03/01/1994 09:05 AM Senate CRA

 The Senate Community & Regional Affairs Committee was called to               
 order by Chairman Randy Phillips at 9:05 a.m.  He introduced  SSSB
  (TAX CREDIT: GIFTS TO PUBLIC BROADCASTING) as the first order            
 of business.                                                                  
                                                                               
 JOE AMBROSE, staff to Senator Taylor who is the prime sponsor of              
 SSSB 223, read into the record Senator Taylor's sponsor statement:            
                                                                               
  "Despite reductions of about 35 percent since 1986, public                   
 broadcasting in Alaska still costs the general fund more than six             
 million dollars per year.  Enactment of this legislation would                
 provide an incentive for business and industry to contribute to               
 public broadcasting and reduce the dependence on state funding.               
                                                                               
  Alaska's public radio and television networks and stations are               
 recognized as an integral part of our educational system.  Under              
 SSSB 223, contributions to those networks and stations would be               
 allowed as a tax credit under the same provisions which allow for             
 credit for donations to our colleges and universities.                        
                                                                               
  This bill would allow for such credits against the Alaska Net                
 Income Tax and four other state taxes.  In fiscal year 1993, Alaska           
 business and industry claimed $533,429 against their taxes for                
 donations under the education tax credit provisions.                          
                                                                               
  The Alaska State Legislature has shown strong support for                    
 public broadcasting in the past.  Public broadcasting is a vital              
 part of our communications and education system, depended upon by             
 thousands of rural and urban Alaskans.                                        
                                                                               
  To quote Rich McClear, the former manager of Raven Radio in                  
 Sitka, "Raven Radio would find this bill very useful in helping us            
 become more independent of state support."  That is the goal of               
 SSSB 223 and I ask for your support."                                         
                                                                               
 Number 045                                                                    
                                                                               
 SENATOR RANDY PHILLIPS stated testimony would be taken over the               
 teleconference network.                                                       
                                                                               
 MS. MARTY WEST, General Manager of radio station KRBD FM in                   
 Ketchikan, stated support for SSSB 223.  She noted KRBD FM has had            
 an enormous cut in their budgets over the past eight years, and               
 SSSB 223 would give them a great deal more autonomy.  They have               
 been increasingly relying on locals for memberships and for                   
 underwriting and the legislation would offer an additional benefit            
 for their underwriting.  She urged the committee's support for SSSB
.                                                                          
                                                                               
 Number 072                                                                    
                                                                               
 DON RINKER, General Manager of the radio station KBRW in Barrow,              
 voiced support for SB 223.  He said in every community there is a             
 significant outpouring of local support for the public broadcasting           
 community.  He noted that in Barrow, public radio has had the                 
 support of the organizations throughout the North Slope.  He                  
 suggested that in-kind contributions should also be eligible for              
 tax credits.                                                                  
                                                                               
 Number 162                                                                    
                                                                               
 LEONARD ANDERSON, General Manager of KOTZ in Kotzebue, said as                
 state support dwindles, they have to find other funding sources.              
 KOTZ has been increasingly turning to underwriting, and SB 223 will           
 give then that extra edge.  He stated his strong support for                  
 passage of the legislation.                                                   
                                                                               
 Number 223                                                                    
                                                                               
 MS. KELLY LAW of public radio station KMXT in Kodiak said they are            
 in the midst of a very large capital campaign to acquire a decent             
 facility and the legislation could have immediate benefit to them             
 as they try to raise a large sum of money.                                    
                                                                               
 Number 234                                                                    
                                                                               
 KEN FATE, Station Manager of Raven Radio in Sitka, stated his                 
 strong support for SSSB 223.                                                  
                                                                               
 Number 238                                                                    
                                                                               
 STEPHAN HELGESON, Board of Directors member for KSTK-FM in                    
 Wrangell, stated their strong support for the legislation.                    
                                                                               
 Number 245                                                                    
                                                                               
 MATT HOLMES, Manager of public radio station KFSK in Petersburg,              
 voiced his support for SSSB 223.                                              
                                                                               
 Number 255                                                                    
                                                                               
 PAUL DICK, Income & Excise Audit Division, Department of Revenue,             
 explained that the legislation allows for credits for taxpayers               
 that make  contributions not to exceed $150,000.  It would apply to           
 corporate net income tax, oil and gas production and property                 
 taxes, mining licenses taxes and fisheries business taxes.  The               
 department estimates that maximum impact would be $122,250,000.  He           
 added that they realize that the figure is a high range.                      
                                                                               
 Number 282                                                                    
                                                                               
 SENATOR TAYLOR moved that SSSB 223 be passed out of committee with            
 individual recommendations.  Hearing no objection, it was so                  
 ordered.