Legislature(2001 - 2002)

02/19/2002 07:07 PM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                                                                                                                                
     HOUSE BILL NO. 359                                                                                                         
     "An Act making a supplemental appropriation for tourism                                                                    
     marketing efforts; and providing for an effective date."                                                                   
                                                                                                                                
     And                                                                                                                        
                                                                                                                                
     SENATE BILL NO. 272                                                                                                        
     "An Act making a supplemental appropriation for tourism                                                                    
     marketing efforts; and providing for an effective date."                                                                   
                                                                                                                                
                                                                                                                                
This was  the first hearing  for these bills  in the Senate  Finance                                                            
Committee. Co-Chair  Donley announced these are companion  bills and                                                            
the Committee would take action on HB 359.                                                                                      
                                                                                                                                
Co-Chair Donley stated  this legislation appropriates $6 million for                                                            
tourism  marketing as  an FY 02  supplemental and  has an  immediate                                                            
effective date.                                                                                                                 
                                                                                                                                
KATRINA KING  testified via teleconference  from Mat-Su to  defer to                                                            
the next speaker.                                                                                                               
                                                                                                                                
DAVE KING, Owner  and Operator of three Alaska companies,  testified                                                            
via teleconference from  Mat-Su about the businesses: a guest ranch,                                                            
an air traffic company  and a video and music production company. He                                                            
stated he recently  returned from attending trade  shows and learned                                                            
that, "definitely  the fear factor, especially coming  to Alaska, is                                                            
alive and  well at  this time."  Therefore, he  surmised this  is an                                                            
important  time  that funds  should  be  spent  "properly  marketing                                                            
towards  tourism in  Alaska". He stressed  the need  to inform  that                                                            
traveling in Alaska is safe.                                                                                                    
                                                                                                                                
JULIE  SAUPE, Executive  Director,  Mat-Su Convention  and  Visitors                                                            
Bureau,  testified via teleconference  from  Mat-Su that similar  to                                                            
other convention and visitor  bureaus (CVB) in the state, the Mat-Su                                                            
organization  is  "very  concerned   for  the  fate  of  our  member                                                            
businesses  as  well   as  non-member  businesses   that  depend  on                                                            
tourism."   She informed  the board of directors  of this CVB  voted                                                            
unanimously  to support a request  for a legislative appropriation,                                                             
and  more specifically,  to  support  the emergency  marketing  plan                                                            
developed  by the  Alaska Travel  Industry Association  (ATIA).  She                                                            
commented  that  unanimous  votes  are generally  uncommon  in  this                                                            
region of the state.                                                                                                            
                                                                                                                                
Ms.  Saupe  shared  that  results  of  a Mat-Su  CVB  poll  of  area                                                            
businesses parallel that  of an ATIA statewide poll showing that the                                                            
number of bookings  are reduced significantly. She  pointed out this                                                            
is  of particular  concern  in  the Mat-Su  region  because  tourism                                                            
businesses  tend to  be smaller, younger,  and have  a lower  equity                                                            
base  to draw  upon to  "survive a  20 or  even 40  percent drop  in                                                            
revenues."  She added  that a  loss would  be "felt  way beyond  the                                                            
visitor industry."                                                                                                              
                                                                                                                                
Ms.  Saupe   stressed  that  although   she  does  not  believe   in                                                            
"government handouts",  the government "does have the responsibility                                                            
to level  the playing  field to  help its business  community."  She                                                            
characterized  this one-time appropriation  as an investment,  which                                                            
would  enable  the  visitor  industry   to  remain  healthy  and  to                                                            
contribute  to the state's  economy "rather  than become a  drain in                                                            
the  form   of  unemployment."     She  warned  that  without   this                                                            
investment, the  tourism industry would be harmed,  with the impacts                                                            
most prevalent to smaller businesses.                                                                                           
                                                                                                                                
