Legislature(2015 - 2016)WASILLA LIO

07/13/2016 05:30 PM STATE AFFAIRS

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Audio Topic
05:33:28 PM Start
05:34:10 PM SB5001
07:17:43 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB5001 PERM. FUND:DEPOSITS;DIVIDEND;EARNINGS TELECONFERENCED
Heard & Held
-- Public Testimony --
Wasilla LIO 600 E. Railroad Ave.
        SB5001-PERM. FUND: DEPOSITS; DIVIDEND; EARNINGS                                                                     
                                                                                                                                
5:34:10 PM                                                                                                                    
CHAIR STOLTZE announced  the consideration of SB  5001 and opened                                                               
public testimony.                                                                                                               
                                                                                                                                
5:34:35 PM                                                                                                                    
STEPHEN ST.  CLAIR, representing himself, Mat-Su  Valley, Alaska,                                                               
testified in opposition to SB 5001.  He cited a statement by ISER                                                               
[Institute  of  Social  and Economic  Research]  that  said  "Any                                                               
alterations  or  changes  to  the  permanent  fund  is  the  most                                                               
regressive tax that could possibly  occur, worse than a sales tax                                                               
or an income tax."                                                                                                              
                                                                                                                                
5:38:10 PM                                                                                                                    
LARRY DEVILBISS, representing  himself, Palmer, Alaska, testified                                                               
in opposition to  SB 5001. He opined that a  sustainable level of                                                               
government has not been found and that must happen first.                                                                       
                                                                                                                                
5:41:46 PM                                                                                                                    
MIKE   ALEXANDER,  representing   himself,   Big  Lake,   Alaska,                                                               
testified in opposition  to SB 5001. He said  the Legislature has                                                               
done  a  good  job  of  cutting government  so  far  but  nothing                                                               
happened in 2016.                                                                                                               
                                                                                                                                
5:42:56 PM                                                                                                                    
MIKE COONS,  representing himself,  Palmer, Alaska,  testified in                                                               
opposition to SB 5001. He  stated that he opposed Governor Walker                                                               
"raiding  the  permanent  fund"  and   doing  such  would  set  a                                                               
precedent.                                                                                                                      
                                                                                                                                
5:44:16 PM                                                                                                                    
GARVAN BUCARIA, representing  himself, Wasilla, Alaska, testified                                                               
in opposition  to SB 5001,  stating that nothing will  affect the                                                               
state's economy  more than passing  the bill. He  emphasized that                                                               
it is important to change  the size of government before reducing                                                               
the permanent fund  dividend. He asked that a  transition be done                                                               
gradually. He  advocated cutting  large capital  expenditures for                                                               
roads and the AKLNG pipeline.                                                                                                   
                                                                                                                                
5:47:30 PM                                                                                                                    
K.D. SINCLAIR,  representing herself, Wasilla,  Alaska, testified                                                               
in opposition to SB 5001.  She agreed with the previous testimony                                                               
and  opined that  cutting the  dividend  in half  would not  save                                                               
money  because it  is used  to  buy food  and heat  homes in  the                                                               
winter.                                                                                                                         
                                                                                                                                
5:51:00 PM                                                                                                                    
DON HOPKINS,  representing himself, Soldotna, Alaska,  echoed the                                                               
previous  testimony opposing  SB 5001.  He pointed  out that  the                                                               
budget problem did not happen  overnight and noted that ten years                                                               
ago  the state  budget was  roughly  $2.5 billion  and has  since                                                               
grown to  an unsustainable level.  He quoted former  Governor Jay                                                               
Hammond  who said  that the  "Permanent fund  provides about  the                                                               
only  lens through  which the  public could  and would  view more                                                               
realistically the  true cost versus  expense of  development." He                                                               
opined  that people  want an  equal share  which aligns  with the                                                               
state constitution  that directs  managing the resources  for the                                                               
maximum benefit of the people.                                                                                                  
                                                                                                                                
5:54:19 PM                                                                                                                    
LEE COLLINS,  representing herself,  Kenai, Alaska,  testified in                                                               
opposition to  SB 5001. She revealed  that she is a  senior whose                                                               
income is very limited. She questioned  why people did not get to                                                               
vote on the dividend reduction.                                                                                                 
                                                                                                                                
5:55:33 PM                                                                                                                    
DANIEL LYNCH,  representing himself, Soldotna,  Alaska, testified                                                               
in opposition  to SB  5001. He stated  that he  questioned paying                                                               
$660 million  for TransCanada to  leave the state. He  noted that                                                               
plans in  the past have  not been  predictable. He added  that he                                                               
was   concerned  with   repealing   inflation-proofing  and   its                                                               
reevaluation in three years.                                                                                                    
                                                                                                                                
