90 session ended, work remains

Our 90-day legislative session ended Sunday and here is the 30,000-foot view of events and spending passed by the Alaska Legislature.

We concentrated on resolving the PERS/TRS retirement and benefits liability (currently $9 billion) by passing pension obligation bonds. We also implemented a long-term plan for education funding and a plan for municipal revenue sharing.

The supplemental budget was the first major budget tackled — one designed for unanticipated emergencies such as wildland firefighting or assistance to the Department of Corrections for major operations. Since the supplemental budget wasn’t treated that way, the governor strongly objected to using it as a place for capital projects that rightfully belong in the capital budget. A compromise allowed about one-third to stay in the supplemental, one-third moved to the capital budget and one-third was vetoed.

The state’s operating budget grew by leaps and bounds, partially because we need more police, judges and prisons when we pass new laws increasing penalties for crimes. There was also a substantial increase in operating costs due to fuel charges and labor agreements. Then there was additional money needed for maintenance of public facilities. In all, the increase was substantial.

The capital budget finished out somewhat north of $2.9 billion, much of it for major maintenance statewide. This budget arrived from the governor with about 64 percent of the total already in it. The Senate added another 24 percent and the House 12 percent. Much of the governor’s portion is for the State Transportation Improvement Plan (STIP), which includes roads, the marine highway and bridge maintenance.

Added to this capital budget is an additional $350 million bond bill I objected to. With the state awash in money, it seems an odd time to be floating bonds for projects that translate to debt that will be paid back by future generations. Worse, a disproportionate amount of money in this bond proposal is dedicated to build projects in Southeast Alaska, especially the area around Sitka, and was inserted by the Senate Finance Committee co-chair (who just happens to live in Sitka).

While I disapprove of this action, it is the co-chair’s right to insert those projects he believes in and it is also the public’s right to vote them down. Voters get this choice at the next general election.

Some other budgetary legislation that passed provides the option of free hunting/fishing licenses to active-duty National Guard members, reducing the fees to get a business license and, even though your Valley delegation tried to repeal the tire tax, the measure failed.

On a final brighter note, with a revenue windfall, we stashed away $5 billion into our rainy day accounts (Constitutional Budget Reserve). The high price of oil put us in a great position for savings.

Once the governor determines the final budget(s) (after all, she does have a veto pen), I will let you know the remaining items of interest to District 13 and the Mat-Su overall. My staff and I will also provide an update to several pieces of legislation we worked on this session.

As always, thank you for your support and feedback. I look forward to a month of home life before returning to Juneau for the special session dealing with the selection of a licensee to construct a Trans Alaska Gas Line. Nothing on the horizon will do more for our next generation.

Hope to see you in town.

Rep. Carl Gatto represents House District 13 in the state House of Representatives.