Legislature(2015 - 2016)BUTROVICH 205
02/16/2016 06:00 PM Senate STATE AFFAIRS
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| Audio | Topic |
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| Start | |
| SB114 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 114 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE STATE AFFAIRS STANDING COMMITTEE
February 16, 2016
6:01 p.m.
MEMBERS PRESENT
Senator Bill Stoltze, Chair
Senator John Coghill, Vice Chair
Senator Charlie Huggins
Senator Lesil McGuire
Senator Bill Wielechowski
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 114
"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; and providing for an effective
date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 114
SHORT TITLE: PERM FUND: EARNINGS, DEPOSITS, ACCOUNTS
SPONSOR(s): SENATOR(s) MCGUIRE
04/18/15 (S) READ THE FIRST TIME - REFERRALS
04/18/15 (S) STA, FIN
02/01/16 (S) SPONSOR SUBSTITUTE INTRODUCED-REFERRALS
02/01/16 (S) STA, FIN
02/04/16 (S) STA AT 9:00 AM BUTROVICH 205
02/04/16 (S) Scheduled but Not Heard
02/09/16 (S) STA AT 9:00 AM BUTROVICH 205
02/09/16 (S) Heard & Held
02/09/16 (S) MINUTE(STA)
02/16/16 (S) STA AT 9:00 AM BUTROVICH 205
02/16/16 (S) STA AT 6:00 PM BUTROVICH 205
WITNESS REGISTER
JESSIE BJORKMAN, representing himself
Kenai, Alaska
POSITION STATEMENT: Testified in support of SB 114.
MICHAEL PETROVICH, Member
Teamsters Local 959
Kenai, Alaska
POSITION STATEMENT: Testified in support of SB 114.
THERESA WOODY, representing herself
Tok, Alaska
POSITION STATEMENT: Testified in opposition to SB 114.
PATRICK WOODY, representing himself
Tok, Alaska
POSITION STATEMENT: Testified in opposition to SB 114.
RHONDA VANZANDT, representing herself
Tok, Alaska
POSITION STATEMENT: Testified in opposition to SB 114.
JEFFERY VANZANDT, representing himself
Tok, Alaska
POSITION STATEMENT: Testified in opposition to SB 114.
JAMES L. WILLIAMS, representing himself
Valdez, Alaska
POSITION STATEMENT: Testified in opposition to SB 114.
MARY NANUWAK, representing herself
Bethel, Alaska
POSITION STATEMENT: Testified during the discussion of SB 114.
FRED STURMAN, representing himself
Kenai, Alaska
POSITION STATEMENT: Testified in opposition to SB 114.
JAKE JACOBSEN, representing himself
Kodiak, Alaska
POSITION STATEMENT: Testified in opposition to SB 114.
CARLENE MCCHESNEY, representing herself
Kodiak, Alaska
POSITION STATEMENT: Testified on SB 114.
NICK SZABO, representing himself
Kodiak, Alaska
POSITION STATEMENT: Testified in support of SB 114.
KEVIN POMEROY, Member
Laborer's Local 942
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 114.
CHARLOTTE M. DAVIS, representing herself
Fairbanks, Alaska
POSITION STATEMENT: Testified in opposition to SB 114.
JEREMY HOLAN, Member
Teamsters Local 959
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 114.
BILL BJORK, representing himself
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 114.
JOMO STEWART, Energy Manager
Fairbanks Economic Development Corporation
Fairbanks, Alaska
POSITION STATEMENT: Testified on SB 114.
LOUIE NELSON, Member
Ironworkers
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 114.
MICHAEL MURPHY, representing himself
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 114.
MARY BOWER, representing herself
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 114.
LINDA BYERS, representing herself
Chugiak, Alaska
POSITION STATEMENT: Testified in support of SB 114.
MAURICE BYERS, representing himself
Chugiak, Alaska
POSITION STATEMENT: Testified in support of SB 114.
MARGARET LOEW, representing herself
Palmer, Alaska
POSITION STATEMENT: Testified in opposition to SB 114.
