Legislature(2011 - 2012)SENATE FINANCE 532
03/30/2011 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB19 | |
| SB92 | |
| SB66 | |
| SB97 | |
| SB90 | |
| SB94 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 19 | TELECONFERENCED | |
| + | SB 92 | TELECONFERENCED | |
| + | SB 66 | TELECONFERENCED | |
| + | SB 90 | TELECONFERENCED | |
| + | SB 94 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 97 | 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."
Co-Chair Hoffman proposed committee substitute, work draft
#27-LS0626/E. Co-Chair Stedman OBJECTED for purpose of
discussion.
10:04:24 AM
TIM GRUSSENDORF, STAFF, CO-CHAIR HOFFMAN discussed the
changes made in the CS. The first adjustment was for a
timeframe in which to calculate the average price of oil.
The full year will be used to establish the average price
per barrel. He explained the addition of a "safety cushion"
of $2 per barrel of oil to ensure that the revenue is
available and to prevent overspending of the surplus.
Co-Chair Stedman asked about the $2. Mr. Grussendorf
responded that the cushion describes the $2 over the
average price per barrel. Co-Chair Stedman added $2 dollars
of the break even rate of our operating and potential
capital budget. The intent was that the original bill was
spinning out the percentage of the surplus between 2 and
2.7 percent of the surplus for these programs. The factors
chosen will produce a similar number as seen in the
original bill.
10:06:21 AM
DAVID TEAL, DIRECTOR, LEGISLATIVE FINANCE DIVISION,
mentioned that the prior version of the bill was based
strictly on the price of oil, which allowed the potential
to share wealth that failed to materialize. This version
shares wealth only during times of surplus. The surplus is
taken for one year, which will determine the amount handed
out in the following year.
10:07:28 AM
Mr. Teal provided a sectional analysis. He began with
Section 1 which relates to supplemental funding for K-12
education. The amount allocated equals $5 million for each
dollar difference between the actual price and the trigger
price of oil. Section (b) computes the trigger price of oil
and states that expenditures will be taken excluding the
community revenue sharing payments and the education
payments made under this bill. Any deposits to the budget
reserve fund are also excluded. The breakeven price of oil
is rounded to the nearest dollar with the addition of the
mentioned $2. The $2 provides a safety valve that gives
sufficient funding to make the appropriation to community
revenue sharing and to K-12 and to offset any errors in
revenue forecasts. The goal was to avoid sharing money that
was not present.
10:10:19 AM
Mr. Teal continued with Section 2 and the revenue sharing
portion of the CS. He noted that 2(b) corrects an error
that is unrelated to the supplemental community revenue
sharing and refers to the existing basic revenue sharing
program.
10:11:06 AM
Mr. Teal described Section 3 and the change of the revenue
sharing program enabling the amount distributed to include
the basic revenue sharing portion. This section allows the
amount calculated under (d) to be distributed. Section 4
mirrors the calculations of the education portion.
10:12:36 AM
Co-Chair Hoffman applauded the legislation. He supported
sharing the wealth with school districts and municipalities
during times of high oil prices.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
Co-Chair Hoffman MOVED to report CSSB 97 out of Committee
with individual recommendations and the accompanying fiscal
note.
SB 97 was REPORTED out of committee with a "do pass"
recommendation and with a new indeterminate fiscal note
from the Senate Finance Committee for the Department of
Commerce, Community and Economic Development and one new
indeterminate fiscal note from the Senate Finance Committee
for the Department of Education and Early Development.