Legislature(2025 - 2026)SENATE FINANCE 532
02/20/2025 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| Alaska Municipal League | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
SENATE FINANCE COMMITTEE
February 20, 2025
9:00 a.m.
9:00:47 AM
CALL TO ORDER
Co-Chair Hoffman called the Senate Finance Committee
meeting to order at 9:00 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Mike Cronk
Senator James Kaufman
Senator Jesse Kiehl
MEMBERS ABSENT
Senator Donny Olson, Co-Chair
Senator Kelly Merrick
ALSO PRESENT
Nils Andreassen, Executive Director, Alaska Municipal
League; Senator Cathy Giessel.
SUMMARY
^ALASKA MUNICIPAL LEAGUE
9:01:36 AM
NILS ANDREASSEN, EXECUTIVE DIRECTOR, ALASKA MUNICIPAL
LEAGUE, (AML) discussed the presentation, "Condition of
Communities" (copy on file). He pointed to slide 2, "About
AML 75th Anniversary!":
The purpose of the Alaska Municipal League is to:
Safeguard the interests, rights, and privileges of
Alaskan municipalities as they may be affected by
Federal and State governmental actions.
Secure cooperation among municipalities of the State
in a thorough study of local problems and in the
application of efficient methods of local government.
Provide means whereby municipal officials may
interchange ideas, experiences, and obtain expert
advice.
The objectives of the Alaska Municipal League are to:
Perpetuate and develop the League as an agency for
the cooperation of municipalities for the practical
study of municipal affairs.
Promote application of the best methods in all
branches of municipal service and the discussion of
problems of administration.
Gather and circulate information and experience
concerning the most approved methods of municipal
administration.
Secure general and municipal legislation at the
state and federal levels which will be beneficial to
the municipalities and inhabitants thereof, and to
oppose legislation injurious thereto.
Engage in the study and preparation of uniform
ordinances, resolutions, and practices
Strengthen Alaskan local governments' ability to
govern their own affairs and improve the well-being
and quality of life of their constituents.
Mr. Andreassen discussed slide 3, "Differences that make a
Difference":
Alaska's local governments are not created equal
Home rule vs. general law; limited vs. full service
Choices of some are not obligations of all
Uneven systems create questions of fairness and
inequity
Tax base, population, and statutory obligations have
consequences
As political subdivisions of the state, the power of
partnership means delivery of services that would
otherwise be the State's responsibility.
Additional services are paid by taxpayers or
otherwise limit current activities.
9:07:34 AM
Mr. Andreassen addressed slide 4, "Municipal Lane":
Education
• 34 municipal school districts
• 4 greater than State contribution Public Safety
• 70 with police powers
• 40 with combined budgets $75 million more than DPS
Transportation
Public Works
• Road Miles = DOTandPF
• 37 Electric Utilities
• 72 Ports and Harbors
• 112Water/Wastewater
Quality of Life
• 47 Public Libraries
• Parks and Recreation
• Community Pools
• Ice Skating Rinks
Community Halls
Mr. Andreassen looked at slide 5, "Planning, Platting, and
Land Use
Planning: The process of evaluating the best ways to
use land for the public's benefit.
Platting: The process of subdividing land, including
recording the plat with the SOA District Recorder.
Land use regulation: The process of creating and
enforcing rules for how land can be used.
Costs of Compliance = $30 million
Planning Commissions
Small $24-60k annually
Medium $60-120k annually
Large $120-300k annually
Comprehensive Plans (29.40.030 and .010)
Small $50-150k
Medium $150-400k (Seward, Nome, Kodiak)
Large $500k-$1M (Mat Su, Anchorage)
Additional - Land Use Plans (29.40.040), Hazard
Mitigation Plans (FEMA), Capital Improvement (State
funds), Transportation (MPOs), Economic Development
(EDA), Water/Sewer (utilities)
$2000-2500 to DNR for survey or platting services
9:12:19 AM
Mr. Andreassen highlighted slide 6, "Planning, Platting,
and Land Use
State ? (AS 29.65) Municipal Entitlement Act
• Vacant, Unappropriated, Unreserved (VUU)
• Certified Entitlement - (AS) 29.65.010
• Patented deed has been recorded
• Approved - but deed not recorded
• Conditional - State retains management authority
• Selected lands have been applied for
• Estimated Remaining what's left, pending survey
(29.65.070(a))
Mr. Andreassen noted that the greater access to full
entitlement the greater chance the land can be developed by
local governments.
