Education, pensions, energy: They’re all on the table in Juneau

The Legislature is past the 30-day mark on its 2024 session about a quarter way to the mandatory adjournment on its 120th day, which will be in mid-May.

Things are off to a busy start, too. Hot-button issues like education funding and a change of the pension system for public employees are in already play, which is a good sign because there’s ample time until the session’s end for agreements to be worked out.

On education, six legislators, three from the House and three from the Senate, are in active discussions over differing approaches by each body. The Senate passed a bill last year that gives a substantial boost to the Base Student Allocation, or BSA, the formula that guides state funding for schools.

The House has rejected this and is proposing a several changes to school funding that are targeted problems like teacher retention but also boosting charter schools and correspondence home study. The House is offering a small BSA increase.

In a briefing last week Rep. Craig Johnson, R-Anch., the House Rules chairman, said good progress is being made in reconciling differences. Sen. Bill Wielechowski, D-Anch., the Senate Rules chairman, agreed progress is being made but the issues still remaining are the tough ones, such as the BSA increase.

It’s unknown whether Gov. Mike Dunleavy will sign off on a compromise bill particularly if it includes a substantial BSA increase, which he has opposed. However, there could be enough of what the governor wants in a final bill, such as the charter school and home-study provisions along with bonuses for teachers, that he may go along with compromises.

Public employee pension reform is another issue in active discussion. Senate Bill 88 passed the Senate recently and is now in the House. It gives state, municipal and school workers the option of a “defined benefit,” or traditional pension, as well as the “defined contribution,” or 401k-type retirement savings plan now being used

The House reaction to the Senate bill has been cool. House Speaker Cathy Tilton, R-Wasilla, gave SB 88 assignments to three committees in the House, which often signals the death of a bill because of the time it takes to navigate through three committees.

However, the proposal is a priority for the Senate, Senate President Gary Stevens, R-Kodiak, has said, which means it is likely to be included in the end-of-session negotations.

Despite the initial cold shoulder, House leaders say they are open to discussion of pension legislation. Improvements are needed so that state agencies can slow employee turnover and retain veteran workers, Sen. Cathy Giessel, R-Anch., sponsor of SB 88 has said.

Lawmakers have their hands full with energy issues, too. Pending shortages of natural gas in Cook Inlet are of prime concern because gas fuels heating for homes and buildings in southcentral Alaska as well of much of the power generated in the region.

Rep. George Rauscher, R-Sutton, has a bill that would reduce the state royalty on gas production in the Cook Inlet basin. The governor has similar bill pending. Raucher’s bill is being worked on in the House Resources Committee and may move from that committee soon.

A reduction in royalty may be enough to spur new drilling and gas production in at least one smaller Cook Inlet gas field, the Kitchen Lights field, its owners have said. There are likely to be other proposals coming soon on incentives for new gas, several legislators have said.

Another issue that is looming, but not yet on the front burner, is possible legislation to either induce regional utilities who own power transmission lines to lower their rates for others sending power from one region to another. Lower costs of power transmission through the “railbelt” electric grid is need to make planned large renewable energy projects economically viable.

Anchorage’s Sen. Cathy Giessel, who cochairs the Senate Resources Committee, has said that if a voluntary plan among the utilities cannot be reached the state may have to step in with a regulatory mechanism.