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Assembly majority votes to stiff private contractor

The Anchorage Assembly met March 22 and approved a surprise resolution by 9-2 to authorize the assembly’s lawyer to pursue legal actions, including an injunction, against the mayor of Anchorage to halt what it considers an unauthorized payment to Roger Hickel Construction, Inc. for construction work at the Navigation Center site at Tudor and Elmore.

The work was done per contract but the Assembly has no intention of paying for it, saying the work was not authorized by the Assembly.
 
On Feb. 24, the Bronson Administration issued a memorandum to the Assembly saying the city plans to settle the invoice from Roger Hickel Contracting, Inc. in the amount of $2.455 million by March 24.
 
Assembly leadership issued a response immediately upon receipt of the memorandum, reminding the Administration of AO 2022-105, adopted two months earlier, which requires Assembly approval to authorize payments for, “supplies, services, professional services or construction… provided to or performed for the Municipality without an Assembly approval required by Anchorage Municipal Code section 7.15.040.”

House passes SNAP funding to get food to families in need

The Alaska House of Representatives appropriated more than $6 million in funding to assist Alaskan families who depend on the Supplemental Nutrition Assistance Program (SNAP) to meet feed their families. Some 82,000 Alaskans used SNAP benefits.

The legislation, House Bill 79, was introduced by the House Rules Committee upon the request of the governor and passed in a vote of 38 to 1.

The SNAP food stamp program has had with a backlog of unprocessed applications for months due to staffing issues and other factors. This has left many Alaskans in desperate situations, without basic food supplies. The passage of this bill is a critical step in bringing relief to these Alaskan families and individuals.

“The situation for many was desperate and we needed to act as fast as was prudently possible,” said Rep. Mike Prax of North Pole and chair of House Health and Social Services. “While I’d like to see a more long-term and sustainable solution, the time to debate that is later, but the bottom line is that some Alaskans were literally suffering from malnutrition and that had to be addressed now.” 

“With over 82 thousand beneficiaries, SNAP provides a critical safety net to Alaskans, especially those in rural communities,” said Bryce Edgmon of Dillingham, House Finance co-chair. “It is unfortunate that it took this long to address the backlog, but I’m glad the House was able to fast-track this funding.”

“Many Alaskans, particularly those in rural and remote areas depend on SNAP to supplement their food supply. When these services are not available many of these Alaskans, particularly children and the elderly, go without basic food staples. It was critical that we pass this measure to ensure the food security of Alaskans,” said Rep. Neal Foster of Nome, co-chair of Finance.

“I am pleased that the House took swift action on the floor to address the backlog of SNAP benefits and the needs of hungry Alaskans. I’d like to thank the Governor, members of the House Finance Committee, and all my colleagues for their efficient work on this bill,” said Rep. DeLena Johnson of Palmer and co-chair of Finance.

Anchorage School District wants to hike property taxes by 2.65% with Proposition 1

By DAVID BOYLE

Last year the Anchorage School District asked voters to approve a $111 million bond which included rebuilding Inlet View school. 

Voters said no to the bond by a 51-to-49 vote margin.

This year’s school Proposition No. 1, for $37.8 million, is mainly for improvements to nine elementary schools. But the district already has extra money in its undesignated fund balance to pay for the costs of those schools, and more.

You read that right: ASD is asking the voters for more money when it already has at least $46.16 million in its undesignated fund balance above the 8% required minimum.

This past fall the district was going to close six elementary schools because of a dwindling student population and a projected loss of another 5,000 students by 2027.

The 46.16 million shown is the amount of surplus money the district has left over from last year above the 8% the district must have in its reserve.

One must ask, “Why are we asking voters to approve construction projects at nine elementary schools when these same schools may be closed in the very near future?”

After its failed effort to rebuild the Inlet View Elementary School last year, the district is trying a different tactic to rebuild the school.  It realizes that last year’s bond failure may have been due to putting the rebuilding of the that school on the ballot. 

It has left this rebuild off this year’s bond issue.

The district learned from the failure of last year’s bond that the voters did not want to rebuild the Inlet View school due to the current excess school capacity and decreasing student population. 

