Legislature(2015 - 2016)SENATE FINANCE 532
03/24/2016 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| Public Testimony: Anchorage | |
| Public Testimony: Glennallen, Seward, Homer | |
| Public Testimony: Fairbanks, Mat-su | |
| Public Testimony: Kenai, Kodiak, Dillingham | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 91 | TELECONFERENCED | |
| += | SB 114 | TELECONFERENCED | |
| += | SB 128 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
March 24, 2016
9:04 a.m.
9:04:43 AM
CALL TO ORDER
Vice-Chair Micciche called the Senate Finance Committee
meeting to order at 9:04 a.m.
MEMBERS PRESENT
Senator Peter Micciche, Vice-Chair
Senator Pete Kelly, Co-Chair
Senator Mike Dunleavy
Senator Click Bishop
Senator Donny Olson
MEMBERS ABSENT
Senator Anna MacKinnon, Co-Chair
Senator Lyman Hoffman
PRESENT VIA TELECONFERENCE
Debbie Baehm, Self, Eagle, River; Ernie Hall, Anchorage
Assembly, Anchorage; Tony Knowles, Former Governor,
Anchorage; David Bishop, Self, Anchorage; Dave Hanson,
Self, Anchorage; Gerard Asseln, President, Anchorage Police
Department Employees Association, Anchorage; Charles McKee,
Self, Anchorage; Curtis Clifton, Self, Anchorage; Juliana
Waymen, Self, Anchorage; Laura Bonner, Self, Anchorage;
Orin Seybert, Self, Anchorage; Michele Schuh, Self,
Anchorage; Rod Wheeles, Self, Anchorage; Helvi Sandvik,
Self, Anchorage; Jerome Alderman, Self, Anchorage; Rick
Halford, Self, Anchorage; Joe Mathis, Self, Anchorage;
Roselynn Cacy, Self, Anchorage; Wiley Brooks, Self,
Anchorage; David Boyle, Self, Anchorage; Paul Dungan, Self,
Homer; Fred Trieselmann, Self, Fritz Creek; Eric Lutz,
Self, Glennallen; Deborah Holland, Self, Anchorage; Clyde
Boyer, Self, Homer; Paul Roderick, Self, Anchor Point; Carl
Kancir, Self, Anchorage; Steve St. Clair, Self, Mat-Su;
Gwen Neal, Self, Homer; Paul D. Kendall, Self, Anchorage;
Jim Sykes, Self, Mat-Su; Garvan Bucaria, Self, Mat-Su; Jim
Sampson, Self, Fairbanks; Carl Benson, Self, Fairbanks;
Kevin Pomeroy, Self, Fairbanks; John Davies, FNSB Assembly,
Fairbanks; Jerome Johnson, Self, Fairbanks; Chris Miller,
Self, Fairbanks; James McMilon, Self, Fairbanks; Bernie
Karl, Self, Fairbanks; J.D. Ragan, Self, Fairbanks; Doug
Tansy, Self, Fairbanks; Bob Fassino, Self, Matsu; Gary
McDonald, Self, Anchorage; Mark Halder, Self, Fairbanks;
Robert Meshan, Self, Fairbanks; Jomo Stewart, Manager,
Energy, Military, and Mining Project, Fairbanks Economic
Development Corporation (FEDC), Fairbanks; Charles Cole,
Self, Fairbanks; Robert Roman, Last Chance and Lucky Seven
Mining, Fairbanks; James Johnson, 942 Laborers, Fairbanks;
Patrick Robinson, 942 Laborers, Fairbanks; Meg Nordale,
Associated General Contractors, Fairbanks; Crystal Nygard,
Matsu Business Alliance, Palmer; Sheldon Thompson, Self,
Fairbanks; Julie Shepard, FEDC, Fairbanks; Diane Wetter,
Self, Dillingham; Jon Corbett, Self, Dillingham; Mike
Navarre, Mayor, Kenai Peninsula Borough; Brett Reid, Self,
Kenai; Carolyn Reid, Self, Kenai; Johna Beech, Self, Kenai;
Regina Daniels, Self, Soldotna; Sara Crapuchettes, Self,
Soldotna; Tim Cashman, Self, Soldotna; David Brighton,
President, KPEA, Kenai; Katherine Uei, Self, Kenai; Josh
Uei, Self, Kenai; Fred Sterman, Self, Kenai; Daniel Lynch,
Self, Soldotna; Mike Coons, Self, Palmer; Ed Martin III,
Self, Sterling; Delice Calcote, Self, Sutton; Pam Goode,
Self, Rural Deltana.
