capital focus

JUNEAU — Local government leaders from across Alaska are diving back into two key funding debates this week in Juneau.

The Alaska Municipal League, a nonprofit entity comprised of more than 140 local governments, is in the capital lobbying for a long-term revenue-sharing program and a long-term solution to the unfunded liability in the state public employees’ and teachers’ retirement systems.

The group pushed for the same things last year, and state lawmakers nearly passed legislation that would have provided both, although with a less generous revenue-sharing program.

The two funding issues are back in play, and AML is renewing its push. But despite an expected surplus in the billions of dollars, lawmakers say they’re still hesitant to give the group exactly what it wants.

“If we didn’t have a surplus, would AML be down here?” asked Rep. Mike Chenault, a Republican from Nikiski and co-chair of the House Finance Committee. “I think the answer is no. AML would be very happy with what we had last year.”

AML is pushing for a municipal revenue-sharing program that would distribute 6 percent of state revenues from mineral leases and royalties directly to municipalities each year.

Last year lawmakers considered a bill that would have provided 3 percent of revenues with a cap at $50 million. The bill passed the Senate but stalled in the House, and lawmakers ultimately approved $48 million in one-time funding.

AML is also pushing for a long-term fix to the state’s pension debt, in which the state would cover all the debt associated with the teachers’ retirement system and 85 percent of the debt associated with the public employees’ retirement system.

Lawmakers considered a similar proposal last year but ultimately approved a one-year relief package for public employers instead. They linked the bills last year so municipalities that benefited from the state covering pension debt received less of a boost through revenue sharing.

AML representatives and others argue the two should be separated because they are different programs and the pension debt is the fault of the state, not municipalities.

Tim Beck, a member of the Fairbanks North Star Borough Assembly and AML president, likened the municipalities’ situation to that of someone who paid all his electric bills and then got a notice saying he had to pay much more to cover a past accounting error.

“The key to this whole thing is: Who’s responsible?” he asked.

Beck is in Juneau this week, along with other members of the assembly, North Pole Mayor Doug Isaacson and Denali Borough Mayor David Talerico.

Gov. Sarah Palin is scheduled to address the group today.