Apparently, the new strategy is to rebuild the Inlet View school after this bond is approved because the district has more than $37 million remaining in its School Bond Debt Reimbursement bucket.  Just enough to rebuild Inlet View.

The district is defying the voters’ defeat of this bond last year.

ASD is also asking Anchorage property taxpayers for an additional $6.8 million, a 2.65% increase.  The total property taxes would be more than $263 million.

Property taxes will go up by 2.65% if Proposition 1 passes.

The Anchorage School District continues to increase the burden on property taxpayers and renters while remodeling schools that may soon be closed.

And it is defying voters and bending to the Inlet View constituency in rebuilding that school even though the district has a surplus of elementary schools now and an even lower student population in the near future.

Can lawmakers in D.C. move domestic drilling ahead? HR 1 is the bill that rolls back the red tape and taxes

By CASEY HARPER | THE CENTER SQUARE

Oil and gas companies from around the nation are rallying to support a Republican effort to lower elevated energy costs and free up the industry.

The move comes as the Biden administration has worked to slow and dismantle much of the fossil fuel industry since taking office, even as he pushed other nations to produce more.

The bill in question is H.R. 1, a Republican-led measure that aims to increase domestic drilling and energy infrastructure investment, roll back regulations, encourage mineral development, and more.

“The bill rolls back the increased costs and taxes imposed on the very energy sources that supply 80% of America’s needs, while introducing positive measures to enable energy and other infrastructure projects to move forward. HR 1 is the antidote to the Biden Administration’s agenda of interfering with energy markets and using regulatory obstacles to hamper oil and natural gas development,” Western Energy Alliance President Kathleen Sgamma said.

In response to the legislative effort, 25 oil and gas groups sent a letter to House Republican leadership publicly backing the bill.

“For too long, the government has interfered with energy markets, burdening American production with undue restrictions, distorting markets with wasteful government spending, and discouraging private sector production,” the letter said.

The groups blasted President Joe Biden’s energy policies and pointed to overseas competitors.

“Biden Administration actions and the Inflation Reduction Act (IRA) have enacted further red tape, higher costs, and permitting obstacles that serve as barriers to efficient and timely production in response to national and global demand,” the letter said. “As a result, American oil and natural gas producers have been hindered from producing up to three million barrels of oil a day, a government imposed scarcity that has created high costs for citizens and instability in relation to our adversaries in China and Russia.”

Energy prices have soared since Biden took office, though some of that was due to global energy market disruptions because of the Russian invasion of Ukraine and ensuing sanctions.

Gas prices hit record highs last summer, surpassing a national average of more than $5 per gallon of regular unleaded gasoline. Prices have declined since then, but are expected to rise again later this year.

The U.S. Bureau of Labor Statistics energy index, which tracks the cost of energy for American consumers, rose 5.5% in the past 12 months.

Biden and other Democrats have expressed the importance of transitioning to renewable energy sources. Critics say that technology is not ready support America’s energy needs.

“However the red tape we have experienced over the past few years is not intended to protect the environment but to handcuff American oil and natural gas production in a misguided attempt to quickly transition to an alternative reality that does not exist,” the letter said. “The result is higher prices for all Americans and more imports from unfriendly countries.”

They also pointed out natural gas’ role as a cleaner alternative that provides far more of America’s energy than wind or solar.

“Those who push to electrify everything seem to forget that natural gas provides nearly 40% of all U.S. electricity, compared to about 11% for wind and solar energy,” the letter said. “Natural gas is a necessary back-up when the wind doesn’t blow and the sun doesn’t shine. By removing new taxes on natural gas and enabling its export to our allies, we can continue to reduce the carbon profile of the U.S. electricity sector while enabling other countries to likewise reduce their greenhouse gas emissions.”

Education formula funding hike leaves committee, halved via amendment

House Bill 65, an increase to a state funding formula for schools called the Base Student Allocation, was voted out of the House Education Committee. Voting yes on the bill were Reps. Justin Ruffirdge, C.J. McCormick, Andi Story, and Mike Prax. Voting against the bill were Rep. Jamie Allard and Rep. Tom McKay.