BONNIE QUILL,  Mat-Su Convention and Visitors Bureau,  testified via                                                            
teleconference  from Mat-Su to reiterate  Ms. Saupe's comments.  She                                                            
added that  the Mat-Su CVB, along  with other destination  marketing                                                            
organizations  in Alaska,  is unable  to reach  the national  market                                                            
within its budget.  As a result, she stated there  has been reliance                                                            
on the ATIA to  nationally market Alaska. She noted  most members of                                                            
the Mat-Su CVB are small businesses.                                                                                            
                                                                                                                                
STU  GRAHAM,  Manager,  Budget  Rental  Car, and  Member,  Board  of                                                            
Directors, Palmer Chamber  of Commerce, testified via teleconference                                                            
from  Mat-Su to  relay the  impacts of  the lessened  travel on  the                                                            
rental car  industry. On behalf of  the rental car industry  and the                                                            
Palmer Chamber  of Commerce, he requested funding  to assist ATIA in                                                            
marketing Alaska as a destination.  He applauded the efforts of ATIA                                                            
in the local media.                                                                                                             
                                                                                                                                
RANDI PEARLMAN,  Employee, Big Lake  Chamber of Commerce,  testified                                                            
via teleconference  from Mat-Su on  behalf of herself to  inform the                                                            
Committee   that  Big  Lake  is  considered   "Alaska's   year-round                                                            
playground."  She said  because of  this, tourism  is a significant                                                             
part of the  local economy. She expressed  this appropriation  would                                                            
ensure the continued  success of the tourism industry  in the state.                                                            
                                                                                                                                
SANDY  KING,  Cordova Chamber  of  Commerce  and  Visitor's  Center,                                                            
testified  via  teleconference  from  Cordova  that  the  number  of                                                            
requests for  visitor information  are 80 percent of what  they were                                                            
one year  prior. However,  she stated  there is  an increase  in the                                                            
number of visitors  who plan to drive to Alaska during  the upcoming                                                            
summer.  She  pointed  out that  these  travelers  would  not  visit                                                            
communities  that are not along the  road system. She told  of a six                                                            
percent tax  on rental  vehicles and accommodations  imposed  by the                                                            
City of Cordova two years  prior in an attempt to distribute the tax                                                            
burden. She informed  that the organization has been  a recipient of                                                            
some  of those  revenues  in the  form of  grants,  which have  been                                                            
expended to promote  Cordova as a visitor destination.   As a result                                                            
of reduced  revenue from  this tax, she  stated "vital advertising"                                                             
has  been  reduced.    She  noted  other  revenue   sources  of  the                                                            
organization,  pull-tab sales and membership dues,  have declined as                                                            
well. She remarked  that a $6 to $9 million appropriation  would not                                                            
improve the organization's ability to market Cordova.                                                                           
                                                                                                                                
Ms. King  requested  $6 to $9  million be allocated  to communities                                                             
dependant  upon tourism. She  stated that  each community in  Alaska                                                            
has its own  "personality" and stressed  that 45 Cordova  businesses                                                            
are directly associated with tourism.                                                                                           
                                                                                                                                
KRISTIN  SMITH, representing,  Copper River  Watershed Project,  and                                                            
Council Member,  City of Cordova, testified via teleconference  from                                                            
Cordova  to  thank  the  Committee  for  considering  this  one-time                                                            
appropriation.  She  informed   the  mission  of  the  Copper  River                                                            
Watershed  Project  is  to  diversify  the  region's  economy  while                                                            
maintaining  the quality of life.  Tourism is a significant  part of                                                            
this effort  she said, and  in the past three  years, the group  has                                                            
learned methods  to attract more visitors  to Cordova. She  spoke of                                                            
the need to develop and  package tourist attractions and the need to                                                            
offer a quality  experience. She stated  the group has also  learned                                                            
"the hard way" that the  most expensive element of expanding tourism                                                            
industry  is marketing.  She  stressed it  is impossible  for  small                                                            
communities to reach the national market.                                                                                       
                                                                                                                                
