Legislature(2005 - 2006)BELTZ 211
03/15/2005 03:30 PM Senate STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB88 | |
| SB54 | |
| SB20 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| = | SB 54 | ||
| = | SB 88 | ||
| = | SB 20 | ||
SB 88-POLICY ON GENERAL FUND REVENUE SHORTFALL
CHAIR GENE THERRIAULT announced SB 88 to be up for
consideration. He asked Senator Wilken to come forward. He noted
that the sponsor had asked that the committee forward the bill
to the Finance Committee.
3:41:37 PM
SENATOR GARY WILKEN, sponsor, said he wanted to restate certain
aspects of the chart that he explained during the previous
hearing. He clarified that if you were to take $250 million from
the earnings reserve every year for ten years, the cumulative
impact on the Permanent Fund Dividend would be $436.
SENATOR KIM ELTON commented that this is a fairly dramatic
proposal and he was interested in whether the sponsor would
consider amending the proposal to make a draw from the Permanent
Fund Earnings Reserve account contingent upon a vote of the
people.
SENATOR WILKEN replied he didn't like the idea of putting the
issue to a public vote in 1999 and he likes it less today.
Legislators are elected to make this sort of decision and to
understand the ramifications of using the state's assets.
Furthermore, he said, the governor misspoke when he talked about
using the earnings.
3:46:10 PM
SENATOR ELTON asked whether this might not be ultimately
unsuccessful since the governor has veto powers.
SENATOR WILKEN said he hadn't discussed the bill with the
governor, but he has worked with his staff to ensure that the
numbers are accurate. He reminded members that this is policy
and it could be ignored if the circumstances warranted. He
suggested that this fiscal plan works and the one offered last
year didn't.
He argued that by the time this policy becomes statute, the
governor and others will understand the merit of using the
earnings and the Constitutional Budget Reserve until the state's
natural resources are developed.
CHAIR THERRIAULT suggested that adding a requirement for a vote
of the people is meaningless because legislators can exercise
the constitutional power to use the Permanent Fund earnings
anytime. In fact, that point also applies to this proposal; it's
simply a restatement of that constitutional authority.
3:49:30 PM
SENATOR WILKEN offered the opinion that this is an effort to
educate as much as it is legislation.
SENATOR CHARLIE HUGGINS said he views this as a conversation
starter.
3:52:55 PM
CHAIR THERRIAULT noted he has heard about the issue from a
number of people so the conversation is starting.
3:53:26 PM
SENATOR WAGNER motioned to report SB 88 and attached fiscal zero
note from committee with individual recommendations.
SENATOR ELTON objected. Speaking to his objection he said he
does appreciate the idea of continuing the conversation, but
when he votes no it is because he is a proponent of the income
tax to fill the gap. He favors that because it is based on a
person's ability to pay.
3:54:30 PM
SENATOR HUGGINS announced he wants to go on record as not
supporting any tax.
3:55:27 PM
CHAIR THERRIAULT asked for a roll call vote. The motion to
report SB 88 from committee passed with Senators Wagoner,
Huggins, Davis and Chair Therriault voting yea and Senator Elton
voting nay.
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