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Alaska lawmakers have been spending the final days of the 121-day legislative session disagreeing over the amount of this fall’s Permanent Fund dividend. As of Monday afternoon, the House and Senate appeared unable to agree on state spending for the fiscal year that starts July 1, likely pushing lawmakers into an overtime session. This would be the fourth year of extra session time since the cost of the dividend put a strain on tight state finances in 2017. The Republican-controlled House wants a $2,700 PFD this fall and is willing to draw hund...
Elected officials, ballot initiative supporters and opponents, campaign managers and anyone else who writes, texts or tweets outlandish claims and promises should be required to stay after the election and write on the blackboard (remember those) 100 times: “I will not make stuff up.” After they have a chance to rest their arm, they need to go back to the board — OK, a whiteboard and a Sharpie works, too — and write 100 more times: “I am sorry for promising too much.” It’s gotten way too easy for anyone trying to win over the public to pro...
Stacey Wayne, Wrangell High School class of 1982, said it was an honor and a blessing to work as drama and debate coach with Sitka students for a quarter-century. The Alaska School Activities Association added to the honor this month when it inducted Wayne into the Alaska High School Hall of Fame. "Wayne started coaching and teaching drama at Sitka High in 1987 and took two students to the state championship event in that inaugural year," the May 7 awards ceremony program said. "The next year...
The first cruise ship of the season is scheduled to tie up in Wrangell on Thursday, and borough crews have been working to get new restrooms ready for visitors — and locals — who need another option while walking around downtown. The borough has installed two portable units just off Front Street, next to the 56° North shop, near the intersection with Campbell Drive. These are not your routine porta-potties with holding tanks; they are portable units set in place and hooked up to municipal sewage and water lines — sinks included. One of the fa...
The great tax debate in Alaska sounds similar to the age-old question of whether it is less painful to yank off the bandage quickly or peel it off slowly and gently. I have found that it just doesn’t matter all that much how I pull off the bandage. Neither way is pleasant, especially when there is scab underneath. It’s the same for taxes in tax-free Alaska: None of the options are pleasant; all will hurt at first; there are a lot of political scars and scabs that will break open no matter what tax is adopted, an income tax or a sales tax. Regar...
State Sen. Click Bishop remembers his first paycheck as a teenager in Fairbanks in the early 1970s. His boss explained the $10 deduction for the state’s so-called school head tax. “That pays for your education,” the boss told his young employee. “I’ve never forgotten that,” said Bishop. The Legislature in 1980 abolished the small education tax, along with Alaska’s personal income tax and a tax on business gross receipts. The state was getting rich from oil and a majority of lawmakers saw little need for taxes. Bishop, now in his 11th year in...
An Anchorage legislator has added another idea to the growing list of tax proposals before lawmakers who are struggling to cover the state’s revenue needs. Rep. Zack Fields has proposed a personal income tax limited to no more than the amount of each year’s Permanent Fund dividend. “It’s a net-zero tax on Alaskans,” he said last week. No matter how much an individual earns, the annual tax would not exceed the amount of the PFD. In addition, anyone earning less than $75,000 a year would be exempt from the tax. The second-term Democrat described...
Legislation to impose a state tax on e-cigarettes and vaping devices appears headed to next year’s legislative work list. Lawmakers raised multiple questions about the bills at two committee hearings last week, and the Legislature faces a May 17 adjournment deadline. Bills not acted on by then return for consideration next year. The legislation was heard in the Senate Finance Committee and House Health and Social Services Committee, both on May 4, with bill sponsors fielding multiple questions about penalties for underage use, the tax burden o...
Most Alaska state budget watchers follow oil prices, fully realizing that they can bounce around like a small plane on a windy day, creating that same stomach-churning queasiness when they drop. The estimated difference between Alaska North Slope crude averaging $70 per barrel over the next fiscal year is $650 million less in state general fund revenue than at $80. That’s close to 10% of the general fund budget and enough to either leave a gaping hole in the spending plan or add some extra money to savings. Oil down at $60 per barrel means an a...
Legislative leaders focused on the Permanent Fund dividend and taxes as they described the budget choices facing lawmakers trying to find a combination that will win enough political support to balance state spending. “The dividend has been the massive rock in the middle of the road,” making it difficult to find an affordable path to a long-term state fiscal plan, Anchorage Sen. Cathy Giessel, the Senate majority leader, said during an online discussion with Alaska Common Ground last week. “The dividend provides a lot of benefits to Alask...
Gov. Mike Dunleavy told legislators in a pair of closed-door meetings last week that he will introduce a state sales tax as a component of a budget-balancing, long-term fiscal plan. But with just three weeks left in the legislative session, with no details about the governor’s tax bill as of Monday, and with strong opposition from lawmakers who represent communities with a local sales tax, the odds of passage this year are extremely low. If the governor goes ahead with a sales tax bill, it would join more than a dozen proposals offered by H...
Alaska is 30 years into state budget deficits, borrowing billions from savings to pay the bills. Gov. Mike Dunleavy is five years into the job, still pledging mega Permanent Fund dividends even if the money isn’t there. Three months ago, Dunleavy in his State of the State address couldn’t even manage to acknowledge the need for a long-term fiscal plan, despite the budget math that adds up otherwise. Then the governor had an epiphany last week. Not a religious one, a fiscal one. He said the word “taxes.” Only he didn’t say it in public. That wou...
