04/11/2002 08:06 AM House STA

HJR 14 - CONST. AM: PERMANENT FUND                                                                                            
                                                                                                                                
Number 1180                                                                                                                     
                                                                                                                                
CHAIR COGHILL announced that the  next order of business would be                                                               
SPONSOR SUBSTITUTE  FOR HOUSE JOINT RESOLUTION  NO. 14, Proposing                                                               
amendments to  the Constitution of  the State of  Alaska relating                                                               
to the  Alaska permanent  fund.   [SSHJR 14  had been  amended on                                                               
4/04/02.]                                                                                                                       
                                                                                                                                
Number 1232                                                                                                                     
                                                                                                                                
REPRESENTATIVE CRAWFORD,  sponsor, reiterated from  his testimony                                                               
from an  earlier hearing  that Alaska  is the  only state  in the                                                               
Union where the  bottom 25 percent didn't lose ground  to the top                                                               
25 percent  in income  over the  last ten  years, because  of the                                                               
permanent fund dividend.   He acknowledged that  the dividend has                                                               
a good purpose  and is a huge  part of the state's  economy.  The                                                               
permanent fund and the dividend  both need to be protected, SSHJR
  is  a good  way  to  do it,  and  it  is recommended  by  the                                                               
permanent fund  board.   He encouraged  the committee  to support                                                               
it.                                                                                                                             
                                                                                                                                
Number 1330                                                                                                                     
                                                                                                                                
REPRESENTATIVE JAMES  said she doesn't like  the legislation, but                                                               
she  indicated  that  she  doesn't  have  a  problem  moving  the                                                               
resolution on  to the  House Judiciary  Standing Committee.   She                                                               
said she  isn't sure if  this will  be a priority  before session                                                               
ends.                                                                                                                           
                                                                                                                                
REPRESENTATIVE  JAMES asked  Representative  Crawford to  explain                                                               
how he  got his statistics  on the 25  percent of the  bottom and                                                               
top levels of income.  The  statistics she has seen said that the                                                               
poverty level  has increased.  She  said she doesn't know  if the                                                               
dividend  made  the  difference,  except there  are  more  people                                                               
living in  Alaska in poverty, who  may have come here  because of                                                               
the dividend.   There  is good  anecdotal information  to support                                                               
that.  She  said she favors protecting  the dividend statutorily,                                                               
not constitutionally.                                                                                                           
                                                                                                                                
REPRESENTATIVE JAMES  said there  are some  people who  think the                                                               
whole  permanent fund  belongs to  them, and  she disagrees  with                                                               
that assumption.   She commented  that she agrees that  the money                                                               
belongs to the state and to  the people collectively, and what is                                                               
done  with the  money is  a decision  for the  legislature.   She                                                               
expressed  concern about  the extreme  amount of  poverty in  the                                                               
state  and  said  that  problem  should  be  solved  outside  the                                                               
permanent fund  and the permanent  fund dividend, so  people have                                                               
the opportunity  to have a  good job and  take care of  their own                                                               
needs.  This  is a difficult issue because it  is a political hot                                                               
button.   It needs to  be dealt with and  has to make  good sense                                                               
over the long term.                                                                                                             
                                                                                                                                
CHAIR COGHILL said he still struggles  with some of the issues in                                                               
the  resolution  but is  willing  to  move  it  on to  the  House                                                               
Judiciary Standing Committee.                                                                                                   
                                                                                                                                
Number 1628                                                                                                                     
                                                                                                                                
REPRESENTATIVE  STEVENS agreed  to  move the  resolution out  but                                                               
expressed concern about the future of the permanent fund.                                                                       
                                                                                                                                
REPRESENTATIVE HAYES  moved to report  SSHJR 14, as  amended, out                                                               
of   committee   with    individual   recommendations   and   the                                                               
accompanying  fiscal notes.   There  being no  objection, CSSSHJR
(STA)  was reported  out of  the House  State Affairs  Standing                                                               
Committee.