Speaking at the American Legion Hall Thursday, the Chilkat Valley’s legislative representatives gave a generally positive presentation on the recently concluded legislative session including a budget that boosts schools and provides a $1,300 permanent fund check without cutting into the state’s savings accounts.
“With a moderate oil price forecast, we won’t have to draw from savings. That’s the first time in a while,” said state Sen. Jessie Kiehl, D-Juneau. The oil price is forecast at $73 per barrel, an amount higher than in many previous years. State Rep. Andi Story, D-Juneau, also spoke.
Some residents asked whether the budget – yet to be approved by Alaska Gov. Mike Dunleavy – is enough to sustain state services and agencies.
Borough assembly member Debra Schnabel asked about insufficient state funding of recreation, including to local parks and a state recreation plan.
“Here in Haines we have some fabulous parks and there’s no funding for them. It’s almost ludicrous that we have state park superintendents in Juneau telling us we can’t have overnight tent camping open at Portage Cove. We have one of the most extraordinary (campgrounds) at Chilkat State Park. The road to there hasn’t been graded for – a decade? You couldn’t get your RV down there if you wanted to go there,” Schnabel said.
Kiehl said he has communicated to state officials “a number of times about the state of things” with Haines parks. “We’re going to have to do some serious budget work with them as well.”
Kiehl said Gov. Dunleavy brought in “supplemental requests” to re-open closed state campgrounds around Wasilla – Dunleavy’s hometown – and Fairbanks. When he asked Department of Natural Resources officials how those campgrounds received funding, Kiel was told “I don’t know,” he said.
“That’s no way to make a decision. I will certainly continue to work on this,” Kiel said.
Kiehl said the $1,300 dividend check to Alaskans approved for next year was roughly the historic average annual check. It’s less the $3,284 received this year, which was boosted by a jump in oil revenues resulting from the Ukraine War.
It’s also considerably less than the $3,800 Dunleavy proposed in December, an amount based on a statutory formula last used in 2015.
Kiehl said, “Work continues on legislation to change the formula (for setting the PFD amount) so that we have a law that we can afford to follow and that the Legislature will follow. I can’t stand here and tell you that it’s okay that we have a law on the books and just not to follow it. We don’t let other people do that, but that’s what we’ve done.”
This year’s budget uses 75 percent of the annual draw from permanent fund revenues to pay for state operations and 25 percent for checks to Alaskans.
The boost in education funding amounts to a 14 percent increase, but balanced against inflation and flat funding for seven years, education spending remains below historic levels, Kiel said.
“It’s going to give our school the resources to stop the constant cuts and to add back a little bit of what schools had to reduce in student opportunities over the last seven years,” Kiel said.
Assuming Dunleavy doesn’t reduce the amount, the Haines school district will receive an additional $450,000.
Kiehl said state transportation planners are considering three options for improving marine transportation in Lynn Canal: 1) building a Cascade Point ferry terminal, 2) building and operating an electric ferry, possibly to sail between Haines and Skagway, and 3) adding crew quarters to the ferry Tazlina.
The Alaska Marine Highway Operations Board, a citizens’ advisory board to the state ferry system, had advised against a seasonal ferry terminal at Cascade Point. Although the state has signed a lease on property there, its lack of water and sewer facilities and an exposed location that prevents winter use limits its usefulness, he said.
Use of an electric shuttle boat between Haines and Skagway would allow the Tazlina to serve Lynn Canal without a crew shift. With crew quarters like those added recently to sister ship Hubbard, the Tazlina could be dedicated to serving the full Lynn Canal route.
Kiehl said he and state Sen. Cathy Giessel were working on a bill to create a defined benefit pension program for public employees in Alaska. It’s in the Senate Finance Committee. Kiehl said he was confident that legislation would be approved by the state House next year.
Story said the lack of a pension program has cost the state ferry workers, police officers and other state employees who can more lucrative work elsewhere after starting in Alaska.
“It really costs a lot to train people. We can look at the numbers. You can look at a chart and see the drop-off of people who are here five years and then they’re gone. They take their fixed, defined contribution with them,” Stori said.
Kiehl said the state doesn’t have enough addiction treatment programs to stem the flow of illicit drugs into Southeast. Story said there’s federal Medicaid funds to help pay for treatment programs but the state hasn’t invested enough in treatment centers.