Legislature(2017 - 2018)SENATE FINANCE 532

03/06/2017 04:00 PM FINANCE

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Audio Topic
04:02:23 PM Start
04:04:02 PM SB21 || SB26 || SB70
04:04:09 PM Public Testimony
06:26:46 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 21 PERMANENT FUND: INCOME; POMV; DIVIDENDS TELECONFERENCED
Heard & Held
+= SB 26 PERM. FUND:DEPOSITS;DIVIDEND;EARNINGS TELECONFERENCED
Heard & Held
+= SB 70 APPROP. LIMIT/BUDGET PROCESS/PERM FUND TELECONFERENCED
Heard & Held
Public Testimony:
Must be Signed up to Testify by 6:00 p.m.
Written Comments for the Official Public Record
Can be Sent to Finance.Committee@akleg.gov
                 SENATE FINANCE COMMITTEE                                                                                       
                       March 6, 2017                                                                                            
                         4:02 p.m.                                                                                              
                                                                                                                                
4:02:23 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  MacKinnon  called  the  Senate  Finance  Committee                                                                    
meeting to order at 4:02 p.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Anna MacKinnon, Co-Chair                                                                                                
Senator Click Bishop, Vice-Chair                                                                                                
Senator Mike Dunleavy                                                                                                           
Senator Peter Micciche                                                                                                          
Senator Donny Olson                                                                                                             
Senator Natasha von Imhof                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Senator  Bert  Stedman;  Bill  Corbus,  Self,  Juneau;  John                                                                    
Sonin, Self, Juneau.                                                                                                            
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
David Otness, Self, Cordova;  Paul Kendall, Self, Anchorage;                                                                    
Dennis  Watson,   Mayor,  Craig;  Michael   Brantley,  Self,                                                                    
Anchorage;  Orin  Seybert,  Self,  Anchorage;  Bruce  Jaffa,                                                                    
Self,  Moose  Pass;  Dave  Hanson,  Self,  Anchorage;  Jerry                                                                    
Alderman,  Self, Anchorage;  Ben Mulligan,  Deputy Director,                                                                    
Alaska  Chamber,  Anchorage;  Mike Coons,  Self,  Anchorage;                                                                    
Marleanna  Hall,  Executive Director,  Resource  Development                                                                    
Council, Anchorage;  Clyde Boyer, Self, Homer;  Earl Lackey,                                                                    
Alaska  Raceway  Park,  Mat-Su; Beth  Fread,  Self,  Palmer;                                                                    
Deantha   Crocket,   Executive  Director,   Alaska   Miner's                                                                    
Association, Anchorage; George  Pierce, Self, Kasilof; David                                                                    
Scott,  Self, Juneau;  Jeanine  St.  John, Self,  Anchorage;                                                                    
Michael  Chambers, United  for  Liberty, Anchorage;  Rebecca                                                                    
Culley, Self,  Anchorage; Karen Perry, Self,  Chugiak; Chris                                                                    
Eichenlaub, Self, Eagle River;  Dayne Clark, Self, Soldotna;                                                                    
Michael  Garhart,  Self,   Wasilla;  Garvan  Bucaria,  Self,                                                                    
Wasilla;  Daryl Nelson,  Self, Chugiak;  Lesa Hollen,  Self,                                                                    
Anchorage;  Denny   Kay  Weathers,  Self,   Prince  William;                                                                    
William   Topel,   Self,   Anchorage;  David   Nees,   Self,                                                                    
Anchorage;  John Faulkner,  Self,  Homer; Kathie  Wasserman,                                                                    
Executive Director,  Alaska Municipal League,  Juneau; Bryan                                                                    
Zak, Self,  Homer; Tom Braun,  Self, Sutton;  James Squyres,                                                                    
Self, Rural  Deltana; William  Deaton, Self,  Cordova; Jesse                                                                    
Bjorkman,  Self, Nikiski;  Bethany Andersen,  Self, Kasilof;                                                                    
Michael   Shower,  Self,   Wasilla;  Andree   McLeod,  Self,                                                                    
Anchorage;   Steve  St.   Clair,   Self,  Wasilla;   Deborah                                                                    
Brollini, Self, Anchorage;  William Reiner, Self, Anchorage;                                                                    
Pam Goode, Self, Rural Deltana.                                                                                                 
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 21     PERMANENT FUND: INCOME; POMV; DIVIDENDS                                                                               
                                                                                                                                
