Dear Friends and Neighbors,

We had a moment of quiet here on the hill–but we're well and truly past that now. We'll meet today to consider the Governor's veto of the BSA bill. I'm voting to override.

In the meantime, read on for fish loans, capital budget, and the rental car tax bill that's rarer than rocking horse poop.

House Transportation Committee members and I got to learn more about the mechanical workings of the M/V Columbia. Legislators from around the state got a first hand look at the engine room and we talked about why ferry maintenance matters.

Keeping Things Afloat

Last fall, I served on the Legislature’s Joint Seafood Industry Task Force. We spent months hearing from folks about the crisis our fishing families were facing and what they needed from us to get through it.

Our final report–with recommendations for policy changes–came out in January. One of those was to make sure commercial fishermen don't lose the borrowing options they have available today. That's aimed at helping out the Alaska Commercial Fishing and Agriculture Bank.

The legislature created CFAB in the 1970s. It's an independent organization that lends primarily to commercial fishermen. It and the state's Commercial Fishing Revolving

Loan Fund are the only entities that can use a limited entry permit as collateral for a loan. The revolving loan fund has strict caps on how much you can borrow, so CFAB is an important step up for fishing families as their businesses grow.

So what's wrong? In the 2024 legislative session, the State’s Division of Investments brought the legislature an idea. They'd run the numbers and figured out the CFRLF could lend at a much lower interest rate for the next three years than they were otherwise allowed to. I was proud to run the amendment making it happen. It has helped Alaska small fishing businesses tremendously.

Unfortunately, CFAB can't match the revolving loan fund for even the three-year window. Nobody meant to sink CFAB when we helped the fishing fleet. But their borrowers are refinancing out to get lower rates from the state, and CFAB isn’t making new loans.

After working with many folks to find a solution to this issue, I introduced SB 156. This bill fixes the problem with a one-time, temporary investment of state money from a defunct old loan fund hanging around the books at the Department of Commerce. It's less than $4 million, but it will let CFAB make or refinance loans at the same rates as the CFRLF until those rates return to normal two years from now. At that point, CFAB will need to give back any state money they didn’t use (unlikely) and must repay the rest in 20 years.

The task force heard loud and clear that our commercial fishermen need all the financing options they can get. I hope to pass the bill this year, so they don't lose CFAB from the list.

Rep. Story & I admired student art from across Alaska at the State Museum. We posed with some beautiful pieces submitted by Haines students!

Rep. Hannan, Rep. Story and I celebrated the 50th anniversary of JAMHI!

Bare Bones

The Senate passed the capital budget this week. That’s the bill to fund infrastructure and one-time projects. (As opposed to the operating budget which deals with ongoing state agency spending.)

With oil prices down, our budget situation is bleak. To get even this bare bones capital budget, our region was raided to the tune of half a dozen ribs and a femur: It claws back $37 million that was in an account for northern Southeast transportation projects. That money came out of our share of past capital budgets. I’m not happy about that.

So what’s in the bill? Not much. It’s got a fraction of the projects the governor proposed. Among the high priority projects we kept are ferry maintenance, a little money for senior housing development, and some funding to study expanding Skagway’s Goat Lake Hydro project. The budget has match for federally-funded transportation projects, including Egan-Yandukin intersection improvements and the Haines airport repaving and drainage work. 

No legislators added any projects for their districts. That's rare. We only added money for statewide deferred maintenance pools: $19 million for K-12 schools, $16 million for state buildings, $5 million for the University, and just under $2 million for the courts. That’s nowhere near enough. Our deferred maintenance list will just keep growing. But with limited cash, we'll do what little work we can this coming year.

None of this is final. The House works on the capital budget next, having just handed the operating budget to us in the Senate. There's lot left to do in the next 30 days!

Rep. Story and I honored Willie Anderson at an NEA event. Willie was a tremendous advocate for school funding and democratic values. I miss him.

Evening the Playing Field

Every now and then a bill has something to offer every legislator, of every political philosophy. This year's unicorn bill is SB 138.

