Cathy Muñoz 2014 Newsletter

Cathy MuÑoz
Representative for District 31
Photo by Art Sutch.
S e s s i o n
W r a p - u p
M a y
2 0 1 4
Dear Friends and Neighbors,
The second session of the 28th Alaska Legislature adjourned on April 25, 2014.
Major issues included a plan to address the unfunded liabilities of our public
employee and teacher retirement systems, a framework to develop a natural
gas project, and education funding.
The State Library, Archives, and Museum project will be done on schedule
thanks to $37.5 million approved this session. With the Walter Soboleff Cultural Center and the SLAM nearing completion, Juneau earns a place on the
map as a premiere regional arts and cultural center.
In January, public education was articulated as a key goal of the session. After months of debate over numerous proposals, the House and Senate deadCathy at her desk in House Chambers. locked in the final days on funding. In the end, a compromise was forged to
provide $100 million more a year for three years, with some of that increase
occurring in the base student allocation, some outside the BSA, and some targeted for special programs
such as improving school Internet broadband capacity, raising the stipend for boarding school students,
and establishing $3 million-a-year grants for a middle school pilot program that focuses on STEM– science, technology, engineering, and mathematics.
As chair of the House Finance University of Alaska Budget Subcommittee, I enjoyed learning about the
many diverse opportunities offered through our public university. The Fiscal Year 2015 budget includes
money for a new University of Alaska Southeast dormitory, the UAS mine training program, and fully
funded university teacher contracts. There also are $4 million in deferred maintenance for the Juneau
campus and federal pass-through money to complete the Chapel-by-the-Lake/UAS to Brotherhood
Bridge pedestrian and bike path.
See
jun eau capital
projects
—pages 2 & 3
•
education —
page 4
•
PRS /TRS bil l
passes
—page 6
•
special
r ecogn ition s
—page 7
One of the heaviest lifts of the session came in the final weeks. When a proposal was unveiled to extend
until 2073 the payments on the unfunded liabilities
of our public retirement systems, I introduced a successful amendment on the House floor that stripped
the language from House Bill 278, the education legislation. This allowed time to build support for a fiscally sound plan backed by Governor Parnell – a $3
billion investment in the retirement trust funds with
a 25-year payoff of the debt. In the end, this smart
approach passed and is heading to the governor for
signature.
Thank you for giving me the privilege to serve Juneau in the Alaska State House. It is an honor. If I
may be of help to you at any time, don’t hesitate to The House Bush Caucus presents a Rie Muñoz print to retiring Rep. Alan Austerman in House Chambers.
Left to right: Neal Foster of Nome, Bryce Edgmon of Dillingham, David Guttenberg of Fairbanks/Wade
call at 465-3744.
Sincerely,
Hampton, Jonathan Kreiss-Tomkins of Sitka, Cathy, Paul Seaton of Homer, Peggy Wilson of Wrangell, Eric
Feige of Chickaloon, Bob Herron of Bethel, Alan Austerman of Kodiak, Bennie Nageak of Barrow, and Sam
Kito III of Juneau. Photograph by Mark Gnadt.
j un eau / cap i tal budget
Legislature approves $2.2 billion capital budget
This year’s capital budget adds up to $2.2 billion. Of that, $839.6 million is state general funds.
In contrast, the capital budget approved last year had $1.2 billion in general funds.