          SB 21 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
SB 26     PERM. FUND:DEPOSITS;DIVIDEND;EARNING                                                                                  
                                                                                                                                
          SB 26 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
SB 70     APPROP. LIMIT/BUDGET PROCESS/PERM FUND                                                                                
                                                                                                                                
          SB 70 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
SENATE BILL NO. 21                                                                                                            
                                                                                                                                
     "An Act  relating to appropriations from  the income of                                                                    
     the Alaska permanent fund;  relating to the calculation                                                                    
     of  permanent  fund  dividends; and  providing  for  an                                                                    
     effective date."                                                                                                           
                                                                                                                                
SENATE BILL NO. 26                                                                                                            
                                                                                                                                
     "An  Act   relating  to   the  Alaska   Permanent  Fund                                                                    
     Corporation,  the  earnings  of  the  Alaska  permanent                                                                    
     fund,  and the  earnings reserve  account; relating  to                                                                    
     the  mental health  trust  fund;  relating to  deposits                                                                    
     into the dividend fund; relating  to the calculation of                                                                    
     permanent  fund  dividends;  relating  to  unrestricted                                                                    
     state   revenue   available  for   appropriation;   and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
SENATE BILL NO. 70                                                                                                            
                                                                                                                                
     "An Act  relating to  an appropriation  limit; relating                                                                    
     to  the   budget  responsibilities  of   the  governor;                                                                    
     relating to the Alaska  permanent fund, the earnings of                                                                    
     the  Alaska permanent  fund, and  the earnings  reserve                                                                    
     account;  relating to  the  mental  health trust  fund;                                                                    
     relating to  deposits into the dividend  fund; relating                                                                    
     to  the  calculation  and  payment  of  permanent  fund                                                                    
     dividends; and providing for an effective date."                                                                           
                                                                                                                                
4:04:02 PM                                                                                                                    
                                                                                                                                
^PUBLIC TESTIMONY                                                                                                             
                                                                                                                                
4:04:09 PM                                                                                                                    
                                                                                                                                
DAVID  OTNESS,  SELF,  CORDOVA (via  teleconference),  spoke                                                                    
against using money from the  Permanent Fund Dividend (PFD).                                                                    
He  felt that  it  would negatively  affect  the people  who                                                                    
depend on  the money  from the PFD.  He stressed  that there                                                                    
was  serious  government  spending problems.  He  felt  that                                                                    
state employment was too  high, and expressed disappointment                                                                    
in the consideration of taking money from the PFD.                                                                              
                                                                                                                                
4:06:19 PM                                                                                                                    
                                                                                                                                
PAUL   KENDALL,   SELF,  ANCHORAGE   (via   teleconference),                                                                    
encouraged the  committee to take their  time in considering                                                                    
the bills. He  felt that public employees could  not be paid                                                                    
more than  those in the  private sector. He  understood that                                                                    
Senator Dunleavy  would introduce  a plan  that may  be more                                                                    
benefit  to  the state.  He  encouraged  the legislature  to                                                                    
continue  to make  cuts, and  eliminate public  pensions. He                                                                    
felt that a public employee could  not be paid more than one                                                                    
in  the  private sector,  because  then  the person  in  the                                                                    
private sector  may be  considered an  "indentured servant."                                                                    
He also  felt that all  public unions should  be eliminated.                                                                    
He felt  that public  employees should  be paid  between $10                                                                    
and   $20  per   hour,  and   not  be   provided  additional                                                                    
compensation  or  benefits.  He felt  that  the  legislature                                                                    
should return to  Anchorage and have an  open discussion. He                                                                    
felt that  there were many  events that the  legislature had                                                                    
no  control over,  so the  efforts of  the legislature  were                                                                    
therefore futile.                                                                                                               
                                                                                                                                
Mr. Kendall stressed  that the state had  nearly $60 billion                                                                    
in total  revenue, but  the state  had been  divided between                                                                    
the bureaucrats and  those that "want to be  free." He hoped                                                                    
that  the  legislature  would make  Anchorage  the  "hub  of                                                                    
Alaska",  and  form  partnerships  to  resolve  the  state's                                                                    
issues.                                                                                                                         
                                                                                                                                
4:12:22 PM                                                                                                                    
                                                                                                                                
DENNIS WATSON,  MAYOR, CRAIG (via teleconference),  spoke in                                                                    
support  of  all  three  of the  bills,  but  expressed  his                                                                    
specific support for  SB 21. He felt that  there should also                                                                    
be additional cuts to state government.                                                                                         
                                                                                                                                
