Gov. Bill Walker’s budget vetoes have carved at $17 million hole in Anchorage’s revenues, with the bulk of that drop hitting the school district.
In a move he called “unprecedented,” Walker spoke by phone through a hoarse voice to the Anchorage Assembly during its Tuesday night meeting. The brief remarks addressed how the gridlock in Juneau is beginning to directly impact the local budgeting process.
“Pushing this off to local government is not at all what we wanted to do,” Walker told assembly members of his veto actions over the legislature’s operating budget.
He went on to add that the dire fiscal situation confronting the state is an “entirely preventable disaster,” but one he’s concerned legislators will not act on.
“As they push stuff on us, we don’t have a lot of tools to deal with them,” said Anchorage Mayor Ethan Berkowitz shortly after the governor’s call. “They basically said, ‘Here, it’s your problem.’”
In a memorandum to the Anchorage Assembly, officials from the administration spelled out the $16.6 million budget gap that will have to be closed if Walker’s vetoes over the budget hold.
The biggest chunk of that money is in a 25 percent drop in how much the state reimburses local governments for bonded debt over construction projects and upgrades to schools. Because those bonds were voter approved, property owners in Anchorage will be responsible for paying the $10.8 million difference, according to an email from ASD spokesperson Heidi Embley.
The remaining $5.25 million in cuts to transportation and the foundation formula is likely to be covered by the school district’s fund balance.
The school board is meeting Aug. 1 to decide on a revised budget.
Another $1.8 million drop is expected as a result of Walker’s limit on the Permanent Fund dividend. Because the Anchorage Police Department garnishes some PFDs, the governor’s $1,000 cap is expected to reduce collections.
The Berkowitz administration is analyzing whether or not additional cuts could potentially impact the city budget.
“He made decisions I wouldn’t have made,” Berkowitz said of Walker. “But he has people’s attention.”
- Under Alaska state law, at least 30 days’ notice is needed to hold a non-emergency special session during the interim. That would push any special session now up against the holidays.
- The Tazlina was scheduled to have new side doors installed this winter. Instead, the state ferry will provide service between Juneau and the communities of Haines, Skagway, Hoonah and Gustavus.
- Bruce Tangeman, who ran the state's Department of Revenue, also wrote that any potential new taxes would support what he called an unsustainable budget, as well as permanent fund dividends.
- The NTSB update is a detailed, seven-page statement of facts about the flight and the investigation, with sections on the runway, the flight recorders, the plane and its engines. It does not assign a cause to the crash. That's expected later.