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Alaska Senate budget crafters reduce dividend size in effort to avoid draw from savings

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Alaska Senate budget crafters reduce dividend size in effort to avoid draw from savings


JUNEAU — Senate budget crafters have adopted a spending plan that includes dividend payments of nearly $1,600 for eligible Alaskans.

The Senate Finance Committee this week reduced the dividend payments approved by the House earlier this year, which would have given every eligible Alaskan nearly $2,300 and would have required a significant draw from already-depleted state savings.

The final dividend figure is set to be at the center of end-of-session negotiations. But other than the differences in cash payments to Alaskans, the two chambers are largely in agreement on the funding items in the operating budget, which covers the cost of running state agencies and services for the fiscal year that begins in July.

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The House and Senate appear poised to hold the line on agency spending and include $175 million in one-time, outside-the-formula funding for public education to help make up for years without inflation-proofing and Gov. Mike Dunleavy’s veto of a permanent increase to the school funding formula.

Differences between the House and Senate spending plans — including the size of the Permanent Fund dividend — will be worked out by a small group of lawmakers from both chambers in the final two weeks of the session, which must end by mid-May.

By reducing the size of the dividend, Senate Finance Committee members said they hoped to avoid a draw from the state’s main savings account, called the Constitutional Budget Reserve, which requires the approval of three-quarters of House and Senate members.

Legislative Budget Director Alexei Painter said Thursday that the Senate’s spending plan would lead to a deficit of almost $7 million in the coming fiscal year — far less than the projected deficit included in the House version of the spending plan. Senate Finance Co-Chair Sen. Bert Stedman, a Sitka Republican, said he expected that by the time the spending plan was approved by both the House and Senate, the deficit would be eliminated altogether, producing a budget that balances expected revenues and spending.

According to an agreement between the Senate and House made earlier this year, the full Senate has until May 2 to pass its version of the operating budget. Once the Senate approves the budget bill, it will be sent to the House for an up-or-down vote. Unless a majority of House members agree to changes made to the bill by the Senate, it will be sent to a conference committee to work out the differences.

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The biggest task for the conference committee will be to find common ground on the size of the dividend. Senate members said Friday that the number would likely be closer to the $1,600 figure they had proposed, because the House plan would have created a nearly $270 million gap in state finances — with few options to cover the deficit.

Those options could include either cutting the size of the capital budget, which is used to cover the cost of infrastructure projects and facility maintenance, or drawing from savings.

The Constitutional Budget Reserve had around $2.5 billion at the beginning of the current fiscal year, below the minimum $3.5 billion that Painter said is recommended to buffer the volatility in the price of oil, which still accounts for a large portion of state revenues.

Stedman said the Legislature should look to build the account — rather than drawing from it — by “at least half of a billion” to prepare for fluctuating oil prices.

“Reading the tea leaves, I don’t think that there is a will in either body, really, to do a draw from the (Constitutional Budget Reserve) account to access the additional funds,” Sen. David Wilson, a Wasilla Republican who serves on the Senate Finance Committee, said Friday. “No matter how much I wish I could give my constituents a larger PFD, I just don’t think the will in both bodies is going to be there.”

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Wilson said the sticking points in the final weeks of the legislative session will likely come not in the operating budget, but from key pieces of legislation where the Republican-controlled House majority and the bipartisan majority in the Senate have not found common ground.

“I think that’s going to be more contentious than the operating budget this year,” said Wilson, listing energy, education, criminal law reform and election policy as the areas of disagreement.

“So there are still four big items where the House and Senate have not come to a fully agreeable compromise yet. I think that’s going to be more of a struggle to get consensus, over the budget,” Wilson said.

That would be a departure from past years, when the House and Senate have diverged in their visions for the operating budget, leading to dramatic budget showdowns in the final days of the session. The state budget is seen as the most important piece of legislation passed every session — and the only one constitutionally required to be adopted each year.