5:57:11 PM                                                                                                                    
FRED STURMAN,  representing himself, Soldotna,  Alaska, testified                                                               
in opposition to SB 5001. He  said his biggest concern relates to                                                               
not  cutting the  budget  and  opined that  the  budget is  still                                                               
bigger than it was and government employees are given raises.                                                                   
                                                                                                                                
5:59:47 PM                                                                                                                    
LARRY SMITH, Director, Kachemak  Resource Institute (KRI), Homer,                                                               
Alaska,  testified in  opposition to  SB 5001.  He said  Governor                                                               
Hammond would have said SB 5001  does the singularly bad thing of                                                               
decoupling  the dividends  from  the permanent  fund, because  it                                                               
will  lead to  its death.  He added  that Governor  Hammond would                                                               
also have believed  that twice as much of the  earnings should be                                                               
put in the  fund. He said the  only part of SB  5001 that appeals                                                               
to him is doubling the contribution to the permanent fund.                                                                      
                                                                                                                                
6:01:42 PM                                                                                                                    
WALT   MONEGAN,  Commissioner,   Department  of   Public  Safety,                                                               
Anchorage, Alaska,  said he is  speaking as the  commissioner and                                                               
an Alaskan in  support of SB 5001. He set  forth that having been                                                               
part  of law  enforcement and  public safety  since 1971,  he has                                                               
long  appreciated  that  a  crisis averted  is  better  than  any                                                               
possible response. He said Alaskans  are staring at a crisis that                                                               
will  only grow  in scale  if critical  measures aren't  taken to                                                               
address it now.                                                                                                                 
                                                                                                                                
6:03:49 PM                                                                                                                    
CHAD  SAMSKAR, representing  himself, Nikiski,  Alaska, testified                                                               
in opposition  to SB 5001.  He said does  not see the  benefit of                                                               
allowing the already  bloated government to continue  to spend at                                                               
the current level.                                                                                                              
                                                                                                                                
6:05:54 PM                                                                                                                    
KAREN PERRY, representing herself,  Chugiak, Alaska, testified in                                                               
opposition   to   SB   5001.    She   asserted   that   SB   5001                                                               
institutionalizes      higher      spending     levels      while                                                               
disproportionately  taking  away  from middle  and  lower  income                                                               
Alaskans.                                                                                                                       
                                                                                                                                
6:09:35 PM                                                                                                                    
MARNIE   HARTILL,   representing  herself,   Anchorage,   Alaska,                                                               
testified in  support of  SB 5001. She  thanked the  governor for                                                               
the hard work and research that  has gone into the bill and added                                                               
that she is  not deterred by the people who  are testifying about                                                               
"taking,"  "theft,"  or  other   entitlement  terms  because  the                                                               
governor is trying to sustain the PFD.                                                                                          
                                                                                                                                
6:12:59 PM                                                                                                                    
BETH FREAD,  representing herself,  Palmer, Alaska,  testified in                                                               
opposition to SB  5001. She asserted that the state  is not ready                                                               
for  restructuring  of  the  permanent  fund  dividend  when  the                                                               
government continues to over spend.                                                                                             
                                                                                                                                
6:15:40 PM                                                                                                                    
BRUCE GERAGHTY, representing  himself, Wasilla, Alaska, testified                                                               
in opposition to SB 5001. He  remarked that the budget has gotten                                                               
beyond what it ought to be.                                                                                                     
                                                                                                                                
6:19:25 PM                                                                                                                    
STEPHEN WRIGHT, representing  himself, Wasilla, Alaska, testified                                                               
in opposition  to SB  5001. He  said the  bill is  an overarching                                                               
attempt to gain access to the permanent fund.                                                                                   
                                                                                                                                
6:22:01 PM                                                                                                                    
TIM  WALTERS, President,  Mat-Su Education  Association, Wasilla,                                                               
Alaska, testified  in support  of SB 5001.  He asserted  that the                                                               
bill  is one  part  of a  balanced  plan to  fix  the crisis.  He                                                               
advocated new  sources of  revenue and  question further  cuts to                                                               
public education.                                                                                                               
                                                                                                                                
6:24:13 PM                                                                                                                    
DONALD   WESTLUND,  representing   himself,  Ketchikan,   Alaska,                                                               
testified in  support of  SB 5001. He  stated that  he questioned                                                               
capital projects.  He added  that he supported  a sales  tax that                                                               
exempts  food  and  fuel  as  well  as  an  income  tax  with  no                                                               
exemptions.                                                                                                                     
                                                                                                                                
