Legislature(2003 - 2004)
01/21/2004 08:00 AM House W&M
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ 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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