ALBERT MINGEULOK, representing himself
Shishmaref, Alaska
POSITION STATEMENT: Testified in opposition to SB 114.
JAMES SQUYRES, representing himself
Deltana, Alaska
POSITION STATEMENT: Testified in opposition to SB 114.
PAMELA GOODE, representing herself
Deltana, Alaska
POSITION STATEMENT: Testified in opposition to SB 114.
TERRY VAN LEUVEN, representing himself
Juneau, Alaska
POSITION STATEMENT: Testified on SB 114.
BRIAN MERRITT, representing himself
Wrangell, Alaska
POSITION STATEMENT: Testified in support of SB 114.
MICHAEL MCCARTHY, representing himself
Homer, Alaska
POSITION STATEMENT: Testified in support of SB 114 with budget
cuts.
RICHARD BENEVILLE, representing himself
Nome, Alaska
POSITION STATEMENT: Testified in support of SB 114.
DARYL NELSON, representing himself
Chugiak, Alaska
POSITION STATEMENT: Testified in support of SB 114.
ROSS MULLINS, representing himself
Cordova, Alaska
POSITION STATEMENT: Testified in support of SB 114.
KEN RAY, representing himself
Wasilla, Alaska
POSITION STATEMENT: Testified in opposition to SB 114.
DAVE GLENN, representing himself
Wasilla, Alaska
POSITION STATEMENT: Testified in opposition to SB 114.
DANIEL HAMM, representing himself
Palmer, Alaska
POSITION STATEMENT: Testified in opposition to SB 114.
CANDI MILLER, representing herself
Wasilla, Alaska
POSITION STATEMENT: Testified in opposition to SB 114.
WAYNE WOODS, representing himself
Palmer, Alaska
POSITION STATEMENT: Testified in opposition to SB 114.
EARL LACKEY, representing himself
Wasilla, Alaska
POSITION STATEMENT: Testified in opposition to SB 114.
BETH FREAD, representing herself
Palmer, Alaska
POSITION STATEMENT: Testified in opposition to SB 114.
GARVIN BUCARIA, representing himself
Wasilla, Alaska
POSITION STATEMENT: Testified in opposition to SB 114.
CURTISS CLIFTON, representing himself
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 114.
JULIANA WAYMAN, representing herself
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 114.
DAVE HANSON, representing himself
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 114.
DAN BOYETTE, representing himself
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 114.
MEGAN BALDINO, representing herself
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 114.
CRAIG MOLLERSTUEN, representing himself
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 114.
RICH WILSON, representing himself
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 114.
SUSANNAH WILSON, representing herself
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 114.
VALERIE BROOKS, representing herself
Ketchikan, Alaska
POSITION STATEMENT: Testified in support of SB 114.
DONALD WESTLUND, representing himself
Ketchikan, Alaska
POSITION STATEMENT: Testified in support of SB 114.
VINCE BELTRAMI, President
AK AFL-CIO
Anchorage, Alaska
POSITION STATEMENT: Testified in of SB 114.
TIM MORGAN, representing himself
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 114.
VINCE BELTRAMI, President
Alaska AFL-CIO
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 114.
DEREK MUSTO, Member
Teamsters
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 114.
STEPHANIE KESLER, representing herself
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 114.
SAM MAZZEO, representing himself
Anchorage, Alaska
POSITION STATEMENT: Testified on SB 114.
CLINTON HODGES, representing himself
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to SB 114.
KATE SLYKER, representing herself
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 114.
WILLIAM CHAMBERS, representing himself
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 114.
JOE WAHL, representing himself
Eagle River, Alaska
POSITION STATEMENT: Testified in support of SB 114.
JENNIFER NELSON, representing herself
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 114.
BARBARA CASH, representing herself
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 114.
INGRID KLINKHART, representing herself
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 114.
GEORGE PIERCE, representing himself
Kasilof, Alaska
POSITION STATEMENT: Testified in opposition to SB 114.
GRANT JOHNSTON, representing himself
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 114.