6:27:04 PM                                                                                                                    
ROBERT STEINKE,  representing himself, Juneau,  Alaska, testified                                                               
in opposition to SB 5001.                                                                                                       
                                                                                                                                
6:28:45 PM                                                                                                                    
GEORGE PIERCE,  representing himself, Kasilof,  Alaska, testified                                                               
in  opposition to  SB  5001. He  asked  that legislators  address                                                               
spending prior  to taking  money from the  PFD. He  asserted that                                                               
Alaskans  own   the  resources  and  encouraged   legislators  to                                                               
override the governor's veto.                                                                                                   
                                                                                                                                
6:32:17 PM                                                                                                                    
LARRY MCMAHILL, representing  himself, Houston, Alaska, testified                                                               
in opposition to SB 5001.                                                                                                       
                                                                                                                                
6:33:16 PM                                                                                                                    
ED   MARTIN,  representing   himself,  Cooper   Landing,  Alaska,                                                               
testified  in  opposition   to  SB  5001.  He   stated  that  the                                                               
government  could  not  spend  the  PFD.  He  asserted  that  the                                                               
governor has violated statute law.  He said statute mandates that                                                               
the dividend shall be paid.                                                                                                     
                                                                                                                                
6:36:29 PM                                                                                                                    
ANDREW WRIGHT,  representing himself, Wasilla,  Alaska, testified                                                               
in opposition  to SB 5001. He  asserted that no other  plans have                                                               
been considered.                                                                                                                
                                                                                                                                
6:38:57 PM                                                                                                                    
DAVID EASTMAN,  representing himself, Wasilla,  Alaska, testified                                                               
in opposition to SB 5001.                                                                                                       
                                                                                                                                
6:41:43 PM                                                                                                                    
PAUL KENDALL, representing  himself, Anchorage, Alaska, testified                                                               
in  opposition to  SB 5001.  He suggested  the first  step is  to                                                               
stabilize the PFD  and then require a 60 or  90-day notice before                                                               
it  can be  engaged in  any shape  or form.  He recommended  that                                                               
compensation for all public employees be reduced.                                                                               
                                                                                                                                
6:46:46 PM                                                                                                                    
EDWARD  WITBECK, representing  himself, Kenai,  Alaska, testified                                                               
in opposition  to SB 5001.  He said he questioned  state spending                                                               
and  asserted  that  the  Alaska  Constitution  states  that  the                                                               
permanent fund  was set up  so the  people would receive  a small                                                               
percentage of what  the state makes and the formula  would not be                                                               
manipulated.                                                                                                                    
                                                                                                                                
6:51:22 PM                                                                                                                    
BILL SPENCER,  representing himself, Big Lake,  Alaska, testified                                                               
in  opposition to  SB  5001. He  asserted that  the  state has  a                                                               
spending problem, not a revenue problem.                                                                                        
                                                                                                                                
6:54:58 PM                                                                                                                    
MARGARET  E.  PICKARD,  representing  herself,  Wasilla,  Alaska,                                                               
testified in  opposition to SB 5001.  She revealed that she  is a                                                               
senior who  lives a  very simple  life and  cutting the  PFD will                                                               
affect her ability to pay her heating bill and other utilities.                                                                 
                                                                                                                                
7:00:45 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
7:08:20 PM                                                                                                                    
CHAIR  STOLTZE reconvened  the meeting  and noted  that testimony                                                               
was completed.                                                                                                                  
                                                                                                                                
SENATOR  WIELECHOWSKI reported  that  30 people  testified on  SB                                                               
5001: 25 in opposition, 4 in support, and 1 was inconclusive.                                                                   
                                                                                                                                
CHAIR  STOLTZE said  the  committee  did its  best  to reach  out                                                               
across the state. He remarked  that a lot of knowledgeable people                                                               
testified  on both  sides of  the issue.  He set  forth that  the                                                               
committee's intent was to work  hand-in-hand, in partnership with                                                               
the administration to  try to have a  meaningful discussion about                                                               
the governor's bill.                                                                                                            
                                                                                                                                
7:11:09 PM                                                                                                                    
SENATOR  WIELECHOWSKI concurred  and  expressed appreciation  for                                                               
the  way  the  Chair  Stoltze conducted  the  hearing  today.  He                                                               
remarked  that letting  the people  in  the audience  participate                                                               
helped inform and shape the debate.                                                                                             
                                                                                                                                
CHAIR  STOLTZE  said he  wants  to  give the  administration  the                                                               
opportunity to reconsider their participation.                                                                                  
                                                                                                                                
