Legislature(2023 - 2024)DAVIS 106

04/01/2023 09:00 AM House WAYS & MEANS

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Audio Topic
09:31:12 AM Start
09:32:10 AM Overview(s): Long Term Fiscal Plan
10:59:28 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
+ Overview: Long Term Fiscal Plan TELECONFERENCED
-- Public Testimony <Time Limit May Be Set> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
           HOUSE SPECIAL COMMITTEE ON WAYS AND MEANS                                                                          
                         April 1, 2023                                                                                          
                           9:31 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Ben Carpenter, Chair                                                                                             
Representative Tom McKay                                                                                                        
Representative Cathy Tilton                                                                                                     
Representative Andrew Gray                                                                                                      
Representative Cliff Groh                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Jamie Allard                                                                                                     
Representative Kevin McCabe                                                                                                     
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                              
Senator Robert Myers                                                                                                            
Representative Mike Cronk                                                                                                       
                                                                                                                              
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW(S): LONG TERM FISCAL PLAN                                                                                              
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
HERMAN MORGAN, representing self                                                                                                
Aniak, Alaska                                                                                                                   
POSITION STATEMENT:  Testified against government spending.                                                                   
                                                                                                                                
MADELEINE GRANT, representing self                                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified against HB 142.                                                                                
                                                                                                                                
ROZLYN GRADY-WILCHE, Vice President                                                                                             
Alaska Coalition of Black Indigenous People of Color Educators                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified against HB 142.                                                                                
                                                                                                                                
SARA DYKSTRA, representing self                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified against HB 142.                                                                                
                                                                                                                                
JOHN HESSERT, representing self                                                                                                 
Willow, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during the hearing on HB 142.                                                                  
                                                                                                                                
MONICA RITTER, representing self                                                                                                
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified against HB 142.                                                                                
                                                                                                                                
PATRICK RACE, representing self                                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during the hearing.                                                                            
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
9:31:12 AM                                                                                                                    
                                                                                                                                
CHAIR BEN  CARPENTER called the  House Special Committee  on Ways                                                             
and Means meeting to order  at 9:31 a.m.  Representatives Tilton,                                                               
McKay,  Gray, Groh,  and Carpenter  were present  at the  call to                                                               
order.                                                                                                                          
                                                                                                                                
                                                                                                                                
^Overview(s): Long Term Fiscal Plan                                                                                             
               Overview(s): Long Term Fiscal Plan                                                                           
                                                                                                                              
9:32:10 AM                                                                                                                    
                                                                                                                                
CHAIR CARPENTER announced that the only order of business would                                                                 
be an overview on the state's long term fiscal plan.                                                                            
                                                                                                                                
CHAIR  CARPENTER noted  that,  using work  from  the Fiscal  Plan                                                               
Working  Group,  legislation  has   been  brought  forward.    He                                                               
outlined the four-point fiscal focus,  which covers several bills                                                               
currently  in  front of  the  legislature.   Under  the  category                                                               
labelled "settling  the PFD," he  noted HJR 7,  HJR 8, HJR  9, HB
72,  HB   90,  and  HB   110  are  listed;  under   the  category                                                               
"accountability and  efficient spending," he  noted HJR 2  and HB
38 are  listed; under "economic  growth" he  noted HB 49,  HB 50,                                                               
and  HB  109  are  listed;  and  under  "revenue  generation  for                                                               
government" he noted  HB 142 is listed.  He  explained each bill,                                                               
and  how it  relates to  the  section where  it was  placed.   He                                                               
reminded  the public  that copies  of any  of the  aforementioned                                                               
bills are accessible online.                                                                                                    
                                                                                                                                
9:37:36 AM                                                                                                                    
                                                                                                                                
HERMAN MORGAN, representing self,  expressed the opinion that the                                                               
government's overspending is destroying  Alaska's economy, and if                                                               
the money  were in private hands,  the economy would thrive.   He                                                               
argued that,  if the  state's education  system is  not providing                                                               
adequate  education, why  should the  public employee  retirement                                                               
system  and  teacher retirement  system  pay  out benefits.    He                                                               
opined on indoctrination in schools.                                                                                            
                                                                                                                                