DAVID HYMAS, representing himself
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 114.
TOM LAKOSH, representing himself
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to SB 114.
THEA AGNEW BEMBEN, representing herself
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 114.
RAY JOHNSON, representing himself
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 114.
TREE WILSON, representing himself
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to SB 114.
CHRIS CONSTANT, representing himself
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 114.
DAVID NEES, representing himself
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to SB 114.
ACTION NARRATIVE
6:01:58 PM
CHAIR BILL STOLTZE called the Senate State Affairs Standing
Committee meeting to order at 6:01 p.m. Present at the call to
order were Senators Wielechowski, Coghill, Huggins, McGuire, and
Chair Stoltze.
SB 114-PERM FUND: EARNINGS, DEPOSITS, ACCOUNTS
CHAIR STOLTZE announced the consideration of SB 114 and opened
public testimony.
6:02:51 PM
JESSIE BJORKMAN, representing himself, testified in support of
SB 114. He told a story to make his point about Alaska's budget
crisis. He cautioned to make the hard choices and restructure
the Permanent Fund Earnings Reserve Account (ERA) to ensure the
PFD into perpetuity.
6:06:01 PM
MICHAEL PETROVICH, Member, Teamsters Local 959, testified in
support of SB 114. He said his research shows there are tough
calls to make and SB 114 has a solution. He stated that, "We
can't do nothing."
6:08:02 PM
THERESA WOODY, representing herself, testified in opposition to
SB 114. She said she is against taking the PFD from Alaska
residents. She suggested making cuts instead.
6:10:13 PM
PATRICK WOODY, representing himself, testified in opposition to
SB 114. He did not want the PFD to be taken and he maintained
that politicians and state workers have mismanaged state money.
He spoke in favor of cuts.
6:12:36 PM
RHONDA VANZANDT, representing herself, testified in opposition
to SB 114. She said she and her husband depend on the PFD for
groceries, car insurance, and medicine. She stressed that the
PFD keeps rural communities afloat. She believed that the state
has misused funds.
6:14:22 PM
JEFFERY VANZANDT, representing himself, testified in opposition
to SB 114. He said the PFD is one of the biggest booms to the
Alaska economy and it keeps alive many small businesses in the
Interior. He listed the things he buys with the PFD. He shared
how important it is to the elderly.
6:16:59 PM
JAMES L. WILLIAMS, representing himself, testified in opposition
to SB 114. He said the Permanent Fund was created for the people
and he challenged the legislature to ask children if they want
to give away their PFD's. He said to reduce the size of
government instead.
6:19:44 PM
MARY NANUWAK, representing herself, testified on SB 114. She
highlighted Representative Gruenberg's qualities. She spoke of
her losses.
6:22:50 PM
FRED STURMAN, representing himself, testified in opposition to
SB 114. He requested that the legislature cut the budget first
and said he is not in favor of more taxes. He said he sent a
letter that included 14 places to cut. He thought the proposed
cut for state employees was too little.
6:25:33 PM
JAKE JACOBSEN, representing himself, testified in opposition to
SB 114. He said he has seen this budget squeeze many times. He
said an income tax would target non-residents more, but not
tourists. A sales tax would target tourists. He also suggested
to revisit big industry taxes, particularly oil.
6:26:55 PM
CARLENE MCCHESNEY, representing herself, testified on SB 114.
She said she depends on the PFD as a single person who lives
alone. She suggested making cuts instead.
6:28:22 PM
NICK SZABO, representing himself, testified in support of SB
114. He said he is convinced it will take a combination of
measures to solve the budget crisis: taxes, budget cuts, and
Permanent Fund earnings. He maintained that budget cuts won't do
it alone. He said to do something now. He said both SB 114 and
SB 128 attempt to preserve a dividend in some fashion and one of
those concepts should be used.
6:30:22 PM
KEVIN POMEROY, Member, Laborer's Local 942, testified in support
of SB 114. He supported the concept of using a portion of the
Permanent Fund earnings as a part of a comprehensive plan that
also includes new revenue streams and spending cuts. He said to
take action to prevent the loss of the PFD completely. Cuts are
not enough.
