Legislature(1997 - 1998)
03/18/1998 06:10 PM Senate FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 337
"An Act relating to the mandatory incorporation of
certain boroughs in the unorganized borough and to
certain third class boroughs; and providing for an
effective date."
PHYLLIS HYDE via teleconference from EAGLE opposed SB 337.
GLEN MARUNDE via teleconference from Tok opposed SB 337. He
felt the borough form of government was not the best for
rural Alaska.
Senator Phillips asked how they paid for school. Mr.
Marunde said he donated $5,000 through a building project
connected with this business.
GEORGE MIDVAG via teleconference from SLANA opposed SB 337.
He felt they could do away with the property tax. It was
applied unequal; some paid and some didn't. He said they
need to look for a better way.
JOHN GLOTFELTY via teleconference from DELTA JUNCTION
directed the committee's attention to section two of the
proposed bill. He said it needed to be rewritten to include
REAAs.
CAROLINE SMITH via teleconference from DELTA JUNCTION
indicated that she concurred with the testimony of Mr.
Glotfelty.
PAT DALTON via teleconference from DELTA JUNCTION opposed SB
337. He said he did not want a borough and reminded the
Legislators that they were not only representing organized
boroughs but they were also representing unorganized
boroughs. According to the Declaration of Independence it
was wrong to impose a government upon the people.
DAVE DENGEL, Valdez City Manager via teleconference from
VALDEZ. He said the City strongly agreed that local
citizens should contribute from the local tax base towards
education. However, reviewing SB 337 it appeared that the
City of Valdez would lose revenue from the raw fish tax and
National Forest Receipts and Payment in Lieu of Taxes
Program. It didn't seem right for municipalities that were
already contributing towards education to continue to take
more from them. He urged the committee to reconsider SB
337.
ERIC WEATHERS via teleconference from CORDOVA opposed SB
337. He said the Legislature was elected to protect people
from unfair laws.
DENNY WEATHERS via teleconference from CORDOVA asked who
sponsored the bill. Co-chair Sharp said it was being
sponsored by the Senate Finance Committee. Ms. Weathers
continued her testimony. She said she opposed SB 337. She
chose to live in rural Alaska and therefore wanted to remain
remote. She didn't feel they should be taxed for services
the borough cannot provide.
TOM CHURCH via teleconference from CORDOVA spoke on behalf
of the City council. He said the town citizens were already
clamoring for a tax cap. More time was needed to analyze SB
337 and the impact it would have, especially as tied to SB
36. He noted they were going to be watching closely as this
bill moved along.
JOHN BORG via teleconference from EAGLE opposed SB 337. He
said he chose to live a rural life.
PAT DONNALLY via teleconference from EAGLE opposed SB 337.
JOHN HANDELAND, Mayor, City of Nome via teleconference from
NOME opposed SB 337. He did say he appreciated the Deferred
Maintenance Task Force.
STEPHEN WAHL via teleconference from TOK opposed SB 337. He
said the bill was based on faulty information and that it
would overlook the rights of residents of the unorganized
borough. He said section 2 (b) of the proposed bill
represented fantastic and unrealistic economic predictions.
ART GRISWOLD via teleconference from DELTA JUNCTION with
reference to the testimony given by Mr. Van Sant, State
Assessor would like to see the bill worked on. It has many
problems.
Senator Phillips asked how he would propose paying school.
Mr. Griswold said he did not oppose paying for school, he
opposed the formation of a borough. "Why should we be
combined with Tok?"
Senator Phillips said one couldn't say "no" for "no's" sake.
He reminded Mr. Griswold he was asking for services but
paying nothing.
PATRICK SCHLICHTING via teleconference from DELTA JUNCTION
asked what was the purpose of the teleconference. Co-chair
Sharp briefly outlined SB 337 and noted this was a starting
point. Mr. Schlichting said he hoped the testimony of
individuals would be considered. Anchorage and Fairbanks
owe their existence to rural Alaska. He said rural Alaska
had made no demands other than education. He was upset that
people could come to Alaska, make money and leave paying no
taxes.
GERALD OLIVER via teleconference from DELTA JUNCTION opposed
SB 337. He said there were plenty of taxes and the
Legislature was responsible for spending it.
(Tape #83, Side A switched to Side B at log number 590.)
Mr. Oliver continued saying that the small rural areas got
no money. He reiterated that he was strongly opposed to
this bill.
RICK TYRRELL via teleconference from CENTRAL opposed SB 337.