SUMMARY
SB 91 OMNIBUS CRIM LAW & PROCEDURE; CORRECTIONS
SB 91 was SCHEDULED but not HEARD.
SB 114 PERM FUND: EARNINGS, DEPOSITS, ACCOUNTS
SB 114 was HEARD and HELD in committee for
further consideration.
SB 128 PERM. FUND:DEPOSITS;DIVIDEND;EARNINGS
SB 128 was HEARD and HELD in committee for
further consideration.
PUBLIC TESTIMONY:
ANCHORAGE
GLENNALLEN, SEWARD, HOMER
FAIRBANKS, MAT-SU
KENAI, KODIAK, DILLINGHAM
SENATE BILL NO. 114
"An Act relating to deposits into the dividend fund;
and relating to the Alaska permanent fund."
SENATE BILL NO. 128
"An Act relating to the Alaska permanent fund;
relating to appropriations to the dividend fund;
relating to income of the Alaska permanent fund;
relating to the earnings reserve account; relating to
the Alaska permanent fund dividend; making conforming
amendments; and providing for an effective date."
^PUBLIC TESTIMONY: ANCHORAGE
9:05:52 AM
DEBBIE BAEHM, SELF, EAGLE, RIVER (via teleconference),
testified against both pieces of legislation. She announced
that she was a republican.
9:06:23 AM
ERNIE HALL, ANCHORAGE ASSEMBLY, ANCHORAGE (via
teleconference), testified in support of both pieces of
legislation. He felt that there should be an examination of
additional revenue sources to fill the budget gap. He
appreciated the reduction in the budget. He felt that the
most important aspect to funding the state and
municipalities was an annual reliable and sustainable
budget. He understood that the state could not continue to
avail funds to the communities as the state had done in the
past.
9:08:48 AM
TONY KNOWLES, FORMER GOVERNOR, ANCHORAGE (via
teleconference), thanked the committee for the opportunity
to speak to a sustainable balanced budget. He understood
that the task was not easy for the legislature. He shared
that there was a serious recession in the 1980s, and low
oil prices in the 1990s devastated the state budget at that
time. He stressed that there were immeasurable consequences
in avoiding the budget deficit. He stressed that the
savings would be completely depleted over three years. He
felt that there would be the loss of private and public
jobs as well as the elimination of public services. He
stressed that there needed to be an increase in revenue. He
felt that using the earnings could be the cornerstone of a
balanced and increased budget. He felt that the reliance on
savings was only a "band aid" approach. He shared that he
had met with former governors, members of congress, and
former lieutenant governors, and had created a sustainable
plan.
9:15:35 AM
DAVID BISHOP, SELF, ANCHORAGE (via teleconference),
supported a comprehensive fiscal plan to use a portion of
the Permanent Fund to fund state services. He stressed that
there was a potential for financial crisis without
exploring other sources of revenue. He stressed that
preserving the Permanent Fund Dividend (PFD) for the future
required the use of a portion of the PFD to ensure receipt
of the PFD in the future.
9:17:16 AM
DAVE HANSON, SELF, ANCHORAGE (via teleconference), felt
that the use of the permanent fund should only be used
after a reduction in oil and gas tax credits. He remarked
that the hundreds of millions of dollars would be taken
from the funding of state government. He felt that the use
of funds to pay for tax credits would be like "throwing
money down a black hole."
9:19:23 AM
GERARD ASSELN, PRESIDENT, ANCHORAGE POLICE DEPARTMENT
EMPLOYEES ASSOCIATION, ANCHORAGE (via teleconference),
spoke in support of the two pieces of legislation. He
stressed that the funding of necessary services required a
balance of revenue and spending. He felt that immediate
corrective action was required to ensure the prosperity of
the state. He remarked that the previous fiscal model was
no longer sustainable. He recognized that the use of the
permanent fund was the only logical step forward.
9:22:41 AM
CHARLES MCKEE, SELF, ANCHORAGE (via teleconference),
announced that he was not a corporate citizen. He stated
that he had submitted written testimony. He felt that there
was a lack of fiduciary responsibility. He blamed the
state's fiscal problem on the underwriter corporations. He
encouraged the committee to "extract the people from
captivity."
Vice-Chair Micciche wondered if Mr. McKee was in support of
the legislation. Mr. McKee replied that he was in
opposition of both bills.