6:32:33 PM
CHARLOTTE M. DAVIS, representing herself, testified in
opposition to SB 114. She said Governor Hammond is one of her
heroes. She did not support the reduction from 21 percent to 5
percent POMV or using any part of the fund. She suggested not to
use the PFD to prime the pump. She wanted to see the income
averaging gradually reduced from five years to one year. She
suggested stopping studies for big projects and increasing the
gas tax.
CHAIR STOLTZE noted that committee members read letters
submitted by the public.
6:36:04 PM
JEREMY HOLAN, Member, Teamsters Local 959, testified in support
of SB 114. He said to act now to solve the budget problem and
use the concepts in SB 114 along with spending cuts and sources
of new revenues. He urged the committee to act now and use this
long-term solution.
6:37:12 PM
BILL BJORK, representing himself, testified in support of SB
114. He said he has tried to educate himself on solutions to
Alaska's financial problems and concluded that Alaska needs a
multifaceted approach. Cuts and new revenue can't get the job
done and it's time to address the Permanent Fund. He said broad-
based taxes must also be discussed along with cuts in spending.
6:39:14 PM
JOMO STEWART, Energy Manager, Fairbanks Economic Development
Corporation, testified on SB 114. He read the corporation's
resolution on long-term fiscal stability, which uses a
multifaceted, broad approach to solving the fiscal crisis. The
board does not take a position on bills, but agrees that a
portion of the Permanent Fund should be considered.
6:41:09 PM
LOUIE NELSON, Member, Ironworkers, testified in support of SB
114. He said an approach that takes many parts into
consideration is what is quickly needed.
6:42:08 PM
MICHAEL MURPHY, representing himself, testified in support of SB
114. He commended the governor and the legislature for trying to
come up with a solution to the budget crisis. He opined that
many pieces will be needed to solve the problem and people will
have to come together to do so. Both cuts and new revenues must
be a part of the solution.
6:45:29 PM
MARY BOWER, representing herself, testified in support of SB
114. She said she agrees with taking money out of the Permanent
Fund to help with the state's finances. She spoke in favor of a
state income tax.
6:49:06 PM
LINDA BYERS, representing herself, testified in support of SB
114. She said she supports using the fund and cutting spending.
6:49:59 PM
MAURICE BYERS, representing himself, testified in support of SB
114. He echoed the testimony of Ms. Byers and thought using fund
money would lead to fiscal responsibility. He said he is not in
favor of an income tax.
6:52:00 PM
MARGARET LOEW, representing herself, testified in opposition to
SB 114. She said in real life there are economic ups and downs
and when it's down you stop spending. She agreed with a need for
fiscal responsibility and living within one's means.
6:54:46 PM
ALBERT MINGEULOK, representing himself, testified in opposition
to SB 114. He said that the PFD really helps village residents
and is part of their livelihood. He spoke in honor of
Representative Max Gruenberg.
6:57:36 PM
JAMES SQUYRES, representing himself, testified in opposition to
SB 114. He suggested reducing the size of government and not
using the Permanent Fund. He did not agree with Senator
McGuire's model and concurs with Mr. Keithly's testimony.
6:59:58 PM
PAMELA GOODE, representing herself, testified in opposition to
SB 114. She said the Permanent Fund bills remove spending power
from the people in order to fund an oversized government. She
suggested looking at the ISER Goldsmith model instead.
7:01:25 PM
TERRY VAN LEUVEN, representing himself, testified on SB 114. He
shared his long history in Alaska. He said that the PFD helps
him pay his bills and he depends on it every year. He said to
protect and distribute the PFD into perpetuity. Alaskans should
have the right to vote on what happens to their PFD.
7:03:51 PM
BRIAN MERRITT, representing himself, testified in support of SB
114. He stated that the PFD is going to have to be reduced as
part of a plan to balance the budget. He said he only wants to
receive it if the state has the extra cash to do so. He spoke of
well-funded programs that make Alaska desirable. He said SB 114
is a good first step and more can be done in future years to
provide a PFD only for low income and handicapped people. The
PFD is a bonus, not a right.
