04/23/2003 07:03 AM House W&M

                    ALASKA STATE LEGISLATURE                                                                                  
            HOUSE SPECIAL COMMITTEE ON WAYS & MEANS                                                                           
                         April 23, 2003                                                                                         
                           7:03 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Mike Hawker, Co-Chair                                                                                            
Representative Jim Whitaker, Co-Chair                                                                                           
Representative Vic Kohring                                                                                                      
Representative Bruce Weyhrauch                                                                                                  
Representative Peggy Wilson                                                                                                     
Representative Carl Moses                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Cheryll Heinze                                                                                                   
Representative Norman Rokeberg                                                                                                  
Representative Max Gruenberg                                                                                                    
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative Dan Ogg                                                                                                          
Representative Ralph Samuels                                                                                                    
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION: "THE ALASKA DISCONNECT" CHANCELLOR LEE GORSUCH                                                                    
                                                                                                                                
TAPES                                                                                                                         
                                                                                                                                
03-11, SIDES(S) A & B                                                                                                           
                                                                                                                                
CO-CHAIR MIKE  HAWKER convened the  meeting of the  House Special                                                             
Committee on Ways  & Means at 7:03 a.m.   Representatives Hawker,                                                               
Whitaker, Weyhrauch,  Wilson, Kohring, and Moses  were present at                                                               
the call to  order.  Also in attendance  were Representatives Ogg                                                               
and Samuels.                                                                                                                    
                                                                                                                                
CO-CHAIR MIKE HAWKER convened the meeting of the House Special                                                                
Committee on Ways & Means at 7:03 a.m.                                                                                          
                                                                                                                                
SUMMARY OF INFORMATION                                                                                                        
                                                                                                                                
LEE GORSUCH, Chancellor, University of Alaska Anchorage, gave a                                                                 
brief history of the State's economy.                                                                                           
                                                                                                                                
CHANCELLOR  GORSUCH   gave  his   presentation  on   the  "Alaska                                                               
Disconnect".    He  highlighted  important  economic  facts:  the                                                               
steady increasing output  in oil and gas  revenues; more Alaskans                                                               
are  working;  incomes have  been  increasing;  relative cost  of                                                               
living  has   been  declining;  and   State  spending   has  been                                                               
declining.   He  described the  reasons behind  these trends  and                                                               
attributed  them to  growing industries,  a boosted  economy from                                                               
the  disbursement  of  the Permanent  Fund,  and  federal  monies                                                               
received.                                                                                                                       
                                                                                                                                
CHANCELLOR  GORSUCH  described the  "real"  disconnect.   As  per                                                               
capita income falls behind the  national average, the lure to new                                                               
residents will decrease.   Job growth is slowing.   Income growth                                                               
has come  from government  transfers such  as the  Permanent Fund                                                               
Dividend.   If new jobs were  created and there were  an increase                                                               
in population, the  cost to the State would also  increase.  More                                                               
people  means more  children  in schools,  more  crime, and  more                                                               
services needed.                                                                                                                
                                                                                                                                
CHANCELLOR  GORSUCH discussed  two  interdependent strategies  to                                                               
"reconnect" - foster economic  development and develop long-term,                                                               
stable fiscal policies.                                                                                                         
                                                                                                                                
CO-CHAIR HAWKER  thanked the chancellor for  his presentation and                                                               
entertained questions for Chancellor Gorsuch.                                                                                   
                                                                                                                                
ANNOUNCEMENTS                                                                                                                 
                                                                                                                                
There were no announcements.                                                                                                    
                                                                                                                                
COMMITTEE ACTION                                                                                                              
                                                                                                                                
The committee took no action.                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The House  Special Committee on Ways  & Means took an  at-ease at                                                               
8:30 a.m. in order to prepare  for the regular meeting.  [For the                                                               
regular  meeting minutes,  see  the 8:38  a.m.  minutes for  this                                                               
date.]                                                                                                                          
                                                                                                                                
NOTE:   The meeting was  recorded and handwritten log  notes were                                                               
taken.  A  copy of the tape(s)  and log notes may  be obtained by                                                               
contacting the  House Records  Office at  State Capitol,  Room 3,                                                               
Juneau,  Alaska  99801  (mailing address),  (907)  465-2214,  and                                                               
after  adjournment  of the  second  session  of the  Twenty-Third                                                               
Alaska State Legislature this information may be obtained by                                                                    
contacting the Legislative Reference Library at (907) 465-3808.