04/08/2011 08:30 AM House COMMUNITY & REGIONAL AFFAIRS

        HJR 24-SUPPORT FED. FOREST LAND REVENUE SHARING                                                                     
                                                                                                                                
8:36:47 AM                                                                                                                    
                                                                                                                                
CHAIR MUNOZ  announced that the  only order of business  would be                                                               
HOUSE JOINT RESOLUTION NO. 24,  Urging the United States Congress                                                               
to  reauthorize the  Secure Rural  Schools and  Communities Self-                                                               
Determination Act of 2000.                                                                                                      
                                                                                                                                
8:36:49 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PEGGY  WILSON, Alaska State  Legislature, speaking                                                               
as the sponsor of HJR 24, stated the following:                                                                                 
                                                                                                                                
     HJR 24  urges the  President of  the United  States and                                                                    
     Congress  to honor  an agreement  made in  1908.   That                                                                    
     agreement  was   to  support   roads  and   schools  in                                                                    
     communities  that are  surrounded by  national forests.                                                                    
     Historically, the federal  government shared 25 percent                                                                    
     of the annual income  earned from the activities within                                                                    
     those national forests with  states for distribution to                                                                    
     boroughs  located  within  the national  forest.    The                                                                    
     federal government has  steadily decreased payment over                                                                    
     the  years  through  the   Secure  Rural  Schools  [and                                                                    
     Community  Self-Determination  Act]   (SRSCA).    While                                                                    
     those  communities still  have the  same needs  as they                                                                    
     did  in 1908,  the funding  has continually  decreased.                                                                    
     Forest  communities  remain  surrounded  by  government                                                                    
     land,  lacking  the  ability to  utilize  the  land  to                                                                    
     create  revenue locally.    Thirty-two communities  and                                                                    
     the State of  Alaska receive support through  SRSCA.  A                                                                    
     total of $16  million was given to the  State of Alaska                                                                    
     and those communities last year.   Forty-two states and                                                                    
     Puerto   Rico  also   receive   payments  from   SRSCA.                                                                    
     Reauthorization  of the  Secure  Rural  Schools Act  is                                                                    
     supported by local schools, by  the National Forest and                                                                    
     School    Coalition,   by    the   Western    Governors                                                                    
     Association,   and  at   least  29   senators  and   69                                                                    
     representatives,    including   Alaska's    delegation.                                                                    
     Alaska's  schools  need  continuing  support  from  the                                                                    
     federal government  because of  the location of  all of                                                                    
     our  communities that  receive  it are  still with  the                                                                    
     national forest.   Reauthorization of the  Secure Rural                                                                    
     Schools  Act is  in  the president's  2012 budget,  but                                                                    
     Alaska needs to send a  strong message to the president                                                                    
     that he needs to continue  this program at a level that                                                                    
     will sustain our schools.                                                                                                  
                                                                                                                                
8:39:46 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FOSTER  inquired  as  to  whether  there  is  any                                                               
opposition to HJR 24.                                                                                                           
                                                                                                                                
REPRESENTATIVE P.  WILSON responded that  she didn't know  of any                                                               
opposition to HJR 24.                                                                                                           
                                                                                                                                
8:40:04 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER  related   his  understanding  that  [the                                                               
funds] aren't contingent upon production from national forests.                                                                 
                                                                                                                                
REPRESENTATIVE  P. WILSON  explained  that years  ago the  timber                                                               
industry  [flourished] in  Southeast Alaska,  but over  the years                                                               
that has been  cut off.  Currently, the funds  [from SRSCSA] have                                                               
been authorized  in one-year increments, which  makes schools and                                                               
the communities nervous.                                                                                                        
                                                                                                                                
8:40:53 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER asked if  this resolution requests a long-                                                               
term authorization, say for five years.                                                                                         
                                                                                                                                
REPRESENTATIVE P.  WILSON specified  that the  reauthorization in                                                               
the president's budget  is for just one year.   However, the hope                                                               
is to [reauthorize the funds] for five years.                                                                                   
                                                                                                                                
8:41:13 AM                                                                                                                    
                                                                                                                                
CHAIR MUNOZ  asked if  $16 million represents  25 percent  of the                                                               
economic activity in the national forests in Southeast Alaska.                                                                  
                                                                                                                                
8:41:25 AM                                                                                                                    
                                                                                                                                
SHELIA FINKENBINDER,  Staff, Representative Peggy  Wilson, Alaska                                                               
State Legislature,  explained that the original  SRSCA enacted in                                                               
1908  required 25  percent annual  income based  on the  revenues                                                               
from the national forest.   When timbering declined, the receipts                                                               
from  the   national  forests  were  inconsistent   and  declined                                                               
sharply.   The federal government  needed to  implement something                                                               
more secure and  consistent that would continue  to support these                                                               
communities  since the  logging was  no longer  occurring.   This                                                               
resolution requests  a long-term  sustainable act.   Although the                                                               
sponsor   understands  that's   not  going   to  happen   as  the                                                               
president's budget includes  a [one] year program.   The payments                                                               
from the  program are  declining, which isn't  going to  work for                                                               
communities  in   the  future.    These   communities  are  still                                                               
surrounded by national  forests that can't be  developed and need                                                               
a consistent revenue stream.                                                                                                    
                                                                                                                                
8:42:50 AM                                                                                                                    
                                                                                                                                
CHAIR MUNOZ  asked if [SRSCA] is  similar to the payment  in lieu                                                               
of taxes program.                                                                                                               
                                                                                                                                
MS. FINKENBINDER answered that it's a piece of the program.                                                                     
                                                                                                                                
8:43:17 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER asked  if there  are any  conditions with                                                               
regard to how these funds are used.                                                                                             
                                                                                                                                
REPRESENTATIVE P.  WILSON informed the committee  that her school                                                               
district  is fortunate  because the  community places  almost all                                                               
the funds into the school.   However, it's left to each community                                                               
council to decide how to use the funds.                                                                                         
                                                                                                                                
8:44:06 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  stated that she is  very comfortable with                                                               
HJR 24.                                                                                                                         
                                                                                                                                
8:44:17 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FOSTER moved to report HJR 24 out of committee                                                                   
with individual recommendations [and the accompanying fiscal                                                                    
notes].  There being no objection, it was so ordered.