9:14:57 AM
Mr. Andreassen displayed slide 7, "School Funding
$530 million in local tax contributions
Five contribute more than the State
Own and maintain 76 percent of schools
Mr. Andreassen highlighted that since FY17 municipal school
district funding had increased by 13 percent while state
funding had decreased. He said that approximately 50
percent of municipal school budgets came from local
contributions. He said that the majority of school is the
state were often owned and maintained by municipalities and
not the state. He pointed to the graph on the right hand
side of the slide which illustrated FY23 local
contributions as percent of municipal budgets.
9:17:22 AM
Mr. Andreassen addressed slide 8, "Public Works":
Society of Civil Engineers 2024 Fact Sheet and 2021
Report
1,632 bridges 8.2 percent structurally deficient
30 high-hazard dams, of 184
$1.4 billion drinking water need
$199 million in wastewater needs
37 percent of roads are in poor or fair condition
Solid waste - C
3.4 million passenger trips across municipal,
tribal, and nonprofit systems
Ports and Harbors D+
125 ports and harbors freight, commercial fishing,
tourism, etc.
$500 million needed for State-transferred assets
(circa 2000)
9:20:02 AM
Co-Chair Stedman spoke to the Harbor Matching Grant
Program, which included a 50 percent state match for
improvements. Under the program the municipality was then
expected to not come back to the legislature to request
funds for maintenance but to set up a reserve in their
structure to run as enterprise funds. He wondered whether
an analysis on the varying responsibilities between the
state and municipalities had been conducted.
9:20:49 AM
Mr. Andreassen replied that such and analysis had not been
done. He contended that many of the ports and harbors
currently managed by local governments had belonged to the
state at one point. He said that those assets came with the
agreement that the state would continue to support harbor
needs through the grant, which was a 50/50 partnership. He
argued that many of the harbors had already needed
improvements and that municipalities had made some progress
but not to the extend necessary. He shared that municipal
budgets could be mined for numbers pertaining to current
local obligation.
9:22:16 AM
Co-Chair Stedman said that the program was an attempt to
make the harbors self sufficient without the state being
responsible for maintenance or new infrastructure. He
believed that the harbor should be paying for itself
considering the additional 50 percent provided by the
matching grant program.
9:23:19 AM
Mr. Andreassen discussed slide 9, "Public Safety":
Police Powers
Home Rule City First Class City Second Class City
Registered Under Federal Law
Mr. Andreassen noted the 50 programs throughout the state.
He pointed to the smaller inlayed map that showed areas of
the state were broken into Local Emergency Planning
Districts (LEPD).
9:24:51 AM
Mr. Andreassen pointed to slide 10, "Quality of Life":
Full-Service Communities
Pools
Parks
Schools
Trails
Rec centers
Cemeteries
Museums
Senior centers
Festivals
Activities
He noted the bar graph on the slide, which showed the seven
aspects of quality of community life:
• As a Place to Work
• As a Place to Retire
• As a Place to Visit
• As a Place for Kids
• Overall Quality of Life
• Your Neighborhood as a Place to Live
• As a Place to Live
9:26:10 AM
Co-Chair Stedman noted that the graph was a nationwide and
thought that it would be helpful to have a similar graph
that was more specific to Alaska and things uniquely
Alaskan.
9:27:31 AM
Senator Cronk considered that living free from government
interference was more important to people in his districts
than the need for museums or any of the other items listed
on the slide, i.e., schools, cemeteries, parks, and trails.