Ms. Smith  asserted  the community  has  taken steps  to fund  these                                                            
efforts,  but noted the  funding sources  are depleting.  Therefore,                                                            
she  urged support  for this  legislation.  She also  requested  the                                                            
Department  of Community and Economic  Development to allocate  some                                                            
of the funds directly to local communities.                                                                                     
                                                                                                                                
ALAN LAMASTER,  Owner, Gakona  Junction  Village, Northern  Brochure                                                            
Distributors, and Member,  Greater Copper Valley Chamber of Commerce                                                            
testified  via teleconference  from Anchorage  to tell about  Gakona                                                            
Junction Village,  which he described  as "a conglomerate  of little                                                            
tiny  businesses  out  in the  Copper  Valley".  He  listed  charter                                                            
fishing,  a Texaco  gasoline  station, a  grocery  store and  rental                                                            
cabins.  He referenced  written testimony  he had  submitted to  Co-                                                            
Chair  Donley [copy  not provided].  He  spoke of  a "concept"  that                                                            
businesses  in  Alaska  do  not  participate   "their  fair  share".                                                            
However, he stressed  he has doubled his marketing  expenditure this                                                            
year would  probably  double that  amount again  to obtain  results.                                                            
This he said diverts  funds from other efforts within  his business.                                                            
He stated that  through his involvement with brochure  distribution,                                                            
he interacts  with  large and small  tourism  businesses across  the                                                            
state and has  learned that the situation  is "not a good  picture".                                                            
He emphasized  "we're  in big trouble"  and warned  that this  would                                                            
impact state  revenues as  well in the form  of fishing and  hunting                                                            
licenses, docking and airport fees, sales taxes, permits, etc.                                                                  
                                                                                                                                
SUZANNE   RUST,  Rust   Flying   Services,  and   Patriot   Aviation                                                            
[unverified  company   name],  testified  via  teleconference   from                                                            
Anchorage that  these businesses employ  70 people in Anchorage  and                                                            
Talkeetna.  She  stressed  that one  year  ago,  her plans  were  to                                                            
purchase one or two new  aircraft and increase staff by ten percent.                                                            
However,  as a result  of the events  of September  11, 2001,  these                                                            
plans have changed.  She noted that although the cruise  industry is                                                            
booking many  passengers, the packages  they are purchasing  are the                                                            
most inexpensive  on record and these  travelers are less  likely to                                                            
purchase  additional  land  excursions.  She  stressed  her  primary                                                            
concern  is for  small  businesses  and that  larger  companies  are                                                            
outspending  for  marketing  efforts  by millions  of  dollars.  She                                                            
cautioned,  "every day people  are making decisions  to go  to North                                                            
Dakota or to some  other state and we won't see those  people coming                                                            
to Talkeetna or to Anchorage."                                                                                                  
                                                                                                                                
ERIC  DOWNEY,  Marketing   Director,  Alaska  Wildland  Adventures,                                                             
testified  via  teleconference  from  Anchorage  that he  has  seen,                                                            
first-hand, the  impacts to the travel industry since  September 11,                                                            
2001. He  stated that  prior to  that date, the  company had  record                                                            
sales; but after September  11, 2001, sales dropped within weeks and                                                            
have been down  36 percent of a three-year  average. He stated  that                                                            
the company's  marketing spending has increased "significantly"  and                                                            
two  managerial  positions   and two  hourly   positions  have  been                                                            
eliminated from a year-round  workforce of 20 staff. He qualified he                                                            
is  less  concerned  about the  number  of  seasonal  employees  the                                                            
company hires  then he was for the  20 year round employees  "living                                                            
in Girdwood, paying  taxes, trying to earn a decent  living and make                                                            
a  life for  themselves."  He  listed  two single  mothers  and  six                                                            
homeowners  and warned of  the impact these  job losses have  on the                                                            
state.                                                                                                                          
                                                                                                                                
