Legislature(2011 - 2012)SENATE FINANCE 532
03/21/2011 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB18 | |
| SB97 | |
| SB102 | |
| SB23 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 18 | TELECONFERENCED | |
| *+ | SB 97 | TELECONFERENCED | |
| *+ | SB 102 | TELECONFERENCED | |
| + | SB 23 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 97
"An Act authorizing additional appropriations for
public education and for community revenue sharing
based on the price of Alaska North Slope crude oil,
and adjusting the formula for payments to
communities."
9:12:21 AM
Co-Chair Hoffman stated that high oil prices added
operating burdens to local governments and schools.
TIM GRUSSENDORF, STAFF, SENATOR HOFFMAN, highlighted some
changes to SB 97. He began with Section 1, which presented
the formula and the money that would be appropriated to the
Department of Education. Section 2 addressed a technical
change, which would assure that the fund would always reach
$180 million. Section 3 would add a new sub-section D,
which was a calculation that would add the new formula to
the revenue sharing.
9:15:07 AM
Mr. Grussendorf presented "Goal: Increase Community Revenue
Sharing when there is a GF Surplus" (copy on file). He
stated that $89/per barrel was the trigger-point, but there
was still an effort to make a more accurate trigger-point.
He stated that the decision to use $89 per barrel, because
it was the amount needed to balance the state's budget. He
looked at line G, and stated that revenue-sharing would
eliminate the $60 million, that it was formulated to do. He
looked at line H, and stated that the full revenue sharing
would be $82 million. He looked at line J, and stated that
the revenue would be due to the progressive taxation of
oil. He explained that the excessive revenue would not go
directly into the formula, but would be calculated out as
the same proportion as the first $60 million. He stressed
that as long as the formula was above $60 per barrel, the
formula should produce at least $60 million.
9:18:26 AM
Co-Chair Stedman queried the payout date. Mr. Grussendorf
replied that the payout date was not yet solidified. He
stated that the revenue sharing would go out at the
beginning of the fiscal date. He noted that the payout date
would probably be sometime in August.
9:19:04 AM
Co-Chair Stedman commented that a determination of the
price trigger needed to be solidified. He stated that cost
stress on small communities would be alleviated.
9:20:38 AM
Senator Thomas wondered if the date was referring to the 90
day period. Mr. Grussendorf replied that that was one
option, and they were looking at the yearly average.
Senator Thomas wondered if there was consideration for tax
credit return based on progressivity, and wondered if there
was a comparison. Co-Chair Stedman requested a rough
concept of the revenue. Mr. Grussendorf replied by
referring to line J of the spreadsheet.
Co-Chair Stedman would like to call it credits, rather than
progressivity. Mr. Grussendorf agreed.
9:23:01 AM
Co-Chair Stedman wondered if $3.5 billion referred to
spending. Mr. Grussendorf replied with 3.2 percent or $22
million would be collected in credits.
Co-Chair Stedman stated that $2.5 billion would be
collected, and reiterated that it was a small fraction of
the progressivity. He stressed that all of the terms would
be open for discussion.
9:24:08 AM
Senator Olson wondered if there would be possible retro-
active mandates for tax payments. Mr. Grussendorf requested
further explanation.
Senator Olson referred to discussion related to retroactive
tax collecting. He wondered if there was a retroactive date
for the tax. Mr. Grussendorf replied that there were no
discussions regarding retroactive tax collections.
9:25:22 AM
Senator Olson wondered if there would be an increase in the
rural school districts. Mr. Grussendorf replied education
would be separate, after the formula was established.
9:26:19 AM
Senator Olson looked at column D, and wondered what impact
the potential rise 28 percent might have on the state. Mr.
Grussendorf was unsure.
Senator Olson noticed that they would not only get 3.2
percent, but an additional 8 percent. He wondered how much
that would increase the revenue. Mr. Grussendorf replied
that the spreadsheet did not include that amount.
9:27:11 AM
Co-Chair Stedman stated that the progressivity tax was
included to ensure that the percentage does not decline the
state's share of the oil profits.
9:28:51 AM
Co-Chair Stedman reiterated that the concept was on the
table for discussion.
Co-Chair Stedman looked at one fiscal note from the
Department of Education and Early Development, which showed
an increase of $22 million in K-12 funding; and another
fiscal note from the Department of Commerce, Community, and
Economic Development that showed an increase of $22 million
in community revenue sharing.
LUKE HOPKINS, MAYOR, FAIRBANKS (via teleconference), spoke
in favor of SB 97. He stated that there was a backlog of
school maintenance. He remarked that revenue sharing had
been used in years prior, to avoid tax payer contributions.
He remarked that when oil prices grew, they had to apply an
appropriation in order to cover increased costs.
9:31:56 AM
JOHN BOLLING, CITY OF CRAIG (via teleconference), spoke in
favor of SB 97. He stated that the municipality appreciated
the Legislature's appropriation of money.
9:32:41 AM
BRYAN ZACK, HOMER (via teleconference), spoke in favor of
SB 97. He requested a change from $84 per barrel to be used
as a trigger point.
9:35:57 AM
ELAINE PRICE, SOUTHEAST ISLAND SCHOOL DISTRICT (via
teleconference), spoke in favor of SB 97.
9:36:33 AM
BEAR KETZLER, CITY OF TANANA (via teleconference), spoke in
favor of SB 97.