9:25:48 AM
CURTIS CLIFTON, SELF, ANCHORAGE (via teleconference),
testified in support of both pieces of legislation. He
shared that it was frightening to experience the economic
crash in 1986. He shared that the legislature had the
opportunity to ensure that the state did not experience a
similar economic recession. He stressed that there should
comprehensive approach to solving the fiscal crisis. He
understood that the legislature was experiencing a
difficult challenge in solving the state's fiscal crisis.
9:28:14 AM
JULIANA WAYMEN, SELF, ANCHORAGE (via teleconference), spoke
in support of the bills. She stressed that expenses must be
reduced, but urged the committee to act immediately in
utilizing the permanent fund earnings.
9:28:57 AM
LAURA BONNER, SELF, ANCHORAGE (via teleconference),
testified in support of both pieces of legislation. She
announced that she had lived in Alaska since 1972. She felt
that each bill needed some revision, and felt that it was
important to keep the constitutional budget reserve (CBR),
separate from the permanent fund. He spoke in support of
extracting the PFD from the earning reserve, and not from
GF. She felt that postponing fiscal reform would degrade
the state's credit rating and have detrimental effect on
the state's economy.
9:31:03 AM
ORIN SEYBERT, SELF, ANCHORAGE (via teleconference), spoke
in support of using the permanent fund earnings. He did not
feel that it was necessary to take from the PFD. He did not
believe that oil prices would rebound. He queried the cost
of the operating budget per capita. He did not feel that
the budget had grown as much as some people believed per
capita. He also spoke in support of reinstating a state
income tax. He stated that a state sales tax directed at
tourism would greatly benefit the state. He shared that he
had been involved in aviation, and his organization had
received a grant from BP to offer free flights to the BP
facility. He shared that the school district currently did
not have enough money to provide bussing to the facility.
He announced that former governor Jay Hammond was his hero.
He shared that he had been a resident of the state since
1949.
9:35:20 AM
MICHELE SCHUH, SELF, ANCHORAGE (via teleconference), spoke
in support of the bills. She shared that she was an active
member of her community. She felt that the state needed a
sustainable and reliable state budget foundation. She felt
that the current approach did not provide the optimism
necessary to rely on state government. She stressed that
the lack of government funding threatens an imminent
economic crash. She shared that she was prepared to pay an
income or sales tax to help address the magnitude of the
fiscal problem. She spoke in support of using the permanent
fund earnings, and spoke against using funds from the
permanent fund principle.
9:38:35 AM
ROD WHEELES, SELF, ANCHORAGE (via teleconference), spoke in
support of SB 124. He spoke in support of restructuring the
payout of the PFD. He did not feel that the restructuring
of the PFD would not negatively affect those individuals
who were already the recipient of various forms of state
funding. He felt that the remainder of the savings should
be deposited into the permanent fund principle.
9:40:43 AM
HELVI SANDVIK, SELF, ANCHORAGE (via teleconference), spoke
in support of the bills. She was very concerned with the
state's current fiscal crisis. She spoke in support of
developing a broad strategy to close the fiscal gap. She
urged the committee to create an income tax. She felt that
there should be a meaningful PFD program. She remarked that
the PFD was important to support families during the fiscal
crisis.
9:44:02 AM
JEROME ALDERMAN, SELF, ANCHORAGE (via teleconference),
spoke in support of both pieces of the legislation. He did
not, however, feel that the bills took enough drastic
measures. He did not feel that he needed to receive a
dividend. He felt that the state budget made cuts that were
too drastic. He urged the committee to halt any further
cuts to state government.
9:45:49 AM
RICK HALFORD, SELF, ANCHORAGE (via teleconference), spoke
against the bills. He felt that economists agreed that use
of the reserves would bridge the fiscal gap. He remarked
that the permanent fund system provided the opportunity to
fund the gap. He thanked the committee for cutting the
budget for state government. He urged the committee to read
a statement by Elmer Rasmussen. He thought that changing
the dividend formula and management structure was an
unnecessary gamble, and suggested that the legislature
could bridge the fiscal gap with minimal impact.
9:50:47 AM
JOE MATHIS, SELF, ANCHORAGE (via teleconference), spoke in
support of the bills. He supported restructuring the
permanent fund. He was a business owner who had operated a
campground for many years. He alleged that there were many
external factors that affected his business. He thought the
government would also have to adapt. He thought the state
plan should not hope for higher oil prices. He emphasized
the need for the legislature to act during the current
legislative session. He quoted General Patton. He thought a
good solution applied in the current session was preferable
to a perfect solution at a later time.
