LUTHERAN QUILTERS – Members of the Quilts for Comfort Group stand between pews draped with some of the 205 quilts they made, in the Sitka Lutheran Church Tuesday. The group made the quilts for five local non-profits and one in Anchorage. The remaining quilts are sent to Lutheran World Relief which  distributes them to places around the world in need, such as Ukraine, as part of Personal Care Kits. Pictured are, from left, Helen Cunningham, Kathleen Brandt,Vicki Swanson, Paulla Hardy, Kim Hunter, Linda Swanson and Sue Fleming.  (Sentinel Photo by James Poulson)

State's Transportation Plan Gets Federal OK
28 Mar 2024 15:06

By JAMES BROOKS
Alaska Beacon
    Federal officials on Wednesday approved most of Alaska’s four-y [ ... ]

New Funding Plan Ahead for Visit Sitka?
28 Mar 2024 15:02

By SHANNON HAUGLAND
Sentinel Staff Writer
    At an hour-long work session with the Assembly Tuesda [ ... ]

Sitka 'Frankenstein' Puts Classic Tale in New Ligh...
28 Mar 2024 15:01

By GARLAND KENNEDY
Sentinel Sports Editor
    The story behind a classic, though often misunderstoo [ ... ]

State May Los Millions Over Ed Dept. Missteps
28 Mar 2024 14:59

By CLAIRE STREMPLE
Alaska Beacon
    The state government risks losing millions of dollars in feder [ ... ]

Gov Signs Bill On Internet In State Schools
28 Mar 2024 14:57

By JAMES BROOKS
Alaska Beacon
    Alaska Gov. Mike Dunleavy on Wednesday signed a bill that promise [ ... ]

Capitol Christmas Tree to Come from Tongass
28 Mar 2024 14:56

By YERETH ROSEN
Alaska Beacon
    Alaska’s Tongass National Forest, known for its steep mountains [ ... ]

City League Games Thursday
28 Mar 2024 14:52

By Sentinel Staff
    Playing Wednesday in competitive division City League volleyball matches, Ca [ ... ]

March 28, 2024, Police Blotter
28 Mar 2024 14:50

Police Blotter
Sitka police received the following calls by 8 a.m. today:
March 27
At 2:36 p.m. a dead  [ ... ]

March 28, 2024, Community Happenings
28 Mar 2024 14:48

This Week in Girls on the Run By Sitkans Against Family Violence
and The Pathways Coalition
During th [ ... ]

New RFP Sought For Managing PAC
27 Mar 2024 14:48

By GARLAND KENNEDY
Sentinel Staff Writer
    The future of management and operations at the Perform [ ... ]

Seiners Get Second Day with 2 Areas to Fish
27 Mar 2024 14:46

By Sentinel Staff
    The Sitka Sound commercial herring sac roe fishery continued today with open [ ... ]

Braves Take Second in Last Minute Upset
27 Mar 2024 12:41

By GARLAND KENNEDY
Sentinel Sports Editor
    After storming into the state 3A boys basketball brac [ ... ]

Tuesday City League Volleyball
27 Mar 2024 12:39

By Sentinel Staff
    The Queen Bees’ spotless season record ended Tuesday night with a 2-1 loss [ ... ]

Kodiak Alutiiq Museum Getting New Attention
27 Mar 2024 12:37

By SHIRLEY SNEVE
Indian Country Today
    A major renovation at an Alaska museum to attract tourist [ ... ]

House Hearing on Inmate Deaths Halted
27 Mar 2024 12:35

By CLAIRE STREMPLE
Alaska Beacon
    A presentation about a jump in the number of inmate deaths in  [ ... ]

Nominee to Bering Sea Council: Not a Trawler
27 Mar 2024 12:34

By NATHANIEL HERZ
Northern Journal
    Tribal and environmental advocates calling for a crackdown o [ ... ]

March 27, 2024, Police Blotter
27 Mar 2024 12:26

Police Blotter
Sitka police received the following calls by 8 a.m. today:
March 26
At 2:10 p.m. a man e [ ... ]

March 27, 2024, Community Happenings
27 Mar 2024 12:25

Big Rigs Sought
For April 13
The 3 to 5 Preschool’s spring fundraiser and Big Rig event is happening [ ... ]

Reassessments Raise Tax Bills for Sitkans
26 Mar 2024 15:22

By SHANNON HAUGLAND
Sentinel Staff Writer
    The city’s reassessment of taxable real estate, alo [ ... ]

Two Areas Opened in Herring Fishery Today
26 Mar 2024 15:21

By Sentinel Staff
The third opening in this year’s Sitka Sound sac roe herring fishery was held Mon [ ... ]

Lady Wolves Rally to Take Fourth at State
26 Mar 2024 15:16

By GARLAND KENNEDY
Sentinel Sports Editor
    Sitka High’s Lady Wolves bounced back from an openi [ ... ]

Edgecumbe Girls Close Out Season Up North
26 Mar 2024 14:58

By GARLAND KENNEDY
Sentinel ports Editor
    Competing in the state 3A basketball tournament in Anc [ ... ]

City League Monday
26 Mar 2024 14:55

By Sentinel Staff
    Playing in a competitive division City League volleyball game Monday evening [ ... ]

House Votes to Broaden Rules For Review Panel Memb...
26 Mar 2024 14:52

By JAMES BROOKS
Alaska Beacon
    A bill that passed the Alaska House of Representatives on Monday  [ ... ]

Other Articles

Daily Sitka Sentinel

Stedman: PFD Is Big Question In Budget

By SHANNON HAUGLAND
Sentinel Staff Writer

Sitka’s state senator says before working on the budget this year, he wants to make sure he has a clear picture of how big the shortfall will be.

