Legislature(2017 - 2018)BUTROVICH 205

02/21/2017 04:30 PM STATE AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SR 3 FEBRUARY 2017: BLACK HISTORY MONTH TELECONFERENCED
Moved SR 3 Out of Committee
-- Public Testimony --
+= SB 21 PERMANENT FUND: INCOME; POMV; DIVIDENDS TELECONFERENCED
Heard & Held
-- Public Testimony <Begins at 5:00 p.m.> --
-- Limited to 3 Minutes --
+= SB 26 PERM. FUND:DEPOSITS;DIVIDEND;EARNINGS TELECONFERENCED
Heard & Held
-- Public Testimony <Begins at 5:00 p.m.> --
-- Limited to 3 Minutes --
+ Bills Previously Heard/Scheduled TELECONFERENCED
         SB 21-PERMANENT FUND: INCOME; POMV; DIVIDENDS                                                                      
         SB 26-PERM. FUND: DEPOSITS; DIVIDEND; EARNINGS                                                                     
                                                                                                                                
4:38:10 PM                                                                                                                    
CHAIR DUNLEAVY called the committee  back to order, and announced                                                               
the consideration  of SB 21  and SB 26.  He explained that  SB 21                                                               
was introduced by Senator Stedman  that is a percentage of market                                                               
value (POMV) bill regarding the  permanent fund. He detailed that                                                               
SB 26  is also  a POMV  bill that was  sponsored by  the governor                                                               
through the Senate Rules Committee.                                                                                             
                                                                                                                                
He opened public testimony for SB 21 and SB 26.                                                                                 
                                                                                                                                
4:38:59 PM                                                                                                                    
WILLIAM DEATON,  representing self  and family,  Cordova, Alaska,                                                               
testified in  opposition to SB  21 and SB  26 because he  and his                                                               
family  would like  to have  their full  permanent fund  dividend                                                               
(PFD). He  said he and  his family support Chair  Dunleavy's plan                                                               
to cut the  budget and not impose  new taxes. He said  he and his                                                               
family support SB 1 and SB 2.                                                                                                   
                                                                                                                                
CHAIR  DUNLEAVY pointed  out  that SB  1 and  SB  2 are  separate                                                               
issues and  separate bills  that are no  longer in  committee. He                                                               
specified that  the committee is  hearing testimony on SB  21 and                                                               
SB 26.                                                                                                                          
                                                                                                                                
4:40:07 PM                                                                                                                    
TERRENCE   SHANIGAN,   representing  self,   Anchorage,   Alaska,                                                               
testified in  opposition of SB  21 and SB  26. He stated  that he                                                               
supported Chair Dunleavy's plan to right-size government.                                                                       
                                                                                                                                
4:44:24 PM                                                                                                                    
PAUL D. KENDALL, representing  self, Anchorage, Alaska, testified                                                               
in opposition of SB  21 or SB 26. He said  there is nothing wrong                                                               
with  the  permanent fund  or  dividend.  He suggested  that  the                                                               
budget be reduced to $2 billion and a head-tax introduced.                                                                      
                                                                                                                                
4:48:59 PM                                                                                                                    
DAVID BRIGHTON,  representing self,  Kenai, Alaska,  testified in                                                               
support of SB 21  and SB 26. He asserted that  the state needs to                                                               
move  forward with  a balanced  approach. He  said he  favored an                                                               
income tax and  did not want to see the  services that he enjoyed                                                               
decimated by budget  cuts. He stated that he did  not think it is                                                               
reasonable to balance a budget on  the price of oil. He set forth                                                               
that  he favored  using  the earnings  reserve  account to  bring                                                               
about  the important  services that  Alaskans  have. He  asserted                                                               
that this is the year to act and solve the state's problem.                                                                     
                                                                                                                                
4:50:27 PM                                                                                                                    
KURT  SCHMIDT,  representing  self and  family,  Delta  Junction,                                                               
Alaska, testified  in opposition of SB  21 and SB 26  because the                                                               
governor and  Legislature wrongly assume that  the permanent fund                                                               
is state money when it is the money of the people.                                                                              
                                                                                                                                
4:54:18 PM                                                                                                                    
GEORGE PIERCE,  representing self, Kasilof, Alaska,  testified in                                                               
opposition  of SB  21 and  SB 26.  He set  forth that  government                                                               
needs to restructure,  not the permanent fund  dividend. He asked                                                               
that there  be a public vote  to decide the use  of the permanent                                                               
fund.                                                                                                                           
                                                                                                                                
4:56:50 PM                                                                                                                    
ALEXANDER  GUDSCHINSKY,  representing  self,  Fairbanks,  Alaska,                                                               
testified in  support of SB  21 and SB  26. He suggested  that 20                                                               
percent of  the earnings  go to the  permanent fund  dividend and                                                               
the rest for government.                                                                                                        
                                                                                                                                
