Protecting Your Rights: Serving Sand Lake, Spenard and Turnagain

July 25, 2021

End of Session Newsletter

Watch for our End of Session Newsletter in your mailbox! Topics include:

Protecting the Permanent Fund
Common Sense Budget
Passed Legislation
Child Tax Credits
Capital Budget

Click here to view our online version.

Power Cost Equalization Lawsuit

The Alaska Federation of Natives and several other groups are suing the Dunleavy Administration over the current lack of funding for the Power Cost Equalization Fund. The Alaska Federation of Natives and other groups filed suit asking the Court to intervene and declare that the PCE funds should not be subject to provisions that "sweep" appropriated, but unspent, funds into the Constitutional Budget Reserve at the end of each fiscal year. Prior administrations, based on advice from prior attorney generals, had decided that PCE funds are not subject to the "sweep" provisions. But the Dunleavy Administration, relying on the advice of former Attorney General Kevin Clarkson, now asserts that the PCE funds are subject to the "sweep" provisions.

PCE benefits are critical to the well-being of remote communities in Alaska and need to be protected just as the legislature has fought for natural gas tax credits, hydropower funding, and other energy infrastructure items that have lowered the cost of residential energy bills in many communities throughout the state. I recognize the important role that this program plays in rural Alaska, which is why I voted to fund the PCE program and I will continue to support PCE funding.

Poll Highlights The Need To Engage Alaskans Before Making Decisions On Permanent Fund

A poll conducted by Dittman Research shows that a significant majority of Alaskans are skeptical of a proposal that would direct the same amount of our limited Permanent Fund dollars to dividends as we send to support every service the State of Alaska provides, including to schools, troopers, and road construction.

The poll showed about two-thirds of Alaskans are not aware of the governor's proposal to change management of the Permanent Fund and about half of Alaskans are not aware that oil taxes are no longer the primary source of revenue for state government. The poll results show the importance of increased public engagement as we address how to manage our state's saving account, the Permanent Fund.

63 percent of Alaskans who participated in the poll oppose the governor's proposal to split the 5% Permanent Fund earnings draw between essential services and a dividend (the 50-50 split) and make an additional $3 billion withdrawal from the earnings reserve to cover the resulting budget deficit, an idea that the governor introduced four months into this year’s legislative session. Just 8% of respondents strongly supported the proposal, with 25% expressing some support. 63 % of Republicans, 66% of non-partisans, and 70% of Democrats oppose the governor's proposal for a 50-50 split and a $3 billion overdraw.

Other key findings include:

The governor’s current proposal would draw down the Permanent Fund Earnings Reserve by $3 billion to fill state budget gaps in the years ahead that would be created by the 50-50 proposal. In the long run, this proposal--if it became law--means either large tax increases or deep spending cuts would be necessary to close the gap. Two-thirds of Alaskans oppose this approach.
Another aspect of the governor’s plan calls for setting a dollar amount for the Permanent Fund Dividend in the Constitution. While a 2-to-1 majority initially expressed support for constitutionalizing the dividend when asked generically about the idea, a majority did not support the idea if it meant raising taxes or making cuts that the governor's 50-50 proposal would require. 53 percent oppose placing the dividend in the Constitution if it requires new taxes, and support for placing the dividend in the Constitution if it requires cuts is tied, 48-48.
In 2018, the state established a law that caps withdrawals from the Permanent Fund Earnings Reserve at 5% of the total market value of the entire fund, called the Percent of Market Value management approach. The law permits the use of Permanent Fund earnings to pay for essential services. Since passage of the 2018 law, 65-70% of state general fund revenue comes from Alaska’s investment earnings and only 30-35% comes from oil revenue, which is continuing to decline. Only 35 percent of Alaskans are aware of this major change.

Dittman Research reached these conclusions by contacting Alaskans of diverse political perspectives, from communities across the state, and of different ages and genders. The results include the perspective of 401 residents and carry a 95 percent confidence level.

Extending the Bar Association Board of Governors

Last week, legislation sponsored by my office became law. House Bill 109 extends the sunset or termination date for the Board of Governors of the Alaska Bar Association until 2029. The Board of Governors serves an important public service by regulating the practice of law, promoting reform in the law and in judicial procedure, facilitating the administration of justice, investigating complaints, requiring continuing legal education for membership, and increasing the public service and efficiency of the Bar.

Thank you to the Alaska Bar Association, the Board of Governors, and everyone who supported passage of this legislation.

John R. Lewis Memorial Event

Rep. Claman speaking during a memorial event.

Saturday, July 17 marked one year since the passing of Congressman John Lewis. As one of the original Freedom Riders, the leader of the historic 1965 Selma march for voting rights, and the chairman of the Student Nonviolent Coordinating Committee, Mr. Lewis dedicated his life and career to the pursuit of racial equality and justice. I had the privilege of meeting Mr. Lewis in 2012. It was inspiring to meet the man who came to be known as “the conscience of the U.S. Congress.”

Community Events

Mark your calendars for this upcoming event:

Dena'ina Place Making Opening Ceremony

Celebrate Dena'ina artistic place making at one of Anchorage’s most beautiful public parks. The ceremony will feature performances by Dena'ina artists and a short program. For additional detials, watch this video https://vimeo.com/489657624/a5deb124a3 and visit the Indigenous Place Names project website.

When: Tuesday, August 3 from 4:30 – 5:30 PM

Where: Westchester Lagoon, 1824 W 15th Ave.

For more information and to RSVP, visit the Facebook event page.