9:28:04 AM
Mr. Andreassen discussed slide 11, "Salary Survey
Accounting Clerk
Municipal Range
Low: $15.00-36.42
High: $18.00-48.61
State of Alaska
Accounting Clerk (PCN 117072)
Full Time $20.21-$21.22 Hourly
Statewide
Average: $26.25
25th percentile: $21.91
75th percentile: 29.89
Firefighter
Municipal
Low: $19.67 37.17
High: $31.25 62.02
Statewide
Average: $53.34
25th percentile: $40.89
75th percentile: $62.44
State of Alaska
Seasonal/Long Term Nonperm
$23.50 - $33.96
Full Time
$33.18 - $42.97
Police Officer
Municipal Range
Low: $29.96-38.90
High: $38.21-60.46
Village Police Officer: $13.87/hr
Public Safety Officer: $15-18/hr
9:28:52 AM
Mr. Andreassen addressed slide 12, "Tax Base
9:29:52 AM
Mr. Andreassen spoked to slide 13, "Concentration of Tax
Revenue The slide showed a move from $8 million to $11
million. He noted that the slides did not reflect whether
taxes had gone up or down but rather that the tax base had
become diversified.
9:30:33 AM
Senator Kiehl asked what the percentage represented.
9:30:43 AM
Mr. Andreassen replied that it was the percentage of all
the different taxes that made up the tax base. He agreed to
provide more information later.
9:31:18 AM
Mr. Andreassen highlighted slide 14, "Mandatory
Exemptions
15.7$ billion in 2023
12.4 percent of total taxable value
Not all jurisdictions appraise exempt categories
The slide showed that mandatory exemptions in 2023 were
awarded to: Senior and Disabled Veterans,
Nonprofit/Charitable, Hospitals, Education, Tribal or
Native Allotment, Churches, Farm Use Land Deferred, and
Cemeteries. The right-hand side of the slide the percentage
of property tax base that was subject to S/DV exemption in
2023, by borough.
9:32:54 AM
Mr. Andreassen displayed slide 15, "Optional Exemptions":
$27.4 billion exempted in 2024
Includes real and personal property, including
modeled values.
Including mandatory exemptions, 34.2 percent of all
property is exempt.
The slide offered a pie chart that showed the share of real
property that is subject to optional exemptions, and the
value of real property real property option exemptions
figure for 2024, which included residential, senior,
community purpose, and other.
9:33:48 AM
Co-Chair Hoffman asked about retaining seniors in the state
who are living on fixed incomes. He relayed that freezing
property taxes for seniors over a certain age was under
discussion.
9:34:27 AM
Co-Chair Stedman added that the effects of inflation on
property taxes had sparked the discussion of a freeze for
seniors. He stressed that the state was losing too many
seniors and that more and more seniors were losing
generational homes for failure to pay property taxes.
9:36:09 AM
Mr. Andreassen replied that AML had investigated the senior
exemption history, which had been in established in 1972 as
a needs-based program. He said that the projected growth
for the senor population between now and 2025 was 207
percent.
9:37:36 AM
Mr. Andreassen addressed slide 16, "Stressed Communities
The slide showed a computer dashboard developed by the
Division of Community and Regional Affairs and the
Department of Environmental Conservation. The slide showed
rural communities involved in the Village Safe Water
Program. The slide offered best practice scores. The
dashboard was intended to illustrate current capacity
indicators in the 196 communities eligible for Village Safe
Water funding that choose to participate in Operation and
Maintenance Best Practices Dashboard. He noted that since
2016 there has not been much progress on improving best
practices for communities. He thought that it was a matter
that needed improvements.
9:39:28 AM
Mr. Andreassen discussed slide 17, "Challenges to
Overcome
Net Outmigration
Reduced Purchasing Power
Old Code
Workforce
Housing
Increased Costs
Limiting Liability
Uncertainty
Working Together
Mr. Andreassen relayed that the chart on the slide did not
reflect Alaska but represented the social determinants of
health in communities, which included four components;
Health and Wellness, Economic Ecosystem, Built Environment,
and Social and Civic Infrastructure.