9:41:00 AM                                                                                                                    
                                                                                                                                
MADELEINE GRANT,  representing self,  pointed out that  the state                                                               
has  a  fiscal  crisis  because   of  declining  revenues.    She                                                               
expressed  the concern  that  a broad-based  sales  tax would  be                                                               
inequitable for  those in  villages and  rural communities.   She                                                               
urged  members to  reject  a broad-based  sales  tax and  instead                                                               
consider an  income tax, as it  would not only be  equitable, but                                                               
those  earning   in  various  industries  in   Alaska  like  oil,                                                               
fisheries, and medicine, would pay towards it.                                                                                  
                                                                                                                                
9:42:43 AM                                                                                                                    
                                                                                                                                
ROZLYN GRADY-WILCHE,  Vice President,  Alaska Coalition  of Black                                                               
Indigenous People of Color Educators,  asked members to put on an                                                               
equity  lens  when  considering  a  statewide  sales  tax.    She                                                               
requested  members  oppose  HB  142 and  advance  an  income  tax                                                               
instead.                                                                                                                        
                                                                                                                                
9:44:17 AM                                                                                                                    
                                                                                                                                
SARA DYKSTRA, representing self, shared  that she is a mother and                                                               
has been  an Alaska resident  for ten  years.  She  expressed the                                                               
desire to be  in a state with  a strong fiscal plan.   She voiced                                                               
that she  is supportive  of being  taxed.   She expressed  that a                                                               
sales tax  would not  be good  and suggested  the members  pass a                                                               
progressive income tax.                                                                                                         
                                                                                                                                
9:46:03 AM                                                                                                                    
                                                                                                                                
JOHN  HESSERT, representing  self,  pointed out  that people  are                                                               
leaving Alaska,  and he expressed  agreement that a sales  tax is                                                               
bad, adding that an  income tax would be bad as  well.  He stated                                                               
that members  should appreciate  the taxes  which are  already in                                                               
place in the state.                                                                                                             
                                                                                                                                
9:48:08 AM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 9:48 a.m. to 10:21 a.m.                                                                      
                                                                                                                                
10:21:01 AM                                                                                                                   
                                                                                                                                
MONICA RITTER, representing self, shared  she has been a resident                                                               
of the  state for  48 years.   She said she  is glad  members are                                                               
looking  at new  revenues, but  a sales  tax would  not be  good;                                                               
instead, she advocated the passage of a statewide income tax.                                                                   
                                                                                                                                
10:23:04 AM                                                                                                                   
                                                                                                                                
The committee took an at-ease from 10:23 a.m. to 10:26 a.m.                                                                     
                                                                                                                                
10:26:50 AM                                                                                                                   
                                                                                                                                
CHAIR CARPENTER  reminded the  public of the  ways to  testify at                                                               
the meeting.                                                                                                                    
                                                                                                                                
10:27:37 AM                                                                                                                   
                                                                                                                                
PATRICK RACE,  representing self, said the  structural deficit in                                                               
Alaska is concerning and would like  to see it resolved.  He said                                                               
the state has not  seen a tax on wealthy Alaskans  in the form of                                                               
an income  tax, which he said  would be better than  a sales tax.                                                               
He stated that  an income tax with a reasonable  floor, like 80th                                                               
percentile  of  wages,  would  be dynamic  with  inflation.    He                                                               
commented that oil  companies have revived generous  tax laws and                                                               
argued that funding such laws needs  to be reduced.  He suggested                                                               
a plan that  contains a 75/25 percent market  value split (POMV),                                                               
which would gradually increase to 50/50.                                                                                        
                                                                                                                                
10:30:40 AM                                                                                                                   
                                                                                                                                
The committee took an at-ease from 10:30 a.m. to 10:59 a.m.                                                                     
                                                                                                                                
10:59:28 AM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Special Committee on Ways and Means meeting was adjourned at 11                                                                 
a.m.                                                                                                                            

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