The original bill, offered by Rep. Daniel Ortiz of Ketchikan, would have added $1,250 to the BSA, but the bill has been revised down to an $800 increase. The current state contribution in the formula is $5,960 per enrolled student per year, but the Legislature has awarded extra funds year after year, just not baked into the BSA formula. There are no incentives in state funding that are tied to performance in schools. Alaska’s schools currently rank 49th in the nation, although in the 1970s, they were in the top three.

Base Student Allocation is not the only funding that schools get. They also receive funds from the federal government and, for those schools in organized boroughs in Alaska, funds from the local municipal or borough taxes.

The BSA has various calculation levers, including multipliers for special needs students and things like whether a district has a different cost of delivering education than it costs to educate students in Anchorage, which is considered the baseline.

For a primer on how the Base Student Allocation is funded, click this Legislative Finance link.

House Education Committee members heard public testimony for five hours on Thursday, taking calls from teachers, principals, and superintendents around the state who said their schools are not keeping up with maintenance, recruitment, and basic supplies. There were 36 Alaskans who had flown to Juneau to testify against the BSA increase, which they believe needs to be addressed structurally instead of simply adding more money to what is considered a broken formula. But the chair of the committee, Rep. Justin Ruffridge, ran the clock out and did not allow most of them to speak, even though they had flown hundreds of miles to do so. Instead he turn to the callers who had been prearranged by union representatives to testify in favor of an increase to the BSA and who were calling from their homes. Only three who testified by phone were in opposition to the bill.

Cosponsors to HB 65 are the entire Democrat-nonpartisan minority, including Reps. Zack Fields, Maxine Dibert, Ashley Carrick, Cal Schrage, Jennie Armstrong, Rebecca Himschoot, Cliff Groh, Andi Story, Andy Josephson, Andrew Gray, Sarah Hannan, Alyse Galvin, and Genevieve Mina.

The bill will next appear in House Finance, where the deliberations will continue, including how to fund the increase during a time when the governor’s FY 2024 budget appears to lack over $600 million in funding, even without the extra funding.

In the Senate, Senate Bill 52, which is sponsored by the Senate Education Committee, has a $1,000 increase to the BSA, which has remained flat since 2017.

Gun rights protection during state emergencies? Speaker Cathy Tilton has a bill for that

A few years ago, legislation to protect Americans’ civil rights during emergencies might have been thought redundant. After all, there is the U.S. Constitution.

Then came Covid-19, and Americans watched their civil rights of free speech and the right to move and associate freely dissolve in lockdowns, shot mandates, and business shutdowns.

Now, lawmakers in Alaska want to make sure that such executive emergency orders in the future do not infringe on Alaskans’ Second Amendment rights, if ever a governor in Alaska decided that was a good idea.

The Alaska House Community and Regional Affairs Committee this week moved House Bill 61 to the House State Affairs Committee for consideration. There are no other committees of referral before it reaches the floor for a vote.

The bill sponsor, Speaker Cathy Tilton, is joined by Reps. Kevin McCabe, Sarah Vance, Craig Johnson, Ben Carpenter, Mike Prax, Stanley Wright, George Rauscher, Tom McKay, Mike Cronk, Justin Ruffridge, and Dan Saddler as cosponsors.

House Bill 61 prohibits state and local governments from closing lawful firearm businesses or restricting an individual’s access to firearms, ammunition, and component parts during declared states of emergency, unless closures and limitations apply to all forms of commerce equally.

The bill will prevents anti-gun officials in liberal enclaves from interfering with Second Amendment rights under the cloak of a declared emergency, when citizens may need guns and ammunition the most. Further, the bill provides legal recourse for people who experience unjust infringements on their Second Amendment rights.

Uh-oh: State comes up short in revenue this year and next

The Department of Revenue’s Spring 2023 Revenue Forecast brought tough news for Alaska on Tuesday. The projected price of oil is down, leaving a hole in the budget for this fiscal year, as well as for FY 2024, which starts in July. The hole looks like about $925 million in total, and there seems to be little agreement on how to make ends meet. Almost certainly, it will mean a bite out of Alaskans’ Permanent Fund dividends.

