April Showers Bring May... Adjournment?

April 13, 2025

Dear Friends and Neighbors,

Our rain came back this weekend. I wouldn't know what to do if we didn't have April showers to bring May rainfall.


With May right around the corner, we're pushing hard on big budget pieces like school funding and new revenues. Read on for those updates, plus an important consumer protection measure.

The Key Coalition are tremendous advocates for Alaskans with disabilities. This amazing Southeast team talked about accessibility in transportation, universal changing spaces, and progress on the DD waitlist. They also suggested modernizing our guardianship statutes. I have a bill coming soon to do just that!

Belated BSA

On Friday, the Senate passed HB 69, the education funding bill. A few hours later the House sent it to the governor. It's due back by the end of the month.


Since it was first introduced, the bill has changed a lot. It started out increasing the BSA by $1,000 this year, adding $404 each of the next two years, and inflation-adjusting into the future. The version the House sent us did just the first step, and threw in a fistful of policy measures. In the Senate Education committee we took out some of those that either didn't work or weren't written well. We also added a few of our own.


In Senate Finance, the state of Alaska's budget led to a vastly pared-down bill. The committee took out everything but the core provision: adding $1,000 to the BSA. Even that only passed on the Senate floor by the minimum number of votes.


The margin wasn't tight because folks think schools don't need the money. The nonpartisan Legislative Finance Division showed us all how much the purchasing power of school spending has eroded. If we put as much financial oomph into schools last year as we did in 2017, we'd have started last session with a BSA of $7,088. That's more than $1,100 higher than we're talking about for next year. Districts all across the state are looking at school closures and layoffs, to say nothing of the ludicrously large class sizes.


The reason there were no votes to spare is that we still don't know how to add $1,000 to the BSA and still balance the books. It's hard budget math. With a governor who will veto almost any revenue measure, the funds can only come from a few places. One is a big reduction to PFDs. Another is a huge reduction in state services. The third is the Constitutional Budget Reserve, which takes the same number of votes as overriding the governor's veto on a tax bill. None of those options works very well.


When we finally work out the dollars, there are probably some education policy steps worth taking. The governor has never made much of a case for his new focus on "open enrollment," which impacts very few Alaska districts. Plus it's something almost every district already does. And we've talked about the balance between encouraging charter schools and tying the hands of locally elected school boards before. On Friday I spoke about his proposal to crank up what we spend on correspondence schools. But there are some other worthy tweaks out there that we should pass. One that's important to me is heading off a proposed regulation change from the Department of Education & Early Development that would stop local municipalities from funding activities, buses, or school lunch outside the cap. That provision came out of HB 69, but I'm still focused on protecting Alaskans' right to support our schools.


So the work to fund K-12 education goes on. Unless we can come to some sort of arrangement with the governor, he says he'll veto adding $1,000 per student. If we can't override him, I'll work to send him another bill we can get into law. Ideally it will be something he signs. Negotiators from his office and the legislature haven't gotten there yet, but I'm not willing to back down and settle for another year of one-time funding.

Our district has faced multiple natural disasters the last few years. It's not easy figuring out how best to help during an emergency. So I hosted a training where my colleagues could learn how legislators can be most effective responding to disaster. The state Homeland Security & Emergency Management folks, Tlingit & Haida, and CBJ did a great job!

Taxes in the Series of Tubes

Alaska has a corporate income tax for 'C Corporations' (basically all the companies in the stock market, plus some, like banks and airlines, that need extra liability protections for their owners.) But that doesn't mean our state gets a fraction of the profits when you buy something online.


It used to be easy to tell if a sale happened in Alaska. The seller, buyer, and item were usually all in the state. Later, we adjusted the rules for fancy things like mail order and telemarketing. But those rules don’t come close to matching today’s world of online sales. This week we looked at a bill in Senate Finance to bring our tax code into this century. (We're only 25% of the way through it. Don't rush us.)


SB 92 makes two changes. First, sales to Alaskans count as Alaska sales. That's intuitive enough. Second, for a business that does the majority of its Alaska sales online, we’ll stop factoring in the share of office space or payroll the company has in other states. With this change, when you shop on Amazon, the company will pay income tax on their Alaska profit to Alaska instead of to Washington. That just makes sense. 


Several other states made changes like these already, and I'm happy to report they didn't see prices rise any faster than the country as a whole. SB 92 won't single-handedly close the fiscal gap. But it's a fair, reasonable modernization for Alaska's corporate income tax.

Sen. Olson and I listened during Sen. Murkowski's address to the joint session. We spoke with her about key issues like the importance of continuing Medicaid funding.

