Legislature(1999 - 2000)

03/26/1999 09:10 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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GENERAL SUBJECT(S): BALANCED BUDGET PLAN - Public Testimony                                                                     
                                                                                                                                
The following overview was taken in log note format.  Tapes and                                                                 
handouts will be on file with the Senate Finance Committee through the                                                          
21st Legislative Session, contact 465-2618.  After the 21st                                                                     
Legislative session they will be available through the Legislative                                                              
Library at 465-3808.                                                                                                            
                                                                                                                                
Time Meeting Convened:  9:10 A.M.                                                                                               
                                                                                                                                
Tape(s):  SFC-99 #66, Side A                                                                                                    
                                                                                                                                
                                                                                                                                
PRESENT:                                                                                                                        
                                                                                                                                
                                                                                                                                
X                                                                                                                               
Senator Parnell                                                                                                                 
X                                                                                                                               
Senator Adams                                                                                                                   
X                                                                                                                               
Senator Torgerson                                                                                                               
X                                                                                                                               
Senator P. Kelly                                                                                                                
X                                                                                                                               
Senator Donley                                                                                                                  
9:20                                                                                                                            
Senator Green                                                                                                                   
X                                                                                                                               
Senator Leman                                                                                                                   
X                                                                                                                               
Senator Phillips                                                                                                                
X                                                                                                                               
Senator Wilken                                                                                                                  
                                                                                                                                
                                                                                                                                
ALSO PRESENT:                                                                                                                   
DAVID TEAL, Director, Division of Legislative Finance; PHIL OKESON,                                                             
Fiscal Analyst, Division of Legislative Finance; aides to committee                                                             
members and other members of the Legislature.                                                                                   
                                                                                                                                
                                                                                                                                
LOG                                                                                                                             
SPEAKER                                                                                                                         
DISCUSSION                                                                                                                      
000                                                                                                                             
Co-Chair Parnell                                                                                                                
Convened the meeting and outlined the                                                                                           
schedule.  At 10:00 a.m. Co-chair Torgerson                                                                                     
will hear bills.  At this time the                                                                                              
committee will consider public testimony on                                                                                     
the Balanced Budget.                                                                                                            
                                                                                                                                
Glen Biegel                                                                                                                     
Testified before the committee via                                                                                              
teleconference from Anchorage.  Referred to                                                                                     
his written statement "The Alaska                                                                                               
Moderator". He read his statement into the                                                                                      
record.  He said we did have the tools to                                                                                       
provide necessary incentive to people for                                                                                       
budget.  (Poor quality teleconference)                                                                                          
May not make sense to cut programs.  What                                                                                       
is important is that solutions be                                                                                               
considered so that local areas can figure                                                                                       
their own capital projects.                                                                                                     
This would be a unique opportunity for                                                                                          
Legislators to coordinate local efforts.                                                                                        
Need local oversight and local suggestions                                                                                      
to overcome their difficulties.  Concluded                                                                                      
his comments.                                                                                                                   
                                                                                                                                
Senator Parnell                                                                                                                 
What does one do with unorganized areas of                                                                                      
the State where there is no taxing?                                                                                             
                                                                                                                                
Mr. Biegel                                                                                                                      
No implementation of tax on local level.                                                                                        
Local individuals and local legislators put                                                                                     
together a group.  Purpose would be                                                                                             
individuals who understand local needs and                                                                                      
which ones are more critical.  Decisions                                                                                        
have to be made and it is better for the                                                                                        
local commission to do this.                                                                                                    
                                                                                                                                
Senator Phillips                                                                                                                
"Are you talking about local REAA's?"                                                                                           
                                                                                                                                
Mr. Biegel                                                                                                                      
"Yes."                                                                                                                          
                                                                                                                                
Senator Phillips                                                                                                                
Asked about the unbalance between organized                                                                                     
and unorganized areas in the State.                                                                                             
                                                                                                                                
