Legislature(2005 - 2006)BELTZ 211

03/06/2006 01:30 PM COMMUNITY & REGIONAL AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to a Call of the Chair --
+= SB 193 DEFERRAL OF MUNICIPAL PROPERTY TAXES TELECONFERENCED
Heard & Held
*+ SB 291 MUNICIPAL HARBOR FACILITY GRANTS TELECONFERENCED
Heard & Held
+= SB 247 REVENUE SHARING PROGRAM TELECONFERENCED
Heard & Held
+= SB 246 APPROP TO REVENUE SHARING FUND TELECONFERENCED
Heard & Held
             SB 246-APPROP TO REVENUE SHARING FUND                                                                          
                                                                                                                                
2:45:04 PM                                                                                                                    
                                                                                                                                
CHAIR BERT STEDMAN  announced SB 246 to be  up for consideration.                                                               
He  asked  Senator  Gary  Stevens  to  introduce  the  committee-                                                               
sponsored bill.                                                                                                                 
                                                                                                                                
SENATOR  GARY  STEVENS explained  that  SB  246  and SB  247  are                                                               
related.  SB  246 makes  a  $28  million appropriation  from  the                                                               
Alaska Capital Income Fund ("Amerada  Hess") and places it in the                                                               
Revenue Sharing Fund. The bill is  the result of work done by the                                                               
Advisory  Commission on  Local Government  and would  only become                                                               
effective if  SB 247  is passed. SB  247 establishes  the Revenue                                                               
Sharing Fund and it will  provide a sustainable source of funding                                                               
to  be  shared   with  local  governments  on   a  long-term  and                                                               
predictable basis.                                                                                                              
                                                                                                                                
CHAIR STEDMAN asked  if the Alaska Capital Income  Fund source is                                                               
loosely referred to as Amerada Hess.                                                                                            
                                                                                                                                
SENATOR  GARY STEVENS  said  yes; income  from  the Amerada  Hess                                                               
would provide the annual $28 million appropriation.                                                                             
                                                                                                                                
CHAIR STEDMAN clarified  that Amerada Hess funds  are held inside                                                               
the Alaska  Permanent Fund but  aren't figured into  the dividend                                                               
calculation. Last  year the Legislature used  income from Amerada                                                               
Hess  and this  proposal is  another use  for the  ongoing income                                                               
stream generated from those funds.                                                                                              
                                                                                                                                
SENATOR  GARY  STEVENS  added  the  key is  that  the  funds  are                                                               
renewable  because communities  really won't  benefit if  revenue                                                               
sharing isn't available on an ongoing basis.                                                                                    
                                                                                                                                
CHAIR STEDMAN opened public comment.                                                                                            
                                                                                                                                
2:48:19 PM                                                                                                                    
                                                                                                                                
KEVIN RICHIE, Executive Director,  Alaska Municipal League (AML),                                                               
thanked  the advisory  commission for  its hard  work and  stated                                                               
support for using  Amerada Hess funds as at least  one source for                                                               
sustainable revenue sharing.                                                                                                    
                                                                                                                                
2:49:15 PM                                                                                                                    
                                                                                                                                
TIM  JOYCE,  Mayor  of  Cordova, testified  in  support  of  some                                                               
mechanism to provide for sustainable  revenue sharing for Alaskan                                                               
communities  because many  have had  a tough  time since  revenue                                                               
sharing  was eliminated.  He opined  that it  would require  more                                                               
than  the Amerada  Hess appropriation  to  make the  contribution                                                               
meaningful.                                                                                                                     
                                                                                                                                
CHAIR  STEDMAN asked  testifiers to  hold their  comments to  the                                                               
funding source.                                                                                                                 
                                                                                                                                
2:51:11 PM                                                                                                                    
                                                                                                                                
ELAINE  PRICE, Projects  Manager for  the City  of Coffman  Cove,                                                               
said she  wanted to  testify on  SB 247, but  she would  like the                                                               
funding  source to  be from  Amerada  Hess or  whatever means  is                                                               
necessary to provide revenue sharing to communities.                                                                            
                                                                                                                                
2:51:40 PM                                                                                                                    
                                                                                                                                
DORIS BAILEY, Assembly Member for  the City and Borough of Sitka,                                                               
offered official  support for both SB  246 and SB 247  and stated                                                               
that revenue sharing is an  exceptionally important issue for the                                                               
municipality.                                                                                                                   
                                                                                                                                
2:52:27 PM                                                                                                                    
                                                                                                                                
PAT PORTER, Mayor  for the City of Kenai,  encouraged support for                                                               
both SB 246 and SB 247.  She advised that this isn't Kenai's real                                                               
choice for a bill, but it's a good beginning.                                                                                   
                                                                                                                                
2:53:16 PM                                                                                                                    
                                                                                                                                
DAVE TRANTHAM,  JR., Alaska Municipal League  Representative from                                                               
District  9 testified  from Bethel  in support  of using  Amerada                                                               
Hess funding for municipal revenue sharing.                                                                                     
                                                                                                                                
2:54:42 PM                                                                                                                    
                                                                                                                                
KARL  SHORT,  Finance Director  for  the  Kodiak Island  Borough,                                                               
testified in  support of  SB 246,  which establishes  funding for                                                               
revenue  sharing.  He  reported  that since  1986  costs  to  the                                                               
borough have skyrocketed.                                                                                                       
                                                                                                                                
CHAIR STEDMAN announced he would hold SB 246 in committee.                                                                      

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