Time to “march” forward and update you on happenings in your state capital. Here’s the skinny. The Senate Finance Committee has indicated there’s a $536 million shortfall currently. That is a half-billion dollars so clearly not chump change.
The $536 million shortfall is based on a 75/25 PFD and an increase to schools at $175 million.
The 75/25 PFD would be paid by 25% of the draw from the Permanent Fund earnings which would put the PFD at $1400. The $175 million increase for schools equates to either a $680 Base Student Allocation (BSA) increase or a combination of a BSA increase at some level plus policy reforms that target funding to improve student academic achievement with the two together totaling $175 million.
And yet, loud cries for spending fill the halls
HB 69 is being promoted by the House Majority and the NEA but it calls for a $1000 Base Student Allocation (BSA) increase climbing in two years to an $1800 BSA increase (and notably, contains zero policy reforms to improve student outcomes even though Alaska is ranked 51 out of 53 among the states and territories). Add to this that both the House and Senate Majorities are calling for a return to pensions for public employees to an estimated tune of $90 million.
Please tell me how all this makes sense. If we have a $536 million deficit, where do we get the funds to put more than a $175 million increase toward schools and a new $90 million toward pensions?
Well, the proponents of these increases are looking two places.
- New taxes
- An additional decrease to the PFD
And here’s the funny part: they do not have the votes for either.
NOTE For discussion on items #1 and #2, see article: “They’re Coming to Take Your Money Away – Ha Haa!”.