7:04:56 PM
MICHAEL MCCARTHY, representing himself, testified in support of
SB 114, with budget cuts. He spoke as a senior citizen who is
willing to pay a state income tax, but only after the Anchorage
LIO is vacated. He said he is in favor of using part of the
Permanent Fund on a sunset basis, such as three years. He said
to stop megaprojects and current spending. He cautioned
legislators not to be afraid to risk re-election by making hard
decisions to save Alaska's future. He requested legislators pull
together and work for the good of the state.
7:07:00 PM
RICHARD BENEVILLE, representing himself, testified in support of
SB 114. He said he was the Mayor of Nome and a long-time
Alaskan. He maintained that the PFD is not a right; it was
designed to share the state's oil profits. He suggested it would
have been better had the state diversified its economy. He
stressed that the PFD is used by rural Alaskans as a vital part
of their income for their subsistence lifestyle. He would like
to see the Permanent Fund go both to the dividend and to help
solve the fiscal problem. He emphasized that everyone need to do
their share to solve the gap.
7:08:40 PM
DARYL NELSON, representing himself, testified in support of SB
114. He recalled that Governor Hammond predicted that the "rainy
day" would come. He said he supports capping the PFD, but also
having a statewide sales tax, one-fourth of which would go back
to a municipal fund. He said he does not like an income tax.
7:11:19 PM
ROSS MULLINS, representing himself, testified in support of SB
114. He said he supports the sovereign wealth concept to keep
the state afloat. He opined that SB 128 and SB 114 have been
well-crafted. He urged the committee to consider Dr. Rietveld's
contributions regarding the management of sovereign wealth funds
around the world. He consider Alaska to be in a good position
relative to its fiscal size.
7:15:12 PM
KEN RAY, representing himself, testified in opposition to SB
114. He did not think SB 114 is the answer and the bigger
problem is in not forecasting future PFD amounts so the people
in Alaska can see the need for more government cuts. The
legislature should dictate cuts to agencies spread equally
throughout, including cuts to entitlement programs.
7:17:51 PM
DAVE GLENN, representing himself, testified in opposition to SB
114. He suggested that the legislature cash out the permanent
fund 50/50 between the people and the government. He did not
want the government to gain control of the Permanent Fund.
7:20:48 PM
DANIEL HAMM, representing himself, testified in opposition to SB
114. He related that SB 114 is a regressive tax that would hurt
the poorest citizens in Alaska most. The Alaska statehood
compact restricts private individuals from owning mineral rights
and the PFD allows Alaskans to share in mineral rights. Changing
the PFD calculations could amount to an over 75 percent tax on
each PFD. The legislation has a responsibility to represent non-
government sectors who cannot lobby. He also argued that SB 114
is a permanent fix to a temporary problem, and government is too
big and should be cut first.
7:23:29 PM
CANDI MILLER, representing herself, testified in opposition to
SB 114. She believed that SB 114 is not necessary, even as a
last resort. She requested that the legislature apply the
"privatization solution" as Wisconsin has. She cited where the
data from that legislation can be found and the results. She
said cutting costs and increasing the revenue stream are also
solutions. She suggested gathering information from "We the
People" and experts.
7:26:21 PM
WAYNE WOODS, representing himself, testified in opposition to SB
114. He said the legislature should cut state government before
raiding the Permanent Fund, which would especially hurt rural
residents.
7:27:48 PM
EARL LACKEY, representing himself, testified in opposition to SB
114. He said he appreciates the work on SB 114 but is not
convinced it is the answer. He suggested cutting the budget and
using the earnings of the fund, but leaving the PFD alone. He
also suggested adding a sales tax. He voiced appreciation for
all the work done.
7:30:01 PM
BETH FREAD, representing herself, testified in opposition to SB
114. She suggested cutting the budget first before considering
SB 114. She appreciated the work done on SB 114 but wanted to
wait until next session to enact it.
