Legislature moves forward in its work, but in fits and starts

State legislators in Juneau are moving forward with their work, but predictably in fits and starts. A bill by Rep. George Rauscher, R-Palmer, to give the Legislature a lead role in deciding on protected water body designations, instead of having the state administration do it, passed out of the House Resources Committee April 13.

House Bill 95 is now in the House Rules Committee, one step away from action on the floor of the state House. The so-called Tier 3 water body designation is a highly-restricted classification that can also affect adjacent uplands along streams and lakes.

The U.S. Clean Water Act requires states to make the designations. Alaska does not yet have a process to do that. Rauscher believes the responsibility to do that should lie with the Legislature instead of the state administration so that public involvement is guaranteed.

Meanwhile, the state operating budget was stalled on the House floor through most of this week as Republican House leaders held off a final vote to make sure they had enough of their members present to pass the version that came from the House Finance Committee.

The 40-member House is almost evenly split between its Majority, led by Republicans, and a Minority consisting of Democrats and independents. It takes 21 “yes” votes to pass the budget, or any bill, but only a majority of those physically present to vote for an amendment.

If there are House members absent there must still be 21 present to vote yes to pass a bill. However, if there is a move on the House floor by the Minority Democrats and independents to reopen the budget, and if there aren’t enough Republicans present there could be an extended new round of wrangling over the budget.

The prior week, April 3 through April 7, was essentially consumed in debating amendments on the House floor. That resulted in little other work being done in the House.

Meanwhile, the state Senate is working on its version of the operating budget while awaiting the House bill. Since the Senate is led by a large majority of moderate Republicans and Democrats, it is expected that a Senate operating budget will look similar to a version the House Minority might like.

Another reason why House Republican leaders are closely counting their votes is that if the Senate sends its version back to the House it is possible that the House Minority might be able to persuade a handful of Republicans to join them and to adopt the Senate version.

The possibility of losing control on the budget may be keeping House leaders like Speaker Cathy Tilton, R-Wasilla, and House Finance co-chair Rep. DeLena Johnson, R-Palmer. Awake at night.

Meanwhile, it is Day 87 in the 120-day legislative session and there is about a month left before the required adjournment at midnight, May 17. There are about four weeks left to pass not just the operating but a capital, or construction, budget as well along with pieces of major legislation.

The only substantial differences, at least so far, between the House and Senate in the operating budget may be the amount of Permanent Fund Dividend and how the Permanent Fund’s annual payment to the state is split – which will largely decide the size of the PFD. Another issue, however, is the amount of a possible increase in education funding.

The operating budget items important to the Matanuska-Susitna Borough include the state’s annual payment for school bond debt reimbursement, and that seem to be resolved and in the borough’s favor.

The Senate is now at work on the capital budget, and although there is not a lot of money for capital this year the basics of the budget will be seen in a few days. Some parts are assured like required state matching funds for federal infrastructure funds for highways, airports and other transportation projects, as well as rural sewer and water projects.

There are also a number of other pending legislative proposals. The most important is an inflation-adjustment to the Base Student Allocation, or BSA, the formula that guides state funding to school districts including in Mat-Su.

The BSA has not been changed since 2017 and several years of inflation since then, particularly last year’s, have reduced the purchasing power of the state funds that are allocated under the formula.

State aid for pupil transportation, or school bus operations, has been similarly frozen, this since 2016. Fuel and other costs are rising sharply for bus operations and school districts that cover large areas, like Mat-Su, are having to support bus operations from general funds.

Another education-related proposal, this from Gov. Mike Dunleavy, is for a three year pilot program that would pay an annual bonus to teachers who stay on the job. Mat-Su teachers would get a $5,000 bonus with larger bonuses, with $10,000 and $15,000 bonuses paid to teachers in outlying areas and more remote rural school districts.

The governor’s bill is aimed at stemming the high turnover rate among teachers particularly in rural schools.

One bill of prime interest to the Mat-Su school district is a proposal to give school districts and municipalities the option of merging their employee health plans with that operated by the state for its employees.

Hearings on bills to do that were held last week in the House Labor and Commerce Committee and in the Senate Education Committee.

Mat-Su school superintendent Randy Trani told legislators that the estimated cost savings to the school district of joining the larger state plan is $5 million a year with another $2 million in savings to school employees in reduced health insurance premiums.