4:58:23 PM                                                                                                                    
KAREN  PERRY,  representing  self and  family,  Chugiak,  Alaska,                                                               
testified in opposition  of SB 21 and SB 26.  She stated that she                                                               
did not like  changing the formula for  calculating the permanent                                                               
fund dividend.  She said taking  the permanent fund  dividend out                                                               
of local economies is detrimental  to local businesses as well as                                                               
pushing many more Alaskans over  the poverty line. She asked that                                                               
the bills be  held until specific language is  presented on Chair                                                               
Dunleavy's budget  proposals. She set forth  that government must                                                               
continue to cut  the budget before taking  the people's permanent                                                               
fund  dividend.   She  asked  that  there   be  a  constitutional                                                               
amendment to  protect the  permanent fund  dividend and  that the                                                               
vote be put to the people.                                                                                                      
                                                                                                                                
5:01:10 PM                                                                                                                    
JAMES SQUYRES,  representing self, Deltana, Alaska,  testified in                                                               
opposition of SB  21 and SB 26.  He set forth that  the bills are                                                               
too  extreme, not  necessary, makes  things  too complex  through                                                               
restructuring,  and increases  risk if  the percentage  of market                                                               
rate draws are too high or too low.                                                                                             
                                                                                                                                
5:04:03 PM                                                                                                                    
PAM  GOODE,  representing  self, Deltana,  Alaska,  testified  in                                                               
opposition of  SB 21 and SB  26. She asserted that  spending with                                                               
no discipline  is the  problem, not revenue.  She said  the scope                                                               
and size of government must be reduced first.                                                                                   
                                                                                                                                
5:05:49 PM                                                                                                                    
DIANA  CHADWELL,  representing   self,  Delta  Junction,  Alaska,                                                               
testified in  opposition of SB 21  and SB 26. She  asked that the                                                               
legislation be put to a public vote.                                                                                            
                                                                                                                                
5:09:08 PM                                                                                                                    
DAVID OTNESS,  representing self,  Cordova, Alaska,  testified in                                                               
opposition of  SB 21 and  SB 26. He  said the legislation  is too                                                               
expedient and convenient,  and covers up the tracks  of very poor                                                               
financial policy.                                                                                                               
                                                                                                                                
5:12:26 PM                                                                                                                    
MICHAEL  CHAMBERS, representing  United  for Liberty,  Anchorage,                                                               
Alaska, testified in  opposition of SB 21 and SB  26. He remarked                                                               
that  there  has  been  a   false  flag  of  promotion  that  the                                                               
government has  cut the budget.  He opined that the  governor and                                                               
Senator  Stedman  believe  that   the  government  economy  takes                                                               
priority over  the private  economy. He  said he  supported Chair                                                               
Dunleavy's  legislation  to reduce  the  size  of government  and                                                               
protect the dividend.                                                                                                           
                                                                                                                                
5:15:02 PM                                                                                                                    
DAVID BOYLE,  representing self, Anchorage, Alaska,  testified in                                                               
opposition of SB  21 and SB 26. He asserted  that the budget must                                                               
be cut to  a reasonable level before using the  permanent fund to                                                               
fund state government.                                                                                                          
                                                                                                                                
5:19:19 PM                                                                                                                    
MARTIN  STAPETIN,  SR.,  representing self  and  family,  Juneau,                                                               
Alaska,  testified in  opposition of  SB 21  and SB  26. He  said                                                               
sustainability is  important and supported taking  money from the                                                               
permanent  fund; however,  the permanent  fund draws  proposed in                                                               
the two bills  are too high. He added that  he supported taxes to                                                               
pay "our own bills" as well.                                                                                                    
                                                                                                                                
5:22:53 PM                                                                                                                    
ANDREW NAVARRO,  representing self, Anchorage,  Alaska, testified                                                               
in opposition of  SB 21 and SB 26. He  said the legislation takes                                                               
money from his permanent fund dividend.                                                                                         
                                                                                                                                
5:25:02 PM                                                                                                                    
BRENDON   HOPKINS,  representing   self,  North   Slope,  Alaska,                                                               
testified in opposition  of SB 21 and  SB 26. He said  there is a                                                               
healthy distrust  of state government.  He opined that  the state                                                               
has a revenue problem, but the bigger problem is spending.                                                                      
                                                                                                                                
5:30:14 PM                                                                                                                    
RANDY   BEILFUSS,  representing   self,   Eagle  River,   Alaska,                                                               
testified in  opposition of SB  21 and SB  26. He set  forth that                                                               
the permanent  fund dividend  is the  people's share  of Alaska's                                                               
mineral  wealth  and  has  worked very  well.  He  asserted  that                                                               
government spending needs to be  cut and noted that Alaska spends                                                               
four times  the national average.  He opined that the  state does                                                               
not need new taxes yet.                                                                                                         
                                                                                                                                