4:13:46 PM                                                                                                                    
                                                                                                                                
MICHAEL  BRANTLEY,  SELF,  ANCHORAGE  (via  teleconference),                                                                    
spoke against a state income tax,  but spoke in support of a                                                                    
sales tax  in larger  communities. He  spoke against  use of                                                                    
the PFD. He  encouraged the committee to split  the PFD into                                                                    
three: $19 billion  for the PFD; $19 billion for  the use to                                                                    
balance  the  state budget;  pay  everyone  in the  state  a                                                                    
$45,000 check.                                                                                                                  
                                                                                                                                
4:17:31 PM                                                                                                                    
                                                                                                                                
ORIN  SEYBERT, SELF,  ANCHORAGE (via  teleconference), spoke                                                                    
in support  of SB 70. He  remarked that he did  not know the                                                                    
implications  of the  other bills.  He felt  that using  the                                                                    
earnings reserve could  support the PFD. He  also noted that                                                                    
the  fund would  be inflation  proof, so  the fund  would be                                                                    
protected  in  perpetuity.  He opposed  any  further  budget                                                                    
cuts,  and  the  depletion   of  the  constitutional  budget                                                                    
reserve (CBR). He  felt that the income tax  would provide a                                                                    
higher return. He felt that  there should be a reinstatement                                                                    
of the school tax.                                                                                                              
                                                                                                                                
4:22:23 PM                                                                                                                    
                                                                                                                                
BRUCE   JAFFA,  SELF,   MOOSE  PASS   (via  teleconference),                                                                    
testified  in  support  of  a   state  income  tax;  partial                                                                    
reduction of the  PFD; reinstitution of the  school tax; and                                                                    
other taxes including  fuel taxes, etc. He  remarked that he                                                                    
has paid  various types  of taxes  in the  time that  he has                                                                    
lived in  the state. He  felt that there would  be difficult                                                                    
decisions.  He felt  that any  short term  solutions may  be                                                                    
hasty, but he felt that using  the PFD would not be a frugal                                                                    
decision.                                                                                                                       
                                                                                                                                
4:26:15 PM                                                                                                                    
                                                                                                                                
DAVE HANSON, SELF, ANCHORAGE  (via teleconference), spoke in                                                                    
support  of  SB  70,  with  some  slight  modifications.  He                                                                    
supported  the   bills  percent   of  market   value  (POMV)                                                                    
endowment approach.  He supported the 75  percent to general                                                                    
fund;  25  percent  to  PFD   separation  for  the  earnings                                                                    
reserve; and  limiting the  annual PFD  to $1000,  which was                                                                    
almost  equal  to  the  average payout  over  36  years.  He                                                                    
encouraged the  committee to use  5 percent instead  of 5.35                                                                    
percent for the  annual earnings reserve draw.  He felt that                                                                    
the spending cap should be  a spending target. He encouraged                                                                    
the  committee  to  modify SB  70  inflation  proofing  with                                                                    
procedures  to  assure  the  value  of  the  permanent  fund                                                                    
principle  would  not  be  eroded.  He  felt  that  adequate                                                                    
inflation  proofing was  a form  of spending  the principle,                                                                    
and may be unconstitutional. He  felt that there should be a                                                                    
"claw back" of the $75 million  of the $100 million given to                                                                    
the state's  pipeline development corporation,  because they                                                                    
could afford to sponsor a  musher for $55,000. He encouraged                                                                    
the legislature  to enact the  16 cent over 2  year gasoline                                                                    
tax increase. He testified in support of an income tax.                                                                         
                                                                                                                                
4:29:27 PM                                                                                                                    
                                                                                                                                
JERRY ALDERMAN, SELF,  ANCHORAGE (via teleconference), spoke                                                                    
against additional  cuts to the  state budget.  He testified                                                                    
in support of SB 70.                                                                                                            
                                                                                                                                
4:30:20 PM                                                                                                                    
                                                                                                                                
BEN  MULLIGAN, DEPUTY  DIRECTOR,  ALASKA CHAMBER,  ANCHORAGE                                                                    
(via teleconference),  spoke in  support of  SB 70.  He felt                                                                    
that the bill would create  a stable and predictable economy                                                                    
in  the  state. He  shared  that  a  spending cap  was  last                                                                    
considered in  2015, with  a 75  percent approval  rate from                                                                    
the members of the Alaska Chamber.                                                                                              
                                                                                                                                