The Senate’s dividend amount was calculated by appropriating one-quarter of Permanent Fund earnings toward the dividend — at around $1,350 per eligible Alaskan — leaving three-quarters of the annual draw from the Permanent Fund to pay for state government. The Senate’s dividend was boosted by just over $200 per recipient in energy relief payments, which were calculated using excess oil revenue from the current fiscal year.

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The House’s larger dividend plan was cobbled together using Permanent Fund earnings, energy relief funds and surplus earnings that would otherwise be deposited in the Constitutional Budget Reserve.

The Senate again added a so-called “waterfall” provision to the budget this year — similar to the one approved last year — meaning that if oil revenue in the coming fiscal year is higher than currently expected, some of the additional funds could be redirected to next year’s dividend payouts in the form of energy relief checks.

Unlike the dividend, which is taxed by the federal government, energy rebates are tax-exempt.

While the budget plans are largely similar, small differences remain between the funding priorities of the House and Senate.

The House included $20 million for the University of Alaska Fairbanks to achieve R1 status, the top classification for U.S. research universities. That funding was left out of the Senate’s version of the budget.

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The Senate included $12 million in education funding to account for what federal officials have said the state owes certain districts in coronavirus relief dollars. The Dunleavy administration has disputed the federal government’s assertions, and the funding was not included in the budget by the House.

The Senate eliminated funding altogether for the Alaska Gasline Development Corp., which has received millions of state dollars to explore the development of a natural gas pipeline, with limited results. The House had reduced funding for the corporation but not eliminated it entirely.

Every difference between the House and Senate versions of the budget could become a piece of the final session negotiations, as lawmakers look to return to their home districts — and in some cases to awaiting re-election campaigns — in which legislative accomplishments could prove vital.

“I think the real knowledge here is that there’s not a lot you can do with this budget,” said Sen. Scott Kawasaki, a Fairbanks Democrat, explaining lawmakers’ pivot to focus on legislation that does not come with a price tag. “There’s not that many levers that you can move up or down. There’s not that much money that you can just transfer into savings. And there’s not that much money that you can transfer to increase the Permanent Fund dividend at this point.”





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Alaska

Alaska Airlines flight returns to San Jose airport due to mechanical issue

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Alaska Airlines flight returns to San Jose airport due to mechanical issue


FILE PHOTO: An Alaska Airlines Boeing 737 MAX 8 approaches San Diego International Airport for a landing from Palm Springs on December 20, 2024 in San Diego, California. (Photo by Kevin Carter/Getty Images)

 An Alaska Airlines flight had to return to San Jose Mineta International Airport on Wednesday after a mechanical issue.

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Alaska Airlines Flight 1130 departed San Jose at 10:01 a.m. bound for Seattle; however, the aircraft turned back, landing at the South Bay airport at 10:50 a.m.

A spokesperson for San Jose Mineta International Airport said they were notified around 10:41 a.m. that the plane was returning after experiencing mechanical issues.

Alaska Airlines said there was a mechanical issue indication in the flight deck of the 737-900 aircraft.

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“Pilots followed appropriate procedures and requested priority landing. The aircraft was evaluated by our maintenance team, who were able to repair the issue,” the airline said.

The plane landed safely without issue, according to the airport and airline.

“Our pilots are trained for situations like this and we thank them for their professionalism in handling the situation,” said Alaska.

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Alaska Airlines Flight 1130 was rescheduled to depart San Jose at 12:27 p.m. and land in Seattle at 2:45 p.m.

San Jose Mineta International Airport



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Alaska legislators, citing some citizen complaints, investigate management of 2024 election

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Alaska legislators, citing some citizen complaints, investigate management of 2024 election


Alaska’s elections chief defended her division’s management of the 2024 elections at a legislative hearing last week, but she acknowledged that logistical challenges created problems for some voters.

Carol Beecher, director of the Division of Elections, reviewed the operations during a more than two-hour hearing of the state House Judiciary Committee. She fielded questions from the committee’s chair, Rep. Sarah Vance, R-Homer, and other Republicans about election security and possible fraud, and she answered questions from Democrats about problems that led to rural precincts being unstaffed or understaffed, which presented obstacles to voters there.