GARVIN BUCARIA, representing himself, testified in opposition to
SB 114. He said to reduce the bloated state government and to
retain the current PFD because it supports small business and
subsistence. He also said to eliminate big projects like the LNG
project and the Anchorage LIO and defund the Alaska Development
Authority and all industry benefitting state-funded programs.
7:33:30 PM
CURTISS CLIFTON, representing himself, testified in support of
SB 114. He said he likes SB 114 and Gunnar Knapp's ISER proposal
and is positive about Alaska's future. He recalled his
experience in the oil crash and how that turned around. He urged
the committee to act now and not to try to "cut" its way out of
the crisis. He says he trusts the sponsors of the various bills
to solve Alaska's budget crisis.
7:36:27 PM
JULIANA WAYMAN, representing herself, testified in support of SB
114. She requested the legislature take immediate action to
close the budget gap with all of the steps suggested. She urged
the legislature to put a portion of the Permanent Fund earnings
to work for Alaska now.
7:37:42 PM
DAVE HANSON, representing himself, testified in support of SB
114. He emphasized that a plan such as SB 114 is needed now. He
cautioned that Alaska is in danger of losing its 20-something's
if there is no future. He opined that SB 114 is better than SB
128 because it ensures that the PFD will always be $1,000. He
suggested also phasing down the PFD to help minimize impact. He
suggested simplifying both SB 114 and SB 128 by creating a
Permanent Fund endowment of 5 percent a year into perpetuity. He
concluded that the oil tax credit program needs to be revisited.
CHAIR STOLTZE noted that the oil tax credit is being scrutinized
this year.
7:40:30 PM
DAN BOYETTE, representing himself, testified in support of SB
114. He expressed hope that Alaska can keep the environment it
has had since he arrived 41 years ago. He supported action on
several fronts, Permanent Fund reform, capping the PFD,
addressing taxes and additional revenue, and making budget cuts.
He urged action be taken quickly.
7:43:06 PM
MEGAN BALDINO, representing herself, testified in support of SB
114. She shared her history in Alaska and said everything she's
worked for and has is in Alaska. She said many of her colleagues
have moved out of state. She currently works on the Alaska
Future campaign. She said she supports action now using cuts and
new revenue, as well as using a portion of the Permanent Fund
earnings. She emphasized that it is not a raid on the Permanent
Fund or the dividend.
7:45:10 PM
CRAIG MOLLERSTUEN, representing himself, testified in support of
SB 114. He impressed upon the importance of looking now at the
state's budget crisis to prevent people from leaving the state
and businesses to stop investing in the state. He suggested
looking at all the tools in SB 114, or in SB 128, to help
support state government across the state.
7:47:26 PM
RICH WILSON, representing himself, testified in support of SB
114. He commended the committee for all its hard work. He spoke
as a father who is concerned with his children's job potential
in this state. He noted there will be business closures,
reduction-in-forces, and a shrinking tax base, which may cause
his daughter to search for work outside of Alaska, as her two
brothers have already done. He said the future hinges on the
tough decisions the legislature has to make and an active
public.
7:50:20 PM
SUSANNAH WILSON, representing herself, testified in support of
SB 114. She commented on the inability of young people to find
jobs now in Alaska, which will worsen if the fiscal crisis
continues. She said the legislature needs to make use of the
Permanent Fund, taxes, and cuts. She concluded the state is in
hard times and the time to act is now.
7:51:36 PM
VALERIE BROOKS, representing herself, testified in support of SB
114. She said as an educator and member of NEA-Alaska, she
speaks in support of using the Permanent Fund earnings. She said
schools have already been adversely affected by stagnant funding
at the state and borough levels. Other state services will also
be adversely affected. She suggested reviewing all state
department budgets, using the PF earnings, and making targeted
cuts to balance the budget.
