HATS OFF – Sitka High School graduates toss their mortarboards in the air after receiving their degrees Monday night in the Sitka High gym. This year 74 seniors graduated in a ceremony that included addresses by teacher Howard Wayne and class representative Nai’a Nelson, a performance by the symphonic band and a video of graduates. A car parade was held after the ceremony. (Sentinel Photo by James Poulson)

Himschoot's Bill Goes to Governor
21 May 2024 15:17

Sentinel Staff Writer
    Rep. Rebecca Himschoot hopes the bill she successfull [ ... ]

Awards, Diplomas for Pacific High Class of '24
21 May 2024 15:16

By Sentinel Staff
    Pacific High School Class of 2024 received diplomas, awards and lots of appl [ ... ]

Mullin Crushes Record at Regional Track Meet
21 May 2024 15:11

Sentinel Sports Editor
    Continuing their high-performing streak into the late [ ... ]

Dunleavy Checks Out Session's Energy Bills
21 May 2024 15:08

Alaska Beacon
    Energy bills passed by the Alaska Legislature will help the state [ ... ]

Bill Passed to Require Harbor Safety Ladders
21 May 2024 15:06

Alaska Beacon
    Harbors owned and operated by Alaska’s cities and boroughs will [ ... ]

May 21, 2024, Police Blotter
21 May 2024 14:07

Sitka police received the following calls by 8 a.m. today:
May 20
A case was opened after a man report [ ... ]

May 21, 2024, Community Happenings
21 May 2024 14:06

Forensic Training
Academy in Sitka
A public meeting to learn about the Alaska Comprehensive Forensic T [ ... ]

Assembly to Revisit Hiring of Attorney
20 May 2024 15:44

Sentinel Staff Writer
    Assembly members are weighing their next steps in hir [ ... ]

It's a Big Night for Sitka High Seniors
20 May 2024 15:41

Jamison Dunn, Felix Myers, Nai’a Nelson, Kylie Orlando, Benjamin Hedrick, Clarence Joaquin, Dani [ ... ]

Peltola Thanked for Aid to Projects
20 May 2024 15:37

Sentinel Staff Writer
    The leader of a Southeast commercial fishing organiza [ ... ]

Wolves Sweep Series, Secure State Softball Spot
20 May 2024 15:34

Sentinel Sports Editor
    Sitka High swept to victory in a three-game softball  [ ... ]

$92,000 in Grants Awarded By Sitka Charitable Trus...
20 May 2024 15:28

By Sentinel Staff
        Grants totaling $92,240 from the Sitka Alaska Permanent Charitable Tr [ ... ]

Bill Passed to End Use of PFA Pollutant
20 May 2024 15:25

Alaska Beacon
    For the second time in two years, the Alaska Legislature passed a [ ... ]

May 20, 2024, Community Happenings
20 May 2024 15:22

SJ Museum Posts List
Of Summer Native Artists The Sheldon Jackson Museum will host several artists t [ ... ]

May 20, 2024, Police Blotter
20 May 2024 14:38

Sitka police received the following calls by 8 a.m. today:
May 17
A traffic complaint was turned in at [ ... ]

Task Force Presents Report on Tourism
17 May 2024 15:56

Sentinel Staff Writer
    At a sparsely attended meeting Thursday, the Assembly [ ... ]

C.G. Presents Findings on Fatal Boat Accident
17 May 2024 15:55

Sentinel Staff Writer
    Well over 100 Sitkans attended a town hall-style prese [ ... ]

Short-Term Rental, Variance Approved
17 May 2024 15:52

Sentinel Staff Writer
    The Planning Commission passed two conditional use permit [ ... ]

City Loses Offer for Attorney Job
17 May 2024 15:50

Sentinel Staff Writer
    The single finalist in the Assembly’s search for a  [ ... ]

Driver Injured In SMC Road Traffic Accident
17 May 2024 15:49

By Sentinel Staff
    A driver was medevacked  early this morning following an accident in the 20 [ ... ]

Julie Hughes 40th Anniversary Triathlon Nears
17 May 2024 15:44

Sentinel Sports Editor
    Competitors will line up Saturday for the 40th annual [ ... ]

Lawmakers Expand Food Stamp Program
17 May 2024 14:35

Alaska Beacon
    More Alaskans will be able to access food stamps following law [ ... ]

Legislature Leaves Some Bills for 2025
17 May 2024 14:34

Alaska Beacon
    In the last days of their two-year session, Alaska lawmakers pass [ ... ]

May 17, 2024, Police Blotter
17 May 2024 13:23

Police Blotter
Sitka police received the following calls by 8 a.m. today:
May 16
At 12:41 a.m. a man wa [ ... ]

Other Articles

Daily Sitka Sentinel

Stedman: PFD Is Big Question In Budget

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



May 2004

Dr. Arthur Cleveland, a former dean at Columbus State University in Georgia, was named the new president of Sheldon Jackson College, SJC officials announced today. He will be replacing C. Carlyle Haaland, who has held the position for four years.


May 1974

Coaching and managing the Little League teams this year are John Abbott and John Calhoun, ANB; Dale and DeWayne Vilandre, Alaska Federal; Walt Barker, Elks; Frank Simmons and Frank Vilandre, Lions; Leo Bacon, Pat Ness, Cliff Robards and Bob Edenso, Moose; and Everett Webb, Sportsmen. Head umpire is Carl Karpstein.


Local Events


Daily Sitka Sentinel on Instagram!


Daily Sitka Sentinel on Facebook!