The Democratic controlled Alaska Legislature is currently weighing two proposals that will cost the state billions of dollars by drastically expanding defined benefit pensions for state employees, while flooding the education system with record-breaking funds.

To pay for this massive growth in government spending, lawmakers are seriously floating the idea of instituting a statewide tax, while further raiding the popular Permanent Fund Dividend.

Last week, the Alaska chapter of Americans For Prosperity (AFP-Alaska) hosted a group of activists in Juneau for fly-in meetings with legislators, urging them to oppose new taxes, particularly those that could result from the high costs associated with House Bill 78’s proposed defined benefit pensions, which could cost the state billions.

While in Juneau, the group shared concerns about reinstating defined benefit pension plans for state workers and the financial consequences HB 78 could bring. An AFP-Alaska-commissioned poll recently found that 62% of respondents were not confident of the state’s ability to properly manage the unfunded fiscal liabilities that a new pension plan would bring.

The 13 people on AFP-Alaska’s trip represent the communities of Anchorage, Haines, Eagle River, Big Lake, Kenai, and North Pole. Throughout their time in Juneau, they attended more than 20 meetings with lawmakers from both sides of the aisle.

“It’s clear that Alaskans don’t want more taxes, posing a problem for lawmakers’ multi-billion-dollar price tag defined benefit legislation,” noted AFP-Alaska State Director Bethany Marcum. “We hope legislators will listen to Alaskans and focus on passing legislation that will empower Alaskans and not tie our state to decades of unfunded liabilities.”

AFP-Alaska will host another Juneau fly-in next month to focus on education, including opposition to the proposal in House Bill 69, which would increase the Base Student Allocation (BSA) – per-pupil funding – from $5,960 to $8,510 over three years. That’s a $1,800 jump (or 43% increase), with the added cost to the state being nearly $1.5 billion over that time span.

Americans for Prosperity – Alaska is a non-partisan grassroots policy group that seeks to advance long-term solutions to the country’s biggest problems. In Alaska, the group opposes new taxes and defined benefits pensions, while supporting a state spending cap, increasing health care options and advancing educational choice for students.

TAKING ACTION

— House Bill 78, which would cost the state billions in defined benefit payouts, is currently in the House Finance Committee. Click here to contact the individual committee members, or send an email to House.Finance@akleg.gov to share concerns with all committee members.

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