Protecting Your Rights: Serving Sand Lake, Spenard and Turnagain

November 2, 2021

End of Fourth Special Session

This year, the governor called the legislature back repeatedly for special sessions to address issues that have already been discussed, debated, and resolved. The House has continued to hold committee hearings on legislation related to the some of the recommendations from the bipartisan Fiscal Policy Working Group. We have heard bills related to the permanent fund dividend, spending limits, and new revenue measures. In their report, the working group agreed that a long-term plan to resolve Alaska's budget challenges is multi-faceted. Their recommendations include new revenue for state government, although there is no agreement about how much revenue is needed or the type of revenue (income tax, sales tax, oil tax, or other tax). As we continue these important discussions, Alaskans will eventually be asked to choose between taxes or dividends.

This current fiscal year (FY22) will be the ninth straight year of using savings to balance our budget. We will have less than $1 billion left in our reserve accounts by the end of this fiscal year. The governor’s proposed FY22 budget would have left us with a $2 billion deficit. The governor proposed funding his budget by drawing twice the statutory amount allowed from the Permanent Fund Earnings Reserve ("ERA"). As the Permanent Fund’s investment earnings now account for over 70% of the state revenue, it is imperative that we protect the fund for years to come. In 2018, the legislature passed SB 26, which established a sustainable annual withdrawal—called the percent of market value or “POMV” draw—from the ERA to ensure that Alaska’s last savings account is available to fund essential government services for future generations. Overdrawing the ERA is not a sustainable solution to Alaska’s financial challenges. Even the governor recognizes that overdrawing the Permanent Fund, continuing to pay statutory dividends, and not raising substantial new revenue (taxes) is not a sustainable fiscal plan. In his December 2020 10-year fiscal plan, he proposed approximately $1 billion in new revenue in FY23. But he has not provided the legislature with specifics on how he plans to raise this revenue.

Alaska has three choices moving forward.

First, we can make substantial cuts. But we have already cut the state budget by 44% since FY13 and District 21 constituents agree that we can’t afford to make further substantial cuts without compromising essential services.

Second, we can adjust the dividend. If we prioritize the use of Permanent Fund earnings for essential services and don’t pay dividends, we would likely close our budget deficit. And nearly 80% of West Anchorage residents support lowering the dividend. Nearly half of West Anchorage residents support paying surplus dividends, which are dividends calculated after paying for essential services. Based on the Department of Revenue’s Spring Report, if we don’t pay the governor’s proposed dividends and we prioritize revenue for funding essential services, we will not have a budget deficit for FY22. The budget that the legislature approved in June paid an affordable dividend and did not overdraw the Permanent Fund in violation of the law. The governor continues to want to overdraw the Permanent Fund and has called us back for the third special session. The legislature again approved an affordable dividend.

The third choice is raising taxes. Economists generally agree that we need to consider new revenue sources in order to fund essential state services and pay a dividend. During the 30th Legislature (2017), both the House and Governor Walker introduced different versions of an income tax as part of a responsible action plan for the state. Both proposals assumed the continued payment of dividends. The House approved a graduated education tax based on income, but the Senate did not take action on the bill. Recognizing Governor Dunleavy’s categorical opposition to any proposal for new or modified taxes, the 31st Legislature did not hear bills about new revenue sources (oil tax credit reform, sales tax, income tax, etc.). The governor’s proposal to spend over $3 billion on dividends is not sustainable unless we add a new revenue source, and there is very little support in the legislature.

COVID-19: Resources and Information

Since September, COVID-19 rates in Alaska have been alarming. To any Alaskan who has lost a loved one to this virus, my thoughts are with you. Vaccinations, masking, and social distancing continue to be our best tools as our community fights the virus. We are entering a new phase of vaccinations following the FDA's EUA approval of the Pfizer COVID-19 vaccine for 5-11 year old's. For more information, click here.

I want to express my gratitude to the healthcare workers who continue to lead us through this difficult time. Alaska owes healthcare workers a great debt for their continued care for and dedication to our community. To the healthcare workers in District 21 and beyond - thank you.

Dr. Anne Zink, the Chief Medical Officer for the State of Alaska, explained the importance of COVID-19 mitigation measures in a way that we as Alaskans can understand: "immunize when you winterize." As we prepare for colder, icier weather, COVID-19 and flu vaccines are an important tool that can keep our community safe through winter. Dr. Zink recently published an o p-ed in the Washington Post that sheds light on how misinformation and distrust have led us to this point.

For information about the COVID-19 vaccine in Alaska, click here.

For information about getting a flu vaccine, click here.

Free COVID-19 Vaccinations and Testing at Ted Stevens Anchorage International Airport

Travelers are highly encouraged to become fully vaccinated before traveling. Don’t travel if you are sick or experiencing symptoms of any kind.

Pre-travel testing of non-vaccinated travelers is the best way to limit the spread of COVID-19. Travelers who are not fully vaccinated should get tested when arriving at the Airport. Non-vaccinated travelers can vaccinate for FREE upon arrival at the Airport. Fully-vaccinated travelers may choose to get tested as well.

Visit covid19.alaska.gov/travelers/ for more information.

Between 5/15/21 and 10/1/21, a total of 5,188 vaccine doses have been administered at airport clinics by the State of Alaska. Vaccination is one of the best tools we have in the fight against COVID-19. In addition to the many community clinics around the state, three airports currently offer COVID-19 vaccinations (Anchorage, Fairbanks, and Juneau).

Travelers can use the Alaska Safe Travels App to pre-register for a free COVID-19 test or vaccination at one of many convenient airport locations (walkups are still welcome.) You need an existing CovidSecure account or an Alaska Safe Travels account to access.

Community Events

Mark your calendars for these upcoming events:

Spenard Community Council

When: Wednesday, November 3 at 7:00 PM

Where: Virtual Zoom Meeting. Click here for details.

Turnagain Community Council

When: Thursday, November 4 at 7:00 PM

Where: Virtual Zoom Meeting. Click here for details.

Sand Lake Community Council

When: Monday, November 8 at 6:30 PM

Where: Sand Lake Elementary School Library Room. Click here for details.

ANCSA at 50: Untold Stories of ANCSA - A Panel Discussion

This event is currently being planned by members of APU’s Elders Council. Learn more about all of the "ANCSA at 50" events at: alaskapacific.edu/ancsa-at-50-events/.

Sponsors:

Next Generation Leader

Alaska Pacific University

Atwood Foundation

Education Advocate

Cook Inlet Tribal Council

Bristol Bay Native Corporation

When: Monday, November 8 from 6:00 – 8:30 PM

Where: Virtual Event

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