letter of the law and the penalties were unlawful.

The parties filed for summary judgement in the U.S. District Court of Alaska, and the Court ruled the companies’ utilization of the BCR for part of the transport of seafood from Alaska to the mainland U.S. was unlawful because there was no actual “transportation” of goods being done, which is a requirement to meet one of the exceptions under the Jones Act. 

A settlement agreement was finalized between the companies and the U.S. in January. The agreement requires KIF and ARM to pay $9.5 million to the U.S. The companies also stopped using the BCR to transport seafood to the U.S. after this ruling.

“This is the second largest settlement of a case brought under the Jones Act in the history of our Nation,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Our prosecutors and law enforcement partners did a tremendous job successfully investigating and litigating this complex case. Our office will continue to dedicate resources to ensuring the laws in place to protect fair maritime commerce are followed by all industries in Alaska.”

“The resolution of this case sends a clear signal that CBP will use its law enforcement powers to detect and deter schemes that are designed to circumvent laws – such as the Jones Act — which are intended to protect U.S. industries,” said AnnMarie R. Highsmith, Executive Assistant Commissioner, Office of Trade, U.S. Customs and Border Protection.

Greg Adler: Property tax fairness bill is needed to prevent wacky property assessments

By GREG ADLER

It is time to voice support for property tax fairness by encouraging passage of Senate Bill 242, a bill introduced by Sen. Jesse Kiehl. This bill aims to restore public trust in Alaska’s property assessment process. Bipartisan support for Kiehl’s bill is demonstrated by Rep. Julie Coulumbe, who introduced House Bill 347, a bill that is identical to Kiehl’s.

These bills maintain local flexibility and control while requiring baseline standards to establish transparency and a fair property assessment process. Make sure your senator and representative are aware of the Property Tax Fairness bills and ask for their support.

State law requires property to be assessed at its full and true value. 

Unfortunately, a property owner’s right to just and fair hearings with impartial decisions is not protected by laws as they stand. Local assessors are not required to maintain professional credentials or follow published standards. Current law also allows assessment increases upon appeal, which has the chilling effect of discouraging taxpayers from exercising their rights out of fear of retaliation.

A property I appealed was assessed at more than double what I paid for it one month after closing escrow due to a combination of failures in the current law. The City and Borough of Juneau assessor justified the wacky assessed value by using a wacky software model that cherry picked the data.  

The CBJ assessor written report also plagiarized data from a property that was not comparable to argue our property was not a market sale because it took 60 days to market and should have taken 9 months. Clearly, low sales prices lower the whacky software model and the CBJ assessor is hot on the tail of such properties in the backroom tinkering with such sales and slipping them into the outlier category when in fact they are the market.  

Licensed appraisers and certified assessors know two things: 1) Use good comps and 2) Presenting the Board of Equalization with inaccurate statements not only taints the board in your favor, is unfair to Appellants but is patently against professional ethics. 

There is no denying our sale was an arms-length transaction at its full and true market value, and our MAI appraisals honestly represented the full and true value of our properties.  We conclude the CBJ assessor is entrenched in pursuing inflated assessed property values.

In advance of this year’s assessment, I supplied Juneau’s assessor’s office with six MAI (Member, Appraisal Institute) appraisals. They were provided to help value our property and similar properties in Juneau’s downtown district. The  assessor told me he was familiar with the appraisals and the work of the appraiser and agreed they accurately reflect the value of the properties. He stated that he is also familiar with sales in the downtown district. 

When I asked if we could expect our assessed values to follow the appraisals and sales, the assessor said “No.” I was astounded by this response, considering that appraisals and sales are full and true value. The Juneau assessor explained that he has wacky old software assessment models on which he relies, and the value he sets will be based on his these models.  He said to expect a 7% decline, but not full and true value.
 
The problem is that assessed value by local and state law is based on full and true value, not a wacky software model that has proven to inflate property values. If the assessor has full knowledge that his software model results in wacky assessments, he should utilize market sales and appraisals in good faith to inform his model and modify assessed values.

Supporting wacky software models may be rational to someone who has no requirement to follow standards, but not to the homeowner, business owner, or investor.

My experience tells me the Juneau Assembly, city manager, and finance director have no interest in changing the present system. I submit that public trust in the assessor office must be restored. Moreover, these bad actors should reconsider their actions and take positive steps in support of good governance for the best interest of the community. 

These issues are also occurring in other communities throughout the state. It is time to voice your support for openness and impartial hearings when it comes to property assessments.

Act now by contacting your legislators to encourage them to support SB 242 and HB 347 to establish property tax fairness in Alaska’s statutes.

Greg Adler is a principal at Goldstein Improvement Co. His family has owned property and conducted business in Juneau since the 1880s. Adler and his family own a home on Pioneer Avenue in West Juneau.