4:31:52 PM                                                                                                                    
                                                                                                                                
MIKE  COONS,  SELF,  ANCHORAGE (via  teleconference),  spoke                                                                    
against  the  bills.  He  mentioned   a  plan  from  Senator                                                                    
Dunleavy  called, "The  Fifty-Fifty  Plan."  He shared  that                                                                    
ExxonMobil  was investing  in the  Gulf  Coast. He  remarked                                                                    
that Alaska had the highest  unemployment rate. He felt that                                                                    
the bill would "steal" from the people.                                                                                         
                                                                                                                                
4:34:30 PM                                                                                                                    
                                                                                                                                
MARLEANNA  HALL,  EXECUTIVE DIRECTOR,  RESOURCE  DEVELOPMENT                                                                    
COUNCIL, ANCHORAGE (via  teleconference), felt that Alaska's                                                                    
budget   policy   should   concentrate  first   on   finding                                                                    
efficiencies and focusing on a  series of annual reductions;                                                                    
it must also  include a framework to use  the permanent fund                                                                    
earnings  to  support  essential   services.  She  spoke  in                                                                    
support of SB 70. She felt  that cautious and prudent use of                                                                    
the  earnings from  state investments  would strengthen  the                                                                    
economic viability  of Alaska  leading to  increased private                                                                    
sector investment in the natural resource industries.                                                                           
                                                                                                                                
4:37:07 PM                                                                                                                    
                                                                                                                                
BILL CORBUS,  SELF, JUNEAU, spoke  in support of  the bills,                                                                    
but specifically  urged support of  SB 70. He felt  that the                                                                    
bill would provide money for  the principle of the permanent                                                                    
fund.                                                                                                                           
                                                                                                                                
4:38:52 PM                                                                                                                    
                                                                                                                                
CLYDE  BOYER, SELF,  HOMER  (via  teleconference), spoke  in                                                                    
support of  implementation of  a state  income tax.  He felt                                                                    
that the state budget had been adequately reduced.                                                                              
                                                                                                                                
4:40:55 PM                                                                                                                    
                                                                                                                                
EARL    LACKEY,   ALASKA    RACEWAY   PARK,    MAT-SU   (via                                                                    
teleconference), felt  that there were more  cuts that could                                                                    
be implemented  into the state  budget. He spoke  in support                                                                    
of Senator  Dunleavy's "Fifty-Fifty Plan." He  felt that the                                                                    
reduced PFD made a negative impact on the economy.                                                                              
                                                                                                                                
4:43:44 PM                                                                                                                    
                                                                                                                                
BETH  FREAD,   SELF,  PALMER  (via   teleconference),  spoke                                                                    
against an  income tax and  use of  the PFD until  the state                                                                    
budget was reduced  to $8.8 billion. She spoke  about a bill                                                                    
from Senator Dunleavy.                                                                                                          
                                                                                                                                
4:46:52 PM                                                                                                                    
                                                                                                                                
DEANTHA   CROCKET,   EXECUTIVE  DIRECTOR,   ALASKA   MINER'S                                                                    
ASSOCIATION,  ANCHORAGE   (via  teleconference),   spoke  in                                                                    
support of  immediate implementation  of a  long-term fiscal                                                                    
plan   in  2017   to  ensure   responsible  spending   at  a                                                                    
sustainable  level of  between  $4.1 and  $4.5 billion.  She                                                                    
felt that  the plan should  include a budget  reduction; the                                                                    
use of permanent fund earnings;  and new revenue from broad-                                                                    
based taxes.  She remarked  that, in  order to  reduce state                                                                    
government  expenses,  the  legislature should  repeal  laws                                                                    
that  created   expenditures  that  were  not   a  necessary                                                                    
government function.                                                                                                            
                                                                                                                                
4:48:36 PM                                                                                                                    
                                                                                                                                
GEORGE PIERCE, SELF, KASILOF  (via teleconference), spoke in                                                                    
opposition  to  the  bills and  restructuring  the  PFD.  He                                                                    
recounted that  when the PF was  set up, it was  intended to                                                                    
benefit Alaskans,  not to balance  the budget.  He mentioned                                                                    
population  growth. He  thought the  bills should  be called                                                                    
"The Destruction Act  of the PFD." He  discussed tourism and                                                                    
non-resident  workers;  and  suggested there  should  be  an                                                                    
income  tax  for  such  individuals.   He  thought  the  oil                                                                    
companies  should  be taxed.  He  thought  that tax  credits                                                                    
should  be abolished.  He did  not think  tax credits  would                                                                    
contribute to future revenue.                                                                                                   
                                                                                                                                