9:54:12 AM
ROSELYNN CACY, SELF, ANCHORAGE (via teleconference),
testified in opposition to the bills. She did not think the
permanent fund should be used to fund state government. She
recounted a personal story of inheriting money and keeping
it invested. She thought the permanent fund was a safety
net for the state.
9:57:43 AM
WILEY BROOKS, SELF, ANCHORAGE (via teleconference),
testified in support of the bills. He felt that there
should be a tax based on consumption. He stressed that
corporations did not pay taxes. He remarked that there
should be a focus on expanding the revenue base and create
new jobs. He stressed that a sales tax would make it less
likely to negatively affect the state's bond rating.
10:00:55 AM
DAVID BOYLE, SELF, ANCHORAGE (via teleconference),
testified in opposition to both pieces of legislation. He
echoed the comments of Mr. Helford. He stressed that there
needed to be a reduction to the size of the state's
government. He shared that there were more state employees
per capita than any other state. He felt that there should
be a streamlining of government. He felt that there should
be a dissolution of the Alaska Aerospace Corporation. He
remarked that the funding for K-12 education was too
extreme. He felt that the legislature could encourage state
government or private industry. He urged the committee to
support private industry.
^PUBLIC TESTIMONY: GLENNALLEN, SEWARD, HOMER
10:04:29 AM
PAUL DUNGAN, SELF, HOMER (via teleconference), spoke in
support of the bills. He stated that he was a 25-year
resident of Homer. He felt that the legislature should
utilize as many tools as possible to move through the
fiscal crisis. He remarked that he would work on campaigns
of legislators who worked to get the state through the
difficult time.
10:06:08 AM
FRED TRIESELMANN, SELF, FRITZ CREEK (via teleconference),
testified against both pieces of legislation. He did not
believe that there was anything wrong with the permanent
fund. He stressed that the legislature already authority to
utilize earnings from the permanent fund. He felt that
using the permanent fund was the "easy way out." He did not
believe that the legislature wanted to cut the budget
further and examine new revenue streams. He wondered why
oil was the only nonrenewable resource that contributed to
the permanent fund. He felt that there should be other
resources like mining, fishing, and timber should
contribute to the permanent fund to bolster revenue
streams.
10:08:31 AM
ERIC LUTZ, SELF, GLENNALLEN (via teleconference), spoke in
support of the bills. He did not believe that reducing the
PFD was the cornerstone to the problem. He felt that the
state could not cut its way out of the current debt. He
stressed that roads and education funding must be
maintained. He remarked that the funding for the management
of the education system. He felt that the curriculum
director positions could be eliminated. He asserted that
the budget of $7 million for the Copper River School
District was extreme. He remarked that the PFD money was
precious to many people in the state, so the funds should
be used judiciously. He encouraged the state to examine
other sources of revenue, and decrease the oil tax credits.
He stressed that the state was a resource based economy,
but felt that the legislature should incentivize small
business owners to conduct business in the state.
10:12:21 AM
DEBORAH HOLLAND, SELF, ANCHORAGE (via teleconference),
spoke against the bills. She felt that there should be
further cuts, because the state already had significantly
expensive social services. She felt that Medicaid
recipients had better health coverage than those on
individual health insurance plans.
10:13:54 AM
CLYDE BOYER, SELF, HOMER (via teleconference), spoke in
support of both pieces of legislation. He urged the
committee to examine other sources of revenue.
10:14:39 AM
PAUL RODERICK, SELF, ANCHOR POINT (via teleconference),
spoke against the bills. He felt that the bills targeted
the individuals at the lowest income level, of $40,000 a
year or less. He remarked that the changes were unfair, and
asserted that there was approximately one-third of the
population that would be negatively affected by the
proposals. He stressed that the lack of income must be made
up in a different way.
10:17:46 AM
CARL KANCIR, SELF, ANCHORAGE (via teleconference),
testified against the bills. Shared that he had lived in
Anchorage since 1962. He felt that the children were
damaging the property of the schools, so the funding should
not be used to fund the current school system. He shared
that the recidivism rate was significantly high, so the
money should not be spent to rehabilitate one person. He
did not want his money to be used to fund medical bills for
smokers or obese people. He stressed that he was not a
callous person.
Vice-Chair Micciche wondered if Mr. Kancir was in favor or
opposed to the bills. Mr. Kancir replied that he was
opposed to both pieces of legislation.