5:31:51 PM                                                                                                                    
FRED  STURMAN, representing  self and  family, Soldotna,  Alaska,                                                               
testified in  opposition of SB 21  and SB 26. He  said government                                                               
has spent too much  money for the past 20 years  and needs to cut                                                               
spending.                                                                                                                       
                                                                                                                                
5:35:33 PM                                                                                                                    
ARENZA  THIGPEN,  JR.,   representing  self,  Anchorage,  Alaska,                                                               
testified in  opposition of SB  21 and SB 26.  He said it  is bad                                                               
for legislators to  take something that does not  belong to them.                                                               
He asserted  that the state's  resources are supposed  to support                                                               
the welfare of  Alaska's residents. He set forth  that the weight                                                               
of  government's financial  mistakes  should not  be  put on  the                                                               
backs of Alaskans.                                                                                                              
                                                                                                                                
5:38:22 PM                                                                                                                    
BETH  FREAD,  representing  self, Palmer,  Alaska,  testified  in                                                               
opposition of SB  21 and SB 26.  She said to cut  the budget, not                                                               
raid the  permanent fund's corpus, earnings  reserve or dividend,                                                               
and no new revenues until the budget is reduced.                                                                                
                                                                                                                                
5:41:41 PM                                                                                                                    
MARTIN SPARGO,  representing self, Wasilla, Alaska,  testified in                                                               
opposition of SB 21 and SB 26.  He set forth that the concept for                                                               
SB 21 and  SB 26 is fair,  but the people should have  a voice on                                                               
how the permanent fund should be directed.                                                                                      
                                                                                                                                
5:44:32 PM                                                                                                                    
GARVAN BUCARIA, representing self,  Wasilla, Alaska, testified in                                                               
opposition of SB  21 and SB 26.  He opined that SB 21,  SB 26 and                                                               
HB  115  puts  the  Alaska   Permanent  Fund  at  risk  of  being                                                               
politicized.  He specified  that the  fund  will not  be free  to                                                               
invest  as  the  market  and   or  conditions  dictate  by  being                                                               
compelled to  produce a return for  the state and a  dividend. He                                                               
said the draws from SB 21 and  SB 26 are too great and government                                                               
spending should be cut.                                                                                                         
                                                                                                                                
5:48:07 PM                                                                                                                    
JESSE BJORKMAN, representing self,  Nikiski, Alaska, testified in                                                               
support of SB  21 and SB 26.  He said Alaska needs  a fiscal plan                                                               
that works  and is sustainable  to secure the state's  future. He                                                               
noted  that Chair  Dunleavy  had  said in  an  interview that  no                                                               
government program  has created  a greater constituency  than the                                                               
dividend  program. He  pointed out  that history  has shown  that                                                               
people  will vote  for those  that give  them money.  He asserted                                                               
that the  state needs to  explore all options available  with the                                                               
earnings reserve account  prior to levying taxes  on Alaskans. He                                                               
said action needs  to be taken that  provides sustainable budgets                                                               
for  schools,  police,  fire,  mental  health,  and  prisons.  He                                                               
summarized that the state cannot  have a scorched-earth policy of                                                               
cutting; however, certain cuts do need  to be made so that Alaska                                                               
has an efficient government.                                                                                                    
                                                                                                                                
5:51:07 PM                                                                                                                    
ELIJAH VERHAGEN, representing self,  Juneau, Alaska, testified in                                                               
support of  SB 21 and  in opposition of SB  26 due to  its higher                                                               
draw  and lower  dividend. He  opined that  spending cuts  should                                                               
continue to be made, but added  that the state cannot cut its way                                                               
to a  balanced budget  in 3 years.  He speculated  that increased                                                               
oil production will  ultimately close the state's  fiscal gap. He                                                               
said SB 21 is not perfect and should be amended if needed.                                                                      
                                                                                                                                
5:53:52 PM                                                                                                                    
DORA  BARR,  representing  self,  Juneau,  Alaska,  testified  in                                                               
opposition of SB  21 and SB 26. She set  forth that the permanent                                                               
fund  and the  dividend  should not  be  reduced. She  questioned                                                               
imposing a state income tax for  new revenues when the people did                                                               
not touch the permanent fund.                                                                                                   
                                                                                                                                
