Last E-News of the Decade
For this last E-news of the decade, I want to take the time to fill you in on some of the happenings of the Legislature as I get ready to go down to Juneau.
Governor’s budget
Last Wednesday, the Governor released his budget proposal for Fiscal Year 21. For the most part, it is a status quo budget that is similar to what was ultimately passed last year. I always like to start with positivity, so I will say there are a few things that I appreciate about this proposal and then will explain the many ways that it falls short.
- It fully funds K-12 public education according to the established formula
- There is an increase in funding for the Alaska Pioneer Homes
- There is $43 million for homelessness assistance
I would note that the above items that reflect Alaskan values were made possible because people, such as yourself, made your voices heard during the last budget process about what was important to you which, overwhelmingly, included supporting education and our Seniors.
Although this proposal is a good starting point, there are still glaring areas where it falls short. During this past summer, I and many of my colleagues attempted to override some of the Governor's vetoes including cuts to the ferry system, public broadcasting and Medicaid. I intend to keep fighting to make sure that these important programs receive the State support they deserve.
As this budget proposal currently stands, some of the key issues is how it is funded.
- It relies on a $1.5 billion dollar draw from the Constitutional Budget Reserve (CBR)
- Lacks a true fiscal plan to address dwindling oil revenues and production
Currently the CBR, which is one of multiple State savings accounts, is at about $2 billion, down from $10 billion just five years ago. Essentially, this proposal would continue to draw down that savings account in order to cover a deficit that is ballooned by unsustainable PFD payments and a lack of adequate revenues. Many financial experts have argued that holding less than $1 billion in the CBR could put the State in a difficult position to respond to unforeseen emergencies, such as this year’s forest fires which cost about $95 million.
Continuing to draw down the CBR is obviously not a sustainable plan, so I look forward to working with my colleagues to build a budget that has a responsible fiscal plan. However, we still need your help in building a budget that works for everyone, so please continue to take an active roll in this year’s budget process by telling your legislators what you think and taking advantage of opportunities for public testimony.
