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Even with a slimmer Permanent Fund dividend, low oil prices generate deficits in Alaska

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Even with a slimmer Permanent Fund dividend, low oil prices generate deficits in Alaska


Alaska Gov. Mike Dunleavy speaks concerning the state’s spring income forecast on March 21, 2023, on the Atwood Constructing in Anchorage. (Photograph by Sophia Carlisle/Alaska Beacon)

Decrease oil costs have torn massive holes within the Alaska state price range, the Division of Income stated Tuesday, releasing new estimates exhibiting a deficit of about $220 million within the fiscal 12 months that ends June 30 and one other deficit of about $240 million within the 12 months that begins July 1.

State legislators have already agreed to spend from financial savings to fill the present deficit by spending from the state’s Constitutional Finances Reserve, they stated Tuesday, however it’s not but clear how they’ll handle the deficit within the upcoming fiscal 12 months.

Members of the predominantly Republican Home majority coalition have already taken a significant step to handle the scenario by proposing to chop this 12 months’s Everlasting Fund dividend from the quantity proposed by Gov. Mike Dunleavy in December.

Underneath the governor’s unique proposal for the price range that begins July 1, the deficit can be between $890 million and $920 million, relying on the estimate used. Alexei Painter, director of the nonpartisan Legislative Finance Division, and Neil Steininger, director of the governor’s Workplace of Administration and Finances, every provided totally different figures.

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On Monday, the Home Finance Committee proposed a brand new price range draft that cuts the governor’s proposed $3,860 per-person dividend to about $2,700 per individual. That drops the anticipated deficit to about $240 million.

That determine doesn’t embody the estimated $250 million price ticket of a proposed improve to the state’s per-student funding components for Okay-12 colleges, or any development or renovation tasks sometimes added to the price range by legislators yearly. These objects weren’t included within the governor’s proposed price range and should not included within the Home price range.

Rep. DeLena Johnson, R-Palmer and co-chair of the Home Finance Committee, stated on Tuesday that additional actions can be forthcoming.

The brand new smaller income forecast, she stated, “is the elephant within the room.”

Earlier than lawmakers eat the elephant in fiscal 12 months 2024, they’ll should maintain the one in fiscal 12 months 2023, which ends June 30.

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Legislators sometimes embody language within the price range that claims any deficits can be mechanically crammed by the state’s Constitutional Finances Reserve, however the price range they accepted final 12 months lacks that language, as a substitute saying that any deficits must be crammed by a state financial savings account that’s simpler to entry, the Statutory Finances Reserve.

That account holds solely about $20 million, Painter informed the Senate Finance Committee earlier this 12 months, not sufficient to cowl the deficit.

Spending from the constitutional reserve requires three-quarters of the Senate and three-quarters of the Home to agree.

The bipartisan Senate majority contains 17 members, and if all agree, that’s sufficient.

“I’d anticipate that the Senate would help three-quarter vote entry to the CBR not solely in ’23, however in ’24,” stated Sen. Bert Stedman, R-Sitka and co-chair of the Senate Finance Committee.

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Within the Home, the bulk coalition is just 23 members and never all members are required to vote collectively. Meaning the votes of the 16-person minority caucus are wanted.

A invoice proposed by Dunleavy to cowl state prices by June, referred to as the “fast-track” supplemental invoice, is making its approach by the Legislature.

Home Minority Chief Calvin Schrage, I-Anchorage, stated that if the fast-track invoice doesn’t change earlier than the ultimate vote — flooring amendments are potential — the minority is ready to help the Constitutional Finances Reserve vote.

“We’re going to do our due diligence to ensure that that’s tight and been buttoned up, however assuming it’s, I tentatively intend to have our caucus help the CBR,” Schrage stated.

Gov. Mike Dunleavy, chatting with reporters in Anchorage on Tuesday, stated he doesn’t see any issues with utilizing the CBR to cowl the deficit this fiscal 12 months.

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The CBR comprises solely about $2 billion, and the state makes use of it to handle fluctuations in money movement; if its steadiness drops too far, there could possibly be issues, state accountants have warned.

When requested how the state will cope with the deficit in fiscal 12 months 2024, the governor was equivocal. He stated there can be discussions about cuts, discussions about new income, and for the second, the difficulty is within the arms of the Legislature.

“And so the actual means of hammering out this price range sort of begins now,” he stated.

This story initially appeared within the Alaska Beacon and is republished right here with permission.



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Alaska

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.

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A Christmas & Hannukah mix of winter weather

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A Christmas & Hannukah mix of winter weather


ANCHORAGE, Alaska (KTUU) – A variety of winter weather will move through Alaska as we go through Christmas Day and the first night of Hannukah.

A high wind warning started Christmas Eve for Ketchikan, Sitka, and surrounding locations for southeast winds 30-40, gusting to 60 miles per hour. Warnings for the combination of strong winds and snow go to the west coast, western Brooks Range, and Bering Strait.

Anchorage is seeing a low-snow Christmas. December usually sees 18 inches of snow throughout the month. December 2024 has only garnered a paltry 1.5 inches. Snow depth in the city is 7 inches, even though we have seen over 28 inches for the season. A rain-snow mix is likely to hit Prince William Sound, mostly in the form of rain.

A cool-down will start in the interior tomorrow, and that colder air will slip southward. By Friday, the southcentral region will see the chances of snow increase as the temperatures decrease.

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The hot spot for Alaska on Christmas Eve was Sitka with 48 degrees. The coldest spot was Atqasuk with 23 degrees below zero.

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