Bills on the Move

EDUCATION BILL

This week, the education debate has heated up with House Finance releasing a Committee Substitute and considering amendments to the omnibus Education bill (HB 278). The bill that finally came out of the committee included some troubling changes from the Education Committee version. I am especially concerned about the changes to the Teachers Retirement System (TRS), which could cause the insolvency or exhaustion of the trust fund in ten years. This would result in a pay-as-you-go plan that would make active teachers pay for retired teachers and significantly increase the required contribution by active teachers.

Another troubling change is the addition of tax credits for private non-profit elementary or secondary schools in the state. This tax credit allows businesses to contribute to private schools and receive a credit on their state taxes. Sacrificing state revenues to help private schools while our public schools go underfunded is not an appropriate way to support education in Alaska.

During the House Finance Committee hearing last night, members of the House Democratic Caucus offered amendments aimed at reversing the last three years of school funding cuts, adding significantly to the governor’s proposed spending plan, leveling the playing field for small, rural, and charter schools, and protecting teacher tenure.

I will continue to work for a base student allocation amount that prevents teacher and counselor layoffs.

IMPORTANT NOTE: Great Alaska Schools (a grassroots coalition of public school supporters) is inviting all of Juneau to participate in a rally on the Capitol steps at noon on Friday, April 4.

Rep. Kito III discussed the work that still needs to be done on the education bill at this week’s Democratic Caucus Press Conference.

Rep. Kito III pictured with fellow members at his first Community & Regional Affairs Committee meeting

GASLINE BILL

The governor’s gasline bill (SB 138) has been heard five days a week in the House Resources Committee for the past two weeks. The bill will authorize the administration to continue negotiations that could potentially lead to developing the massive North Slope natural gas resource. About half of the estimated $45 - $65 billion cost would build a liquefied natural gas (LNG) plant in Nikiski that could export about 2.4 billion cubic feet of gas per day to Asian markets.

The bill is far from the final step, providing some of the rough terms for how the project would be organized, giving the commissioners of Natural Resources and Revenue the authority to negotiate contracts, and providing about $100 million for the effort. Much of the money will go towards the state’s share of preliminary studies based on the assumption that we will own 25% of the project. I have serious concerns about the state taking a minority ownership interest in the project, especially since the presentations are showing that the state’s revenue will be almost exactly the same as if we weren’t partners in the project and instead collected our royalties and taxes as the sovereign government. With our state revenue declining, we must be extremely careful before setting aside or spending billions of dollars. However, we have been repeatedly told that this partnership arrangement is an essential condition for the North Slope producers to move forward on the project.

The Resources committee will be hearing amendments on the bill this Friday and Saturday and will likely move the bill out of committee early next week. It still has a referral to the Labor and Commerce committee and the Finance committee, which means it could be a while before it gets to the floor of the House for a vote. As we get closer to the end of session, it is a fair question to ask whether this major and possibly historic piece of legislation will be done on time.

Rep. Kito III attended the Bush Caucus Rural Drug Trafficking Forum. They heard from communities around the state struggling with the growing problem of drug addiction.

Rep. Sam Kito III pictured with the House Democratic Caucus

Rep. Sam Kito III met with Senator Mark Begich along with Bush Caucus members Rep. Bryce Edgmon and Rep. David Guttenberg

As the session winds down, there will be a lot of issues starting to move very fast. If you are interested or concerned about any legislation that is circulating in the Capitol halls, I encourage you to utilize the Bill Tracking and Management Facility (BTMF). When you sign up for an account you can also sign up to receive email notices when a bill’s status changes.

If you have any questions please call or stop by my office in the Capitol building.

Sincerely,

Sam Kito III