9:40:25 AM
Mr. Andreassen pointed to slide 18, "Net Outmigration":
What do we do to reverse trends?
How do communities plan based on projections?
How do policies respond to different age groups?
How do policies respond to regional differences?
The slide contained five charts showing the following:
Population Age 0 to 19, Alaska, 1980 to 2050; Population
Age 20 to 64, Alaska, 1980 to 2050; Population Age 65 plus,
Alaska, 1980 to 2050; Population by Alaska Region, 2023 to
2050, and the Alaska Net Migration Rate, 1980 to 2025.
Mr. Andreassen shared that local governments were
considering what changes were affecting Alaskans decisions
to stay or leave the state and how to manage the outcomes
of those choices.
9:41:59 AM
Co-Chair Stedman requested the charts be redone to reflect
the changes in state population demographics since
statehood in 1958.
9:42:32 AM
Senator Kaufman wondered about the various impacts that
could result from populations in each specific age range
projected.
9:43:05 AM
Mr. Andreassen replied tht he would follow up with the
committee with a report from the Department of Labor and
Workforce Development (DLWD).
9:43:58 AM
Co-Chair Stedman spoke to the issue of housing in the
state. He cited specifically the problem of short-term
rentals displacing long-term rentals.
9:44:41 AM
Mr. Andreassen addressed slide 19, "Reduced Purchasing
Power":
$30 million in 2017 would be $39 million today = 25
percent reduction in purchasing power
Public safety one officer that was $80,000 in
2017, is $120,000 today = 125 fewer officers
Roads resurfacing was $200,000 in 2015, and is now
$300,000 = 50 fewer road miles
Affects the 89 local governments receiving the least
amount of Community Assistance, or the largest three.
The chart contained national numbers. Mr. Andreassen
lamented the lack of inflation proofing in community
assistance. He said that the reduction in community
assistance affected smaller and rural governments
differently than larger local governments.
9:46:44 AM
Co-Chair Stedman believed that educating the newer members
of the legislature about the program was critical to
staving off cuts to the program.
9:47:27 AM
Co-Chair Hoffman agreed. He noted that the Senate Finance
Committee had worked to reinstate the program after it had
been cut by the administration.
9:47:44 AM
Mr. Andreassen discussed slide 20, "Old Code":
Keeping up with Code
• Late 1970s development of template code
• 1980s adopted by many
• Standard language without adaptation for local
circumstance
• Few changes since then, for many.
• DCRA code library
• All boroughs and home rule cities
• Most first class cities
• 47 of 116, or 40 percent
Mr. Andreassen believed that the old codes could be
reviewed and updated to support stressed communities.
9:49:45 AM
Mr. Andreassen addressed slide 21, "Workforce":
Vacancies
14 percent average for state jobs, according to
LegFin = 2,000
Local governments range similarly from 10-40
percent, depending on department
2017-2021, average teacher turnover rate was 23
percent
Poaching
Increasingly common between local governments and
with the state small pool of public sector employees
Nonresident Hire State and Local Government
Of top 20 occupations, 7 are schools, as much as
14.9 percent
Police (9.3 percent) and Correctional Officers (6.6
percent)
Mr. Andreassen stated that local governments were exploring
many ways to address recruitment and retention challenges.
9:52:02 AM
Mr. Andreassen looked at slide 22, "Housing":
Local governments part of housing solution
Subdivision and housing development
Utilities and access
Accessory Dwelling Units
Manufactured homes
Investment and capital
Exemptions and abatement
Workforce housing
Housing assessments
Key Facts:
Renter households that are extremely low-income
19,545 or 21 percent
Shortage of rental homes affordable and available for
extremely low-income renters
-14,722
Average income limit for 4-person extremely low-income
household
$34,690
Annual household income needed to afford a two-bedroom
rental home at HUDs Fair Market Rent
$59,516
Percent of extremely low-income renter households with
severe cost burden
64 percent
• Alaska needs an estimated 27,000 housing units
over the next 10 years.
