Legislature(2011 - 2012)SENATE FINANCE 532

03/30/2011 09:00 AM FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 19 PASSENGER VEHICLE RENTAL TAX TELECONFERENCED
Moved CSSB 19(FIN) Out of Committee
+ SB 92 DENTISTS/DENTAL HYGIENISTS/ASSISTANTS TELECONFERENCED
Heard & Held
+ SB 66 AIDEA: NEW MARKETS TAX CREDIT PROGRAM TELECONFERENCED
Heard & Held
+ SB 90 BOARD OF PUBLIC ACCOUNTANCY SECRETARY TELECONFERENCED
Heard & Held
+ SB 94 SECOND VERSE OF ALASKA'S STATE SONG TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 97 COMMUNITY REVENUE SHARING/EDUC FUNDING TELECONFERENCED
Moved CSSB 97(FIN) Out of Committee
SENATE BILL NO. 97                                                                                                            
                                                                                                                                
     "An  Act  authorizing   additional  appropriations  for                                                                    
     public  education  and  for community  revenue  sharing                                                                    
     based on  the price  of Alaska  North Slope  crude oil,                                                                    
     and   adjusting    the   formula   for    payments   to                                                                    
     communities."                                                                                                              
                                                                                                                                
Co-Chair Hoffman  proposed committee substitute,  work draft                                                                    
#27-LS0626/E.  Co-Chair  Stedman  OBJECTED  for  purpose  of                                                                    
discussion.                                                                                                                     
                                                                                                                                
10:04:24 AM                                                                                                                   
                                                                                                                                
TIM  GRUSSENDORF,  STAFF,  CO-CHAIR  HOFFMAN  discussed  the                                                                    
changes  made in  the CS.  The  first adjustment  was for  a                                                                    
timeframe in  which to calculate  the average price  of oil.                                                                    
The full  year will be  used to establish the  average price                                                                    
per barrel. He explained the  addition of a "safety cushion"                                                                    
of  $2 per  barrel  of oil  to ensure  that  the revenue  is                                                                    
available and to prevent overspending of the surplus.                                                                           
                                                                                                                                
Co-Chair  Stedman  asked  about   the  $2.  Mr.  Grussendorf                                                                    
responded  that  the  cushion  describes  the  $2  over  the                                                                    
average price per barrel. Co-Chair  Stedman added $2 dollars                                                                    
of  the  break even  rate  of  our operating  and  potential                                                                    
capital budget.  The intent was  that the original  bill was                                                                    
spinning out  the percentage  of the  surplus between  2 and                                                                    
2.7 percent of  the surplus for these  programs. The factors                                                                    
chosen  will  produce  a  similar  number  as  seen  in  the                                                                    
original bill.                                                                                                                  
                                                                                                                                
10:06:21 AM                                                                                                                   
                                                                                                                                
DAVID   TEAL,   DIRECTOR,  LEGISLATIVE   FINANCE   DIVISION,                                                                    
mentioned  that the  prior  version of  the  bill was  based                                                                    
strictly on  the price of  oil, which allowed  the potential                                                                    
to  share wealth  that failed  to materialize.  This version                                                                    
shares wealth only  during times of surplus.  The surplus is                                                                    
taken for one  year, which will determine  the amount handed                                                                    
out in the following year.                                                                                                      
                                                                                                                                
10:07:28 AM                                                                                                                   
                                                                                                                                
Mr.  Teal  provided  a sectional  analysis.  He  began  with                                                                    
Section  1 which  relates to  supplemental funding  for K-12                                                                    
education. The  amount allocated equals $5  million for each                                                                    
dollar difference  between the actual price  and the trigger                                                                    
price of oil. Section (b)  computes the trigger price of oil                                                                    
and  states that  expenditures will  be taken  excluding the                                                                    
community  revenue   sharing  payments  and   the  education                                                                    
payments made  under this bill.  Any deposits to  the budget                                                                    
reserve fund are  also excluded. The breakeven  price of oil                                                                    
is rounded  to the nearest  dollar with the addition  of the                                                                    
mentioned  $2. The  $2 provides  a safety  valve that  gives                                                                    
sufficient funding  to make  the appropriation  to community                                                                    
revenue  sharing and  to K-12  and to  offset any  errors in                                                                    
revenue forecasts. The goal was  to avoid sharing money that                                                                    
was not present.                                                                                                                
                                                                                                                                
10:10:19 AM                                                                                                                   
                                                                                                                                
Mr. Teal  continued with Section  2 and the  revenue sharing                                                                    
portion  of the  CS. He  noted that  2(b) corrects  an error                                                                    
that  is unrelated  to  the  supplemental community  revenue                                                                    
sharing  and refers  to the  existing basic  revenue sharing                                                                    
program.                                                                                                                        
                                                                                                                                
10:11:06 AM                                                                                                                   
                                                                                                                                
Mr. Teal described  Section 3 and the change  of the revenue                                                                    
sharing program  enabling the amount distributed  to include                                                                    
the basic  revenue sharing portion. This  section allows the                                                                    
amount  calculated under  (d) to  be distributed.  Section 4                                                                    
mirrors the calculations of the education portion.                                                                              
                                                                                                                                