Mr. Downey continued  that although revenues are projected  to be 25                                                            
percent less  than average in the  upcoming season, but emphasized,                                                             
the company is  "not giving up hope". He told of reduced  tourism in                                                            
the first half  of the summer following  the Exxon Valdez  oil spill                                                            
and the subsequent recovery in the second half of the season.                                                                   
                                                                                                                                
RICKY  GEASE,  Executive  Director,  Kenai  Visitor's  and  Cultural                                                            
Center,  testified  via  teleconference  from  Kenai about  the  200                                                            
tourism-related  businesses in the area. He pointed  out the western                                                            
portion of  the Kenai Peninsula  is dependent  upon the independent                                                             
travel market,  which this appropriation would target.   He stressed                                                            
there would  be no  need for these  funds if not  for the events  of                                                            
September 11,  2002. He spoke of the abrupt reduction  in the number                                                            
of travelers after that date.                                                                                                   
                                                                                                                                
Mr. Gease asserted the  need "to get this money into the pipeline as                                                            
quick  as possible"  to  allow  tourism businesses  to  survive.  He                                                            
assured this is a healthy  industry although it needs assistance. He                                                            
pointed out  that the tourism industry  has "absorbed" workers  laid                                                            
off from other industries,  such as commercial fisheries and the oil                                                            
industry.                                                                                                                       
                                                                                                                                
Mr. Gease added  that revenues generated from fishing  licenses fund                                                            
many of  the activities of  the Department  of Fish and Game  on the                                                            
Kenai Peninsula.                                                                                                                
                                                                                                                                
JEFF  BUSH,  Deputy   Commissioner,  Department  of   Community  and                                                            
Economic  Development testified  in support  of the legislation.  He                                                            
noted the governor  requested $10  million and that the ATIA  has an                                                            
effective marketing plan for utilizing either amount.                                                                           
                                                                                                                                
TINA  LINDGREN,  President,  Alaska  Travel  Industry  Association,                                                             
testified  that although this  legislation  has been referred  to as                                                            
the  ATIA plan,  the  ATIA  is under  contract  with the  state  and                                                            
therefore  it is Alaska's  plan.  She referenced  a travel  industry                                                            
survey  [copy on  file]  conducted  in December  2001  and again  in                                                            
February 2002,  showing there has been no recovery  in the industry.                                                            
She relayed  businesses are  reporting, "their  business is  down an                                                            
average  of  24  percent",  which   she  translated  to  a  loss  of                                                            
approximately  3,000  jobs in  the state.  She warned  that many  of                                                            
these companies  would not be in business  in one year without  some                                                            
assistance. She  noted the options are few for small  businesses and                                                            
referenced earlier  testimony about reduced spending  in other areas                                                            
to allow for accelerated marketing efforts.                                                                                     
                                                                                                                                
Ms.  Lindgren cautioned  that  delaying  this assistance  harms  the                                                            
industry because  many travelers are beginning to  make their travel                                                            
plans at this  time. She asserted she has never seen  such an impact                                                            
on the industry.  She also stated  that many businesses are  wary of                                                            
publicly stating  their troubles for  fear it would only  exacerbate                                                            
them.                                                                                                                           
                                                                                                                                
Senator Austerman  asked how the marketing plan would  be amended to                                                            
account  for  the   difference  in  the  $12.5  million   originally                                                            
requested and the $6 million proposed in this legislation.                                                                      
                                                                                                                                
Ms. Lindgren  replied the plan has  not been revised for  each level                                                            
of funding  as  it has  been discussed,  although  she acknowledged                                                             
adjustments   would   be   necessary.   She   predicted   television                                                            
advertising  would remain  in the  plan as well  as "direct  contact                                                            
with  the  travel  trade".  She  noted  other   media  becomes  less                                                            
available as time passes,  such as magazine advertisements that must                                                            
be purchased well in advance.                                                                                                   
                                                                                                                                
