Dear Neighbors,

Just a quick update to keep you informed on the status of Senate Bill 112, commonly referred to as the REAA Headtax Bill. This bill allows residents of Regional Education Attendance Areas (unorganized areas of Alaska) to contribute to their local schools. This is an education head tax. The amount collected is calculated by using the average local contribution in organized areas. The tax is not collected from persons under 21, over 65 or from those living at or below the federal poverty guidelines.

SB 112 has passed out of the Senate and has been referred to the House Community and Regional Affairs Committee, where, to be frank, there is not a lot of enthusiasm for it. Those opposed to it suggest that it is "punitive" or "anti-rural."

In fact, 17 of the 34 school districts that currently help pay for their schools are rural school districts. For example, Dillingham, Tanana, and Nondalton help pay for their schools, while the people of Aniak , Bethel, and Copper River (and 16 other communities in similar circumstances) do not.

Senate Bill 112 is not about punishing people that live in rural Alaska. It is about fairness between rural districts that pay into their schools and those that do not. SB 112 is a way to generate funding for schools that stays in the district where the money is raised.

If you have questions about this bill or would like to share your comments, please respond by email, or you may call my office at 1-800-892-4843.

Sincerely,

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