• 14,000 new units are needed to address population
growth and severe overcrowding.
• 13,500 units need replacement or renovation due
to housing condition.
• Over 150,000 housing units were built in the
1970s and 80s.
• Just over 20,000 units have been built since
2010.
9:53:57 AM
Mr. Andreassen addressed slide 23, "Increased Costs":
• Heating fuel in 2017 was around 4.49/gallon and in
January 2024 was $6.54.
• "Fuel is a 5th of our budget" due to high prices,
"the city ordered 7,000 gallons less than normal but
still paid $30,000 more"
• Insurance costs are especially impacts to highlight.
Mr. Andreassen spoke to the rising costs of insurance. He
spoke to the line graph on the slide, which showed the rise
in insurance over the seven years. He said that property
insurance had doubled over recent years.
9:55:29 AM
Mr. Andreassen discussed slide 24, "Limiting Liability
The slide showed a series of bar graphs that illustrated
liability frequency and severity by claim type over the
last 10 years.
9:56:26 AM
Mr. Andreassen pointed to slide 25, "Uncertainty":
Natural disasters
Cyber attacks
Federal agency priorities
Future of federal funding
State revenue shortfall
Fisheries
Tax exempt bonds
Federal budget
Economy inflation, development
"Local government is a balancing act between immediate
needs and long-term planning in a constantly evolving
landscape."
The slide contained a bar graph that illustrated sources of
uncertainty in local policymaking. Respondents who replied
to the question included: economic conditions,
state/federal funding, state/federal regulation, voter
opinion, and constituent groups.
9:57:24 AM
Mr. Andreassen addressed slide 26, "AML Shared Solutions":
Our shared services are intended to strengthen local
governments' capacity.
Financial Success:
Alaska Municipal Financial Solutions
Alaska Municipal League Investment Pool (AMLIP)
Sales Tax Collection Service (STCS)
CashVest
Online Sales Tax
Grant Writing
Public Surplus procurement
Employee Benefits:
Unemployment Insurance
Workshield
Strategic Hiring
Alaska Municipal Health Trust (AMHT)
Nationwide Retirement Solutions
Effective Operations:
Live Healthy Discount Program
Professional Development Academy
Employee Mental Wellness
Reporting and Compliance
Remote Notary Services
Cybersecurity Solutions
Planning
Effective Operations:
Live Healthy Discount Program
Professional Development Academy
Employee Mental Wellness
Reporting and Compliance
Remote Notary Services
Cybersecurity Solutions
Planning
9:58:40 AM
Mr. Andreassen looked at slide 27, "Role of State Decision-
Making":
Operating Budget
Community Assistance
PERS/TRS
Schools Finance
Schools Facilities
Capital Budget
Infrastructure Investment
The slide included a bar graph that showed the top 10
policy areas targeted by Alaska State Regulation in 2023.
9:59:12 AM
Mr. Andreassen addressed slide 28, "Operating Budget. The
slide contained four bar graphs of local government budgets
for Fairbanks, Juneau, Anchorage, and the Matanuska-Susitna
Borough.
10:01:18 AM
Mr. Andreassen looked at slide 29, "Community Assistance
He relayed that the program was like a fee for service
program in the 1970s and 80s. He said that overtime that
had changed, with community assistance disappearing
altogether, which resulted in the loss of 8 communities. He
stressed that the absence of community assistance directly
affected the health of Alaskan communities. He highlighted
that community assistance comprised between 10 and 40
percent of half of the communities in the state. He pointed
to the bar graph on the slide that showed the diminishment
of the assistance overtime.
