Southeast Spotlight: tough cuts to school construction, students, and AMHS service

Dear Neighbors,

Given the increased activity in the home stretch of the session, I’ll be posting more frequent editions of Southeast Spotlight. Please also check out my Facebook and Twitter pages for daily updates and postings.

Bond Debt Reimbursement

The Department of Education’s Bond Debt Reimbursement program was under attack last week, with a bill that instituted a five-year holiday on approval of new debt for school construction and major maintenance (SB64). The bill passed the Senate and the House. However, the effective date did not pass, which draws into question the constitutionality of the measure because of a retroactivity clause that makes the bill effective on January 1st, 2015. The failure of the effective date means that projects approved by voters in elections this spring (Anchorage, Bristol Bay and Dillingham) will still be able to enter into contracts that would need to be honored when the retroactivity language takes effect. This is one of the more complicated results from our legislative process, so if you have questions, please do not hesitate to contact me or my office for additional information.

April 3, 2015: Rep. Kito on a recent visit to Haines, touring the wastewater treatment plant with Mayor Jan Hill and plant operator Scott Bradford.

State Budget Under Further Attack

Last week, the Senate approved an operating budget that took an additional $1.75 Million out of the Alaska Marine Highway System (AMHS) budget, and deleted efforts by the House to try to restore service. AMHS will be in a difficult position if funding is not restored to allow for regular operations this summer in transition to a more limited operational schedule in the future.

The Senate’s version of the budget removed the Base Student Allocation funding added last year in House Bill 278, and also removed all of the forward funding for education. These measures are extremely short sighted. If they stand they will not only negatively impact our education system, but they will also create uncertainty for Alaskans and stifle our economy. This further risks the downstream impacts of reducing major purchases and slowing real estate sales.
Today, the House selected its Conference Committee (Reps. Neuman, Thompson, & Gara), which will work with the Senate’s Conference Committee to reach an agreement about the differences between the House and Senate versions of the budget.

March 17, 2015: Legislative Budget & Audit hearing to take public testimony on the overall funding mechanism Alaska uses for education. The room was remarkably full for a 7am meeting, largely due to the Alaska Association of Superintendents who were in town and offered valuable input. Thank you!

Addendum

In last week’s edition, I discussed agency performance reviews being conducted by Legislative Budget & Audit (LB&A). I wanted to mention that the legislature has also commissioned a study of the overall funding mechanism Alaska uses for education. LB&A held a public hearing for this study, and the Alaska Association of Superintendents was in town and its members were able to provide input (see photo). Many of the comments supported our current funding formula’s division of funds. We understand that there are concerns about the level of funding, and this will continue to be an issue, but the method for allocating the funding has received support from many of the districts in Alaska. [Correction: Last week’s newsletter referenced HB130, when it should have read HB30. Please excuse the typographical error.]

As always, please contact me if you have any questions or if I can be of service.

Best Wishes,

Sam Kito III