Mr. Biegel                                                                                                                      
He said there was much wasted area in the                                                                                       
State.  However, they can come up with ways                                                                                     
to reduce government and will be able to                                                                                        
come up with a more balanced level.  Cannot                                                                                     
be taken care of on a statewide level.                                                                                          
                                                                                                                                
Senator Phillips                                                                                                                
Query.                                                                                                                          
                                                                                                                                
Mr. Biegel                                                                                                                      
Indicated he was a full time administrator                                                                                      
and also has other jobs.                                                                                                        
In response to Co-chair Parnell he said he                                                                                      
just provided a basic, simple overview.                                                                                         
                                                                                                                                
Senator Leman                                                                                                                   
Appreciated his proposed plan.  Refers to                                                                                       
the Moderator Plan, page 2.  Apparently it                                                                                      
was garbled and unintelligible.                                                                                                 
                                                                                                                                
Co-chair Parnell                                                                                                                
Thanked Mr. Biegel.  Asked James Fisher to                                                                                      
join the committee.                                                                                                             
                                                                                                                                
James E. Fisher                                                                                                                 
Was invited to join the committee.  With                                                                                        
reference to his handout, he told the                                                                                           
committee that a staffer cautioned that the                                                                                     
devil was in the details.                                                                                                       
Income tax is essential to pay for our                                                                                          
civilization and the needs of our State.                                                                                        
Economist David Reaume's warning.                                                                                               
Body should invoke a state tax with lower                                                                                       
rate during months that our economy is low                                                                                      
and higher rate when economy is good.                                                                                           
                                                                                                                                
Senator Leman                                                                                                                   
Knows Mr. Fisher approximately forty-five                                                                                       
years.  Even though he does not agree with                                                                                      
David Reaume he appreciated the ideas                                                                                           
forwarded by Mr. Fisher.                                                                                                        
                                                                                                                                
Senator Wilken                                                                                                                  
Query.                                                                                                                          
                                                                                                                                
Mr. Fisher                                                                                                                      
Income tax statute that money would be                                                                                          
utilized for education.  Would find greater                                                                                     
acceptance over grumbling.  Not have                                                                                            
retribution.                                                                                                                    
                                                                                                                                
Senator Phillips                                                                                                                
Not voting for income tax and his district                                                                                      
did not go along with this either.  He                                                                                          
asked how would services be paid for in                                                                                         
areas that are requesting such and no taxes                                                                                     
are being paid?  This was putting undue                                                                                         
burden on those who do pay for their own                                                                                        
services.  Everyone has responsibility to                                                                                       
solve the problem; not be part of it.                                                                                           
                                                                                                                                
Mr. Fisher                                                                                                                      
Those receiving services are those in the                                                                                       
middle range.  We get the benefits, we can                                                                                      
do the paying.  Others should help along.                                                                                       
Must be a compassionate government.                                                                                             
                                                                                                                                
Co-chair Parnell                                                                                                                
Returned to Anchorage LIO for further                                                                                           
testimony.                                                                                                                      
                                                                                                                                
Charles McKee                                                                                                                   
Testified via teleconference from                                                                                               
Anchorage. Referred to his web site.  Been                                                                                      
resident for approximately 30 years.                                                                                            
Alaska could be economic capital of the                                                                                         
world.  Could be long range view.                                                                                               
                                                                                                                                
Co-chair Parnell                                                                                                                
Thanked everyone for testifying.  Called                                                                                        
attention to the handout from Kip Knudsen.                                                                                      
Thoughtful ideas presented.  Will stand in                                                                                      
recess briefly to prepare for bill hearing.                                                                                     
440                                                                                                                             
                                                                                                                                
Co-chair Parnell adjourned the committee at                                                                                     
approximately 9:40 a.m.                                                                                                         
                                                                                                                                
                                                                                                                                
SENATE FINANCE COMMITTEE                                                                                                        
LOG NOTES                                                                                                                       
03/26/99                                                                                                                        
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