10:04:25 AM
Mr. Andreassen pointed to slide 30, "PERS/TRS":
Recommendations from 2019 to be updated
Remove interest charged to PERS arrearages
Update salary floor, or remove
Remove administrative costs of termination study
Develop mechanism for smaller employers to exit
Enable employer to pay off their portion of net
pension liability
Address amortization period, and provide assessment
of additional costs
State to fund cost of difference between State
projected employment and actual vacancy rates
Mr. Andreassen said that local government were focused on
the 2008 salary floor that was costing local governments
and other employers $26 million. He said that many
considered themselves prisoners of PERS largely due to
the net pension liability. He wondered whether a different
system could be considered. He noted the pie chart on the
right which showed how local governments fit in as an
employer in the overall system.
10:07:19 AM
Co-Chair Stedman thought that the issue was who paid the
unfunded liability. He said that the termination study was
put in place to stop the shift of the liability to the
state. He noted that employers in the PERS system were
obligated to pay their employees. He expressed great
concern for the growing unfunded liability and how it would
impact employees. He thought that the mathematical model
used by the ARM Board was dysfunctional. He spoke to the
projected contribution rate proposed for the current
budget, which was substantial and an increase. He said that
there was an interest in reviewing the 22 percent cap. He
hoped that the rate could be slowly decreased. He warned
that the current course of action was not working. He
thought that it was immoral to straddle young Alaskans with
liability created in the 70s, 80s, 90s, and 2000s.
10:12:40 AM
Co-Chair Hoffman agreed.
10:12:53 AM
Senator Kiehl felt that the cost of the current system
pushed down on municipalities and was a cost to local
taxpayers. He believed that discussions with the ARM on
revamping the system were critical. He stressed the
importance of considering the costs to municipalities and
who managed the systems.
10:14:40 AM
Co-Chair Hoffman believed that municipalities needed to be
at the table for future talks on the matter.
10:15:01 AM
Co-Chair Stedman added that the ARM board actuary had
presented some calculation to the committee and would be
back to present in more detail. He said that the 13 percent
of the aggregate city hall payroll going for unfunded
liability had to come from somewhere. He believed that
issue would have ripples throughout future generations.
10:16:36 AM
Mr. Andreassen agreed. He said that AML would like to be
part of future discussion as local governments and Alaskan
taxpayers were currently making up a percentage of the
unfunded liability. He noted that when PERS was re-
amortized from 2031 to 2039 it shifted $20 million of the
liability to local taxpayers.
10:17:44 AM
Mr. Andreassen highlighted slide 31, "Public Education":
Recommended and Funded Capital Renewal by Fiscal Year
DEED 2024 Facilities
FY 6-year plan = $1,846,645,049 ($200M+ AVG)
19 districts did not submit 6-year plan / 35 percent
Plans range from 2 to 6 years
HB2003 Evaluation of combination of grant program,
GO Bond, and SBDR = 1/3 of all schools benefiting from
major maintenance
FY11-24 - Grants from School Construction and Major
Maintenance resulted in an average for school
construction of $52,677,128 (42 percent MSD) and for
major maintenance of $14,017,113 (59 percent MSD). 60
percent of school districts have benefited.
13 of 24 municipal districts submitted 112
applications for debt reimbursement = $803 million (0
since 2016)
Due to the decreasing amount of eligible debt
reimbursement being paid by the state, the statutory
calculation for the REAA fund capitalization is also
declining each year.
10:20:01 AM
Mr. Andreassen addressed slide 32, "Public Education":
Finance (FY23 Audited Financials - DEED)
Every local government contributed beyond the RLC in
FY24 = $240 million
18 of 33 provided more than 50 percent additional
Four have RLC/FVD amounts greater than 45 percent
Basic Need
State takes 75 percent of Impact Aid to reduce its
own obligation to meet Basic Need; 100 percent in
REAAs
Non-instructional functions = < 25 percent of costs
58 percent is operations and maintenance
The Alaska School District Cost Study hasn't been
updated since 2005
10:20:48 AM
Mr. Andreassen pointed to slide 33, "Capital Budget":
Local CIP from FY20-25ish = $2,835,244,289
GOV proposed FY26 = $282 million
FY23 GO and Rev Bond Debt = $195 million
14 communities
Municipal Bond Bank = $1 billion
New and refunding since 2005
2020 and 2021 largest years (52!)
