Budget, ferries and anti-discrimination bill on Rep. Muñoz’s plate this session

Rep. Cathy Muñoz (R-Juneau) in her office before the start of the 2016 legislative session. (Photo by Jennifer Canfield/KTOO)
Rep. Cathy Muñoz (R-Juneau) in her office before the start of the 2016 legislative session. (Photo by Jennifer Canfield/KTOO)

A bill that would ban discrimination based on sexual orientation and gender identity is on the back burner as lawmakers focus their efforts on the state budget and a proposed pipeline.

Rep. Cathy Muñoz’s House Bill 42 isn’t likely to escape the House State Affairs Committee, chaired by Anchorage Republican Rep. Bob Lynn.

“We’ve tried to get the committee to hear the bill and move the bill but it’s going to take the community, individuals who are interested in this issue to contact their legislators, contact the committee chairman to encourage the bill to get a hearing and to move forward,” Muñoz said.

One topic lawmakers must address this session is the state budget and how to fund it. As the price of oil has plummeted since the fall of 2014, the state’s deficit has grown to $3.5 billion. Gov. Bill Walker’s proposal for the budget year that begins in July increases existing taxes on mining, oil and gas, alcohol, motor fuel, tobacco, cruise ships and fisheries.

Walker also proposed a major change to how the Permanent Fund and its earnings are managed, and is pushing for a state income tax equal to 6 percent of a person’s federal tax obligation.

Muñoz said that while there are many options on the table when considering the state’s budget shortfall, a broad-based tax shouldn’t be one of them.

“I’m concerned about the impact that an income tax would have on individual Alaskans at a time when the economy is in a downward trend,” she said.

Muñoz said she is interested, however, in Walker’s proposal to funnel more resource development royalties into the Permanent Fund to generate more earnings. State government would then be funded by a yearly draw on the earnings reserve; Permanent Fund dividends would be based on the amount of natural resource royalties paid to the state, instead of a 5-year average of investment returns.

“If we can get through a sustainable plan using a portion of the earnings reserve, I think we can protect the dividend in the long term and also provide a sustainable and reliable revenue source to pay for state government,” Muñoz said.

And to pay for the Alaska Marine Highway System. Muñoz said she’s working with other coastal lawmakers to stem further cuts and to find a way to reliably fund and operate the ferries.

“I don’t believe the ferry system can continue to sustain the level of cuts going forward,” Muñoz said. “In the governor’s budget we’re looking at $4 million cut. That’s a substantial cut to the system’s budget. I think that will be one area I will focus on this session with other coastal legislators to try to look at a sustainable and reliable level of funding so that we can have predictability in our scheduling.”

The 2016 legislative session is scheduled to end April 17, but Muñoz said leadership may decide early on to push that end date another 30 days. While the legislature is only scheduled to meet for 90 days, the Alaska Constitution allows them to meet in regular session for up to 121 days.

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