Alaskans who need cash quickly can go to a payday lender for a short-term loan of up to $500, handing over a check or access to their bank account to cover the entire loan repayment just as soon as they get paid at work or their pension arrives. But it will cost them plenty for that fast cash, as much as 15% interest on the debt every two weeks. A freshman Republican legislator from Anchorage wants to put an end to what he calls “these predatory loans.” Payday lenders “take advantage of the dire situations of individuals,” said Rep. Stanley...
Rather than requiring a specific course in financial literacy for high school graduation, lawmakers have amended the legislation so that school districts could incorporate the same information into one or more classes as long as the material is covered. The amended Senate bill would require school districts to teach students how to open and manage an account at a financial institution, prepare a budget and manage debt and credit cards. It also would require districts to teach students about loans, insurance, taxes, financial fraud, retirement...
Legislation that could boost state funding to assist more low-income Alaskans needing help with civil law issues has advanced through its second state Senate committee and is waiting for a vote by the full chamber. The measure would more than double a source of state funding that could be directed each year to the Alaska Legal Services Corp., a 56-year-old nonprofit legal aid organization that helps several thousand Alaskans a year with domestic violence, family law, housing, elder advocacy and other cases. “They provide absolutely critical l...
The state should change its tax code to increase corporate income tax collections from out-of-state businesses that sell goods or services to Alaskans, particularly digitized services, according to a legislator promoting the revisions. “The world has changed,” said Anchorage Sen. Bill Wielechowski. “We’re no longer bricks and mortar.” His legislation would amend Alaska’s income tax code to ensure that online and digital sales are included in calculating how much of a company’s U.S. profit was made in Alaska and should be subject to corporate...
Wrangell’s annual community cleanup is planned for April 29, with free lunch, free trash bags, free disposable gloves, and cash prizes for volunteer picker-uppers. And while organizers hope the incentives will get people to turn out, the real prize is a cleaner community. “Trash is expensive,” said one of the organizers, Kim Wickman, of WCA. It’s expensive to buy the goods, which are shipped into Wrangell, it’s costly to send the trash out to a landfill in Washington state, and it’s unsightly when the garbage litters the town. She hopes peopl...
When I was a kid, I suppose my role models were mostly professional athletes. Sports was everything (no offense to school or my parents or Boy Scouts leader). Though I never was very good at any of them, particularly sports or school or being an obedient kid. I managed just one scouting merit badge — in stamp collecting. I did much better imagining myself as the star pitcher, throwing the ball against the side of the house every evening as if it were the perfect strikeout pitch in the big game — until my dad yelled at me to stop thumping the...
The Wrangell School District would receive an additional $425,000 in one-year state money under a budget headed toward approval in the Alaska House, falling short of a permanent increase in the education funding formula sought by school districts statewide. Under the House budget, state funding for K-12 public education would increase by about 14% for the 2023-2024 school year. The state’s foundation funding, based on enrollment, covers about 60% of the Wrangell district’s total general fund budget. The Republican-led House majority str...
The state has embarked on a mandatory income eligibility review of about 150,000 households receiving Medicaid benefits — covering as many as 260,000 people, more than one in three Alaskans. Nearly 500 Wrangell households could be in that stack. That represents about half of all the households in the community of just under 2,100 residents. The Alaska Department of Health reported an average monthly caseload of 476 Wrangell households enrolled in Medicaid in the fiscal year that ended June 30, 2022. The program provides health care coverage f...
There is no wisdom in the state House majority’s decision to put Permanent Fund dividends ahead of the public education budget. Paying for larger PFDs before schools is not the way to build a better state, to keep families from leaving, to entice new residents and businesses to move here, to educate children. It does nothing to address the fact that more people have left Alaska than moved here in each of the past 10 years. It’s as if the legislators want a new state motto: “Give me liberty, or give me death, but give me my dividend eithe...
Pointing to high credit card balances, growing student loan debts and inadequate savings for many U.S. households, Anchorage Sen. Bill Wielechowski believes it is important to teach students “to avoid common financial pitfalls and manage their money successfully.” He has proposed legislation that would require Alaska high schools to teach a financial literacy course. His bill also would require that students complete the course to earn their diploma. The course would have to cover managing a bank account, setting a budget, credit card deb...
The Alaska Department of Fish and Game has reduced this year’s non-hatchery chinook catch limit for Southeast commercial trollers by 44,000 fish — about 23% lower than last year’s harvest quota. The catch limit for sportfishing, commercial seine and gillnet fleets also were set about 23% lower than last year. The largest salmon are the main moneymaker for many trollers. This year’s harvest limit, while down substantially from 2022, is about the same as was set for 2021 and 2020. It’s almost 50% higher than 2019, when several runs were not...
For the third time in as many legislative sessions, Kodiak Sen. Gary Stevens is leading the push to get a tax on e-cigarettes and vaping products into state law. “Taxes have been proven to reduce youth tobacco use, resulting in fewer kids becoming life-long smokers,” Stevens said in offering his legislation, which would add a 25% state tax to the sales price to dissuade youth from vaping. Senate Bill 89 also would raise the legal age to buy vape sticks, electronic smoking devices and other similar nicotine products in Alaska to 21, mat...
The state now plans to spend an estimated $8 million to replace wasted steel on the ferry Matanuska. If the repairs can be completed in time, the ship could be available by late summer or early fall if it is needed to fill in on Southeast routes. The work at the Vigor shipyard in Ketchikan had not started as of March 28, although the Alaska Marine Highway System’s timeline presented to legislators that day showed the Matanuska work was to have started in March. A much larger, $37.5 million project of safety and environmental upgrades to the 6...