STEVE BOWHAY,  President, Glacier Gardens, testified  in Juneau that                                                            
this appropriation  is a  good investment.  He asserted a  statewide                                                            
sales  tax, along  with increased  tourism,  would  be good  revenue                                                            
generators.  However,  he  stressed that  in  order to  achieve  the                                                            
benefits, there  must be visitors "bringing money  to the state" and                                                            
that this appropriation  would help  attract visitors.  He  remarked                                                            
the state  already has  a major  investment in  tourism through  the                                                            
Marine Highway  System.  He spoke about small businesses  purchasing                                                            
advertising space  in the visitor guide distributed  on the ferries,                                                            
but again emphasized  the need to have passengers  on the ferries to                                                            
read  the publication.  He  referenced  recent  media  reports of  a                                                            
survey showing  that the majority of ferry passengers  are traveling                                                            
to Anchorage.  He  also pointed  out the significant  investment  in                                                            
maintaining  the Alaska Highway.  Therefore,  he surmised the  state                                                            
would  benefit  from  this  tourism  investment  as  well.  He  also                                                            
emphasized travelers need to know that travel in Alaska is safe.                                                                
                                                                                                                                
SENATOR  STEVE  FRANK,   Former  Co-Chair  of  the  Senate   Finance                                                            
Committee  spoke  of the  five years  since  he last  served in  the                                                            
Legislature and his investment  in private industry. He stressed the                                                            
current situation  was caused by the  events of September  11, 2001,                                                            
and  nothing  else.  He listed  70  percent  of  his  customers  are                                                            
travelers  and those numbers  are down 35  percent. He asserted  the                                                            
proposed plan is viable  and would be effective. He cautioned of the                                                            
jobs lost without  this effort, stressing many workers  have already                                                            
been  laid  off.  He emphasized   this  effort targets  independent                                                             
travelers.                                                                                                                      
                                                                                                                                
Senator Frank spoke to  his concern about whether this appropriation                                                            
should be  made. He identified  with the  situation with the  fiscal                                                            
gap, having  faced it  himself while  serving on  the Committee.  He                                                            
pointed  out the legislature  would appropriate  approximately  $2.5                                                            
billion  for FY  03  and therefore  this  $6 million  investment  in                                                            
Alaska's  second   largest  private  employer,  is  reasonable.   He                                                            
predicted most Alaskans would support this expenditure as well.                                                                 
                                                                                                                                
ROD ARNO,  Representing,  Alaska Professional  Hunters Association,                                                             
testified  in Juneau  about the  impacts of  the air  travel ban  in                                                            
September  2002, on  the guided  hunting  industry. He  told of  the                                                            
numbers  of  travelers  unable  to  fly to  or  from  their  hunting                                                            
destinations. He stated  the Association supports this appropriation                                                            
in that it would help promote Alaska as a safe destination.                                                                     
                                                                                                                                
Co-Chair Kelly  moved for adoption of SCS HB 359,  22-LS1360\W, as a                                                            
working draft.                                                                                                                  
                                                                                                                                
The committee substitute was ADOPTED without objection.                                                                         
                                                                                                                                
Co-Chair Donley outlined  the committee substitute, noting Section 1                                                            
(a)  appropriates  $5,171,500   from  the international   trade  and                                                            
business endowment.  He continued  that subsection (b) provides  the                                                            
remainder of the  $6 million appropriation from the  general fund on                                                            
a "dollar for  dollar match basis" from industry or  other non-state                                                            
governmental  sources.  Subsection  (c), he said, relays  the intent                                                            
that these funds represent  "partial forward funding" of the state's                                                            
portion of the qualified trade association contract for FY 03.                                                                  
                                                                                                                                
Co-Chair Donley next pointed  out subsection (d) stipulates the ATIA                                                            
provide a  plan to the  legislature within  60 days, for  generating                                                            
industry funds  to replace state funding  of the existing  marketing                                                            
system.  He stressed  the  language clarifies  this  plan could  not                                                            
include broad-based taxes such as an income or sales tax.                                                                       
                                                                                                                                
