Legislature(2017 - 2018)SENATE FINANCE 532
05/08/2018 09:00 AM House CONFERENCE COMMITTEE ON SB26
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| Audio | Topic |
|---|---|
| Start | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 26 | TELECONFERENCED | |
CS FOR SENATE BILL NO. 26(FIN)
"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."
and
HOUSE CS FOR CS FOR SENATE BILL NO. 26(FIN)(efd fld H)
"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; and
relating to the calculation and payment of permanent
fund dividends."
9:04:05 AM
Co-Chair MacKinnon explained that the purpose of the
meeting was to discuss the conference committee substitute.
Representative Foster MOVED to ADOPT proposed conference
committee substitute for SB 26, Work Draft 30-GS1690\Q
(Martin, 5/7/18).
Co-Chair MacKinnon OBJECTED for discussion.
LAURA CRAMER, STAFF, SENATOR ANNA MACKINNON, reviewed a
Sectional Analysis for the committee substitute (copy not
on file):
Section 1: 5.25% percent of market value effective
July 1, 2018 (sec. 9)
Section 2: 5% POMV effective July 1, 2021 (sec. 8)
Section 3: An Inflation proofing transfer from the ERA
is separate from the POMV draw
Section 4: Income earned from Amerada Hess funds are
not available for transfer or appropriation under the
POMV draw
Section 5: The POMV appropriation to the general fund
may not exceed the percentages outline in sections 1
and 2
Section 6: The Alaska Permanent Fund Corporations
operating budget shall be treated as part of the
market value of the fund
Section 7: Mental Health Trust funds may not be
included in the computation of net income or market
value available for distribution or appropriation for
the POMV draw
Section 8: Effective date of the 5% draw in Section 2
is July 1, 2021
Section 9: All other sections of the bill are
effective July 1, 2018
9:06:25 AM
Co-Chair MacKinnon WITHDREW her OBJECTION. There being NO
further OBJECTION, Work Draft 30-GS1690\Q was ADOPTED.
Representative Foster MOVED to REPORT CCS SB 26 out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CCS SB 26 was REPORTED out of committee with a "do pass"
recommendation and with one new indeterminate fiscal note
by the conference committee for various departments.
Representative Foster remarked on the cooperation shown
between the House and Senate in the passage of the bill,
which he believed was a great stepping stone. He
appreciated the progress, which he believed was a
demonstration of the legislature's commitment to working
together.
Co-Chair MacKinnon thanked the conference committee members
and reflected that it had taken over a year of hard work to
get to the particular moment in Alaska's history. The bill
was a collaboration of work effort between both legislative
bodies. She continued it was an effort to stabilize
Alaska's economy by using the percent of market value
capped at 5.25 percent for three years, dropping down to 5
percent and an effective rate that was much lower. The FY
19 effective rate draw would be 4.35 percent as analyzed by
the legislature's fiscal analysts. She considered that the
bill was a way to protect draws and limit spending from the
earnings reserve. She appreciated the efforts by the
committee, Legislative Legal Services, and the Legislative
Finance Division.
9:09:18 AM
Representative Seaton noted that Section 5 of the bill was
a limitation on the legislature's ability to take money
from the earnings reserve. He explained that currently with
majority votes, the legislature could take any amount. The
limitation was structural going forward on the
legislature's ability to take money from the earnings
reserve.
Co-Chair MacKinnon agreed that the bill represented one
step in addressing the state's fiscal challenges. She
remarked that the operating budget had yet to pass the
legislature and even with the passage of SB 26, there would
be a need for a constitutional budget draw from state
savings. She concluded that the passage of SB 26 moved the
state closer to solving Alaska's problem, but did not solve
it entirely.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 26 CCS for SB26 Work Draft Version Q.pdf |
JSB26 5/8/2018 9:00:00 AM |
SB 26 |