The highlight for Juneau is $37.5 million to complete the State Library, Archives, and Museum. When that project is added to the list of items
for House Districts 31 and 32, the communities of Juneau, Douglas, Petersburg, Skagway, Tenakee Springs, and Gustavus will get more than
$137 million in total funds, of which nearly $60 million are unrestricted general funds. Funding for all this, of course, is contingent upon approval by Governor Parnell. Here are some of the capital budget highlights for Juneau and Southeast:
Juneau, Douglas, Mendenhall Valley, Auke Bay
State Library, Archives, and Museum Building
$37,500,000
Juneau Access $35,000,000
Egan Drive Re-Pave Downtown to Mendenhall Loop Road
$17,500,000
Alaska Marine Highway Fleet Replacement
$15,000,000
Alaska Marine Highway Ferry Vessel Refurbishment
$15,000,000
Alaska Marine Ferry Vessel & Terminal Overhaul Rehab
$12,000,000
Capitol Building Rehab Completion
$9,000,000
Egan Drive Salmon Creek Intersection
$6,550,000
Alaska Marine Highway System Fund
$5,000,000
UAS Deferred Maintenance $4,770,000
Alaska Marine Highway Construct/Lease/Purchase
Ferryboats and Terminals
$3,500,000
Glacier Highway Reconstruction Lena to Tee Harbor
$3,500,000
Alaska Marine Highway System Deferred Maintenance
$3,000,000
Glacier Highway Bike/Pedestrian Path—
Brotherhood Bridge to UAS
$1,500,000
CBJ Willoughby District Joint Parking Facility
$1,500,000
Juneau Last Chance Basin Well Field Upgrades
$1,350,000
Juneau Water Treatment Improvements $1,030,000
Juneau Lemon Creek Correctional Center Deferred Maintenance $900,000
Juneau Salmon Creek Water Treatment Secondary Disinfection $650,000
Dimond Courthouse Deferred Maintenance
$592,300
Juneau Youth Center Deferred Maintenance
$532,000
Marine Exchange of Alaska Vessel Tracking System Upgrades
$500,000
Juneau Pioneer Home Deferred Maintenance
$277,000
Juneau School District Curricular Materials
$200,000
SEAHRC Dental Clinic Expansion
$193,000
The new UAS student residence hall is expected to open this fall. The state operating
budget has $425,000 to cover the costs of opening the new 35,000 square foot, 120bed facility. For more information, call the student housing office at 796-6528 or go to
www.uas.alaska.edu/juneau/housing.
2 S e s s i o n
Capital Community Broadcasting Gavel to Gavel Video Servers
UAS Mine Training Equipment
Community in Schools Drop-Out Prevention
REACH Energy System Upgrades
Juneau Airport Approach Lighting
Dimond Park Field House Parking Paving
CBJ Fire Dept. Mobile Data Terminals
Front Street Health Center
Territorial Sportsmen Public Use Cabin
Southeast Regional Resource Center Renovations
Gruening Cabin Upgrades
SAIL Accessible Vehicle
Eagle River Boy Scout Camp Gun Range Improvements
Catholic Community Services Senior Center
Eagle Beach Trail Equipment
regional projects
Haines Ferry Terminal Upgrades
Skagway William Moore Bridge Replacement
Ketchikan Highway Paving Kake New Tank Farm
Ketchikan Swan Lake Hydro Sitka Passenger Vessel Facility
Kake Ferry Terminal
Petersburg Airport
Wrangell Paving Project
Ketchikan Pioneers Home
Sitka Water & Sewer Projects
Skagway Cruise Float Extension Haines Muni Building Biomass Project
Ketchikan Shipyard Petersburg Muni Building Complex Haines Harbor Float
Ketchikan Biomass Heating Project
Wrangell Upper Reservoir Project
Wrangell Shoemaker Bay Float Design
Pelican Ice Machine
Alaska Association of Conservation Districts
Gustavus Good River Culvert
Alaska Marine Stewardship Foundation
Sitka Tsunami Debris Clean-up
Sitka Science Center Facility Improvements
Petersburg Cemetery Columbarium
Gustavus EMS 911 System Upgrade
W r a p - u p
$190,000
$120,000
$100,000
$98,000
$93,750
$72,000
$66,000
$43,000
$37,500
$35,700
$30,000
$23,600
$15,000
$10,000
$6,200
$20,000,000
$13,400,000
$7,500,000
$3,550,000
$3,320,000
$3,300,000
$3,000,000
$3,000,000
$2,700,000
$2,200,000
$2,025,000
$1,800,000
$1,200,000
$1,180,000
$1,007,500
$996,000
$620,000
$615,000
$600,000
$300,000
$300,000
$107,500
$106,000
$100,000
$85,000
$64,958
Capital budget to help make Juneau an even better capital city
More improvements to Juneau’s Capitol Campus are coming. Senate Bill 119, the capital budget, has $9 million for a seismic retrofit
and exterior restoration of the Alaska State Capitol, $2 million for
the governor’s office to improve the building’s information technology and security system, and $190,000 to upgrade Gavel Alaska, the
service upon which many Alaskans rely for televised and web coverage of the legislature.
