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Dear Friends and Neighbors,
March madness refers, of course, to the exciting basketball tournament in Glendale underway but it is also a perfect term to describe happenings in our capital. Blocks, fouls, passes, scores, you name it – they’re happening in both places!
You’ve all been hearing this past week about the attempt by some legislators to block the governor’s veto of SB 140, a bill with a statutory school formula funding increase and some minor policy reforms. Some have been in a foul mood that the score was down by just one vote to override the veto. and there’s certainly no shortage of passing – passing judgment and blame back and forth.
In my opening letter to you here, we’ll sort through the school funding and policy situation a bit and figure out where we are now and what we can do to help our students and teachers. We’ll also take a peek at what’s happening with the budget, including the PFD, and the proposed plan to wrap up the session my mid-May. We’ll let you know who our surprise guests will be at my next coffee chat. Hopefully that will leave time for you to read my article about my A.I. work, browse the photos, and check out the slide images* noting some of the bill hearings that might be relevant to you.
*A shout-out to my aide Stephen who creates these so expertly each week!
No Vote is Saying No More to Alaska’s Schools Ranking Worst in Nation
Those who upheld the veto by voting no, yours truly included, were saying no to the lack of results and accountability – that it is absolutely NOT okay that statewide our students rank 49th and 50th in the USA in various subjects at various grade levels. There are proven reforms that will help our students and our teachers. Some think the poor academic rankings are solely due to lack of funding but if this were the only reason, we would not have any schools in Alaska succeeding. And yet, there are some schools in Alaska where the vast majority of students are gaining grade level proficiency and above year after year. This indicates there are problems besides funding in the many other schools where a majority of students are not achieving proficiency. A 2007 court ruling (Moore vs State of Alaska) puts it on the state, on the legislature, as its constitutional duty to remedy the poor performance situation.
I am not going to go into all the reasons the direct teacher payments make sense, will work, will continue beyond the proposed period, and will free up formula dollars, and I won’t take the space here to lay out how public charter schools are the ultimate local control, how ours in Alaska are top in the nation, and how remarkably successful they’ve been here and across the country, particularly for low income students. But if you’re interested in any of that information and want to know more, reach out and give me a call.
Old Guard Resistance
Despite the evidence, the resistance to these proven reforms by the NEA, the old guard education establishment, and their lobbyists lining their pockets is astounding. Because of this resistance, these policy reforms won’t pass as stand-alone bills. Thus the veto. Thus the upholding of the veto.
So here we are: in order for a base student allocation (BSA) increase in law to cross the finish line, major policy reforms must cross the finish line too.
Those wanting the teacher incentive and charter reauthorization policy reforms have stated on the record that they will agree to a BSA increase. Those who only want the BSA increase have stated the policy reforms are “nonstarters” and “that there are lines that cannot be crossed” – in other words, up until now they have not been interested in negotiating these items.
These legislators saying no to the direct teacher incentive payments and no to adding one or more public charter school authorizers must be willing to come to the table to negotiate and pass the two policy reforms. The BSA increase is on them at this point. The “reformers” are willing to “fund”; now we need the “funders” to be willing to “reform”.
Political Games Won’t Help Our Children
While I wish it weren’t so, it appears many who are against the reforms are willing to walk away, not fund the schools, and use the children as political pawns during the election season. They will attempt to blame the lack of the BSA increase on those who stood for the funding increase paired with reforms in an effort to unseat them. At this moment in time, however, the BSA decision sits squarely on the laps of those in the funding-without-reforms camp. This is the true narrative – why? Because we still have time.
Still Enough Time but Only if Public Insists
Legislators still have time to go back to the drawing board and pass a package that includes both the BSA increase and the important reforms that will help improve student outcomes and better compensate teachers for sticking with their game-changing profession.
If those against the reforms don’t come back to the table, the best we’ll be able to do is provide some funding for schools outside the formula (so not guaranteed for following years) which the governor will likely partially veto down because legislators would not negotiate his reform package and ensure at least certain funds went to items proven to improve student outcomes.
So, either there will be compromise on the reforms and a full BSA increase inside the formula that will continue in perpetuity OR there will be a partial increase outside the formula that will be temporary. That is our present reality. We are on the course for the latter unless large numbers of Alaskans speak up and convince the legislators against the reforms to go back to the table and negotiate and pass them.