Requests to AML FY26 = $48 million for heavy
equipment
10:22:59 AM
Co-Chair Stedman commented that his district had
approximately 27 percent of the debt listed on the slide
columns. He said that equated to approximately $14,000 per
resident. He contended that if Anchorage too on the same
debt it would cost $4 billion. He lamented the magnitude of
the debt load taken on by his district. He stated that much
of the debt was from energy costs.
10:24:36 AM
Senator Kiehl felt that an additional source of the debt
was large dock infrastructure. He said that a large portion
of that was like a recent railroad bill. He asked about the
bond bank chart and how Anchorage and Matanuska-Susitna fit
into the picture.
10:25:42 AM
Mr. Andreassen agreed to follow up with the committee and
explained that AML tracked geo and revenue bond debt for
all communities.
10:26:15 AM
Mr. Andreassen addressed slide 34, "Infrastructure
Investment":
214 Total Applications
$3.6 billion
70 Successful
$1.3 billion brought to Alaska
10:27:25 AM
Mr. Andreassen addressed slide 35, "Planning and Community
Development
Strategic Infrastructure Maintenance and Operations
Community Planning and Prioritization
Grant Development and Response
Grant Award, Partnerships, and Match
Procurement and Workforce
Project Management
Grant Reporting and Outcomes
Maintenance and Operations
Asset Management and Sustainability
10:28:29 AM
Mr. Andreassen discussed slide 36, "Leaning Local Member
Priorities:
1. State maintains an adequate level of services.
2. Increase State funding for municipal public safety
obligations (including police training, operations of
Community jails, and prosecutors and public defenders)
3. Cost-shifting of State expenses and programs to
municipalities
4. Prompt payments of Community Assistance and other
state payments or pass-throughs to municipalities
5. Increase investment in school construction and
deferred maintenance (including by providing Base
Facilities Allocation)
6. Increase Community Assistance distribution and tie to
inflation
7. Increase and inflation-proof the BSA
8. Oppose the transfer of maintenance responsibilities to
municipalities as the requirement for transportation
projects
9. Reinstate the Municipal Matching Grant program to help
match or supplement local and federal funding for
water/sewer systems
10. Address opioid epidemic
11. Increase compliance with fisheries bycatch
regulations
12. State-funded water and wastewater operator subsidy
13. Sustainability of the Alaska Marine Highway System
14. Increase investment in training and workforce
development for residents
15. Increase capital budget to address deferred
maintenance (including through mechanisms such as general
obligation bonds)
16. Maintain the authority of local governments to tax
the extraction or production of local resources
17. Transfer of State land to municipalities
18. PERS/TRS: Return to a defined benefit plan as a
significant tool for recruitment and retention
19. Oppose new or expanding mandatory property tax
exemptions
20. Clean-up and remediation of PFAS-contaminated sites
Mr. Andreassen relayed that the list reflected issues
directly affecting local government.
10:29:30 AM
Co-Chair Stedman expressed concern for the secondary
treatment of wastewater and the potentially high costs
associated with the problem. He hoped for a future update
on the matter.
10:30:39 AM
Mr. Andreassen thanked the committee for the opportunity to
present, and for their support of AML.
10:31:35 AM
Co-Chair Hoffman remarked that budget cuts at the national
level would directly and negatively affect the state, the
breadth of which was yet unknown.
Co-Chair Hoffman stated that the next meeting was scheduled
for the following Monday at 9am.
ADJOURNMENT
10:32:13 AM
The meeting was adjourned at 10:32 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 022025 2025 Condition of Communities - Final.pdf |
SFIN 2/20/2025 9:00:00 AM |
|
| 022025 AML Follow Up CORRECTED Local Taxation in Alaska - ACoM.pdf |
SFIN 2/20/2025 9:00:00 AM |
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| 022025 AML Senate Finance Committee follow up.pdf |
SFIN 2/20/2025 9:00:00 AM |