An amendment to House Bill 246 by Senator Dennis Egan will designate the House of Wickersham as the official residence of the lieutenant governor. Lieutenant governors will be able to live and perform official and ceremonial duties at this historic site built in 1898,
which once housed territorial judge and congressional delegate
James Wickersham.
The building will be maintained by the Alaska Historical Commission and will continue to be available for public tours and events.
Restoration work will begin this summer to renovate the Main Street side of
the Alaska State Capitol.
Besides this year’s legislative actions, citizens of Juneau, through our
local government, deserve kudos for making buildings and parking available to the legislature. This has cut down on the number of
complaints my office has heard over the years from legislators and
legislative aides. Efforts like these help us be a capital city of which
many can be proud and allow us to continue to earn the privilege
and honor of calling Juneau the Capital City of Alaska.
Juneau Access Update
Fiscal Year 15
General funds:
Federal funds:
$5 million
$30 million
A draft supplemental environmental impact statement evaluating different road and ferry alternatives
for transportation in Lynn Canal will be available for
public review and comment early this summer. The
state will hold public hearings in Juneau, Haines, and
Skagway and hopes to have an approved final document done this fall. Construction projects could be
advertised this winter. Work may begin as early as next
summer, in 2015.
The historic House of Wickersham on 7th Street: the new official residence
of the lieutenant governor.
Juneau’s new legislative delegation:
Rep. Sam Kito III, who replaced Beth Kerttula earlier this
year, Rep. Cathy Muñoz, and Sen. Dennis Egan on the steps
of the Alaska State Capitol.
M a y
2 0 1 4 3
ed u cat ion
Education bill increases
support for schools and
non-traditional programs
The legislature approved a wide-ranging education bill that
covers funding, charter and correspondence schools, STEM
(science, technology, engineering, and mathematics), tax
credits, ending the high school exit exam, and more. Using
Governor Parnell’s House Bill 278 as the vehicle, lawmakers reached a compromise between the House plan to boost
funding in the Base Student Allocation (BSA) and other areas by $75 million and the Senate version to increase spending by $125 million in one-time funding. The final bill splits
the difference at $100 million more a year in each of the next
three fiscal years (FY):
Cathy talking to students of Jamie Marks’ Floyd Dryden Middle School social studies class
during their trip to the Capitol.
FY 2015
FY 2016
FY 2017
BSA increase
One-time increase
Formula increase
Correspondence schools
Charter school size factor
$ 37.5 million
$ 43 million
$ 50 million
$ 32.2 million
$62.5 million
$19.9 million
$ 6.1 million
$ 483,900
$ 6.1 million
$ 483,900
$ 6.1 million
$483,900
Subtotal
$ 87.1 million
$ 88.9 million
$ 89.0 million
Other one-time increases
Internet broadband
Middle school STEM
Residential stipends
College readiness
Other
$ 5 million
$ 3 million
$ 2.2 million
$ 525,000
$ 2.2 million
$ 5 million
$ 3 million
$ 2.2 million
$ 525,000
$ 375,000
$ 5 million
$ 3 million
$ 2.2 million
$ 525,000
$ 275,000
Subtotal
$ 12.9 million
$ 11.1 million
$ 11 million
Total
$ 100 million
$ 100 million
$ 100 million
In the House Finance Committee, we added provisions to HB 278 to allow organizations to earn tax credits by contributing to STEM programs such as those offered by the Juneau Economic Development Council.