Vance said she did not intend to cast blame, but that she hoped the hearing would lead to more public trust in the election process.

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“The purpose of this meeting is to discuss the process of the 2024 election, not the results. It’s not about the outcomes, but about making sure that every legal vote gets counted in a timely manner, and asking what improvements can be made in the process,” she said.

“A lot of the public has reached out to me and expressed a lot of frustration and concern around a lot of the activities of this election,” she said. “So this is an opportunity for us to have a conversation with the director of elections and the public so that we can gain an understanding about what happened and how the actions that we can take in the future.”

Beecher responded to Republican committee members’ queries about safeguards against fraud and the possibility that non-citizens are casting votes.

“We often get asked about U.S. citizenship as regards elections, and we are only required and only allowed to have the person certify and affirm on the forms that they are a citizen, and that is sufficient,” Beecher said. “We do not do investigations into them based on citizenship questions. If there was a question about citizenship that was brought to our attention, we may defer that to the department of law.”

Residents are eligible to vote if they are a citizen of the United States, age 18 years or older and have been registered in the state and their applicable House district for at least 30 days prior to the election. Eligible Alaskans are automatically registered to vote when they obtain their state driver’s licenses or apply for Alaska Permanent Fund dividends.

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Beecher said the division investigated and found no evidence of non-U.S. citizens being registered through the PFD system. “This is not happening where somebody is marking that they are not a citizen and are receiving a voter registration card,” she said.

Vance said many Alaskans remain worried, nonetheless, about non-citizens casting votes. “I think people are wanting a stronger position regarding the ability to verify citizenship for the people wanting to vote,” she said. “So can the division take action to verify citizenship on its own, or does it need statutory authority?” Beecher confirmed that the division does not have the authority to verify citizenship.

Tom Flynn, a state attorney, advised caution in response to Vance’s suggestion.

“We should be also wary of the limits that the National Voter Registration Act and its interpretation can place on citizenship checks and the federal voting form requirements,” said Flynn, who is the state’s chief assistant attorney general. The National Registration Act of 1993 prohibits states from confirming citizenship status.

In response to questions about opportunities for fraud through mail-in absentee voting, Beecher said the state relies on the information voters provide. “If an individual applied for an absentee ballot, and all of the information was in our voter registration system that you were eligible to vote, etc, and you had a legitimate address to send it to, then you would be mailed an absentee ballot,” she said.

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Each ballot is checked for appropriate voter identification information. Ballots are coded by district, and then given another review by another group of election workers, including an observer, she said. “The observer has the opportunity to challenge that ballot. If they challenge a ballot, a challenge is sent to me, and then I review the information based on what the challenge is, and I’ll often confer with [the Department of] Law,” she said.

Alaska has notably low voter turnout, but also a steadily changing voter roll as it’s one of the most transient populations in the nation, with voters moving in and out of state.

Alaska has a mix of districts with ballot scanners and hand count precincts, usually in rural areas with a small number of voters, as well as voting tablets for those with disabilities. Ballot scanners record ballot information, which is encrypted before being sent to a central server in Juneau. All voting machines are tested ahead of time, Beecher said. For hand count precincts, ballots are tallied up and poll workers call in the results to the division’s regional offices, she said.

“We had about 15 people on phones to take the calls that evening, and the phone starts ringing immediately, and all of the different precincts are calling in,” she said. Division workers also helped poll workers properly read rank choice ballots, she said. “And so there’s a lot of discussion that can happen on that phone call. It’s not necessarily just as simple as going through the list.”

The division of elections has 35 permanent staff who are sworn to remain politically impartial and who work in five district offices to administer the elections in the 60 legislative districts.

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Beecher said the division reviews its processes, systems of communications, challenges and improvements needed in each election cycle. “The division has lists and lists and checklists and handbooks, and is very good and diligent about making sure that process and procedures are lined out and checked,” she said.