It's a tax cut. It's a revenue increase. It helps small businesses. It helps mid-size businesses. It supports new technology. It supports tourism. It helps Alaska's parks. It slices! It dices!

Alaska has long had a 10% tax on passenger vehicle rentals. Unlike traditional car rental companies, peer-to-peer apps like Turo don’t collect or remit this tax. It falls to the car owners to do it. The only problem is, companies like Turo don't let the car owner make that part of the listing. Good luck renting your car to someone and then collecting an extra 10% when they show up to grab the keys.

The result is that Alaska is getting next to none of the rental car tax that's owed from these types of rentals. And Alaskans who rent out a car during tourist season could be on the hook for two years of back taxes they didn't collect.

So SB 138 does three things: it cuts the tax rate to 9%. It requires companies like Turo to collect and remit the tax to the state. (They already do this for the Municipality of Anchorage.) And it stops the Department of Revenue from getting back car rental tax from individuals' rentals before the bill takes effect. That's key, because the IRS will soon start sharing federal tax information about payments apps like Turo pass on to Alaskans who rent out a car on their platform. So the Department of Revenue could start issuing a whole lot of demands for back taxes.

The state uses vehicle rental tax in part to fund our park system. So the new revenue will go where it is badly needed. And good parks benefit Alaskans and tourists alike.

So the bill is a tax cut. It will also increase the state's vehicle rental tax collections. It evens the playing field for traditional bricks-and-mortar car rental companies whose prices have included the tax. It will help individuals who have used platforms like Turo comply with the law and not pay back penalties. It brings these peer-to-peer apps into the legal framework. And it provides funding for state parks. Everybody wins!

Tracy Welch from UFA joined a half-dozen legislators and a couple of dozen aides at DIPAC, where folks from around the state learned about hatcheries' important work.

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Juneau Writing

On Monday May 12, develop your creative writing skills and explore your creativity at the Douglas Library.

Juneau Maritime Festival

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

Juneau Stories

On Tuesday May 6, bring your kiddos to either the Douglas or Valley library for story time.

Juneau Starry Yoga

On May 1, enjoy yoga under the stars at the Marie Drake Planetarium. $10 recommended donations to support k-12 education.

Juneau Art

On April 30, bring the whole family to the JACC for puppet making. Supplies provided, $5-10 or non-perishable food donations for Southeast Alaska Food Bank appreciated.

Juneau Dance

Juneau Contra Dance has set its summer schedule! Kick up your heels on May 15 with music by Full Circle and calling by Odette Edgar.

Haines Bridge

The less controversial kind of bridge that is: cards! The American Contract Bridge Spring Sectional Tournament is taking place April 25-27 at the ANB Hall.

Haines Craft Swap

Trade in your piles of scrapbook paper, embroidery thread, and glitter and discover a new crafting love April 26-27 a the Haines Library.

Haines Cleanup

Clean up everybody everywhere - starting at the Haines School April 26. The Haines Chamber of Commerce will provide the bags and prizes!

Klukwan Library Needs Your Help

Season wrap up activities at the Klukwan Library were cut short starting April 14 due to the cancellation of a grant. Their website has a suggestion for how to help restore funding for Native cultural institutions.

Skagway Clinic Cleaning

It's spring cleaning time at the Dahl Memorial Clinic. Help get the clinic's grounds shaped up and grab a bite to eat Friday, April 25!

Skagway Book Club

The Skagway Public Library wraps up this year's book club with The Snow Child by Eowyn Ivey - and they have copies to check out! Join the conversation on April 27.

Skagway Music

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

Skagway Art

Celebrate coastal living with the Portable Southeast Art Exhibit at the Skagway Public Library May 2-30!

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

This time with dancing! Saturday April 26 at the monthly Contra Dance at the Community Center.

Gustavus Maker Meeting

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

Gustavus Art

Check out the Gustavus Beach Meadows Photo Show and Contest at the Gateway Gallery starting on May 2.

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

Want to Send Snail Mail?

Alaska State Capitol

Room 514

Juneau, AK 99801

You Can Call:

800 550 4947

907 465 4947

Or Email Me!

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