10:21:55 AM
STEVE ST. CLAIR, SELF, MAT-SU (via teleconference),
testified against the bills. He felt that the discussion of
other revenue streams should only occur after there was a
solution to the spending problem. He felt that each bill
supported using the earnings reserve, which was already
available to the legislature. He remarked that each bill
would "tinker" with the dividend calculation, which he felt
that most Alaskans did not support. He felt that the ISER
model identified $4.5 billion as the target for the
unrestricted general fund. The governor's initial UGF
request was $5.2 billion, and all those who advocated for
use of the PFD were relying on the governor's number. He
felt that the legislature must reduce the UGF to $4.5
billion. He referred to Gunnar Knapp's presentation on the
state's fiscal crisis.
10:24:17 AM
GWEN NEAL, SELF, HOMER (via teleconference), spoke in
support of both pieces of legislation. She felt that there
needed to be action in the current legislative session. She
felt that there should be modest budget cuts, and a modest
state income tax at 15 percent of the federal tax
liability. She did not want to distinguish between greater
support to SB 114 or SB 128. She felt that all Alaskans
should participate in the pain of the budget crisis.
10:25:53 AM
PAUL D. KENDALL, SELF, ANCHORAGE (via teleconference),
testified against the bills. He did not feel that the
legislature was addressing the basis of the causation. He
stressed that he would be disappointed if there were cuts
made to the PFD, and stressed that he would work hard to
fight against the current legislators' reelection. He did
not feel that the legislature was addressing the "driver of
the causation." He wanted to see a $2 billion budget model,
because he felt that the status quo was the main problem.
He felt that the legislature should return to Anchorage,
and force the governor to declare a state of economic
emergency to force the state into a 90-day congress for
audit and discussion. He stressed that meeting in Juneau
was wrong. He wanted a discussion to occur outside of
"isolated Juneau."
^PUBLIC TESTIMONY: FAIRBANKS, MAT-SU
10:29:48 AM
JIM SYKES, SELF, MAT-SU (via teleconference), spoke against
both pieces of legislation. He remarked that the permanent
fund was intended to protect the people of Alaska. He urged
the committee to add a button to the Pick Click Give
program to allow the people to donate to the state, in
order to really see if the people would be willing to give
up a portion or all of their dividend.
10:33:17 AM
GARVAN BUCARIA, SELF, MAT-SU (via teleconference), opposed
the bills. He suggested the legislature get rid of capital
projects. He opposed the Susitna-Watana dam, the Juneau
Access Road project, and the Knik Arm Crossing. He
mentioned the Ambler road, which he thought was ridiculous.
He did not support changes to the structure of the
permanent fund.
10:35:19 AM
JIM SAMPSON, SELF, FAIRBANKS (via teleconference),
supported the bills. He encouraged the legislature to do
whatever it could to fix the state's budget deficit in the
current session. He remarked that the solution should not
be postponed by using the earnings reserve or the CBR. He
felt that a large withdrawal from savings would result in
the eventual loss of the PFD in the next three or four
years.
Vice-Chair Micciche handed the gavel to Senator Bishop.
10:37:04 AM
CARL BENSON, SELF, FAIRBANKS (via teleconference), opposed
the bills. He believed that the bills helped develop
revenue options, but did not address the problem spending.
He believed that the broken revenue picture was structural
as it related to the tax codes, and not related to the
price of oil. He felt that inflated development,
production, and lost credits must be reduced to their pre-
2014 levels to contain state spending.
10:39:22 AM
KEVIN POMEROY, SELF, FAIRBANKS (via teleconference),
supported the bills. He discussed the formation of the
Trans-Alaska Pipeline System (TAPS). He supported a
sustainable dividend program. He supported new revenue
sources such as broad-based taxes.
10:41:57 AM
JOHN DAVIES, FNSB ASSEMBLY, FAIRBANKS (via teleconference),
did not take a position on the bills. He referred to a
resolution that the FNSB Assembly had sent to the
committee. He recounted the great deal of support for the
resolution in Fairbanks. He supported broad-based taxes as
an additional source of state revenue. He discussed the
effects that various budget solutions would have on the
economy and jobs in the state. He thought large cuts were a
counter-productive way to balance the budget.
10:44:38 AM
Senator Bishop handed the gavel to Vice-Chair Micciche.
JEROME JOHNSON, SELF, FAIRBANKS (via teleconference),
opposed the bills. He commended the committee for their
work on the budget. He felt that the legislative activities
should be run in a similar manner as running a household.
