Legislature(2007 - 2008)SENATE FINANCE 532
07/24/2008 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB4002 | |
| SB4003 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB4002 | TELECONFERENCED | |
| += | SB4003 | TELECONFERENCED | |
SENATE BILL NO. 4003
"An Act making supplemental appropriations to the
Alaska Energy Authority for power cost equalization;
making special appropriations to the Department of
Revenue and to the Department of Health and Social
Services for the Alaska resource rebate program; making
a special appropriation to the Department of Revenue
for the payment of certain shared taxes relating to
aviation fuel; and providing for an effective date."
Ms. Rehfeld noted that SB 4003 was the appropriation
legislation for SB 4002. The legislation appropriates
nearly $820 million, $800 million of which is for the one-
time payment to eligible individuals for the resource rebate
program. It does include the associated administrative
costs. There is also $10.7 million included in the hold
harmless provisions.
Ms. Rehfeld noted there is also a request for $9.6 million
for the Power Cost Equalization (PCE) program. Of that
amount, $600,000 is to fully fund the FY 08 appropriation
and cost for PCE so there would be no proration required.
The Alaska Energy Authority has estimated a potential $9
million shortfall in the PCE program for FY 09 based on
estimates of increased fuel costs.
Ms. Rehfeld concluded that an additional $150,000 would be
requested to hold harmless municipalities that have
municipal owned airports.
10:29:51 AM
Senator Elton asked for clarification about the interplay
between SB 4002 and SB 4003. In SB 4002, Section 1 provides
that "subject to appropriation and availability of funds for
the program, individuals eligible for the program may
receive a payment in the amount of $1,200". In SB 4003, on
page 2, line 22, it says, "the sum necessary, estimated to
be at $800 million". He inquired which bill was primary.
Mr. Burnett said that the $1,200 would go to everyone.
Should the legislature chose a different amount, it would be
pro-rated. As the bills are currently written, it would
allow for $1,200 to each person.
10:32:29 AM
Senator Elton thought that in January a supplemental may be
required. Mr. Burnett said the bill, as currently written,
would allow for spending beyond $800 million.
Senator Huggins posited a scenario whereby fuel costs remain
the same and next July the expectation by Alaskans is that
they receive another rebate.
Ms. Rehfeld did not disagree with the scenario, but
emphasized that the bill is a one-time payment.
Senator Huggins asked how the administration will keep this
to one year. Ms. Rehfeld hoped that the current legislation
would provide some relief, but she could not say what might
happen in the future. Senator Huggins suggested that an
expectation is being created.
10:36:08 AM
Senator Olson asked about page 3 regarding municipality
airports. He wondered who would be the beneficiaries of the
subsection. Mr. Burnett reported that taxes are not shared
with anyone besides municipal airports in this program. The
largest amount to a municipality is to Juneau. Senator
Olson wondered if the bias is towards municipal or rural
airports. Mr. Burnett replied that Fairbanks and Anchorage
have state-owned airports. This program is designed for
sharing with municipal airports around the state.
Co-Chair Stedman wondered if it was a resource rebate or an
energy rebate. He questioned if there should be a trigger
amount before the state steps in to help. Ms. Rehfeld had
not heard of information regarding that.
Co-Chair Stedman wondered about the ramifications when this
rebate is discontinued. Ms. Rehfeld understood the concern.
She reiterated that the rebate is intended to be a one-time
payment.
10:39:52 AM
Senator Elton referenced the section on aviation tax and
requested more information about how much revenue would be
lost. He did not see a problem with the benefits from a tax
suspension. He wondered how much of a benefit the
commercial industry would be getting.
Mr. Burnett said there is no way to know who is purchasing
the fuel.
Senator Thomas believed that the price of oil was not going
to go down. He thought the programs should be in place for
3 - 5 years.
SB 4003 was heard and HELD in Committee for further
consideration.
10:45:22 AM
Co-Chair Stedman spoke of discussions on longer-term
solutions to the energy problems in Alaska.
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