Rep. Sam Kito updated Haines constituents Thursday on Alaska’s fiscal situation and the state of the Alaska Marine Highway.
Kito, who represents Haines and Juneau as part of District 33 in the state Legislature, was visiting the community to attend the Southeast Conference annual meeting.
He spoke to an audience of about 15 people at a town hall meeting at the American Bald Eagle Foundation.
Gov. Bill Walker called the legislature into another special session this fall to address the state budget, which Kito said will still be between $2.7 billion and $3.2 billion in the hole this upcoming year.
Kito said the state House of Representatives is trying to work with the Senate on how to access a revenue source for the state. Legislators will also work on restructuring the permanent fund during the special session, which could last anywhere from 15 to 30 days.
“This is a fundamental change in the way we deal with how we pay for state services,” Kito said.
Haines Borough Assembly member Tresham Gregg asked about a statewide income tax to gain revenue.
Kito said an income tax would generate about $550 million to $600 million in revenue. “I don’t want to pay more taxes, but I also don’t want to see Alaska fail,” Kito said.
The state now receives revenues from corporate income taxes, which raises $200 million a year, and royalties and production taxes for oil, which raises $1.1 billion a year.
“The challenges we’re seeing are really in the Senate not wanting to institute an income tax,” Kito said. “It’s an ideological and philosophical divide right now for how do we generate revenue for the state.”
Kito also spoke about the progress that Southeast Conference has made to better manage the Alaska Marine Highway System.
Consultants recommended changing the structure of the system to a public corporation, with a board of directors focused on “How do we best provide service to coastal communities and how do we do that most efficiently?” Kito said.
Kito said he agreed with the recommendation from Southeast Conference to limit the classes of vessels to streamline the aging fleet, which would include getting rid of the fast ferries.
“We do not expect the Marine Highway to run out of money and have to stop operating. There are just too many negative consequences for allowing that to take place,” Kito said.
He said he would like to propose a “forward funding” bill, per the recommendation to “forward fund” the marine highway system so it can reliably release a schedule, especially for tourists and visitors.
Kito also addressed the continued effort to reinstate a full-time forester position in Haines. He said the Chilkoot Indian Association has communicated with the Department of Natural Resources that it is willing to use some tribal transportation funds to help support a position for the Haines State Forest. Kito said DNR has not gotten back to CIA.
Kito said the legislature has also discussed the lack of a state trooper position in Haines.
“The governor has indicated that he doesn’t intend that Haines will go without a trooper, but the (department of public safety) commissioner has indicated he has higher needs for prime positions,” Kito said. Kito said the state troopers are struggling to fill 25 open positions, and the governor indicated that is a reason for not reinstating the position in Haines. Kito said if the state troopers can fund 25 positions, it should at least be able to contribute funding to the Haines Borough Police Department to hire someone to help cover the missing trooper’s jurisdiction.
Diana Lapham asked about the possibility of hiring a VPSO, but Kito wasn’t sure that a VPSO would have the same authority on the highway as a trooper. “I would prefer a full trooper, and if we can’t get a full trooper I would prefer to push for the resources to go to the Haines Police Department,” Kito said.