He felt that the Permanent Fund was a trust set aside for
the future.
10:46:42 AM
CHRIS MILLER, SELF, FAIRBANKS (via teleconference), opposed
the bills. He opposed restructuring of the permanent fund.
10:47:34 AM
JAMES MCMILON, SELF, FAIRBANKS (via teleconference),
supported the bills. He stated he was a business
representative for the Teamsters Local 959. He stated that
he had worked on the North Slope for 16 years in various
jobs. He understood the current fiscal situation, but did
not feel that cutting the budget provided for long-term
financial stability for the state.
10:48:44 AM
BERNIE KARL, SELF, FAIRBANKS (via teleconference),
supported the bills. He was in favor of an income tax and a
sales tax. He referred to the previous income, sales, and
education taxes.
10:49:46 AM
J.D. RAGAN, SELF, FAIRBANKS (via teleconference), supported
both bills. He was strongly in favor of an income tax. He
thought an income tax would ensure that out of state
residents employed in the state would pay their fair share.
He opposed cuts to the University. He thought that
investment in education yielded great returns.
10:51:59 AM
DOUG TANSY, SELF, FAIRBANKS (via teleconference), supported
the bills. He voiced concern about education and the
economy. He recounted a personal story of his father having
to travel for employment. He spoke in support of an income
tax. He did not support a sales tax.
10:54:16 AM
BOB FASSINO, SELF, MATSU (via teleconference), spoke in
support of the bills. He stated that the budget should be
dealt with immediately, because the state had a "bright
future." He spoke in support of a state gas line, so the
state needed to address the current situation as soon as
possible. He also spoke in support of a state income tax.
10:55:18 AM
GARY MCDONALD, SELF, ANCHORAGE (via teleconference),
supported the bills. He supported an income tax.
10:56:17 AM
MARK HALDER, SELF, FAIRBANKS (via teleconference), opposed
the bills. He supported a state income tax. He discussed
his work in the concrete business. He stated that the
dividend was ten percent of his net income, and thought
that changes to the dividend would hurt low-income
residents of the state.
10:57:56 AM
ROBERT MESHAN, SELF, FAIRBANKS (via teleconference),
supported SB 114. He also supported an income tax.
10:59:22 AM
JOMO STEWART, MANAGER, ENERGY, MILITARY, AND MINING
PROJECT, FAIRBANKS ECONOMIC DEVELOPMENT CORPORATION (FEDC),
FAIRBANKS (via teleconference), supported the bills. He
stated that the FEDC passed a resolution in favor of taking
a balanced approach to solving the state's fiscal crisis.
11:01:09 AM
CHARLES COLE, SELF, FAIRBANKS (via teleconference), did not
have a position on the bills. He felt that the solution to
the budget problem should not impact one group greater than
the other. There should be a broad-based solution, in
order to balance the budget stress between every resident
of the state.
11:02:56 AM
ROBERT ROMAN, LAST CHANCE AND LUCKY SEVEN MINING, FAIRBANKS
(via teleconference), opposed the bills. He discussed
historical discussion of using the permanent fund. He
supported an income tax. He did not support a sales tax,
and thought it would disproportionately affect low-income
residents. He suggested a state-wide vote on a budget
solution.
11:05:09 AM
JAMES JOHNSON, 942 LABORERS, FAIRBANKS (via
teleconference), opposed the bills. He supported increased
taxes, and other ways to relieve the state's debt. He
remarked that he used the PFD to help his children in life.
11:06:14 AM
PATRICK ROBINSON, 942 LABORERS, FAIRBANKS (via
teleconference), shared that he was originally from
California, which had a state sales tax. He felt that
Alaska could have a state income tax to get in line with
the rest of the country. He felt that a sales tax would
help the state out of its debt. He urged the committee to
reflect and create new forms of revenue.
11:07:41 AM
MEG NORDALE, ASSOCIATED GENERAL CONTRACTORS, FAIRBANKS (via
teleconference), supported the bills. She expressed concern
about the fiscal challenges in the state. She spoke in
support of additional state revenues.
11:09:48 AM
CRYSTAL NYGARD, MATSU BUSINESS ALLIANCE, PALMER (via
teleconference), recounted that her family had moved to
Alaska in 1974. She discussed her time in college utilizing
the Alaska Student Loan Program and a loan forgiveness
program. She had worked with small business, native
corporations, and was self-employed. She recounted that she
had participated in recent community conversations
regarding fiscal plans. She recounted that most of the
students she spoke with were supportive of new taxes.