Rural Alaska problems

Administering elections in rural communities is an ongoing challenge in Alaska. Beecher answered questions on several incidents, including voters in Southwest communities of Dillingham, King Salmon and Aniak receiving the wrong ballots that had to be corrected. In August, a mail bag containing a voted ballot and primary election materials from the village of Old Harbor on Kodiak Island was found on the side of the road, near the Ted Stevens Anchorage International Airport.

“We don’t have control over the materials when they are in the custody of the post office, in this case, it was one of their subcontractor carriers,” she said. “We weren’t told [what happened] specifically, but I know that the post office has processes when mail is lost like that, and they do deploy their processes with that contractor.”

Vance said the incident was serious.

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“I hope the state is pursuing further accountability, because this is a matter of public trust that something so important was dropped out of the truck along the roadside,” she said. “It looks extremely negligent.”

Beecher said training and retaining poll workers is essential for running elections smoothly. “So one of the challenges that we run into, and frankly, it’s not just in our rural areas, the turnover of poll workers is a reality,” Beecher said. The division conducts in-person poll worker trainings, and provides support with video tutorials and by phone.

This year, in the western Alaska community of Wales, the designated poll worker was not available and so the division of elections located a school teacher late on election day to administer the polls. “It was not ideal,” she said, but they had trained back up poll workers ready to deploy this year.

“We had trained people who were situated at all the various hubs, so Anchorage, Fairbanks, Utgiagvik, Nome, and they were trained and ready to be deployed to some of these polls should we run into a situation where we didn’t have poll workers on the day,” she said. “So we weren’t able to get them to Wales only because of the weather. They were there at the airport ready to head out there. But we did send them to Egegik, and there were polls there.”

Responding to Rep. Cliff Groh, D-Anchorage, Beecher said one thing she would have done better would have been to ensure that the official election pamphlet was more carefully reviewed and checked for errors.

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A notable error in the published pamphlet was the misidentification of Republican House candidate Mia Costello as a Democrat.

“Secondly, I would have made sure that our advertisement that had a name in it would not have used names,” she said, referring to a rank choice voting education materials giving examples with fake elector names, including “Odem Harris” which Republicans pointed out filled in a first choice vote for “Harris,” also the Democratic presidential candidate.

“And thirdly, I wish that I had done a better job of anticipating the level of communication that was expected and needed,” Beecher said.

In response to a question about the ballot measure seeking to overturn the ranked-choice system, Beecher said there was no evidence of fraud. The measure failed by just 743 votes.

“We did not see something that would indicate that anything untoward happened with ballots. That simply was not something that was seen in the results,” she said.

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Beecher suggested some improvements for legislators to consider this next term. Those included an expansion of mail-only precincts, paid postage for ballots and a requirement that mail-in ballots be sent earlier rather than postmarked by Election Day. “On ballot counting, doing it sooner,” she said. “So potentially changing the time frames of receiving absentee ballots to having everything have to be received by Election Day.” The latter would be a big change for Alaska, which has long counted mail-in ballots as long as they are postmarked by Election Day.

Some changes may be warranted, she said.

“We are not perfect. We know that,” she said. “And we really look to doing better, and [are] wanting it to be better, and that people are confident that it is managed in a way that they have trust in the integrity of the process.”

The next Legislative session starts on Jan. 21. Under the new bipartisan majority, Rep. Andrew Gray, D-Anchorage, is set to chair the committee in the coming session.

Originally published by the Alaska Beacon, an independent, nonpartisan news organization that covers Alaska state government.

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Alaska Jewish community prepares to celebrate start of Hanukkah

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Alaska Jewish community prepares to celebrate start of Hanukkah


ANCHORAGE, Alaska (KTUU) – Rabbi Josef Greenberg and Esty Greenberg of Alaska Jewish Campus, joined Alaska’s News Source to explain more about Hanukkah and how Anchorage can celebrate.

They will be hosting Chanukah, The Festival of Lights for “Cirque De Hanukkah,” on Sunday, Dec. 29, at 5 p.m., at the Egan Center.

See a spelling or grammar error? Report it to web@ktuu.com

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