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Last week’s stock market crash has the country in turmoil. In Alaska, perhaps one of the most concerning consequences of the crash is the hit that the Permanent Fund took. The Permanent Fund, which provides most of the revenues for our PFD and state services, lost nearly $3 billion of its market value over a series of days. Exacerbating the problem, oil prices have plummeted as well. These circumstances are leaving legislators worried about how much (if any) money will be left available for our future PFDs.
Additionally, as Alaska is dependent on federal funding, which is currently being slashed, legislators are scrambling to figure out how to fund our state’s basic needs, and some of them are considering looking to dip into the Earnings Reserve to cover some of the funds. Some other options could be to tax the oil companies more, although that option looks less promising as we watch the price of oil drop, or to institute some type of statewide revenue.
As the budget discussion continues, there will need to be considerations on how to balance the budget and provide stability and predictability to the state economy. Right now, the situation can be distilled by three graphics that indicates one bleak outlook. (see below)
| | Education Latest Alert Update! | The education session began on day one with a flurry of bills to improve education outcomes, assure accountability and erase the years of flat funding by increasing the base student allocation or BSA. Schools are not failing, schools are starving. The flat state support of education over the decade has meant that local property taxpayers have had to foot the bill, but now most every school district is at the maximum cap they can provide in addition to state funding. | Senator Kawasaki and Senator Claman at an Education Rally | |
Today, the Senate took up HB 69, which was legislation from the House that has been working through the chambers and contains both a permanent, predictable and sizeable increase to the BSA and a dozen policy initiatives to address accountability and education outcomes. The Senate Finance Committee stripped HB 69 of all additional policy but kept the main per pupil BSA increase which will help correspondence, homeschool, charter and neighborhood schools alike. Even though HB 69 does not contain necessary education reforms, it is still a big start in helping our underfunded schools.
The move to simply increase funding for schools is important as local government is deciding on their budgets. School boards are beginning the process of sending out pink slips. I'm happy to support this first step knowing that the legislature still has 40 days to continue the important policy discussions. HB 69 passed by 11 to 9 in the Senate after much debate and posturing.
| The bill then went to the House for a vote to concur or reject the changes that were made by the Senate. There was more debate, but in the end the House voted to concur with HB 69 with a vote of 21 to 16 with 3 members absent from the vote. Now, the fate of HB 69 is in the hands of the Govenor who has 15 days from when this bill hits his desk to either sign or veto this legislation. | Federal Cuts to Our Health and Well-Being | |
Last Saturday, people across the nation participated in “Hands Off!” protests against the current presidential administration. Among the places that hosted protests were communities throughout Alaska. The protest in Fairbanks was attended by approximately 1,000 people, which is an impressive turnout for a Fairbanks protest. I think that the turnout was high in part because Alaskans have been so negatively impacted by the federal funding cuts regardless of their political affiliation. Alaskans throughout the state have been losing their jobs, healthcare benefits and access to vital programs.
One of the federal programs slated to receive an overhaul is the Social Security Administration. While the cuts to Social Security will impact Americans all over the country, rural Alaska could be disproportionately harmed. One of the planned changes, for example, is to end the ability to apply for social security benefits over the phone, and many rural Alaskans lack reliable internet service. Even our United States Senator Dan Sullivan, who has typically been a very vocal supporter of President Trump, voted to reverse the Trump Administrations cuts to Social Security, along with Senator Lisa Murkowski.
In addition to worrying about losing their Social Security benefits, many Alaskans are also worried about losing their jobs. Just last week, the Alaska Department of Health abruptly laid off 30 public health workers, due to the cancellation of several federal grants. The workers were notified of their terminations just a few days prior to their final days of work. It is widely feared that these layoffs are a mere hint of what is coming for us.
| | State Salary Study Synopsis | | |
In 2023 the Alaska legislature approved $1 million to have a salary study conducted by The Segal Group to assess the competitiveness of Alaskan wages. The last study of this sort was conducted in 2009 and with the problem of outmigration in our state a new version of this evaluation was long overdue to find out if our state is offering salaries that will retain and attract workers. This study was supposed to be completed in June of 2024, but was just released this Wednesday. The findings of this report show that a large number of Alaska state employees are underpaid when compared with other employees in similar fields.