7:53:30 PM
DONALD WESTLUND, representing himself, testified in support of
SB 114. He didn't think SB 114 goes far enough and suggested
using all of the Permanent Fund earnings and include a sunset as
soon as the deficit is corrected. He said to not cap the
dividends after that. He spoke against an income tax and in
favor of a sales tax, as well as cutting government. He stated
the LIO office in Anchorage should not be funded.
7:55:07 PM
VINCE BELTRAMI, President, Alaska AFL-CIO testified in support
of SB 114.
TIM MORGAN, representing himself, testified in support of SB
114.
VINCE BELTRAMI, President, AK AFL-CIO, testified in support of
SB 114. He stated that he supports any of the bills that address
using a portion of the Permanent Fund earnings, responsible
cuts, and new revenues. He maintained that using the PF earnings
is the only way to eliminate about $2 billion of the deficit,
while also preserving the dividend program. He stressed that
those who oppose using PF earnings have a misunderstanding of
what the bills will do. He said it is critical to pass SB 114 or
a similar bill.
7:58:42 PM
DEREK MUSTO, Member, Teamsters, testified in support of SB 114.
He said he and his co-workers are concerned about loss of jobs
in Alaska, how the state's status will affect the economy, and
the housing market. He said the bill ensures a PFD, cuts the
growing budget deficit in half, and ends the state's reliance on
oil and gas revenue to support state government. He said more
work needs to be done to address Alaska's collective needs. He
encouraged the legislature to work together across party lines.
8:00:34 PM
STEPHANIE KESLER, representing herself, testified in support of
SB 114. She said the state needs to act now. Alaska cannot tax
itself out of this fiscal situation. She thought the bill would
provide the multiple tools that can begin to address the crisis.
She quoted Wilson Condon, who in 2002 said, "All persons have
corresponding obligations to the people and to the state.
Alaska's financial future is changing, though some may choose to
avoid reality, we are quickly approaching the day when Alaskans
will have to help pay for the society we enjoy and Permanent
Fund earnings will be a part of that payment."
8:03:17 PM
SAM MAZZEO, representing himself, testified on SB 114. He urged
passage of legislation this session which allocates
approximately $2.5 billion of the Permanent Fund earnings to
become the predominant source of funding for state government,
to cap the number at $2.5 billion, to reduce the general fund
budget to $4 billion, and to add no new taxes. He described the
growth rate of the general fund over the years.
8:05:52 PM
CLINTON HODGES, representing himself, testified in opposition to
SB 114. He said the bill goes too far, too soon. He agreed with
Clem Tillion's plan. He concurred with ISER"s conclusion that
cutting the Permanent Fund has a greater effect on the private
sector economy than cutting government spending and implementing
an income tax. He did not believe in overfunding state
government. He said he has made recommendations to the Governor,
but has not heard back. He said elected officials "don't get
it," but citizens do.
8:08:53 PM
KATE SLYKER, representing herself, testified in support of SB
114. She spoke as a non-partisan super voter who is a fourth
generation Alaskan. She agreed with using a portion of earnings
from the Permanent Fund. She encouraged the legislature to make
the change now.
WILLIAM CHAMBERS, representing himself, testified in support of
SB 114. He opined that the bill is necessary for a robust
economy now. He noted a paragraph regarding four elements of
solving the budget deficit by Gunnar Knapp. The four elements
are to cut spending, impose taxes, reduce the PFD, and pare back
the earnings from the Permanent Fund for the future. He said he
supports Governor Walker's proposal to re-instate the individual
income tax and increase taxes on mining, fishing, tobacco,
alcohol, and gas.
8:13:01 PM
JOE WAHL, representing himself, testified in support of SB 114.
He shared his experience going through a fiscal crisis and said
the legislature has the ability to prevent another crisis now.
He said using a portion of the earnings from the Permanent Fund
is part of a comprehensive solution to stabilizing the fiscal
future and continuing to provide essential services, while
allowing for a sustainable dividend for all Alaskans now and in
the future.
8:14:45 PM
JENNIFER NELSON, representing herself, testified in support of
SB 114. She stressed the need to use the Permanent Fund earnings
to solve the budget crisis and preserve the PFD.