“I don’t want to mask the true size of the deficit,” said Sen. Bert Stedman, co-chair of the Senate Finance Committee, which reviewed the first half of the governor’s proposed budget last week.

“No matter how ugly this tar pit looks – it is what it is, and let’s do what we have to do to fix it,” he said.

Stedman estimated the size of the structural deficit at between zero and $2.5 billion, depending on the size of the Permanent Fund dividend that’s paid out, among other factors. Gov. Dunleavy is proposing paying out as much as $5,000 per citizen.

The Legislature gaveled in on Jan. 19, and the Senate organized soon afterward under leadership of the Senate’s Republican majority, with Stedman once again named Finance co-chair. The committee started work last week reviewing Gov. Dunleavy’s budget, which was released in December.

“Even if we adopted his proposals, we still have about a $400 million deficit,” Stedman said. “I doubt very much we’ll be contesting all of his proposals, but we’ll need a clear view of the structural deficit so we can focus our policy discussion on dealing with it. And try to benchmark what’s the possibility for budget projections, and what magnitude.”

From left, Alaska Senate President Peter Micciche and state Sens. Mia Costello, Bert Stedman and Shelley Hughes confer during the Senate floor session on Jan. 20 in Juneau. (Sean Maguire/Alaska’s News Source via AP, Pool)

Stedman said the state has enough revenue to meet obligations in the operating budget – but that’s without a dividend.

“But we’re going to pay a dividend,” Stedman said. “The question is what size dividend do we pay and how do we pick up additional reductions and expenditures from other revenue sources, and that might take a couple years (of working through the process to fix the deficit).”

Stedman expects a lot of discussion will occur around changing the dividend formula.

“(Dunleavy’s) dividend formula would still leave a $400-million-plus deficit,” Stedman said. “His rewrite is $2,300 apiece. But we still have a deficit issue so we have to do something else also, or lower the dividend or you run a structural deficit till you run out of cash and you implode the system and nobody has a dividend.”

Stedman said Alaska has to pay out a “reasonable dividend,” but did not say how much it should be.

The senator also expects a number of discussions around how much to draw out of the Permanent Fund earnings reserve. He said that while he regards the current drawdown of around 5 percent as a little high, the governor’s budget calls for an 8 to 10 percent draw.

“That’s unsustainable in every way, shape and form,” Stedman said. Higher payouts, as proposed by the governor this year, may provide short-term gains this year but would end up costing Alaskans in the future with smaller or no dividend payouts.

Stedman said the Finance Committee will continue its work reviewing the budget this week. He plans to meet with the governor to discuss some of the committee’s concerns after that.

Stedman said he has his eye on other factors contributing to budget challenges including the effect of COVID-19 on the state and Southeast economy, particularly fishing and tourism.

He expressed concerns about  President Biden’s proposal to “lock up” federal lands and waters, which could cause further harm to the fishing industry.

Stedman also expressed concerns about the lack of a capital budget, and the state’s falling behind in school and other infrastructure construction and maintenance, as well as the capital needs of the ferry system.

He said the problem of the state’s structural deficit can’t be fixed by new taxes, or overdrawing the Permanent Fund, which would have serious repercussions.

“You couldn’t tax (the citizens) that much,” he said. “We’ve got to fix the problem. There’s no free lunch and the math has got to work. ... Last year’s dividend of $1,000 – it’s still going to take work to reach that. The higher the dividend, the more the impacts to the Permanent Fund until at some point you don’t have a Permanent Fund. It’s been liquidated out. And that’s the issue in front of the Legislature: Is the Permanent Fund permanent? Do we pass it on to future generation of Alaskans, or do we just spend it? I for one want to see the Permanent Fund for future generations. I don’t want to see it liquidated; I don’t want to see it overdrawn – that doesn’t mean it won’t happen.”

 

 

 

 

You have no rights to post comments

Login Form

 

20 YEARS AGO

March 2004

Advertisement: Tea-Licious Tea House & Bakery 315 Lincoln Street Grand Opening! Freshly Baked Scones, Cakes & Pastries Innovative Salads, Soups & Sandwiches Harney & Sons Tea. Lunch * Afternoon Tea * Supper.

50 YEARS AGO

March 1974

Photo caption: National Republican Chairman George Bush takes a drink of water offered by Jan Craddick, Sitka delegate, during the Republican convention held here. Mrs. Craddick explained to Bush that the water was from Indian River, which means, according to local legend, that he will return.

Calendar

Local Events

Instagram

Daily Sitka Sentinel on Instagram!

Facebook

Daily Sitka Sentinel on Facebook!