10:12:36 AM                                                                                                                   
                                                                                                                                
Co-Chair  Hoffman applauded  the  legislation. He  supported                                                                    
sharing the wealth with  school districts and municipalities                                                                    
during times of high oil prices.                                                                                                
                                                                                                                                
Co-Chair  Stedman WITHDREW  his  OBJECTION.  There being  NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Co-Chair Hoffman  MOVED to report  CSSB 97 out  of Committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
note.                                                                                                                           
                                                                                                                                
SB  97  was REPORTED  out  of  committee  with a  "do  pass"                                                                    
recommendation  and with  a  new  indeterminate fiscal  note                                                                    
from  the Senate  Finance Committee  for  the Department  of                                                                    
Commerce,  Community and  Economic Development  and one  new                                                                    
indeterminate fiscal note from  the Senate Finance Committee                                                                    
for the Department of Education and Early Development.                                                                          
                                                                                                                                

Document Name Date/Time Subjects
SB 19 DOR Response 03 10 11.pdf SFIN 3/30/2011 9:00:00 AM
SB 19
SB 19 - Letter Support MotoQuest.pdf SFIN 3/30/2011 9:00:00 AM
SB 19
SB 19 - Letter Support AMA.pdf SFIN 3/30/2011 9:00:00 AM
SB 19
SB 19 - Letter Support Harley.pdf SFIN 3/30/2011 9:00:00 AM
SB 19
SB 19 - Relevant Statutes.pdf SFIN 3/30/2011 9:00:00 AM
SB 19
SB 19 - Sample Itinerary.pdf SFIN 3/30/2011 9:00:00 AM
SB 19
SB 19 - Sponsor Statement.pdf SFIN 3/30/2011 9:00:00 AM
SB 19
CSSB 42(RES) FERC RCA Oversight 3-22-11.pdf SFIN 3/30/2011 9:00:00 AM
SB 42
CSSB 42(RES) RCA regulation 3-22-11.pdf SFIN 3/30/2011 9:00:00 AM
SB 42
CSSB 42(RES) Sectional Analysis - By Subject March 22, 2011.pdf SFIN 3/30/2011 9:00:00 AM
SB 42
CSSB 42(RES) Sectional Analysis - Sequential March 22, 2011.pdf SFIN 3/30/2011 9:00:00 AM
SB 42
New SB092-CCED-CBPL-03-01-11.pdf SFIN 3/30/2011 9:00:00 AM
SB 92
SB 42 Governor Transmittal Letter 1-14-11.pdf SFIN 3/30/2011 9:00:00 AM
SB 42
SB 92 Amendment D.1, 3-17-11.PDF SFIN 3/30/2011 9:00:00 AM
SB 92
SB 92 Changes from original to L&C CS.pdf SFIN 3/30/2011 9:00:00 AM
SB 92
SB 92 Sectional Analysis CSSB92- L&C.pdf SFIN 3/30/2011 9:00:00 AM
SB 92
SB 92 Sectional Analysis.pdf SFIN 3/30/2011 9:00:00 AM
SB 92
SB 92 Sponsor Statement CS L&C.pdf SFIN 3/30/2011 9:00:00 AM
SB 92
SB 92 Summary of Fiscal Notes.pdf SFIN 3/30/2011 9:00:00 AM
SB 92
SB 92-SCF proposed amendment support letter.pdf SFIN 3/30/2011 9:00:00 AM
SB 92
SB 66 - CSSB66_Sectional_AIDEA NMTC.pdf SFIN 3/30/2011 9:00:00 AM
SB 66
SB 66_Hearing Information Sheet.pdf SFIN 3/30/2011 9:00:00 AM
SB 66
SB 66_White Paper-NMTC(1-26).pdf SFIN 3/30/2011 9:00:00 AM
SB 66
SB 90 Alaska Society of CPA Support Letter.pdf SFIN 3/30/2011 9:00:00 AM
SB 90
SB 90 Board of Accountancy Background Letter.pdf SFIN 3/30/2011 9:00:00 AM
SB 90
SB 90 DOA Determination on Range and Step.pdf SFIN 3/30/2011 9:00:00 AM
SB 90
SB 90 Sponsor Statement.pdf SFIN 3/30/2011 9:00:00 AM
SB 90
SB 94 Background Material Newpaper letter from Fran Ulmer.pdf SFIN 3/30/2011 9:00:00 AM
SB 94
SB 94 Senators' Vote form for SB 94.pdf SFIN 3/30/2011 9:00:00 AM
SB 94
SB 94 Background Material Resolution.pdf SFIN 3/30/2011 9:00:00 AM
SB 94
SB 97 Version E.pdf SFIN 3/30/2011 9:00:00 AM
SB 97
SB 97 LFD Chart.pdf SFIN 3/30/2011 9:00:00 AM
SB 97
SB 92 CBPL memo.doc SFIN 3/30/2011 9:00:00 AM
SB 92