Co-Chair Donley  concluded with subsection  (e), which requires  the                                                            
ATIA report  to the legislature the  results of this appropriation.                                                             
                                                                                                                                
AT EASE 7:53 PM / 7:58 PM                                                                                                       
                                                                                                                                
AMENDMENT  #1: This  amendment inserts  language  into the title  to                                                            
read as follows.                                                                                                                
                                                                                                                                
     An  Act  making   a  supplemental  appropriation   for  tourism                                                            
     marketing  efforts  and  generic  salmon  marketing;  making  a                                                            
     special   appropriation  for   the  Joint  Legislative   Salmon                                                            
     Industry Task Force and providing for an effective date.                                                                   
                                                                                                                                
This amendment  also insert a new bill section on  page 2, following                                                            
line 9 to read as follows.                                                                                                      
                                                                                                                                
          Sec. 2. GENERIC SALMON MARKETING. The sum of $2,000,000                                                               
     is  appropriated from  the general  fund to  the Department  of                                                            
     Community  and Economic  Development  Alaska Seafood  Marketing                                                            
     Institute,  for generic salmon  marketing for the fiscal  years                                                            
     ending June 30, 2002, and June 30, 2003.                                                                                   
                                                                                                                                
Senator  Austerman  moved for  adoption  and clarified  this  amount                                                            
would  be   included  as   a  portion  of   the  $6  million   total                                                            
appropriation.   Therefore,  he  explained,  $4  million   would  be                                                            
appropriated  to the tourism  effort and $2  million for the  salmon                                                            
marketing effort.                                                                                                               
                                                                                                                                
Senator  Wilken asked  if  the Alaska  Seafood  Marketing  Institute                                                            
(ASMI)  has  devised  a plan  for  utilizing  these  funds  that  is                                                            
available for the Committee to review.                                                                                          
                                                                                                                                
Senator  Austerman replied  such a  plan has been  discussed  and he                                                            
could provide details.                                                                                                          
                                                                                                                                
                                                                                                                                
SFC 02 # 11, Side B 07:59 PM                                                                                                    
                                                                                                                                
                                                                                                                                
Senator  Wilken noted  a title  change  would be  necessary if  this                                                            
amendment were  adopted.  He asked how the salmon  industry has been                                                            
affected by the terrorism attacks of September 11, 2001.                                                                        
                                                                                                                                
Senator Austerman  stated, "To me  it's more of an equity  issue of,                                                            
it  we're going  to  treat  one industry  one  way, then  we  should                                                            
continue to treat all industries basically the same."                                                                           
                                                                                                                                
Senator Wilken  appreciated "the salmon  plight" and noted  there is                                                            
"general agreement"  that this matter  would be addressed.  However,                                                            
he was  concerned about  diverting  funds from a  planned effort  to                                                            
alleviate the impacts of  "the September tragedy" into "a place that                                                            
is…  softer in  how they're  going  to use  it." He  cautioned  this                                                            
amendment would  delay the passage  of the bill by one to  two weeks                                                            
because   the  changes   require   approval   from   the  House   of                                                            
Representatives.  "Frankly Senator,  we don't  have another  week or                                                            
two" he  remarked. He  pledged to  assist Senator  Austerman  in his                                                            
efforts to assist the salmon industry at another time.                                                                          
                                                                                                                                
Co-Chair  Kelly  echoed  Senator Wilken's  remarks.  He  noted  that                                                            
others  may  not  be  as interested   in promoting   generic  salmon                                                            
marketing, but assured  he is. He warned this amendment could hamper                                                            
passage  of this  bill and  threaten funding  for  either cause.  He                                                            
supported  the formation of  a task force  to address the  hardships                                                            
incurred  in the fishing  industry. He agreed  the fishing  industry                                                            
"has taken a pretty heavy  hit" although from a different cause than                                                            
the  events  of  September  11,  2001.  Therefore,  he  stressed  he                                                            
supported Senator  Austerman's efforts, but would  vote against this                                                            
amendment.                                                                                                                      
                                                                                                                                