According to a press release from the Alaska State Employees Association, for highly populated jobs studied (more than 100 employees classified in the position), 83% are below market. Heidi Drygas, the Executive Director of ASEA/AFSCME Local 52 said, "This study confirms what we have known for a very long time. Not only are Alaska's state employees the only ones in the nation without a pension, salaries have fallen miserably behind. It's no wonder so many of our friends, neighbors, and colleagues are leaving the state and public service." She isn't wrong with Alaskan outmigration out pacing new residents for 12 years in a row according to Dan Robinson, research chief at the Alaska Department of Labor and Workforce.
The study compared Alaska state employee pay rates to both the 65th and 50th percentiles of pay rates in comparable fields. The study initially was directed to only compare Alaska pay rates to the 65th percentile, but the Dunleavy administration asked the research group to also include the 50th percentile in August. Which is one reason why the report was delayed in publication. Whether compared to the 50th or 65th percentile, Alaskan wages are being paid at below the market rate at 32% for the 50th and 57% for the 65th percentile.
A work sector whose pay did not fall below the market rate was the Public Safety sector. The study found that police, fire, and corrections employees are getting pay at or above market rates. this is great news for the individuals working in those sectors, but Alaska needs more than an emphasis on public safety in order to thrive. Our teachers, grant specialists and other government workers that strive to provide service to Alaskans need to be fairly compensated, or we will lose them to the lower 48.
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UAF’s Museum of the North has received a rare Danish bird collection gifted from the House of Bird Research in Denmark. The collection contains more than 8,800 bird specimens, which were carefully hand-delivered to the museum by Jack Withrow and Kevin Winker, the Museum of the North’s Collections Manager and Curator of Birds, respectively, who traveled all the way to Denmark to retrieve the collection.
The acquisition of this collection is important to the scientific community. Ornithologists can use this collection to further studies about northern birds and issues such as how they have been affected by global climate change.
I am highlighting this story because it is an example what makes museums so important. We use museums to house cultural and scientific artifacts and collections that otherwise would not be available to our communities. For this reason, I introduced SB 110, which seeks to establish a grant program for museum construction and expansion. The bill is currently in the Senate Education Committee, and I will keep you updated on its progress.
| | Some specimens of the Danish Birds soon to be on display | | Public Testimony Opportunities | |
Next week, many bill hearings will be taking public testimony. You can check out the full week’s schedule by following this link.
Below is a list of bills that I think you might be most interested in testifying for:
SB 82: An Act Relating to Education
Monday April 14 at 3:30 pm
This bill would enable a child to attend any school within their district, ban cell phones in schools, provide reading proficiency incentive grants, allow potential charter schools to apply at a state level, revamp the school funding formula in several ways, and a start a temporary 3-year program to pay lump sum payments to eligible teacher in the amounts of $5k, $10k and $15k as a recruitment and retention incentive
HJR 13: Special Immigrant Visas Assistance
Tuesday April 15 at 10:15 am
This Joint Resolution is urging the President of the United States to expand evacuation efforts for applicants with approved Special Immigrant Visas who aided the U.S. during Operation Enduring Freedom.
HB 96: Home Care Employment Standards Advisory Board
Wednesday April 16 at 3:15 pm
This bill would establish the Home Care Employment Standards Advisory Board.
HB 161: Paid Sick Leave Exemption
Wednesday April 16 at 3:15 pm
This bill would establish a standard for employers to grant paid sick leave to their employees.
HB 156: Disclosure of Wage Information
Friday April 18 at 1:00 pm
This bill would require employers to disclose wage information to their employees and job applicants.
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Early Explorers: Trees: Friday April 11, 10am – 12 pm at the UAF Museum of the North
This event is for children 5 and under (with an accompanying adult) to participate in hands-on activities in the museum’s creativity lab
Fairbanks Vet Center Veteran Appreciation Open House: Friday April 11, 12-3pm at 751 Old Richardson Hwy suite 127
Celebrate our veterans at the cookout style luncheon
Community Passover Seder: Saturday April 12, 8:30 pm at the Fairbanks Jewish Center
For more information and to buy tickets visit follow this link.
Legislative Townhall Event: Saturday April 12, 1:00 pm - 2:30 pm at the Fairbanks Legislative Information Office which is located on the third floor of the Global Credit Union Building
Join me and Representative Will Stapp for a town hall during which we will update you on the goings on in the Alaska legislature and answer your questions.
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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, | | |
Senator Scott Kawasaki
Alaska State Senator
Serving the City of Fairbanks, Ft. Wainwright & Badger Road
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As your Senator, I am here to listen and help. Contact me anytime. | | | | | |
