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Alaskans ask for school, health and other help during budget hearings; what are legislators hearing?
- Mark Sabbatini
- Mar 16
- 6 min read
Expectation of extra oil money due to Iran war means some requests, higher PFDs possible; but high degree of uncertainty, focus on gasline also commanding attention
By Mark Sabbatini
Juneau Independent
Alaskans calling in by the dozens last week asked lawmakers to provide funding for education, caregivers for the elderly and disabled, food banks, domestic violence programs and many other things in next year’s state budget.
The odds some of those items — along with Permanent Fund Dividends — may see a boost are higher than a few weeks ago, with an official forecast Friday predicting an extra $500 million for the state during the coming year, mostly due to higher oil prices caused by the Iran war. But there’s a high degree of uncertainty about that forecast — and some lawmakers also have other priorities in mind.
The words "gasline" and "pipeline" were not spoken by any of the residents testifying during the three days of hearings by the House Finance Committee last week, according to audio and transcripts of the meetings. But the proposed Alaska liquid natural gasline project is what a legislative leader says he’s hearing most about from constituents when it comes to what they want to see included in next year’s budget.
"I think the number one thing that we hear in this legislative session is talk about a gas line," said House Minority Whip Justin Ruffridge, R-Soldotna, during an informal press session hosted by minority leaders Friday. "And so I think we really need to be, I would say, cautious with answering some of the questions about what we spend money on in the next two months while we await some sort of decision on what happens there."
When asked about the absence of testimony about a pipeline in the House Finance meetings, he said "you also have to remember that we don't just hear from people calling into House Finance."
"We hear from people calling our office phones," Ruffridge said. "We hear from people emailing us. We hear from our constituents when we go back home for town halls. So there's a variety of sources that we hear from as legislators from our districts, and I can say that a large number of people throughout the state of Alaska are really concerned about what are we going to do with that."
A gas pipeline is among the dominant issues being discussed by policymakers this legislative session, but there is considerable skepticism among some legislative leaders about the project’s viability due to a lack of solid data.
To the extent oil and gas drilling was discussed during public testimony at the House Finance Committee meetings Wednesday through Friday, it was mostly asking for taxes on that industry be raised to help the state fund the items being requested.
"Oil companies operate in far tougher tax environments than ours and yet they continue to invest in those locations," said Bill Wise, a bed and breakfast owner in Valdez. "Increasing oil taxes is not anti-industry. It is pro-Alaska to ensure that the owners of the resources — citizens — receive a fair return and that our state is not left vulnerable every time the global market shifts."
The committee also received 84 pages of written testimony as of last Wednesday. The only direct pipeline/gasline reference in those is a Nome resident asking lawmakers for "rebalancing away from entities such as AIDEA, the Alaska Oil & Gas Conservation Commission, the Alaska Gasline Development Corporation, and other commissions whose primary role is to promote or subsidize industrial resource development and moving those dollars into programs that directly serve Alaskans is a reflection of what Alaskans value."
The price for North Slope oil topped $100 a barrel on Friday, the highest level since August 2022. The updated revenue forecast calls for an average price of $91 for the four-month period ending June 30 and an average of $75 for the fiscal year beginning July 1. But the uncertainty is so high there’s a 10% chance of prices reaching $200 a barrel at some point and a 10% chance of them dropping to $30 a barrel.
The House Finance Committee is scheduled to consider the operations budget bill throughout this week. Lawmakers have said a $12 billion budget that preserves the status quo, including a $1,000 PFD, would need oil prices to average about $65 during the coming year, so the promising-yet-uncertain revenue forecast means they may be room to add program spending, capital projects and dividend payments.
"Because of the revenue projections it's going to be easier to be operating budget chair than it was going to be 24 hours ago," Rep. Andy Josephson, an Anchorage Democrat who co-chairs the House Finance Committee, said last Friday. "Because now we have some opportunities to look at maybe a larger capital budget, more education funding, maybe a larger dividend, maybe more operation adds."
Among the people at last week’s hearings seeking a boost in public school funding was Madeleine Bass, 15, a Juneau high school student. She said the Juneau School District is facing a $5.3 million deficit in its budget for the coming year, causing strain to teachers who are at contact impasse and putting things like a Tlingit language and cultural program at risk of cuts.
"Programs like this one, along with other programs or classes that are in danger of being cut, make school worth going to for so many students," she told the finance committee. Furthermore, despite "our suffering teachers and our dying education diversity, we are one of the luckier districts."
"The Anchorage. School District is cutting over 10 sports from their district, including volleyball and hockey," Bas said. "Schools across the state are falling down. Without a school how are kids expected to learn? Without sports how do we expect our next generation to learn skills like sportsmanship and teamwork? This funding is not a luxury. It is necessary to keep these districts afloat. It is necessary to keep Alaskan youth in school and learning for at least this year."
Jim Mackovjak, a Gustavus resident, asked legislators to ensure there are enough funds to ensure reliable operations for the Alaska Marine Highway System. Chalyee Éesh Richard Peterson, president of the Central Council of the Tlingit and Haida Indian Tribes of Alaska, sought funding for Village Public Safety Officers, public schools and behavioral health programs.
Ruth Mitchell, a community health worker in Homer representing a union of such employees, was among the many citing personal hardships in making pleas for more social program assistance.
"We are caregivers that have people in our families that are needing assistance and they don't always get enough help the way it is," she said. "And then us as caregivers are being pulled in different directions, trying to put a roof over our heads and food on our table, plus trying to care for families that are needing help. And we've got people that are on waiting lists for several years trying to get assistance. And so if we could get some money into the budget to make it to where they get better hours and better pay for the caregivers, it would be very much appreciated."
Amy Simpson, an Anchorage resident, asked the committee to restore about $5.7 million to an infant learning program that legislators included in last year’s budget, but vetoed and then not included in this year’s budget proposed by Gov. Mike Dunleavy. She said the program hasn’t received a funding increase since 2013 "and in that time, the cost of doing business has increased dramatically."
"Programs have stretched every dollar doing more with less for over a decade," Simpson said. "But there's a limit and when funding doesn't keep pace children receive fewer services during the very window when intervention is most effective."
The House Finance Committee will go through an extensive amendment process before the proposed budget is sent to the House floor, where more amendments will likely be debated before it is passed. The Senate will then go through a similar process with its finance committee and a floor vote. Historically the differences in the budgets passed by House and Senate are then resolved by a six-member conference committee before a compromise final budget is voted on in both chambers at the end of the legislative session in May.
• Contact Mark Sabbatini at editor@juneauindependent.com or (907) 957-2306.
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