Legislature(2003 - 2004)

01/21/2004 08:00 AM House W&M

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
           HOUSE SPECIAL COMMITTEE ON WAYS AND MEANS                                                                          
                        January 21, 2004                                                                                        
                           8:00 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Mike Hawker, Chair                                                                                               
Representative Vic Kohring                                                                                                      
Representative Dan Ogg                                                                                                          
Representative Ralph Samuels                                                                                                    
Representative Peggy Wilson                                                                                                     
Representative Max Gruenberg                                                                                                    
Representative Carl Moses                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Bruce Weyhrauch, Vice Chair                                                                                      
Representative Norman Rokeberg                                                                                                  
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative Paul Seaton                                                                                                      
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
^RECAP INTERIM                                                                                                                  
^MEMBERS OPEN FORUM                                                                                                             
                                                                                                                                
TAPES                                                                                                                         
                                                                                                                                
04-02, SIDE A                                                                                                                 
                                                                                                                                
CHAIR  MIKE HAWKER  convened  the meeting  of  the House  Special                                                             
Committee  on  Ways  and  Means at  8:00  a.m.    Representatives                                                               
Hawker, Samuels, Kohring, Wilson,  Gruenberg, Moses, and Ogg were                                                               
present at the call to order.   Representative Seaton was also in                                                               
attendance.                                                                                                                     
                                                                                                                                
SUMMARY OF INFORMATION                                                                                                        
                                                                                                                                
CHAIR  HAWKER  expressed  his appreciation  for  the  committee's                                                               
participation  in   the  town  meeting  process   throughout  the                                                               
interim.  He stated that  the dialogue that the committee engaged                                                               
in with  people throughout  the state was  well received,  and he                                                               
felt that this effort was  reinforced by the fiscal policy letter                                                               
that  was  signed  by  more than  30  organizations  calling  for                                                               
leadership  on  the fiscal  policy  issues  facing the  State  of                                                               
Alaska.                                                                                                                         
                                                                                                                                
CHAIR HAWKER directed  the committee to the  fiscal policy letter                                                               
in  the packet.   He  said the  letter sets  three guidelines  in                                                               
addressing the  state's fiscal concerns:   budget discipline, new                                                               
uses of permanent fund earnings,  and the institution of a broad-                                                               
based tax.                                                                                                                      
                                                                                                                                
CHAIR  HAWKER  also  reiterated  the   fact  that  the  call  for                                                               
leadership from  the public  is a loud  one, particularly  as the                                                               
legislature moves forward in making  decisions for the state as a                                                               
whole.                                                                                                                          
                                                                                                                                
REPRESENTATIVE  OGG   commended  Chair  Hawker  for   taking  the                                                               
initiative  to conduct  meetings throughout  the state  and noted                                                               
that the  meeting in Kodiak  was well received and  the sentiment                                                               
in that community is that "the time is now, let's fix it".                                                                      
                                                                                                                                
REPRESENTATIVE  OGG  proposed  that  the  committee  address  the                                                               
spending cap issue  and what it means to "live  within our means"                                                               
for the  state, as  there is an  interesting dichotomy  between a                                                               
$650-million   budget  cut   to  balance   the  budget   and  the                                                               
dismantling of state services.                                                                                                  
                                                                                                                                
REPRESENTATIVE GRUENBERG stated   that  the   committee's  public                                                               
hearings  tour throughout  the state  brought the  legislature to                                                               
the  people.   He  recommended that  subcommittees  be formed  to                                                               
assess and find  government efficiencies, as well  as analyze the                                                               
application  of  a Washington  State  organization  model to  the                                                               
situation currently faced in Alaska.                                                                                            
                                                                                                                                
CHAIR  HAWKER responded  by stating  that he  had considered  the                                                               
formation of  subcommittees; however,  wanting to offer  fair and                                                               
full results,  he would like to  address these issues as  a whole                                                               
committee.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  GRUENBERG  commented  that   he  would  like  the                                                               
subcommittees to address oversight  functions and a spending plan                                                               
in the form of a concurrent resolution.                                                                                         
                                                                                                                                
CHAIR  HAWKER  suggested that  he  would  like the  committee  to                                                               
assess  the  revenue  measures and  the  effects  of  legislation                                                               
passed last  session.  He also  wanted to work together  with the                                                               
bond rating agencies  in assessing the consequences  of having no                                                               
fiscal plan and suggested conducting a hearing on the subject.                                                                  
                                                                                                                                
REPRESENTATIVE  WILSON expressed  her concerns  about the  credit                                                               
rating as  well, particularly if  nothing is done to  address the                                                               
fiscal  issues this  session.    She said  that  those facts  are                                                               
important for [the state legislature] to know.                                                                                  
                                                                                                                                
REPRESENTATIVE  GRUENBERG expressed  concerns about  the problems                                                               
with the pension funds and the need to address that issue.                                                                      
                                                                                                                                
REPRESENTATIVE  OGG  reiterated  his concerns  about  what  would                                                               
happen to  Alaskan society if  the legislature proceeds  down the                                                               
road of budget cuts.                                                                                                            
                                                                                                                                
CHAIR  HAWKER stated  that the  wealth in  Alaska is  being taken                                                               
from  the state  by out-of-state  workers and  the extraction  of                                                               
resources, with  nothing being  left behind.   He  suggested that                                                               
there  is the  ability to  generate revenue  from people  earning                                                               
wealth and taking it out of state.                                                                                              
                                                                                                                                
REPRESENTATIVE GRUENBERG commented on offshore revenue sharing.                                                                 
                                                                                                                                
REPRESENTATIVE WILSON gave  her opinion on the  importance of the                                                               
local sales  tax for  the coastal communities.   She  also stated                                                               
that  once people  understood the  concept of  percent of  market                                                               
value (POMV)  they generally said, "Go  for it."  She  added that                                                               
Sitka also  has a fund  to support its municipal  government that                                                               
generates a 6 percent annual  payout, and that fund has continued                                                               
to grow.   She stated  that the  process of educating  the public                                                               
with regard to the POMV concept  and the fiscal issues facing the                                                               
state is very important.                                                                                                        
                                                                                                                              
ANNOUNCEMENTS                                                                                                                 
                                                                                                                                
There were no announcements.                                                                                                    
                                                                                                                                
COMMITTEE ACTION                                                                                                              
                                                                                                                                
The committee took no action.                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Special Committee on Ways and Means was adjourned at 8:30 a.m.                                                                  
                                                                                                                                
NOTE:   The meeting was  recorded and handwritten log  notes were                                                               
taken.  A  copy of the tape(s)  and log notes may  be obtained by                                                               
contacting the  House Records  Office at  State Capitol,  Room 3,                                                               
Juneau,  Alaska  99801  (mailing address),  (907)  465-2214,  and                                                               
after adjournment of the second session of the Twenty-Third                                                                     
Alaska State Legislature this information may be obtained by                                                                    
contacting the Legislative Reference Library at (907) 465-3808.                                                                 

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