Legislature(2023 - 2024)BUTROVICH 205
02/19/2024 01:30 PM Senate JUDICIARY
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| SB20|| SJR4 | |
| SB28 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 20 | TELECONFERENCED | |
| += | SJR 4 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 28 | TELECONFERENCED | |
SB 20-APPROPRIATION LIMIT; GOV BUDGET
SJR 4-CONST. AM: APPROP LIMIT
2:34:59 PM
CHAIR CLAMAN announced the consideration of:
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 20 "An Act relating to an
appropriation limit; relating to the budget responsibilities of
the governor; and providing for an effective date."
and
SPONSOR SUBSTITUTE FOR SENATE JOINT RESOLUTION NO. 4 Proposing
amendments to the Constitution of the State of Alaska relating
to an appropriation limit.
He said that the Senate Judiciary Committee heard these pieces
of legislation during the 2023 legislative session. This is the
first hearing of SB 20 and SJR 4 this session. The intention is
to open up public testimony for SB 20 and SJR 4. This will be a
joint public hearing, so those who testify may talk about both
pieces of legislation. He invited the bill sponsor to make an
opening statement.
2:35:49 PM
SENATOR KAUFMAN, speaking as sponsor, summarized SB 20 and SJR
4, stating one proposes a constitutional amendment, and the
other is a bill. Together, these pieces of legislation create
the mechanism for:
• measuring the State productive economy,
• measuring the State domestic product,
• measuring it based on a 5-year trailing average, then
• setting State spending against a percentage of that amount.
SENATOR KAUFMAN said the purpose of SB 20 and SJR 4 is to:
• tie the State's spending to Alaska's productive economy in a
broader sense than it is now, and
• to provide constructive limitations to peak spending during
excess periods of revenues.
2:37:24 PM
CHAIR CLAMAN opened public testimony on SB 20 and SJR 4.
2:37:55 PM
KATI CAPOZZI, President, Alaska Chamber of Commerce, Anchorage,
Alaska, testified on SB 20 and SJR 4, stating the Alaska Chamber
of Commerce was founded in 1953 and is Alaska's largest
statewide business advocacy organization. The Chamber mission is
to promote a healthy business environment in Alaska. It has over
700 members and represents businesses of all sizes and
industries statewide. The Chamber has advocated for a meaningful
spending cap for over eight years. A spending cap is tied to the
Chamber's number one state priority of "supporting a
comprehensive approach to create a sustainable State budget that
includes a meaningful State spending cap." She highlighted the
word meaningful, stating the State's current spending limits are
outdated and do not restrict spending meaningfully. The Chamber
supports a spending cap for the following reasons:
• When, and not if, revenues against sales meet budgeted
expenses, the business community is targeted first for
increased taxes, fines, and fees to fill spending gaps.
• Chamber members have encountered this repeatedly with state
revenue booms and busts over several decades.
• Businesses require some sense of stability and predictability
to invest in Alaska, hire employees, and grow.
• The constant looming threat of being compelled to "fill the
gap" of a State government that periodically overspends is a
disincentive to invest in Alaska.
• A meaningful cap on State government spending would go a long
way toward showing Alaskans that they can trust the government
to spend wisely and that there will be a safety net to provide
for core government services when faced with revenue
shortfalls.
2:39:35 PM
MS. CAPOZZI said the concept of spending limits is not new or
complicated. She explained that individuals and families
typically align their spending with their income, understanding
that unchecked budget growth will eventually cause issues.
Alaskans want government to acknowledge this basic tenet of
budgeting. While spending emergency savings in extraordinary
circumstances might be justifiable, years of deficit spending
due to past overspending leads to reduced trust in government.
MS. CAPOZZI said that although the Alaska Chamber of Commerce
supports the overall concept of a spending cap, it does not
necessarily have a position on this legislation. The Chamber
expressed appreciation to the bill sponsor for bringing the
topic forward and looks forward to further discussion.
2:40:36 PM
CATHERINE CHAMBERS, representing self, Anchorage, Alaska,
testified in support of SB 20 and SJR 4. She shared that she was
born and raised in Alaska and moved out of state for nine years
with her family. After graduating from college in 2020, she
returned to Alaska to start a professional career, drawn by the
historically great opportunities available to working-age
adults. She supports SB 20, emphasizing that state stability is
key to retaining young professionals like herself. One of the
biggest challenges facing Alaska today is the exodus of young
people who leave the state and never return.
MS. CHAMBERS said that reasonable spending limit reform, as
proposed in this bill, would:
• Foster private sector growth.
• Keep and create good jobs for Alaska workforce.
• Ensure the cost of living in Alaska doesn't continue to rise
by keeping government spending in check.
• Encourage smarter spending decisions.
2:41:40 PM
REBECCA LOGAN, Chief Executive Officer, Alaska Support Industry
Alliance (Alliance), Anchorage, Alaska, testified in support of
SB 20 and SJR 4 on behalf of its 500 members who employ 35,000
people in Alaska.
MS. LOGAN said that the Alliance asked its membership last year
if they supported limiting the amount State government could
spend each year. Unsurprisingly, 100 percent of the respondents
said yes. The Alliance also asked if members supported an
appropriation limit based on a five-year trailing average of
spending, real gross domestic product (GDP) less government
spending. Eighty percent of respondents supported this approach,
which influenced the Alliance Board's unanimous decision to
support SB 20.
2:42:18 PM
MS. LOGAN noted that, for 45 years, a top priority of the
Alliance has been to promote a favorable business climate. A
long-range fiscal plan with an appropriation limit has been a
legislative priority for at least 20 years. Tying the
appropriation limit to the performance of the private sector
economy will encourage government to support policies that
strengthen the private sector, thereby promoting a favorable
business climate.
MS. LOGAN referenced a headline from the Alaska Beacon stating,
"Alaska Permanent Fund Corporation Board again warns that the
fund is running out of spendable money," and the eye-catching
statement in the accompanying article that read "over the past
six years, withdrawals have exceeded new deposits." This
underscores the importance of changing government spending
practices. SB 20 is a big step in the right direction. She
expressed appreciation for all the sponsor's work on the
legislation and thanked the committee for its consideration.
2:43:11 PM
CHAIR CLAMAN closed public testimony on SB 20 and SJR 4.
CHAIR CLAMAN held SB 20 and SJR 4 in committee.