7:12:44 PM                                                                                                                    
SENATOR  HUGGINS  seconded  Senator Wielechowski's  comments  and                                                               
cited  comments by  the governor  that  violate the  law and  the                                                               
Legislature's word.                                                                                                             
                                                                                                                                
7:15:14 PM                                                                                                                    
SENATOR  COGHILL thanked  the  Chair and  all  who testified.  He                                                               
agreed with  several things  that were  said the  Legislature was                                                               
not done making cuts. He said  he listened intently and will take                                                               
instruction from the comments.                                                                                                  
                                                                                                                                
CHAIR STOLTZE thanked the public for their participation.                                                                       
                                                                                                                                
[SB 5001 was held in committee.]                                                                                                

Document Name Date/Time Subjects
SB5001 ver A.pdf SSTA 7/13/2016 1:00:00 PM
SSTA 7/13/2016 5:30:00 PM
SSTA 7/14/2016 10:00:00 AM
SB5001
SB5001 Sponsor Statement - Governor's Transmittal Letter.pdf SSTA 7/13/2016 1:00:00 PM
SSTA 7/13/2016 5:30:00 PM
SSTA 7/14/2016 10:00:00 AM
SB5001
SB5001 Hearing Request - DOR 7.11.16.pdf SSTA 7/13/2016 5:30:00 PM
SB5001
0513-DOR-PFD-07-07-16.pdf SSTA 7/13/2016 5:30:00 PM
SSTA 7/14/2016 10:00:00 AM
SB5001
SB 5001-Fund Cap-Dup-CVCF-07-07-16.pdf SSTA 7/13/2016 1:00:00 PM
SSTA 7/13/2016 5:30:00 PM
SSTA 7/14/2016 10:00:00 AM
SB5001
SB 5001-DOR-TRS-07-07-16.pdf SSTA 7/13/2016 1:00:00 PM
SSTA 7/13/2016 5:30:00 PM
SSTA 7/14/2016 10:00:00 AM
SB5001
SB 5001-DOR-TAX-07-07-16.pdf SSTA 7/13/2016 1:00:00 PM
SSTA 7/13/2016 5:30:00 PM
SSTA 7/14/2016 10:00:00 AM
SB5001
SB 5001-DOR-APFC-07-07-16.pdf SSTA 7/13/2016 1:00:00 PM
SSTA 7/13/2016 5:30:00 PM
SSTA 7/14/2016 10:00:00 AM
SB5001
SB 5001-DOC-PHC-07-06-16.pdf SSTA 7/13/2016 1:00:00 PM
SSTA 7/13/2016 5:30:00 PM
SSTA 7/14/2016 10:00:00 AM
SB5001
SB5001 (APFPA) presentation for SSTA 7.13.2016.pdf SSTA 7/13/2016 1:00:00 PM
SSTA 7/13/2016 5:30:00 PM
SSTA 7/14/2016 10:00:00 AM
SB5001
SB5001 sectional analysis 7.12.2016.pdf SSTA 7/13/2016 1:00:00 PM
SSTA 7/13/2016 5:30:00 PM
SSTA 7/14/2016 10:00:00 AM
SB5001
SB5001 summary 7.12.2016.pdf SSTA 7/13/2016 1:00:00 PM
SSTA 7/13/2016 5:30:00 PM
SSTA 7/14/2016 10:00:00 AM
SB5001
SB5001 flow chart 7.13.2016.pdf SSTA 7/13/2016 1:00:00 PM
SSTA 7/13/2016 5:30:00 PM
SSTA 7/14/2016 10:00:00 AM
SB5001
SB 5001 Support Document - Ltr to Senator MacKinnon re CSSB 128(FIN) - 5.12.16.pdf SSTA 7/13/2016 1:00:00 PM
SSTA 7/13/2016 5:30:00 PM
SSTA 7/14/2016 10:00:00 AM
SB 128
SB5001
SB 5001 - Supporting Document - News-Miner Article 7.12.2016.pdf SSTA 7/13/2016 1:00:00 PM
SSTA 7/13/2016 5:30:00 PM
SSTA 7/14/2016 10:00:00 AM
SB5001
SB5001 Administration Letter to Senate State Affairs Regarding Participation - 7.12.2016.pdf SSTA 7/13/2016 5:30:00 PM
SB5001
SB 5001 - Public Testimony Packet #1 (11 POMS & 3 Resolutions) 7.13.2016.pdf SSTA 7/13/2016 5:30:00 PM
SB5001
SB 5001 - Public Testimony Packet #2 (7 POMS & 1 Resolution) 7.13.2016.pdf SSTA 7/13/2016 5:30:00 PM
SB5001