4:52:59 PM                                                                                                                    
                                                                                                                                
DAVID  SCOTT, SELF,  JUNEAU (via  teleconference), testified                                                                    
in opposition to the bills  and using the permanent fund. He                                                                    
relayed that he had worked in the oil and gas industry.                                                                         
                                                                                                                                
4:54:17 PM                                                                                                                    
                                                                                                                                
JEANINE  ST.  JOHN,  SELF, ANCHORAGE  (via  teleconference),                                                                    
spoke  in support  of SB  70. She  was thrilled  that former                                                                    
Commissioner Bill Corbus supported the bill.                                                                                    
                                                                                                                                
4:56:09 PM                                                                                                                    
                                                                                                                                
MICHAEL  CHAMBERS,   UNITED  FOR  LIBERTY,   ANCHORAGE  (via                                                                    
teleconference),  spoke against  reductions to  the PFD.  He                                                                    
felt that  the money  was taken from  the private  sector to                                                                    
the public sector.                                                                                                              
                                                                                                                                
4:59:20 PM                                                                                                                    
                                                                                                                                
REBECCA CULLEY,  SELF, ANCHORAGE (via  teleconference), felt                                                                    
that  families who  make  less than  $50,000  should not  be                                                                    
taxed in the state. She  stressed that many people living in                                                                    
the rural communities must receive  a PFD. Those individuals                                                                    
could  barely afford  the cost  of fuel.  She spoke  against                                                                    
additional budget  cuts, specifically  to the  Department of                                                                    
Education and  Early Development (DEED). She  encouraged the                                                                    
committee  to reduce  the oil  and gas  tax credits,  and an                                                                    
increase in the fuel tax.                                                                                                       
                                                                                                                                
5:03:33 PM                                                                                                                    
                                                                                                                                
KAREN  PERRY,  SELF,  CHUGIAK  (via  teleconference),  spoke                                                                    
against the bills. She encouraged  the committee to continue                                                                    
to cut  the budget. She  spoke against the legislature  as a                                                                    
whole.                                                                                                                          
                                                                                                                                
5:07:49 PM                                                                                                                    
                                                                                                                                
CHRIS  EICHENLAUB, SELF,  EAGLE RIVER  (via teleconference),                                                                    
remarked that  a previous legislature  had attempted  to use                                                                    
the  permanent  fund  to  fix  a  budget  deficit,  with  no                                                                    
success. He stressed  that college age people  depend on the                                                                    
PFD  to attend  school, and  other  people who  were on  the                                                                    
verge of homelessness  because of the reduction  in the PFD.                                                                    
He was in support of a plan offered by Senator Dunleavy.                                                                        
                                                                                                                                
5:11:52 PM                                                                                                                    
                                                                                                                                
DAYNE  CLARK,  SELF,  SOLDOTNA (via  teleconference),  spoke                                                                    
against the  bills. He felt  that the permanent  fund should                                                                    
not be used to pay the  people. He felt that the PFD program                                                                    
should be eliminated.                                                                                                           
                                                                                                                                
5:16:01 PM                                                                                                                    
                                                                                                                                
MICHAEL GARHART, SELF,  WASILLA (via teleconference), shared                                                                    
that his  brother would often  see that  there was $1  to $3                                                                    
billion  missing from  the revenue,  and  never received  an                                                                    
explanation for that missing money.  He felt that the budget                                                                    
should be cut,  and noted that large size  of government. He                                                                    
stressed that many  people relied on the PFD,  and felt that                                                                    
the PFD should not be adjusted.                                                                                                 
                                                                                                                                
5:18:24 PM                                                                                                                    
                                                                                                                                
GARVAN  BUCARIA, SELF,  WASILLA (via  teleconference), spoke                                                                    
in opposition  to the  bills, and any  bills that  would use                                                                    
the earnings reserve.                                                                                                           
                                                                                                                                