CHAIR STOLTZE noted that many Alaskans are sending in written
testimony.
8:16:30 PM
BARBARA CASH, representing herself, testified in support of SB
114. She spoke of being invested in Alaska. She feared the
financial instability of small businesses. She supports spending
cuts and new revenue sources, but the Permanent Fund is the
corner stone.
8:18:15 PM
INGRID KLINKHART, representing herself, testified in support of
SB 114. She stressed the importance of making budget cuts and
finding new revenue sources, along with using the Permanent Fund
this year. She concluded that the bill will protect the PFD,
which many Alaskans rely upon, including non-profit
organizations.
8:21:10 PM
GEORGE PIERCE, representing himself, testified in opposition to
SB 114. He suggested other methods to cut the budget rather than
taking the PFD. He said he does not approve of SB 303, either.
He talked about overhauling government. He said to listen to the
will of the people.
8:23:42 PM
GRANT JOHNSTON, representing himself, testified in support of SB
114. He said the status quo poses the greatest threat to the
PFD. He said he supports cuts and new revenue, but they alone
won't solve the problem. He supports taking a portion of the
Permanent Fund.
8:25:40 PM
DAVID HYMAS, representing himself, testified in support of SB
114. He urged the legislature to take action this session and to
use a portion of the Permanent Fund earnings. He concluded that
doing nothing is dangerous and irresponsible.
8:28:43 PM
TOM LAKOSH, representing himself, testified in opposition to SB
114. He said using the Permanent Fund would be a regressive tax,
but taxes like income tax, sales tax, and corporate tax would
lessen the burden upon Alaskans. He questioned who the
legislators are representing. He did not want his dividend cut.
8:31:43 PM
THEA AGNEW BEMBEN, representing herself, testified in support of
SB 114. She said businesses need a sustainable and stable
economy. She maintained that government keeps the engine of the
state running. She encouraged the legislature to use part of the
Permanent Fund to support state government this session. She
said she is also in favor of the Governor's total proposal.
8:34:35 PM
RAY JOHNSON, representing himself, testified in support of SB
114. He supports any bills that use a portion of the Permanent
Fund, in combination with taxes, and budget cuts. He encouraged
action now.
8:36:10 PM
TREE WILSON, representing himself, testified in opposition to SB
114. He suggested taxing the oil companies, expanding gaming
laws to allow casinos, and making smarter investments, and not
taxing people.
8:38:09 PM
CHRIS CONSTANT, representing himself, testified in support of SB
114. He said it is important to support using revenues of the
Permanent Fund as a means of solving a measure of the budget
crisis. He told a story about drug addiction and the vital
services provided by the budget. He stressed the importance of
funding government, including treatment programs.
8:41:01 PM
DAVID NEES, representing himself, testified in opposition to SB
114. He discussed the importance of the PFD in the Anchorage
area. He referred to the ISER study and said reducing the PFD
would increase those on poverty, increasing the price of
government. He supported a draw down on the CBR and cutting
spending instead.
CHAIR STOLTZE noted the presence of Senator Costello and the
Department of Law.
8:44:05 PM
SENATOR MCGUIRE thanked the public for their testimony and
written testimony. She noted she will clarify several issues at
a further date.
CHAIR STOLTZE said he appreciates the public's input. He held SB
114 in committee.
8:45:32 PM
There being no further business to come before the committee,
Chair Stoltze adjourned the Senate State Affairs Standing
Committee at 8:45 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 114 Public Testimony to SSTA (Second Batch - 40 POMS) 2-15-16.pdf |
SSTA 2/16/2016 6:00:00 PM |
SB 114 |
| SB 114 Public Testimony to SSTA (Third Batch - 15 POMS) 2-15-16.pdf |
SSTA 2/16/2016 6:00:00 PM |
SB 114 |
| SB 114 Talking Points by Alaska's Future - GCI & AFL-CIO 2-14-16.pdf |
SSTA 2/16/2016 6:00:00 PM |
SB 114 |