By Rep. Louise Stutes, R-Kodiak
I just returned from a weekend in Cordova attending a two-day Innovate Cordova conference.
It’s exciting as well as inspirational what a community can do when it works collaboratively on issues. While there, I was able to attend the ribbon cutting on the new South Boat Harbor. That is one first class harbor! A big thank you to the administration as well as John Boyle, commissioner, Department of Natural Resources for taking ownership of the property where the Eyak Weir is located. Let the rebuild begin!
At the beginning of the legislative session, I outlined my priorities, which were to provide for robust education funding, an appropriate increase to the Base Student Allocation (BSA), a thriving commercial fishing industry, and a viable and reliable Alaska Marine Highway System. This update emphasizes those priorities and highlights some funding for the district included in the operating and capital budgets.
Education funding
This session began with the Legislature’s failed attempt to override the governor’s veto of last year’s education funding bill. Setting the statutory BSA at an appropriate level is a high priority for educators in my district because it provides school districts with reliable funding and helps districts retain teachers. This year, the operating budget included a one-time boost of $175 million, or $680 in per-student school funding, a one-time increase of $7.3 million for pupil transportation, and $5.2 million in reading efforts for students in kindergarten through third grade.
The Legislature approved a bill that addresses the issues raised by a recent court ruling, which found two statutes underpinning Alaska’s homeschool system violate a section of the Alaska Constitution barring the use of state funds for private or religious education. House Bill (HB) 202 provides a temporary fix aimed at ensuring homeschooling under the state’s correspondence school programs can continue. In the final flurry of activity, the Legislature added a provision to a bill addressing opioid overdose drugs in schools that would require Alaska’s Board of Education and Early Development (DEED) to adopt regulations requiring an individual learning plan for homeschool or correspondence students. This plan must be consistent with the Alaska Constitution and require the department to monitor how allotments are spent.
Fisheries successes
In 2023, the Biden administration issued an executive order banning the import of Russian-caught seafood, however, the US market was still being flooded with imported Russian-caught fish processed in China or other countries. The Legislature subsequently worked with the Congressional delegation to close the loophole that allowed Russian-caught fish processed in China to be imported into the United States.
Joint Seafood Task Force
The Legislature created a joint task force on the seafood industry, which is facing unprecedented challenges by passing Senate Concurrent Resolution (SCR) 10. SCR 10 creates an eight-member task force to assist the seafood industry in finding solutions to help itself, but not to “bail out” the industry. It will consist of four members appointed by the Senate President and four members appointed by the Speaker of the House.
Reduced rate on loans
Passage of HB 273 amended the statutes governing the interest rate and maximum loan amounts for the Commercial Fishing Revolving Loan Fund for a period of three years. It sets the interest rate at 5.25% and increases the maximum loan amount for refinancing loans and gear and vessel purchases from $200,000 to $400,000.
The capital budget includes $10 million to the Alaska Seafood Marketing Institute and $5 million to the Alaska Travel Industry Association with the intent that they will work collaboratively to market Alaskan seafood and tourism. It also added $7.5 million to SeaShare for the Seafood Security and Processing Resiliency Project.
Additionally, I worked with the conference committee to restore $1 million in funding in the operating budget for (Westward Region Fisheries Management) crab test fisheries research in the Bering Sea.
I sponsored HB 19, which passed the Legislature this year. The bill removed a duplicate requirement to register commercial fishing vessels with the DMV. Owners currently must register their vessels with the CFEC, which is crucial for collecting information necessary to identify vessel owners and address derelict vessel problems. The bill was amended in the Senate to remove the $8 CFEC registration fee. It also repealed the Derelict Vessel Prevention Program Fund, with those funds being deposited into the general fund.
Alaska Marine Highway System (AMHS)
Under the capable leadership of AMHS’s Director Craig Tornga, the replacement funds for the M/V Tustumena are on a good trajectory. He is on the verge of meeting the federal requirements needed before the request for proposal (RFP) can go out for bid. I am grateful for the continued work by Director Tornga, the Alaska Marine Highway Operations Board, and the Department of Transportation & Public Facilities to address issues to make the AMHS functional so it can provide reliable and predictable service to our coastal communities.
The capital budget includes $23 million (toll credits) and $92 million in other federal funding for a total of $115 million for the M/V Tustumena replacement vessel.
Confirmation of governor’s appointees
The Legislature held a joint session to decide whether to confirm the governor’s appointees to various boards and commissions. Some constituents voiced their concerns about a few appointees. I voted against two appointees to the Board of Education and Early Development (BOE): Bob Griffin was not confirmed, but Barbara Tyndall was confirmed. I also did not support Michael Porcaro to serve on the Commercial Fisheries Entry Commission because he lacked relevant experience.
Operating Budget
The Conference Committee completed its work on May 14 and set the Permanent Fund dividend at $1,360 and energy relief at $295, for a combined total of about $1,655. This is more than last year’s dividend of $1,312. The operating budget also added $7.5 million for grants to childcare centers.
Capital Budget
The Legislature passed the capital budget, emphasizing deferred maintenance for the university and schools, weatherization for more energy-efficient homes, and renewable energy projects across the state. District 5 capital projects include:
- Cordova’s rebuild of Eyak Skaters Cabin, $212,000;
- Cordova’s Second St. Reconstruction, $363,880;
- Statewide Pavement and Bridge Preservation Program projects, $121.5 Million;
- Harbor Facility Grant Fund, $7 million;
- And $14.5 million to build housing in rural Alaska for professionals, such as teachers, nurses, and public safety.
Please remember I work for you. Please reach out to me with any questions or concerns on these or any other issues important to you and your family.
Sincerely,
Louise Stutes
Proudly Serving Kodiak, Cordova, and Seward
(907) 465-2487