Budget Time is PFD Time
The House Finance Committee released a committee substitute to the operating budget bill, HB 268, on Friday. It adds $190 million to the previous version of the bill, the bulk being $175 million for schools that had been in the fiscal note for SB 140. The bill also includes $5 million for the Alyeska Reading Academy and $1 million for Alaska Resource Education.
The PFD included in the bill is one-third of the POMV draw from the Permanent Fund which is less than the full statutory dividend but higher than what the Senate Majority has been planning, especially since the House Finance Committee chose to add two halves of an amount outlined in last year’s budget based on oil prices to the PFD. One half is for the energy rebate to Alaskans, and the other half was planned to be deposited into the Constitutional Budget Reserve but is proposed in the House’s plan to go toward the PFD. This brings the PFD proposed by the House to $2250.
What Else is in That Thar’ Budget?
The operating budget bill includes AIDEA and AEA grid resilience funding, $3.7 million for the Council on Domestic Violence and Sexual Assault due to a drop in federal support, and related to our region, $1 million for vegetation removal along the Old Glenn Highway.
After the various additions, the remaining revenue, or headroom, is $150 million, a relatively small amount for a multi-billion-dollar budget. This amount is being reserved for fiscal notes on bills that pass or other items, such as any union-negotiated increases that are finalized in time.
The Committee Substitute also included a draw from the Constitutional Budget Reserve (CBR) in the event oil revenues are less than expected, but because that requires a three-fourths vote in each body, the CBR draw may not survive the budget process.
What’s the Plan, Man?
Already in flux, a plan to gavel out of the 33rd Legislature on May 14 points to an exchange of the operating and capital budget bills between the House and the Senate on April 12 with the budget conference committee process beginning May 6. For that hand-off to happen smoothly, the six finance co-chairs (three from each body) will need a few basic agreements in place regarding the capital budget – and that would need to occur in the next week or so to give the Senate the time to finish crafting and finalize their version of the capital budget.
With the House setting a higher PFD amount than the Senate Majority favors, the agreement on the size of the capital budget is sure to be a sticking point.
It is unlikely that we will see everything (both operating and capital budgets) stuffed into one bill this year like has happened in recent years – unless there is agreement between both bodies to do so. With the muscle the House Majority has flexed by working in concert with a governor who is not afraid to use his constitutional veto powers, the Senate Majority will want to avoid conflict and the chance of a veto of a “turducken” bill the House didn’t want. Avoiding a special session during election season hopefully will also be a great motivator to get the job done right the first time.
Upcoming Attractions - Note Today’s Early Broadcast Time
Join us later today at 4:30pm for our weekly Facebook Live. We’re broadcasting a little earlier than our usual 6pm time so I can attend a meeting at 5:30pm. If you’re a faithful viewer and that 6pm time slot works best for you, have no fear: the video will be posted and waiting for you! We will be talking about hot topics including, but not limited to, the budget, the PFD, and school funding. We’ll also let you know what bill hearings will be up this week (bill hearing slides are below too).
My next Coffee Chat is Saturday, April 6, 2024 and we’re excited two guest experts will be joining us to allow a special focus on two separate topics: education and artificial intelligence. We’ll be welcoming Department of Education and Early Development Commissioner Deena Bishop and State of Alaska Deputy Chief Information Officer Niel Smith.
Until We Meet Again
My responsibility to you is always front and center, whether I am on the Senate floor, drafting policy, in a meeting, out and about in our community, or communicating with you. I will strive to be available in multiple ways to hear from you and what concerns you most. I am on Facebook, Instagram, and Twitter at AKShelleyHughes (links at bottom of email). You can also email me at Sen.Shelley.Hughes@akleg.com or call my office (907)465-3743 (Session) or (907)376-3725 (Interim) to get in touch.
As I state on my Facebook Senator page, mention in live broadcasts, and tell many of you in one-on-one conversations, with the volume of contacts I receive daily (multiple hundreds), my staff and I work hard to read and listen to everything so I can understand what you, our district, and the rest of the state is thinking. If you would like to ensure you receive my feedback on your issue and ideas, please call my office to set up a phone call with me or come by one of my constituent meetings so we can connect in-person. Hearing your input continues to be a top priority to me!
Working on your behalf,
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