Fairbanks: Museums, Air Quality, and the State Budget

March 27, 2025

Dear Neighbors,

Today is the 66^th legislative day of the 34^th Alaska Legislative Session. Now that we are more than halfway through the session, we are really getting busy! A budget is being approved by the House Finance Committee before it comes to the floor. It still remains with more than $1.6-billion deficit in the next fiscal year and keeps growing from amendments offered by both Republicans and Democrats in the House Finance Committee. A bill I introduced to help support our important museums, cultural history and artifacts will have a first hearing and public testimony. This bill is especially important as the administration in Washington has decided to cut support federally for these institutions. Also, I will be in Fairbanks to host a Constituent Coffee this Sunday and make myself available to anyone who would like to know more about what is going on in Juneau.

Senator Kawasaki at a previous constituent coffee event

Museums Reflect America’s Cultural Values

Alaska museums, libraries and archives play an indispensable role in preserving the unique heritage and history of Alaska. Senate Bill 110 would establish a museum construction and expansion grant fund to contain resources from the state, federal and local levels as well as private donations to aid museum development for our future generations.

A recent President Trump Executive Order has called for the end to the Federal Institute of Museum and Library Services which is the primary source of federal funding for museums in Alaska and around the US. Museums may be forced to make a difficult decision to either raise fees to the public or shutter their doors forever. Even worse, they may decide to sell off valuable historical artifacts to private collectors just to keep their facilities open. Check out the article from Bloomberg HERE.

Public testimony will be open on SB110 in the Senate Education Committee by email at Senate.Education@akleg.gov. You can also call in and give public testimony for this bill during an initial first hearing, which will be Wednesday, April 2 @ 3:30 pm. Call 844-586-9085 to testify.

Air Quality Plan Comment Period Reopened

Earlier this year, I gave you a heads up on an upcoming regulation passed by the Alaska Department of Environmental Conservation that will impact anyone selling a home within Fairbanks, North Pole and Goldstream. The new regulation, which is part of the DEC’s State Implementation Plan and is scheduled to take effect in 2026, will require Interior homeowners to get a professional energy audit before they sell their home. The reason behind this regulation is that the Fairbanks North Star Borough is trying to comply with the Clean Air Act and protect the public from cancerous emissions. Proponents say that it will help improve our air quality.

The upcoming regulation has met with a lot of controversy, however. The Greater Fairbanks Board of Realtors is concerned that the plan will create another obstacle to selling your house in an already difficult housing market. The primary criticisms are that this would create an additional cost for the homeowner and that this would slow down the home selling process. Especially since there are currently a very limited number of energy auditors certified to do the energy ratings. In addition, there is no proof that the energy rating will result in any lower emissions. Due to requests from my office and popular demand, the Environmental Protection Agency has reopened public comment on the air quality plan.

To weigh in on how you feel about mandated home energy audits, please follow this link.

Ice Fog in Fairbanks is exacerbated by the city's carbon emissions

The Budget is Big...But Just How Big is It?

The Alaska Budget is currently being debated in the House and will soon come to the Senate for our discussion and debate in the next few weeks. There is still plenty of time to talk about specific cuts or additions though additions seem highly unlikely and cuts will certainly need to be made to produce a balanced budget this year. As you have heard, Governor Dunleavy introduced an initial version of the budget in December per law. His budget was contained a nearly $1.6-billion deficit that could only come from a limited savings account called the Constitutional Budget Reserve Fund.

The budget has grown and shrunk over the past decade. For instance, the Governor Walker budget in 2015 was a total of $6.9 billion in UGF which includes revenues from the Permanent Fund Earnings Reserve, oil and gas, mining, fish, timber and some other fees for services. 10 years later the budget has grown 10% nominally while the PFD has declined. Also of note is that K12 Education funding has declined by 5%, the Corrections budget has grown by 58% and even the Office of the Governor has grown by 38% in nominal dollars. However, it is of note that if the budget were adjusted by inflation, the Alaska Budget in total UGF is about 25% lower than it was a decade ago!

The budget is more than just numbers and dollars and percentages. A budget is a moral document because it speaks to the priorities of a people and a state. Do we value kids and education and healthy and safe communities or do we value the corporate interests in the economy like oil and gas tax credits. In the end, the legislature will have to ratify a budget that will be extremely tight in a very quick time frame while chaos at the federal government, oil price volatility and factors out of our control.

Let’s Take Big Money Out of Politics

The House State Affairs Committee chaired by Representative Ashley Carrick will begin to hear versions of a bill to limit campaign contributions and finally bring some sense to these high-priced local elections. The Circuit Court struck down the Alaska campaign finance reforms two years ago after a challenge by the Republican Party of Alaska. For the last two cycles, millions have poured into state and local elections because there is absolutely no limit an individual may contribute and no limit from an individual who lives out of state. HB16 and SB116 will both have hearings and public testimony available. Both would impose $2000 caps on the amount an individual may donate to a candidate for office. Public testimony SB116 will be taken on Thursday 3/27 from 3:30-5pm. Public testimony on HB16 will be taken on Saturday, 3/29 from 1-3pm.

The State Affairs Committees will accept testimony directly to the committee through the teleconference system. Call Juneau 907.586.9085; Anchorage 907.563.9085; All Other Locations 844.586.9085. Emailed comments will also be taken and be part of the public record SenateStateAffairs@akleg.gov or HouseStateAffairs@akleg.gov.

Your Final PFD Reminder

The PFD that has distributed nearly $35-billion since it was first paid out in 1980 and the fund has continued to grow thanks to mineral royalties, investments by the Permanent Fund Corporation and compound interest. The fund has now grown to over $80,000,000,000! A PFD is a share of the earnings after inflation proofing the fund and some of the earnings that go to state services like police, firefighters, healthcare and education. The last day to file for your PFD is on March 31^st at 11:59pm. You can access the online portal at my.alaska.gov or contact my office directly at 907.456.7423.

For One Night Only!

I will be in Fairbanks for one day only on Sunday, March 30^th and wanted to make myself available to all constituents of Fairbanks during that time. I will host an open coffee chat at McCafferty’s Downtown from 9:00 - 11:30 am. Come with questions and comments about the session. A future town hall is also in the works and will be announced in the future.

My Staff and I are Here for You

As always, I will continue to keep you updated on what I’m working on in Juneau throughout the session. If you have any questions about anything going on in the Capitol or at home, feel free to give me a call or shoot me an email – as always, my staff and I are working for you. We will assist you with the issues important to you and your family.

Working Hard for Fairbanks Families,