9:38:19 AM
BRUCE JOHNSON, EXECUTIVE DIRECTOR, ALASKA COUNCIL OF SCHOOL
ADMINISTRATION, spoke in favor of the concept of SB 97. He
explained that there was an extraordinary cost related to
heating and oil costs. He offered his assistance in the
continued refinement of the bill.
9:39:17 AM
Co-Chair Stedman suggested consideration for the amount
that was proposed for the revenue sharing and the schools.
Mr. Johnson agreed to help.
9:39:53 AM
JOHN ALCANTRA, NATIONAL EDUCATION ASSOCIATION OF ALASKA,
spoke in favor of SB 97. He stressed that 89 seemed too
high a trigger.
9:42:13 AM
KATHY WASSERMAN, ALASKA MUNICIPAL LEAGUE, spoke in favor of
SB 97. She stressed that the municipalities agreed to share
in the funds when oil prices go up. She reiterated that
many communities face high oil prices, and find it
difficult to provide basic services. She stated that basing
one day as a target was unfair, but getting an average on
holidays might be better. She offered to work with the
Legislature in determining the best approach.
9:44:23 AM
Co-Chair Stedman closed public testimony.
Co-Chair Hoffman stated that the struggling municipalities
and school districts had asked for assistance. He stated
that there may have been an initial concern of relying on
the funds. He stressed that the funds would only be
available in times of high oil prices.
SB 97 was HEARD and HELD in committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 18 Legislation Intro'd_byState.pdf |
SFIN 3/21/2011 9:00:00 AM |
SB 18 |
| SB 23 Alaska Film Incentives - Economic Impact.pdf |
SFIN 3/21/2011 9:00:00 AM SL&C 2/22/2011 1:30:00 PM |
SB 23 |
| SB 23 Letters supporting.PDF |
SFIN 3/21/2011 9:00:00 AM SL&C 2/22/2011 1:30:00 PM |
SB 23 |
| SB 23 Muni of Anchorage economic goal.PDF |
SFIN 3/21/2011 9:00:00 AM SL&C 2/22/2011 1:30:00 PM |
SB 23 |
| SB 18 Legislation Passed by State.pdf |
SFIN 3/21/2011 9:00:00 AM |
SB 18 |
| SB 18 New FN LAA Salaries and Allowances.pdf |
SFIN 3/21/2011 9:00:00 AM |
SB 18 |
| SB 18 New FN LAA Session Expenses.pdf |
SFIN 3/21/2011 9:00:00 AM |
SB 18 |
| SB 18 Ratio_Legislation Intro'd to Passed_byState.pdf |
SFIN 3/21/2011 9:00:00 AM |
SB 18 |
| SB 18 Sectional_CS_STA_ version I.pdf |
SFIN 3/21/2011 9:00:00 AM |
SB 18 |
| SB 18 Session Limit Methods.pdf |
SFIN 3/21/2011 9:00:00 AM |
SB 18 |
| SB 18 Sponsor Presentation.pdf |
SFIN 3/21/2011 9:00:00 AM |
SB 18 |
| SB 18 Sponsor Statement.pdf |
SFIN 3/21/2011 9:00:00 AM |
SB 18 |
| SB 18 Support Letter FbksNewsMiner.pdf |
SFIN 3/21/2011 9:00:00 AM |
SB 18 |
| SB 18 Support Letter Juneau Chamber.pdf |
SFIN 3/21/2011 9:00:00 AM |
SB 18 |
| SB 18 Support Letter JuneauEmpire.pdf |
SFIN 3/21/2011 9:00:00 AM |
SB 18 |
| SB 18_ Support Letter_ Fran Ulmer.pdf |
SFIN 3/21/2011 9:00:00 AM |
SB 18 |
| SB 97 2011_03_14 AML reThanks.pdf |
SFIN 3/21/2011 9:00:00 AM |
SB 97 |
| SB 102 Sponsor Statement.docx |
SFIN 3/21/2011 9:00:00 AM |
SB 102 |
| HB 67 - SB 23 Anch. Resolut Sppt.pdf |
HEDT 2/17/2011 10:15:00 AM SFIN 3/21/2011 9:00:00 AM |
|
| SB 23 Press Clippings.PDF |
SFIN 3/21/2011 9:00:00 AM SL&C 2/22/2011 1:30:00 PM |
SB 23 |
| Sb 23 Sponsor Statement.PDF |
SFIN 3/21/2011 9:00:00 AM SL&C 2/22/2011 1:30:00 PM |
SB 23 |
| SB 23 Sectional Summary Version X.pdf |
SFIN 3/21/2011 9:00:00 AM |
SB 23 |
| SB 23 SFIN Version X.pdf |
SFIN 3/21/2011 9:00:00 AM |
SB 23 |
| SB 23 Additional Support Letters.pdf |
SFIN 3/21/2011 9:00:00 AM |
SB 23 |
| SB 23 Markel Letter of Concern.pdf |
SFIN 3/21/2011 9:00:00 AM |
SB 23 |
| SB 97 3 2 11 rev sharing with annual trigger.xls |
SFIN 3/21/2011 9:00:00 AM |
SB 97 |
| SB 97-CCED-DCRA-03-19-11.pdf |
SFIN 3/21/2011 9:00:00 AM |
SB 97 |
| SB 97-EED-ESS-3-20-11.pdf |
SFIN 3/21/2011 9:00:00 AM |
SB 97 |