5:21:53 PM                                                                                                                    
                                                                                                                                
DARYL NELSON,  SELF, CHUGIAK (via teleconference),  spoke in                                                                    
opposition  to the  bills. He  encouraged  the committee  to                                                                    
create a state sales tax.                                                                                                       
                                                                                                                                
5:26:47 PM                                                                                                                    
                                                                                                                                
LESA  HOLLEN,  SELF,  ANCHORAGE (via  teleconference),  felt                                                                    
that  the  permanent fund  was  created  for the  people  of                                                                    
Alaska, not  for political gains  and greed. She  shared her                                                                    
personal experience related to the economy in Alaska.                                                                           
                                                                                                                                
5:31:09 PM                                                                                                                    
                                                                                                                                
JOHN  SONIN,  SELF,  JUNEAU,  felt  that  subsidizing  large                                                                    
corporations and  lobbyists were  the reason for  the budget                                                                    
crisis.  He spoke  in support  of  an income  tax. He  spoke                                                                    
against  reduction to  the PFD,  and wondered  whether there                                                                    
could be a needs-based PFD.                                                                                                     
                                                                                                                                
5:35:03 PM                                                                                                                    
                                                                                                                                
DENNY    KAY   WEATHERS,    SELF,   PRINCE    WILLIAM   (via                                                                    
teleconference), spoke  against the bills. She  felt that SB                                                                    
70  was confusing  and  contained too  many  issues for  one                                                                    
bill.  She  encouraged  the  committee  to  examine  Senator                                                                    
Dunleavy's plan.                                                                                                                
                                                                                                                                
5:39:30 PM                                                                                                                    
                                                                                                                                
WILLIAM TOPEL,  SELF, ANCHORAGE (via  teleconference), spoke                                                                    
against  the   bills.  He  spoke   in  support   of  Senator                                                                    
Dunleavy's bills:  SB 1 and SB  2 to restore the  other halt                                                                    
of the previous year's PFD.  He encouraged that committee to                                                                    
listen  to  the  people  of   Alaska,  rather  than  special                                                                    
interest groups.                                                                                                                
                                                                                                                                
5:43:24 PM                                                                                                                    
                                                                                                                                
DAVID NEES, SELF,  ANCHORAGE (via teleconference), testified                                                                    
in  support  of  SB  70,   but  remarked  that  he  did  not                                                                    
particularly support any of the bills.                                                                                          
                                                                                                                                
5:45:23 PM                                                                                                                    
                                                                                                                                
JOHN  FAULKNER,  SELF,  HOMER  (via  teleconference),  spoke                                                                    
against  SB 26  and  SB 70.  He felt  that  there should  be                                                                    
careful  consideration  with  all actions.  He  shared  that                                                                    
there was optimism  in the immediate future in  the state to                                                                    
develop its  gas resources. He  stated that he was  in favor                                                                    
of Senator Dunleavy's plan.                                                                                                     
                                                                                                                                
5:48:44 PM                                                                                                                    
                                                                                                                                
KATHIE  WASSERMAN,  EXECUTIVE   DIRECTOR,  ALASKA  MUNICIPAL                                                                    
LEAGUE,  JUNEAU (via  teleconference), testified  in support                                                                    
of the bills. She felt that  the bills were a great start to                                                                    
fix the state's fiscal situation.                                                                                               
                                                                                                                                
5:50:44 PM                                                                                                                    
                                                                                                                                
BRYAN  ZAK,  SELF,  HOMER  (via  teleconference),  spoke  in                                                                    
support of the  bills. He remarked that  there were elements                                                                    
of each of the bills that he found useful.                                                                                      
                                                                                                                                
5:53:47 PM                                                                                                                    
                                                                                                                                
TOM  BRAUN,  SELF,  SUTTON (via  teleconference),  testified                                                                    
against the  bills. He  urged the  committee to  continue to                                                                    
cut the budget.                                                                                                                 
                                                                                                                                
5:55:18 PM                                                                                                                    
                                                                                                                                
JAMES  SQUYRES, SELF,  RURAL  DELTANA (via  teleconference),                                                                    
spoke  in support  of  the plan  from  Senator Dunleavy.  He                                                                    
spoke against the bills. He  felt that some legislators were                                                                    
circumventing  the  will  of  the people  in  favor  of  big                                                                    
government.                                                                                                                     
                                                                                                                                