5:56:36 PM                                                                                                                    
EVAN  EADS, representing  self, Fairbanks,  Alaska, testified  in                                                               
support of SB 21. He explained  that he found SB 21 preferable to                                                               
SB  26 with  a few  caveats. He  specified that  just a  dividend                                                               
approach  does not  take into  account  out-of-state workers.  He                                                               
suggested that  an income  tax be instituted  that is  capped for                                                               
residents at the dividend. He set  forth that there needs to be a                                                               
marketplace of  ideas to come  up with  a solution that  can work                                                               
for all Alaskans.                                                                                                               
                                                                                                                                
6:00:06 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
6:13:52 PM                                                                                                                    
CHAIR DUNLEAVY called the committee back to order.                                                                              
                                                                                                                                
6:14:11 PM                                                                                                                    
MYRANDA WALSO,  representing self, Chugiak, Alaska,  testified in                                                               
opposition of SB 21 and SB  26. She explained that her opposition                                                               
stems from  the fact that  the state has  distribution mechanisms                                                               
in place  that have never  been utilized. She suggested  that the                                                               
earnings  reserve be  used to  determine which  services are  key                                                               
over  the  next year  instead  of  making  big changes  that  are                                                               
permanent and  effect the entirety  of the state for  present and                                                               
future generations.                                                                                                             
                                                                                                                                
6:17:05 PM                                                                                                                    
ED MARTIN,  representing self, Cooper Landing,  Alaska, testified                                                               
in  opposition  of  SB 21  and  SB  26.  He  set forth  that  the                                                               
permanent fund is not broken  and asked that the Legislature find                                                               
another means of  revenue. He stated that  changing the structure                                                               
of the permanent  fund or how the dividend  is distributed should                                                               
be decided  by a vote  of the people.  He suggested that  a land-                                                               
voucher program be offered to  Alaskans in lieu of the government                                                               
using the earnings reserve.                                                                                                     
                                                                                                                                
6:21:24 PM                                                                                                                    
CHRISTINE HUTCHISON, representing  self, Kenai, Alaska, testified                                                               
in support of  SB 21 and SB  26. She said she  preferred to leave                                                               
the  permanent  fund the  way  it  is,  but supported  using  the                                                               
permanent fund if it is the  only way to address the deficit. She                                                               
set  forth that  using  the  permanent fund  was  better than  an                                                               
income tax and favored cutting the state budget as well.                                                                        
                                                                                                                                
6:25:46 PM                                                                                                                    
HELEN ATTUNGANA,  representing self  and family,  Delta Junction,                                                               
Alaska,  testified in  opposition of  SB 21  and SB  26. She  set                                                               
forth that Jay Hammond set the  money aside in the permanent fund                                                               
to benefit  future generations. She  said the  Legislature should                                                               
reduce spending and not steal money from the people.                                                                            
                                                                                                                                
6:26:29 PM                                                                                                                    
CHAIR DUNLEAVY noted agendas for upcoming committee meetings.                                                                   
                                                                                                                                
6:27:14 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
6:29:57 PM                                                                                                                    
CHAIR DUNLEAVY called the committee back to order.                                                                              
                                                                                                                                
6:30:24 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
6:31:09 PM                                                                                                                    
CHAIR DUNLEAVY called the committee back to order.                                                                              
                                                                                                                                
6:31:20 PM                                                                                                                    
PHILLIP  FURBUSH, representing  self, Wasilla,  Alaska, testified                                                               
in opposition  of SB 21  and SB 26. He  set forth that  using the                                                               
permanent fund earnings for general  spending by the state is the                                                               
beginning of  the end  of the permanent  fund corpus  and pointed                                                               
out  the fact  that the  permanent  fund has  not been  inflation                                                               
proofed. He said effective and  efficient spending should be done                                                               
before doing anything like SB 21 and SB 26.                                                                                     
                                                                                                                                
6:35:20 PM                                                                                                                    
MICHAEL   SHELDON,   representing   self,   Petersburg,   Alaska,                                                               
testified in opposition of SB 21  and SB 26. He said there should                                                               
be a  sustainable budget, former Governor  Hammond's "50/50" plan                                                               
put into  effect, and  government should  be downsized.  He added                                                               
that the permanent fund dividend should be protected because the                                                                
program helps people and builds Alaska's economy.                                                                               
                                                                                                                                
6:37:13 PM                                                                                                                    
CHAIR DUNLEAVY held SB 21 and SB 26 in committee.                                                                               

Document Name Date/Time Subjects
SB 21 & SB 26 - Public Testimony to SSTA (Opposition) 02.20.2017.pdf SSTA 2/21/2017 4:30:00 PM
SB 21
SB 26
SB 21 & SB 26 - Public Testimony to SSTA (Support) 02.20.2017.pdf SSTA 2/21/2017 4:30:00 PM
SB 21
SB 26
SB 21 & SB 26 - SSTA Public Testimony 02.21.2017.pdf SSTA 2/21/2017 4:30:00 PM
SB 21
SB 26