The legislature also approved a $3 billion infusion into teacher and public employee retirement trust funds as part of a plan to pay off the
state’s $12 billion public pension liability – an action that Ron Fuhrer of NEA-Alaska calls “an historic step.” This, he says will “ensure that
Alaska’s public retirees have a reliable retirement they can count on for decades to come.” For more on this, see page 6.
State education funding for Juneau for FY 2015
Education foundation funding:
Cathy with guest page Kathy Tran in House chambers. If you or someone
you know is interested in being a guest page, call me during the legislative
session, January through the middle of April, at 465-3744.
4 S e s s i o n
$36.9 million
Additional HB 278 funds:
$3.1 million
Pupil transportation: $3.2 million
School debt reimbursement: $14.1 million
Total: $57.3 million
Source: Alaska Department of Education and Early Development
W r a p - u p
sponsored and c o -sponsor ed leg isl at ion
Governor signs air ambulance services bill
Thousands of Alaskans can have a sense of peace
thanks to the passage of Senate Bill 159, a measure
to allow air ambulance service memberships to resume in the state.
Last November, the Division of Insurance stopped
Airlift Northwest, an air medevac company, from
providing its AirCare program after the company
reorganized under the University of Washington
– thus no longer qualifying for an exemption in
Alaska law. The AirCare program was a supplement to health care insurance that helped pay
out-of-pocket costs for emergency medical flights
that can cost as high as $100,000. More than 3,200
Alaskans were members, including nearly 1,300 in
Juneau alone.
When the state halted AirCare, I heard from many
Governor Parnell after signing SB159, the air ambulances services bill, with the Airlift Northwest crew
Juneau residents. My staff and I worked with Airat their hangar in Juneau. To his left are Chris Martin, executive director, and Shelley Deering, of Airlift
lift Northwest and the state insurance division to
Northwest. Marty Hester, deputy director of the Division of Insurance is second from the right. Above his
find a way to fix the law. SB 159 and House Bill 300
right shoulder is Rep. Andy Josephson of Anchorage. Photograph by Seanna o’Sullivan.
were the result. Each enjoyed bipartisan support.
SB 159 passed the House and Senate unanimously and was swiftly signed into law by Governor Parnell – thus allowing Airlift Northwest
and other air medevac companies to provide membership programs throughout Alaska.
Tsunami marine debris clean-up
An appropriation of $106,000 was added to the capital
budget to help the Alaska Marine Stewardship Foundation clean up debris on Southeast shores. This non-profit
organization is based in Juneau and sponsors marine debris clean-ups throughout Alaska. It has received funding
since 2003 from many sources to complete 103 clean-up
projects with 20 local partners removing more than 2.5 million pounds of debris.
The foundation works with local organizations to conduct clean-ups safely and has
published reports on marine debris in Alaska that can be found on its website www.
alaskamsf.org.
Volunteers cleaning up marine debris at Biorka Island near
Sitka. Photograph courtesy of Alaska Marine Stewardship Foundation.
Click on that link to find out how you may help this group and
its worthwhile mission.
Legislation of note
•
•
•
•
•
•
•
HB 216 recognizes Native languages as official languages in Alaska and HB 217 establishes November 14 each year as Dr.
Walter Soboleff Day.
SB 99 allows the state to finance infrastructure and construction costs of the Bokan-Dotson Ridge rare earth element
project and the Niblack project as well as provides approval of an $18.6 million loan to help pay for the Blue Lake hydroelectric expansion project in Sitka.
SB 194 creates the Alaska Tourism Marketing Board to help boost tourism.
HB 60 provides an easier way to transfer property upon a person’s death without going through complex and lengthy
probate court.
HB 263 extends the Senior Benefits program another three years.