11:15:49 AM
AT EASE
11:34:34 AM
RECONVENED
^PUBLIC TESTIMONY: KENAI, KODIAK, DILLINGHAM
SHELDON THOMPSON, SELF, FAIRBANKS (via teleconference),
believed the Alaska government was undermining the state's
fiscal certainty. He did not support using the Permanent
Fund as a way to fund government.
11:36:31 AM
JULIE SHEPARD, FEDC, FAIRBANKS (via teleconference), urged
political leaders to work together to resolve Alaska's
fiscal challenge. The goal was to achieve fiscal stability
and to increase revenues by increasing a broad-based
statewide tax plan.
11:38:04 AM
Vice-Chair Micciche asked callers to let the committee know
how they felt about the bills it was currently addressing.
DIANE WETTER, SELF, DILLINGHAM (via teleconference), spoke
against the use of the Permanent Fund.
JON CORBETT, SELF, DILLINGHAM (via teleconference),
testified against the use of the Permanent Fund to run
state government. He believed the state needed to make
changes in government to increase a sustainable budget. He
did not support new taxes.
MIKE NAVARRE, MAYOR, and KENAI PENINSULA BOROUGH (via
teleconference), wished neither of the options were
necessary and that oil prices were higher; however, that
was not the case. Changes were needed to ensure the state's
economy for the future. He believed that some economic
contraction was unavoidable. He believed either of the two
options would help secure the state's future, but he
preferred the governor's bill. He urged the committee to
keep an eye on the economic future of the state. He
believed that using the earnings of the Permanent Fund were
necessary.
11:42:52 AM
BRETT REID, SELF, KENAI (via teleconference), did not
support the bills. He stressed that the bills reflected a
blatant raid on the Permanent Fund. He recommended using
funds from a fund used the prior session.
11:43:55 AM
CAROLYN REID, SELF, KENAI (via teleconference), spoke
against the use of the Permanent Fund to pay for state
government. She believed it was "malarkey" and smoke and
mirrors. She stated that there were many residents who
needed the money including youth, seniors, and disabled
Alaskans. She believed more cuts to state government were
necessary.
11:45:25 AM
JOHNA BEECH, SELF, KENAI (via teleconference), believed the
PFD was a privilege and not a right. She supported use of
the PFD, but would like to see a sunset clause to revisit
the plan in the future.
11:46:29 AM
REGINA DANIELS, SELF, SOLDOTNA (via teleconference),
supported cuts and consolidation of state government. She
supported the use of the Permanent Fund earnings reserve
and supported SB 114. She read a resolution passed the
previous evening by the city council meeting.
11:48:56 AM
SARA CRAPUCHETTES, SELF, SOLDOTNA (via teleconference),
spoke in support of using the Permanent Fund earnings
reserve to help fund the fiscal gap. She believed it was
necessary to tap into the fund to pay for the fiscal gap
and to protect the fund in the future. She understood that
the decision was painful for legislators. She spoke in
support of either bill before the committee.
11:51:07 AM
TIM CASHMAN, SELF, SOLDOTNA (via teleconference), spoke in
support of the use of the Permanent Fund as long as cuts
were also a part of the fiscal plan.
11:51:56 AM
DAVID BRIGHTON, PRESIDENT, KPEA, KENAI (via
teleconference), spoke in favor of SB 128. He believed the
bill was more complete than SB 114. He spoke to the
importance of taking action to balance the state's budget.
He stressed that it was not possible to cut the state's way
or to tax sufficiently to a balanced budget. He would vote
for a legislator who voted to use the fund earnings.
11:53:56 AM
KATHERINE UEI, SELF, KENAI (via teleconference), shared
that many individuals in the region depended on the
Permanent Fund Dividend to buy clothes or fill other needs
for their children. She relayed that residents waited to
buy homes until the PFD came out in the fall. She believed
the legislature needed to reanalyze the budget. She did not
support the use of the Permanent Fund earnings. She
believed the legislature needed to make more cuts.
Vice-Chair Micciche asked if Ms. Uri supported the use of
partial funds under either of the bills.
Ms. Uri replied strongly in the negative.
11:56:24 AM
JOSH UEI, SELF, KENAI (via teleconference), spoke against
the use of the Permanent Fund earnings reserve. He echoed
the testimony made by the prior speaker Ms. Uei.
11:57:10 AM
FRED STERMAN, SELF, KENAI (via teleconference), did not
support the use of the Permanent Fund. He did not support
additional taxes. He supported further cuts to state
government. He believed cuts needed to be made to the
Division of Motor Vehicles (DMV). He spoke to the
significant growth in state government.