He said this would be disastrous for his school district,
Yukon Flats School District. The district would lose three
schools if the bill passed. Most of the funding for the
school in that district is Federal funding.
Senator Phillips asked Mr. Tyrrell how the Federal funding
worked but the call had already been disconnected.
DENNIS LAYMAN via teleconference from EAGLE noted he was a
thirty-year resident and current council member. He said he
was the longest operating businessman in the community.
There was little hiring in the community and most were
minimum wage jobs. However, they did have a good grip on
their economy even though there was very little going on.
It would be totally devastating to the community if there
were to become a borough as most of the burden would have to
be shared by two or three residents. At the same time they
understood there needed to be a school; they had a $3.5
million school built with pipeline money. He, along with
most residents was opposed to SB 337. He felt there needed
to be more input into this matter.
RUS BOWDRE from DELTA JUNCTION testified in Juneau before
the committee. He said he had looked at the bill
extensively and felt the problem was education funding and
that the Legislature was trying to regulate around the
problem. He has four children, all taught at home by his
wife. He suggested that if funding of the schools was a
problem they should find out why funding was a problem. Was
there an unequal funding process? Then perhaps the funding
process should be addressed not the creation of boroughs.
They should not be creating a new problem.
Senator Phillips said they have to fix, however, what's
broke. Mr. Bowdre said he felt the real problem was unequal
distribution of State funds. He also noted for the record
that his home schooled children were "B+" students.
LESLIE KAY KIRK from DELTA JUNCTION testified in Juneau
before the committee. He noted his background for the
committee as having been in the Army for thirty years and
commanded Fort Greely from 1982 - 1984. He has five sons
who are champion wrestlers in Alaska. His main concern was
the formation of a borough, combining the cities of Tok and
Delta. And they would pay all the taxes including for all
the other areas included. Delta Junction is a second class
city and if a borough is organized then there are two forms
of government in one city. He felt the people of the
community should decide what type of "government" they
wanted. He suggested a "unified municipality" and it should
encompass basically the same area they had for a school
district. They don't want another problem created. He also
noted that according to the Constitution the State should
provide education for all children.
THOR WILLIAMS via teleconference from BETHEL said he, as
most of the majority of rural areas opposed SB 337. Bethel
was running out of money and had poor economic situation.
Most of the land surrounding Bethel that would be considered
a borough was Native land and Federal land that were exempt
from taxation. So where would money come for a new school?
He said they had not seen a new school in years.
DICK COOK via teleconference from EAGLE said he was a forty-
year resident of Eagle, retired veteran. He opposed the
formation of a borough to get taxation for schools. He felt
there had to be a less discriminatory, less burdensome way
to get money for education.
MEL RADA via teleconference from EAGLE asked why would the
Legislature want to create a borough and tax them. This
sense of taxes for the bush people was getting out of hand.
He felt they had too many teachers in the schools. It did
not take eight or nine teachers to teach twenty-five
children.
Co-chair Sharp said he concurred. Mr. Rada said most folks
living in Eagle were on social security and could not be
further taxed. Co-chair Sharp advised Mr. Rada that for
seniors over the age of sixty-five there were no taxes on
the first $150,000 of their home.
P.R. MILLER via teleconference from DELTA JUNCTION suggested
that they do away with organized boroughs and then there
would be more money. A State tax could be instituted which
would be equitable for everybody. He said that was good
enough for him.
MICHAEL O'BRIEN via teleconference from BETHEL, member
Bethel City Council. He said there was no argument that
they needed to help provide funding for the education of
their children. He was concerned that Bethel would be in a
position to not only support themselves with their limited
tax base but also five other schools as well. He was
further concerned with the disembowelment of the largest
school district in the State of Alaska. Five or six Native
villages with absolutely no tax base whatsoever, separated
by snow machine in the winter and boat in the summer, and
were going to be included in the same school district. He
supported the idea of everyone on an equal as possible basis
providing for the education of Alaska's children, but there
were still too many questions regarding a solution to this
matter.
ROBIN MOORE, vice-mayor of Whittier via teleconference from
WHITTIER opposed SB 337. She said there was a limited tax
base in Whittier, not very much land and a lot of railroad.
She agreed that it was everyone's responsibility to support
their local schools, but an overall solution needed to be
found.
DORIS BENDER via teleconference from WHITTIER opposed SB
337. She was greatly concerned about those who come to
Alaska, make money and then leave without paying any taxes.
She suggested the Legislature look at another way to provide
education funding.