HB 328 establishes a Board of Massage Therapists.
HB 293 revives the popular, standing brown bear license plates that were used in 1976 – only this time, without the
bicentennial symbol.
M a y
2 0 1 4
Cathy speaking at the August
1, 2013, ground-breaking
ceremony of the Walter
Soboleff Cultural Center.
Photograph by Peter Naoroz.
5
o ur r esources
State takes giant step to pay off $12-billion pension debt
A significant commitment was made this session to Alaska’s public employees and teachers. With a $3 billion investment from the
constitutional budget reserve into retirement trust funds – $2 billion
into the Teachers’ Retirement System and $1 billion into the Public
Employees’ Retirement System – a 25-year payment schedule was
approved to pay off the state’s $12 billion public pension liability. Annual payments will range from approximately $350 million to $500
million.
A retirement and
benefits update
The state’s 2014 draft retiree health plan document will
not be implemented this year. The retiree health plan
will continue to operate under the 2003 Draft Health
Plan Booklet as amended on January 1, 2014.
Fortunately, a competing proposal that would have extended the
debt to 2073 was defeated. This approach would have put into law
the draining of the trust funds and would have put state credit and
bond ratings at risk, according to an actuarial analysis.
The Division of Retirement and Benefits took comments on the plan until April 30 and has delayed adoption until 2015 in order to answer questions regarding
the transition to Aetna and Moda/Delta Dental of Alaska. The agency plans to continue to take public comments. A public meeting for Juneau is planned in June,
at a date and time to be announced.
It was an honor to carry House Bill 385 on the House floor on behalf
of Governor Parnell.
This monumental step demonstrates a strong commitment to
teachers, public employees, retirees, beneficiaries, and dependents
– nearly 120,000 people. It also assures that our credit rating stays
strong as we embark on bold ventures such as building an Alaska
natural gas project.
For more on this, go http://doa.alaska.gov/drb. At this
site, you can sign up for email news and updates.
Aetna, the state’s new third-party health care administrator, has an office in the Sealaska Corporation building in downtown Juneau at One Sealaska Plaza, Suite
305. It is open Monday through Friday, from 8:00 a.m. to
5:00 p.m. Contact Kelly Farmer, Aetna’s supervisor here,
at FarmerK@aetna.com.
A special thanks to Juneau constituents Sam Trivette and Tom Brice,
both members of the Alaska Retirement Management Board, for
working with me over the 2013 interim to lay the groundwork for
this significant accomplishment. And a deep, heartfelt thank-you to
retired Department of Revenue Deputy Commissioner Tom Boutin
who has counseled me on this issue since I first ran for the Alaska
State House six years ago.
Your input on the draft plans has been immensely helpful. Thank you for staying in touch.
Legislature approves framework to advance an Alaska
Natural Gas Project
The legislature passed an historic bill
by Governor Parnell this year to set a
framework to advance construction of
a natural gas project. The plan includes
a pipeline, a North Slope gas treatment
plant, and a Southcentral liquefaction
plant to prepare Alaska gas for shipment to Pacific Rim markets. Senate
Bill 138 creates an Alaska Affordable
Energy Fund to help build energy projects in areas outside the gas pipeline
corridor. After state gas royalties are
paid to the Alaska Permanent Fund,
this new energy account would get 20
percent of remaining royalties. Here
is a timeline that shows the stages for
moving the project forward.
Courtesy of the State of Alaska.
6 S e s s i o n
W r a p - u p
Special Recognitions
Being in the legislature is especially rewarding when we help, honor, and remember those who enrich our lives and community. Here are but
a few recent examples.
Alaska – Philippines Trade
Bethel Representative Bob Herron and I led a legislative trade mission in November 2012 to the Philippines. To see a seven-minute,
YouTube video about it, go to http://tinyurl.com/CathyPhilippines2012.