Gov. Mike Dunleavy has proposed a full $3,700 dividend, at a cost of $2.47 billion, while the House Republican majority is now looking at a $2,700 dividend and the Senate majority is discussion one that is closer to $1,300.

Unrestricted General Fund revenue, before accounting for the transfer from the Permanent Fund Earnings Reserve Account, is forecast to be $3.6 billion for Fiscal Year 2023 and $2.7 billion for Fiscal Year 2024. 

The Permanent Fund is set to transfer $3.4 billion to the General Fund for FY 2023 and $3.5 billion for FY 2024, according to the Department of Revenue. These amounts include funds that are available for general government spending and the payment of dividends to Alaskans. 

Permanent Fund transfers remain a large source of funding to the General Fund, and are now responsible for 44% of undesignated general fund spending for 2022. The Permanent Fund is projected to contribute 48% to 64% of the FY 2024 to 2034 budgets.

In 2022, Alaska North Slope oil prices averaged $91.41 per barrel. The revenue forecast incorporates the most current indications from financial markets and is based on an annual average ANS oil price of $85.25 per barrel for FY 2023 and dropping down to $73 per barrel for FY 2024. Prices are expected to decline beyond FY 2024, stabilizing at $70 per barrel by FY 2032. 

In FY 2022, ANS oil production averaged 476,500 barrels per day. ANS oil production is expected to average 485,200 barrels per day for FY 2023 and 496,400 barrels per day for FY 2024, before climbing to 542,900 barrels per day by FY 2032. with the Willow Project coming online.  

In comparison to the Department’s Fall 2022 Revenue Forecast, which was released in December 2022, the ANS oil price forecast has decreased by $3.20 per barrel for FY 2023 and $8 per barrel for FY 2024. 

The ANS oil production forecast decreased by 6,500 barrels per day for FY 2023 and by 7,200 barrels per day for FY 2024. 

Driven by this lower outlook for oil price and production, the Unrestricted General Fund revenue forecast has decreased by $246 million for FY 2023 and $679 million for FY 2024, the Department of Revenue said.

The Spring Revenue Forecast is an annual update to the Fall Revenue Sources Book, providing basic information about state revenue, as well as a forecast of state revenue over the next ten years. The Revenue Forecast is available on the Department’s website at www.tax.alaska.gov.

The announcement came on the same day that a House Education Committee hearing attracted numerous teachers and principals who asked the the House pass House Bill 65, which would increase the school spending formula. The state spends about $1.23 billion on education every year. If the Base Student Allocation is increased by another $1,250 per student, as proposed by HB 65, the cost to the state budget would be more than $164 million per year, according to some estimates that are based on 131,212 enrolled students.

HB 65, sponsored by Rep. Daniel Ortiz, would give a set formulaic increase to school districts, which have great latitude as to how they spend the money the state gives them.

Alaska Humanities Forum promoting drag queens for kids because it will make the ‘world a better, safer place’

By DAN FAGAN

What children need today is more exposure to drag queens is the subject of an upcoming event put on by the taxpayer-funded Alaska Humanities Forum. 

The April 5 event at Williwaw Social in Anchorage is titled: “Kids need to be around more drag queens, and other ways to make the world a better, safer, place.” 

The speaker, Kendra Arciniega, describes herself as a culture-focused creative, community organizer, storyteller, producer/showrunner of Arciniega productions.” 

Arciniega productions produces and hosts mostly drag queen shows that are sexually charged in nature. Arciniega is also a drag queen performer. 

The Alaska Humanities Forum website promoting the upcoming event features Arciniega describing herself this way: “Together with her wife Mercedes, she produces local community-building entertainment that focuses on Latine, BIPOC, and LGBTQ+ artists and their respective community intersections. Much of Arciniega’s programming is developed to include queer youth, families, and allies in meaningful ways to promote more unity and safe spaces in Anchorage – and yes, that includes family friendly drag shows.” 

The Alaska Humanities Forum received more than $2.1 million in 2021, according to the nonprofit’s IRS 990 form. Most of the money came from taxpayers. Corporations and individuals donated less than $100,000 of the $2.1 million.  