LEE TOLLIVER via teleconference from TOK said that the only
employer bringing in any money was Westmark Tours. He felt
they should be taxed accordingly. This was a small
community. He has to do all his shopping either in
Fairbanks or Anchorage and pays their taxes. Now, these
same cities want to tax his community for their schools. He
did not feel this was right.
BRENDA STEVENS via teleconference from TOK opposed SB 337.
She asked what happened to the money brought into the
economy by the tourists in the amount of $700,000 million.
There was $5.2 billion in the value of exports out of the
State. What happened to that money? She noted further that
there was talk of cutting funding for Head Start programs
and school sports, etc. She asked what would happen to the
places that had nothing but a "honey bucket"? The money was
not being spent on schools. What the public did not know
was where the money was being spent.
AGNES L. PHILLIPS, Mayor of Bethel via teleconference from
BETHEL opposed SB 337. The solution should be to
reinstitute State income tax. Rural Alaska does help pay
their way by shopping in Fairbanks and Anchorage and paying
local taxes.
DON HAMILTON via teleconference from FAIRBANKS opposed SB
337. He felt it was a bill that would benefit the urban
areas more than the rural areas. He also said he did not
feel the rural areas had enough representation. He felt a
small sales tax would help the school funding issue.
JEERRY NELSON via teleconference from EAGLE opposed SB 337.
He lives in Eagle because of the simple life style even
though most live well below the poverty level.
Co-chair Sharp thanked everyone who signed up to testify.
He reviewed the calendar for tomorrow and said the committee
would meet at 10:00 a.m.
(Tape changed from #83 Side B to #84, Side A.)
An unidentified moderator advised that there was an
individual in Tok and Slana that wished to testify.
LARRY EARL via teleconference from TOK introduced himself to
the committee as a disable vet living on limited source of
income. He said there would be more welfare problems for
the State with enforced boroughs. He said the State should
provide necessary funding for education.
(pause on line)
Unidentified moderator said she noted someone from SLANA
also come on line that's been waiting. Duffy's Roadhouse in
Slana advised the Co-chair that they were waiting on line
and had a few people that wished to testify.
(pause)
CHRISTOPHER COOK on line from Duffy's Roadhouse in SLANA
said he felt, along with many of his neighbors that SB 337
was a very bad concept and seemed that it was d j vu to SB
280. The residents felt that the Legislators they were
sending to Juneau to resolve problems were bent on creating
more. He said the people should decide the issue.
OLIE BATES on line from Duffy's Roadhouse in SLANA said that
everyone was interested in good education for their
children. He suggested that perhaps the dividend check
could be used for education. He opposed SB 337.
MICHELLE HADLEY on line from Duffy's Roadhouse in SLANA said
she opposed SB 337. Most families in Slana were homestead.
She suggested that the out-of-state people coming in and
taking jobs should have to pay a fee. This could be
contributed to education funding.
MAX OLSEN on line from Duffy's Roadhouse in SLANA opposed SB
337. He said they did not need more taxation.
LARRY CTIBOR via teleconference from BETHEL said even though
his testimony wouldn't make any difference to those who
already have their minds made up. But, he felt he should
testify. He was not opposed to taxes and would pay, for
instance, an income tax for education. He said that Public
Law 874 brought millions of dollars into the State from the
Federal government each year. Most comes from rural areas.
However, it is kept by the State and parceled back out to
urban areas first and then to rural. It is a misconception
that rural areas are not contributing in that regard. In
the past year mostly rural areas provided $42 million in PL
874 funds. He said the education system needs disaster
relief right now. He also agreed that there could be an
educational endowment set aside out of the permanent fund.
BO FAY via teleconference from EAGLE said he felt the
problem was not lack of money but rather fiscal
irresponsibility. He noted that there was no need to
collect more taxes and cited the GST that was added in
Canada to help solve monetary problems, but the government
only spent more money, and said that would eventually be the
case here, too. He said there had to be a more equitable way
to provide education funding. He suggested that some of the
State administrators should be gotten rid of. There was no
economy in Eagle. Who were they going to tax? He said they
needed to get in touch with rural Alaska. There just wasn't
any money.
Co-chair Sharp told Mr. Fay that the committee was not
present to respond but rather to listen to public testimony.
He advised all individuals still listening that, in order to
fund the education budget of $700 million, each working
person would have to pay $3,000 income tax to fill the gap.
This is a big problem and the Legislature was attempting to
address it.
ADJOURNMENT
Co-chair Sharp adjourned the meeting at approximately 8:05
p.m.
SFC-98 -8- 3/18/98 pm
| Document Name | Date/Time | Subjects |
|---|