Based on this trip, we made a presentation last year to the Alaska
Seafood Marketing Institute Board of Directors, urging them to explore trade opportunities with the island nation which has strong,
historical ties with the 49th State.
The board listened. Early last month, ASMI provided Alaska seafood at an event in the U.S. Embassy in Manila, featuring products
from the Pacific Northwest. Alaska seafood was a big hit, we hear.
Now ASMI plans to attend the Asia Food Expo 2014 in Manila,
September 11-14.
ASMI is doing a good job maintaining ties with our Pacific neighbors. After Typhoon Haiyan devastated the Philippines last November, it provided more than 6,000 cases of canned Alaska pink
salmon to the people of Cebu who were among those hardest hit by
the natural disaster.
Coast Guard Master Chief
Carl Constantine
The legislature honored U.S. Coast Guard Master Chief Carl Constantine last February at an event sponsored by the Joint Legislative
Veterans Caucus to recognize those who have served in the armed
forces. Carl, a Juneau resident, enlisted in the Coast Guard on February 28, 1957, at Long Beach, California, and first came to Alaska in
1974 for a seven-year tour. During his years of service, he worked
aboard many seagoing vessels. In Alaska, he was selected as Command Enlisted Advisor for the 17th District. Carl has received many
medals for meritorious service during his long and distinguished
career.
Rep. Mike Hawker on the right presents a legislative memoriam
honoring Cathy’s father, the late Elton Engstrom, to Cathy
and her mother Sally in a ceremony February 26, 2014, in
the Speaker’s Chambers of the Alaska State Capitol. That day
would have been Elton’s 79th birthday.
Elton Engstrom
This past year marked a difficult transition for my family and me
with the passing of my father, Elton Engstrom, on November 6,
2013. He was a great mentor and teacher to me. I miss our long talks
and his keen interest in local and state issues. He was honored for his
legislative service on February 26, 2014, on what would have been
his 79th birthday.
John and Delores Doogan
It was a special honor to recognize and honor the lives of John and
Delores Doogan, long-time residents of Juneau. John and Delores
raised their family in a loving home on Goldbelt Avenue next to my
childhood home. Our families have known each other for many
years, and their passing is felt by many.
Lillian Marvin
Lillian Marvin was a loving wife and mother, and a wonderful friend
who will be greatly missed. She touched many lives and will be remembered for her beautiful artwork, gifts, and regalia for her grandchildren. It was an honor to sponsor a legislative memoriam commemorating her life.
Beverly Ward
The Joint Legislative Veterans Caucus, chaired by Senate President Charlie Huggins
of Wasilla and Rep. Steve Thompson of Fairbanks, honored military veterans last
February in the Capitol. Here they are honoring Juneau residents Coast Guard Master
Chief Carl Constantine, Petty Officer 2nd Class Joseph Fitzgerald, and Petty Officer
1st Class Elizabeth Springer. From left to right: Rep. Thompson, Cathy, Petty Officer
Fitzgerald, Petty Officer Springer, Master Chief Constantine, his wife Janet, and Sen.
Huggins. Photograph by the Senate Majority Press Office.
Beverly Ward contributed in many ways to Juneau and Alaska. From
her time as a teacher in Ketchikan to her years of service as a government affairs representative for ARCO Alaska, she made a difference
in many lives. In honor of her life and service, a legislative memoriam was presented to her husband, Brian, and family and friends.
2 0 1 4 M a y
7
Artist drawing of SLAM, State Library, Archives, and Museum. Courtesy of the State of Alaska. For more on SLAM, go to lam.alaska.gov/slam
!
d
e
r
u
c
e
s
g
n
i
Full fund
Sign up onlinE for enews updates!
www.cathymunoz.com
PRSRT STD.
US Postage Pd
Juneau AK
Permit 32
Representative Cathy Muñoz
Alaska State Capitol, Room 421
120 4th Street
Juneau, Alaska 99801
Postal Customer
(907) 465-3744
Representative.Cathy.Munoz@akleg.gov