How to Succeed in Business (without charging 400%)

If you take out a loan for less than $25,000 in Alaska, your lender can’t charge you more than 36% interest in a year. Unless it’s a payday loan. Then you can folk over almost 400% in a year. That’s enough in fees and interest to sink your financeswhether you're J. Pierpont Finch or JP Morgan.


Most folks who read this newsletter have enough financial options they don't have to think about short-term, very high cost borrowing. But that's not true of a lot of folks. Our country has compressed the lower end of the wage scale so much that 2/3 of Americans can’t deal with a $400 emergency without borrowing. These days you can't replace a dead refrigerator for $400. It won’t come close to fixing a serious car problem. Clearly, too many Alaskans need to borrow money at some point to get by.


Not every tool is right for every job. In the Senate Finance Committee, we advanced a bill from Sen. Dunbar to end payday loans. Public testifiers called on the legislature to stop these super high-cost loans that take advantage of people in desperate times. One testifier even quoted both Barack Obama and Tucker Carlson on the dangers of payday loans. If the two of them agree on a problem, there’s something to it.


I did some looking, and found a study comparing folks who just barely qualified forand tooka payday loan to people in similar situations who just missed being eligible for one. The people who GOT the loan were much more likely to end up in bankruptcy. That strongly suggests these loans are more a danger than a help.


Other states have already banned payday loans. There’s still short term lending in those states. people can still get small-dollar loans. Companies still make a dollar lending. I think it's time Alaska follows suit.

I had a great conversation with some Southeast mental and behavioral health care providers about issues and opportunities facing their professions in Alaska.

All my best,

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Events & Happenings Around District B

Juneau Showtime

Come by JDHS to see an amazing performance by the JDHS dance team, with guests from dance studios all over Juneau! Be there April 19


Juneau Maritime Festival

Celebrate Juneau’s maritime culture with grilled seafood, live music, and events galore on May 3.


Juneau Folk Fest

Alaska Folk Festival is happening! Today is the last day of the state's preeminent free music festival.


Juneau Easter Eggs

On April 19, bring the kids to the Juneau Christian Center for a 10,000-egg hunt, photo booth, and bounce house.


Juneau Baby Raven

Enjoy storytelling, songs, and literacy activities with your young ones on April 26 at the downtown library. This week’s theme is raven and the hidden halibut.


Haines River Talk

On April 16, come listen to (or share) a seven minute story. This month’s theme: WTF!

 

Haines Spring Fling

Celebrate the beginning of spring with the Southeast Alaska State Fair membership event and party! April 18 at the fair grounds.


Haines Bunny Hop!

Don your running shoes and your bunny ears! SEARHC's free Bunny Hop 5k Fun Run is April 19th starting at the Haines High School.


Haines Arts

Chilkat Valley ArtFest 2025 is coming up April 19-May 4, serving up two weeks of workshops, showcases, and so much more!


Haines Eggs and Dogs

The Easter fun continues at the 5th Annual Community Easter Egg Hunt & Hot Dog Social on April 20 at the high school.

Klukwan Library

The Klukwan Library is wrapping up the season, with more limited hours starting on April 29. Get your fix with the last Tot Tales on April 15, Molly of Denali on April 16, and Tlingit Language Practice on April 24.


Klukwan Tribal Community

Get your updates, make your nominations, and join in the conversation at the Klukwan Community Meeting April 17 at the Klukwan ANS Hall.


Skagway Gamers

Do you enjoy a night of D&D, MTG, or other geeky acronyms? Lumberchaun Axe Throwing is hosting the night April 12 and 19.


Skagway Spring Festival

Your cabin fever reliever is finally here April 18-20! Get your folk on at the 35th Annual International Folk Festival . Immerse yourself in the 17th Annual Spring Show of Winter Work community art exhibit featuring live art creation by Kate Kolodi. And there's a bird walk, disc golf tournament, game night, community breakfast, Easter egg hunt, and drag bingo - just to name a few!!


Skagway Music

There are instruments waiting for you to play at the library every Saturday afternoon!


Gustavus Music

Join in with the Everybody Band at the Gustavus Library every Thursday night. Play or learn to play, dance or learn to dance!


More Gustavus Music

Warm up those pipes! It's open mic night at the Gustavus Community Center on April 19.

 

Gustavus Maker Meeting

Come to the library Wednesday evenings to work on art projects, get inspiration, and socialize with other makers!

Is there an event in our district I should know about? Please call or email!

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Alaska State Capitol

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Contact My Staff,

the people who power the work:


Aurora Hauke

907 465 5051

aurora.hauke@akleg.gov


Ella Adkison

907 465 6419

ella.adkison@akleg.gov


Cathy Schlingheyde

907 465 6827

cathy.schlingheyde@akleg.gov


Cole Osowski

907 465 4947

cole.osowski@akleg.gov