Anchorage Assembly member Kameron Perez-Verdia is the president and CEO of the Alaska Humanities Forum. He’s paid $176,306 in salary and benefits annually. 

Emily Edenshaw, one of 20 board members for the nonprofit, is also Executive Director of the Alaska Native Heritage Center. Edenshaw hosted a drag queen story hour at the Alaska Native Heritage Center last year. 

A video of that show reveals drag queens making sexually suggestive dance moves and asking toddlers about bisexuality. One drag queen told the kids that Alaska Natives originally did not have a word for gender. 

The nonprofit sector has become big business and a fertile dumping ground for taxpayer dollars. It’s especially true in Alaska.  

Close to 10,000 people work in the nonprofit sector in Alaska, according to the watchdog organization, Tax Exempt World, which reports there are 8,631 nonprofits in Alaska, taking in more than $10 billion annually. Most of that money comes from taxpayers through one avenue or another. Alaska nonprofits currently have more than $20 billion in assets, according to the group. 

Nationally, 80 percent of all nonprofit revenue comes from taxpayers, according to Zippia.com. Total revenue of nonprofits in the United States last year was close to $2.6 trillion, a number that has doubled in the past 10 years. 

Dan Fagan is a reporter for Must Read Alaska. Email [email protected]

Personal data of 250,000 Medicare recipients compromised by federal subcontractor during ransomware attack

By CASEY HARPER | THE CENTER SQUARE

Hundreds of thousands of Americans’ personal information is at risk after Medicare’s data was breached. Now, lawmakers want answers.

House Committee on Oversight and Accountability Chairman James Comer, R-Ky., and House Committee on Energy and Commerce Chair Cathy McMorris Rodgers, R-Wash., sent a letter demanding a range of documents and communications from the Centers for Medicare & Medicaid Services.

Lawmakers said that in October of 2022, Healthcare Management Solutions, a subcontractor to ASRC Federal Data Solutions, which works for CMS, suffered a ransomware attack. CMS “determined with high confidence that the incident potentially included personally identifiable information and protected health information for some Medicare enrollees.”

“However, it was not until December 1, 2022, that CMS made the determination that the data breach constituted a ‘major incident,’ as defined in the Federal Information Security Modernization Act of 2014,” the letter said.

Lawmakers blasted CMS, saying they dragged their feet in response to the hack.

“In other words, bad actors had access to Medicare beneficiaries’ information for two months before CMS determined this ransomware attack was a ‘major incident,’ triggering a legal obligation to inform Congress of such incident,” the letter said. “The compromised information potentially includes the following personally identifiable information (PII) and protected health information (PHI): name, address, date of birth, phone number, Social Security Number, Medicare beneficiary identifier, banking information, including routing and account numbers, and Medicare entitlement, enrollment, and premium information.”

CMS said in December it was sending a letter to notify those affected and investigating the matter.

“The safeguarding and security of beneficiary information is of the utmost importance to this Agency,” said CMS Administrator Chiquita Brooks-LaSure. “We continue to assess the impact of the breach involving the subcontractor, facilitate support to individuals potentially affected by the incident, and will take all necessary actions needed to safeguard the information entrusted to CMS.”

Here’s an excerpt from that letter:

After careful review, we have determined that your personal and Medicare information may have been compromised. This information may have included the following:

  • Name
  • Address
  • Date of Birth
  • Phone Number
  • Social Security Number
  • Medicare Beneficiary Identifier
  • Banking information, including routing and account numbers
  • Medicare Entitlement, Enrollment, and Premium Information.

No claims data were involved in this incident.

This isn’t the only time Americans’ data has been mishandled by the federal government in recent years. Lawmakers are still pressuring the Internal Revenue Service for answers after it leaked the tax information of thousands of Americans to a nonprofit journalism group.

Lawmakers are investigating that leak but so far have gotten few answers. 

Casey Harper is a Senior Reporter for the Washington, D.C. Bureau. He previously worked for The Daily Caller, The Hill, and Sinclair Broadcast Group. A graduate of Hillsdale College, Casey’s work has also appeared in Fox News, Fox Business, and USA Today.