5:57:34 PM                                                                                                                    
                                                                                                                                
WILLIAM  DEATON, SELF,  CORDOVA (via  teleconference), spoke                                                                    
against  the bills.  He wanted  the  full PFD.  He spoke  in                                                                    
support of  Senator Dunleavy's plan. He  remarked that there                                                                    
were various agencies that could see reductions.                                                                                
                                                                                                                                
5:59:52 PM                                                                                                                    
                                                                                                                                
JESSE   BJORKMAN,   SELF,  NIKISKI   (via   teleconference),                                                                    
supported stable  plan for Alaska's fiscal  future. He spoke                                                                    
in support of Senator Dunleavy's plan.                                                                                          
                                                                                                                                
6:02:21 PM                                                                                                                    
                                                                                                                                
BETHANY ANDERSEN, SELF,  KASILOF (via teleconference), spoke                                                                    
against  the  bills.  She  did   not  feel  that  it  was  a                                                                    
sustainable solution.                                                                                                           
                                                                                                                                
6:05:13 PM                                                                                                                    
                                                                                                                                
MICHAEL  SHOWER, SELF,  WASILLA (via  teleconference), spoke                                                                    
against  the   bills.  He  spoke   in  support   of  Senator                                                                    
Dunleavy's plan.                                                                                                                
                                                                                                                                
6:08:13 PM                                                                                                                    
                                                                                                                                
ANDREE   MCLEOD,  SELF,   ANCHORAGE  (via   teleconference),                                                                    
testified  against  the  bills.  She  spoke  in  support  of                                                                    
Senator  Dunleavy's bills.  She noted  that Governor  Walker                                                                    
had implemented  a hire and  travel freeze, but there  was a                                                                    
recent  high  travel  compensation  report.  She  felt  that                                                                    
travel costs  could be reduced,  because of  the possibility                                                                    
for teleconferencing. She spoke against  the use of the PFD.                                                                    
She wondered about the purchasing of office uniforms.                                                                           
                                                                                                                                
Co-Chair MacKinnon replied that  she had purchased her staff                                                                    
kuspuks.                                                                                                                        
                                                                                                                                
6:12:08 PM                                                                                                                    
                                                                                                                                
STEVE  ST.   CLAIR,  SELF,  WASILLA   (via  teleconference),                                                                    
opposed the bills.  He felt that combining  three bills into                                                                    
two  hours of  testimony  was "disingenuous."  He felt  that                                                                    
there was not  adequate time for public  testimony. He spoke                                                                    
in support of Senator Dunleavy's plan.                                                                                          
                                                                                                                                
6:16:05 PM                                                                                                                    
                                                                                                                                
DEBORAH  BROLLINI,  SELF,  ANCHORAGE  (via  teleconference),                                                                    
spoke against  the bills. She  shared a personal  story. She                                                                    
urged more cuts to the operating budget.                                                                                        
                                                                                                                                
6:18:46 PM                                                                                                                    
                                                                                                                                
WILLIAM  REINER,   SELF,  ANCHORAGE   (via  teleconference),                                                                    
testified against  the bills. He  felt that the  models were                                                                    
created for a different system.                                                                                                 
                                                                                                                                
6:22:05 PM                                                                                                                    
                                                                                                                                
PAM GOODE,  SELF, RURAL DELTANA (via  teleconference), spoke                                                                    
against  the  bills.  She  felt   that  there  would  be  an                                                                    
inappropriate  relationship between  the government  and the                                                                    
permanent  fund corporation.  She  felt that  there was  too                                                                    
much trust between the people and the government.                                                                               
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
6:25:31 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
6:25:59 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon discussed the following day's agenda.                                                                        
                                                                                                                                
SB  21  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
SB  26  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
SB  70  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
6:26:46 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 6:26 p.m.                                                                                          

Document Name Date/Time Subjects
SB 70, SB 26, SB 21 Letters of Opposition.pdf SFIN 3/6/2017 4:00:00 PM
SB 21
SB 26
SB 70
SB 70, SB 26
SB 70, SB 26, SB 21 Letters of Support.pdf SFIN 3/6/2017 4:00:00 PM
SB 21
SB 26
SB 70
SB 70, SB 26
SB 70, SB 26, SB 21 Opposition Public Testimony.pdf SFIN 3/6/2017 4:00:00 PM
SB 21
SB 26
SB 70
SB 70, SB 26, SB 21 Support Public Testimony 2.pdf SFIN 3/6/2017 4:00:00 PM
SB 21
SB 26
SB 70