11:58:59 AM
DANIEL LYNCH, SELF, SOLDOTNA (via teleconference), spoke
against the bills. He urged the committee to leave the
Permanent Fund Dividend alone. His concern was for young
families and the elderly citizens in the state. He thought
there could be a 10 percent withholding that would be
credited to a state income tax if worse came to worse.
12:01:12 PM
MIKE COONS, SELF, PALMER (via teleconference), spoke to a
combination of the use of the Permanent Fund earnings
reserve and the Constitutional Budget Reserve. He supported
cutting the budget and did not support an income tax or
other taxes. He did not support taking funds from Permanent
Fund Dividends.
12:04:00 PM
AT EASE
12:17:03 PM
RECONVENED
ED MARTIN III, SELF, STERLING (via teleconference),
testified against voting for anything that did not have new
money attached. He applauded the committee for making cuts
and believed more could be made. He had not seen any
evidence of new money proposed that was tangible. He did
not support new taxes or dipping into the Permanent Fund.
He believed the legislature was setting the state up to
have no cookie jar 10 years in the future. He stated that
people would produce more revenues off of the land and
people would thrive if given the opportunity. He thought
the state should reduce its assets to something it could
maintain.
12:21:15 PM
DELICE CALCOTE, SELF, SUTTON (via teleconference), spoke
against SB 114 and SB 128. She had worked for the Alaska
Federation of Natives and read a quote from the 1960s. The
revenue sharing was a part of the negotiation and impacted
everyone. She asked the committee to leave the dividend
alone. She spoke to a report from the Alaska Permanent Fund
Corporation (APFC) and she did not approve that it was not
available publicly.
12:24:28 PM
PAM GOODE, SELF, RURAL DELTANA (via teleconference), spoke
in opposition to the bills. She referred to commercials
advocating for the use of the dividend earnings, which she
had been appalled by. She did not believe cuts to state
government had been too significant. She believed further
cuts were necessary. She spoke to activities by state
agencies that were unconstitutional. She reiterated her
opposition to the bills. She thought further cuts could be
achieved.
Vice-Chair Micciche appreciated testimony from all
residents. He CLOSED public testimony.
SB 114 was HEARD and HELD in committee for further
consideration.
SB 128 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 91
"An Act relating to protective orders; relating to
conditions of release; relating to community work
service; relating to credit toward a sentence of
imprisonment for certain persons under electronic
monitoring; relating to the restoration under certain
circumstances of an administratively revoked driver's
license, privilege to drive, or privilege to obtain a
license; allowing a reduction of penalties for
offenders successfully completing court-ordered
treatment programs for persons convicted of driving
under the influence; relating to termination of a
revocation of a driver's license; relating to
restoration of a driver's license; relating to credits
toward a sentence of imprisonment, to good time
deductions, and to providing for earned good time
deductions for prisoners; relating to the
disqualification of persons convicted of certain
felony drug offenses from participation in the food
stamp and temporary assistance programs; relating to
probation; relating to mitigating factors; relating to
treatment programs for prisoners; relating to the
duties of the commissioner of corrections; amending
Rules 32 and 35(b), Alaska Rules of Criminal
Procedure; and providing for an effective date."
SB 91 was SCHEDULED but not HEARD.
ADJOURNMENT
12:29:28 PM
The meeting was adjourned at 12:29 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 128 - 114 Public Testimony Support 4.pdf |
SFIN 3/24/2016 9:00:00 AM |
SB 128 |
| SB 128 - 114 Public Testimony Opposition 4.pdf |
SFIN 3/24/2016 9:00:00 AM |
SB 128 |
| SB 128 - 114 PFD Letter Packet 4.pdf |
SFIN 3/24/2016 9:00:00 AM |
SB 128 |
| SB 128 - 114 PFD Letter Packet 3.pdf |
SFIN 3/24/2016 9:00:00 AM |
SB 128 |
| SB 128 - 114 Public Testimony - Alaskans at the Crossroads FY 2017 solutions.pdf |
SFIN 3/24/2016 9:00:00 AM |
SB 128 |
| SB 128 - 114 Public Testimony Support 3.PDF |
SFIN 3/24/2016 9:00:00 AM |
SB 128 |
| SB 128 -114 Public Testimony Opposition 3.PDF |
SFIN 3/24/2016 9:00:00 AM |
SB 128 |