Senator Austerman  emphasized the  "issue of equity is very  strong"                                                            
otherwise  he would  not be  offering this  amendment.  He spoke  of                                                            
state general  funds used to market the tourism industry  but denied                                                            
to the seafood industry.  Therefore, he has no other recourse but to                                                            
bring this  issue to  the forefront  at times  like this. He  talked                                                            
about the fishing industry  taxing itself for marketing purposes, in                                                            
addition to  being taxed for other  purposes. However, he  remarked,                                                            
the tourism industry is not taxed.                                                                                              
                                                                                                                                
Senator Austerman WITHDREW his motion to adopt the amendment.                                                                   
                                                                                                                                
Co-Chair  Kelly  cited Section  1(d),  which  requires  the ATIA  to                                                            
provide  a  plan,  other  than  instituting  broad-based  taxes,  to                                                            
generate  industry funds  to replace  all state  funding. He  shared                                                            
that  he  initially  did  not  support  this   language,  but  after                                                            
discussions on the issue, he now supports it.                                                                                   
                                                                                                                                
Senator Austerman  commented that while the provision  of subsection                                                            
(d) is  "a great  idea",  it is "useless"  in  this legislation.  He                                                            
predicted that once the  ATIA receives the funds, the funds would be                                                            
spent  and  the  legislature  has  no  recourse  if a  plan  is  not                                                            
submitted within the 60-day deadline.                                                                                           
                                                                                                                                
Co-Chair  Donley agreed  with Senator  Austerman  that there are  no                                                            
direct  taxes on  the tourism  industry,  although  there are  local                                                            
taxes, which the state does not receive.                                                                                        
                                                                                                                                
Senator Austerman  asserted he would  vote against this legislation                                                             
as he did with an earlier  appropriation to Arctic Power for efforts                                                            
to gain  congressional approval  to conduct  oil exploration  in the                                                            
Alaska National  Wildlife Refuge (ANWR).  He gave his reason  as the                                                            
seeming  reluctance of  the Senate  to address  a long-range  fiscal                                                            
plan for the state of Alaska.                                                                                                   
                                                                                                                                
AT EASE 8:09 PM / 8:10 PM                                                                                                       
                                                                                                                                
Co-Chair Donley  appreciated Senator  Austerman's remarks  and noted                                                            
his consistency  on the issue. Co-Chair Donley told  of efforts made                                                            
in the last ten  days to secure non-general funds  for this purpose.                                                            
He  stressed   the   September  11   tragedy  is   a  "very   unique                                                            
circumstance". He stressed  intentions are that the tourism industry                                                            
would  be self-supporting  and that  provisions in  this bill  relay                                                            
this  intent.  He  pointed  out  that  many  people   share  Senator                                                            
Austerman's concerns.                                                                                                           
                                                                                                                                
Senator  Austerman expressed  that  taking funds  from an  endowment                                                            
allocated for  other uses "highlights"  his point for the  need of a                                                            
long-range plan.                                                                                                                
                                                                                                                                
Co-Chair Donley informed  new legislation as well as other ideas are                                                            
under consideration at this time.                                                                                               
                                                                                                                                
Co-Chair  Kelly offered  a motion  to move  SCS HB  359 (FIN),  from                                                            
Committee with the House Finance Committee Letter of Intent.                                                                    
                                                                                                                                
Senator Austerman objected.                                                                                                     
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR:  Senator Wilken,  Senator Green,  Senator Leman,  Co-Chair                                                            
Kelly and Co-Chair Donley                                                                                                       
                                                                                                                                
OPPOSED: Senator Austerman                                                                                                      
                                                                                                                                
ABSENT: Senator Hoffman, Senator Olson and Senator Ward                                                                         
                                                                                                                                
The motion PASSED (5-1-3)                                                                                                       
                                                                                                                                
The bill MOVED from Committee.                                                                                                  
                                                                                                                                

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