By Sen. Gary Stevens, R-Kodiak
Hello from Juneau! With the legislative session now in its second month, the Capitol is a busy place. It’s great to be meeting with constituents from across Senate District C.
The Senate Majority remains steadfast with our priorities to boost public education funding, address public employee and teacher retirement, update election processes, and tackle Alaska’s ongoing energy issues to ensure long-term sustainability and affordability.
Education Funding
Public education is a foundation of our economy, and it is a constitutional right of every young Alaskan. If we want to attract the best teachers, educate Alaska’s youth to be the best students in the nation, and encourage young families to come to our state, we must begin by providing the resources that are so desperately needed inside the classrooms. Years of flat funding and high inflation has pushed our public education system into crisis. In a recent joint education meeting we heard from school districts, students, and teachers from across Alaska about crowded classrooms, school closures, and teacher shortages. Families are leaving this state because of the lack of opportunities and stability.
The Senate and House have been negotiating with the governor on an education package to support our schools, students, and teachers. HB 69 to increase the Base Student Allocation (BSA) passed out of the House Finance Committee and is headed to House Rules next.
The governor’s education bill, SB 82, includes teacher bonuses, reading proficiency incentive grants, increased funding for correspondence programs and career-technical education, and streamlining for charter school authorizations. This bill is being heard in Senate education. I have some concerns with removing an elected school board’s local control and giving it to an unelected state board to establish charter schools. Our current level of local control and parental involvement is what makes our charter schools thrive.
In addition, tying educational outcomes to funding needs will not turn this crisis around, but only exacerbate it. We must provide teachers and students with the basic needs first before we can expect them to do more with less. It is our responsibility to understand this and challenge ourselves to provide the necessary resources to allow our teachers to succeed and students to thrive. The Senate Majority has identified those needs and will continue advancing through our legislative process to rebuild Alaska’s high-quality public education system.
We look forward to collaborating with our legislative colleagues and the governor to achieve this worthy goal. I also appreciate the many calls and emails from all of you on this issue and encourage your continued engagement.
FY 2026 Budget
The governor released his amended budgets last week. Changes include removing $50 million for AIDEA for the gas line development project; adding more than $5.9 million for the governor’s Executive Order 136 to establish a new Department of Agriculture to include creating a new commissioner’s office, new staff positions, and overheads costs; and adding $4.9 million to support the Division of Public Assistance’s Virtual Call Center and fund 15 new positions which are greatly needed based on the number of calls my office is getting from concerned constituents experiencing delays with their senior benefits and heating assistance.
You can read more about the amended budgets on the state’s OMB page: omb.alaska.gov.
Revenue
State revenue fell $230 million from the projected Spring Revenue Forecast due to a decrease in oil production and drop in the price per barrel. (Every $1 decrease in price per barrel equals a $35 million to $40 million reduction in revenue for the state.) Additionally, tax collections from oil companies have been reduced lately due to several oil companies developing fields on the North Slope, allowing them to deduct their capital expenditures from their taxes.
Even with a reduced PFD, it will be difficult to balance the budget this session. The Senate Majority does not feel it is prudent to use the Constitutional Budget Reserve (CBR) savings to balance the budget. We will need to look at sustaining the revenue we have as well as possible new revenue sources. Last year the Legislature passed, and the governor signed legislation for the state to pursue revenue from carbon sequestration, but unfortunately, this has not generated any revenue to date. Recently, SB 92 was introduced in the Senate which would restructure the state corporate income tax so that it was applied equally to all companies in Alaska including S corporations. It could generate as much as $150 million per year. SB 92 has been referred to Senate Resources and Finance committees.
What would you support? I welcome your thoughts on how to balance the budget and provide for improved education funding and other vital services.
2025 Legislation
HB 65 passed the House and Senate Finance committee this month and is now headed to the Senate floor. This bill authorizes the Alaska Railroad Corporation (ARRC) to issue a total of $135 million in revenue bonds for the replacement and expansion of the passenger dock and terminal facility in Seward. ARRC is partnering with Royal Caribbean Group to finance the new facility through a 30-year commitment from Royal Caribbean as the dock’s anchor tenant. The bonds will be covered by revenue generated from the dock operations. No state dollars will be used for repayment.
Please keep in touch!
I appreciate hearing from you about legislation, budgets, and other state issues. Please do not hesitate to reach out to my office if we can be of assistance to you with state agency matters.
Phones:
907-465-4925 (Juneau)
800-821-4925 (toll free)
907-235-0690 (Homer)
907-486-4925 (Kodiak)
Email: [email protected]
Sincerely,
Sen. Gary Stevens
District C
