Legislature(2021 - 2022)SENATE FINANCE 532

03/22/2022 09:00 AM Senate FINANCE

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Audio Topic
09:04:11 AM Start
09:05:29 AM SB132
09:11:13 AM SB235
10:30:33 AM Presentation: Department of Revenue, Spring Forecast
11:23:25 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Moved SB 132 Out of Committee
Heard & Held
-- Invited & Public Testimony --
-- Testimony <Time Limit May Be Set> --
Presentation: Spring Revenue Forecast by
Dan Stickel - Chief Economist, Dept. of Revenue
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
                 SENATE FINANCE COMMITTEE                                                                                       
                      March 22, 2022                                                                                            
                         9:04 a.m.                                                                                              
9:04:11 AM                                                                                                                    
CALL TO ORDER                                                                                                                 
Co-Chair Bishop called the Senate Finance Committee meeting                                                                     
to order at 9:04 a.m.                                                                                                           
MEMBERS PRESENT                                                                                                               
Senator Click Bishop, Co-Chair                                                                                                  
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
Senator Natasha von Imhof                                                                                                       
Senator Bill Wielechowski                                                                                                       
Senator David Wilson                                                                                                            
MEMBERS ABSENT                                                                                                                
ALSO PRESENT                                                                                                                  
Senator   Roger    Holland,   Sponsor;    Lucinda   Mahoney,                                                                    
Commissioner, Department  of Revenue; Marcus  Frampton, CIO,                                                                    
Alaska  Permanent  Fund   Corporation;  Dan  Stickel,  Chief                                                                    
Economist,   Economic   Research    Group,   Tax   Division,                                                                    
Department of Revenue.                                                                                                          
SB 132    CONTROLLED SUB. DATA: EXEMPT VETERINARIAN                                                                             
          SB 132 was REPORTED out of committee with seven                                                                       
          "do pass" recommendations and with on previously                                                                      
          published fiscal note: FN 1 (CED).                                                                                    
SB 235    NO STATE INVESTMENT IN RUSSIAN FEDERATION                                                                             
          SB 132 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
PRESENTATION: DEPARTMENT OF REVENUE, SPRING FORECAST                                                                            
SENATE BILL NO. 132                                                                                                           
     "An Act  exempting veterinarians from  the requirements                                                                    
    of the controlled substance prescription database."                                                                         
9:05:29 AM                                                                                                                    
SENATOR   ROGER   HOLLAND,   SPONSOR,  presented   a   brief                                                                    
reintroduction of  the bill. He stressed  that veterinarians                                                                    
were not  required to be  HIPPA compliant and should  not be                                                                    
required to participate in  the prescription drug monitoring                                                                    
9:06:30 AM                                                                                                                    
Co-Chair Stedman looked at the fiscal note attached to the                                                                      
bill. He read from the analysis:                                                                                                
     SB  132  removes  the  requirement  for Alaska-licensed                                                                  
     veterinarians to  register with the  states  controlled                                                                    
     substance prescription  database, commonly  referred to                                                                    
     as the Prescription Drug  Monitoring Program (PDMP). It                                                                    
     also  removes  the  requirement  for  veterinarians  to                                                                    
     review  the   animal  owner's/caregiver's  prescription                                                                    
     history in the  PDMP before prescribing, administering,                                                                    
     or  dispensing   a  federally   scheduled  II   or  III                                                                    
     controlled   substance,  as   well  as   the  reporting                                                                    
     requirement for submitting  data on federally scheduled                                                                    
     II        IV    controlled    substances.   Under    AS                                                                    
     17.30.200(d)(3),   optional  access   by  veterinarians                                                                    
     would be permitted.                                                                                                        
     If  the  bill passes  the  following  expenses will  be                                                                    
     incurred:   Services:  $1.7   (legal  costs   to  amend                                                                    
     regulations,  printing,  and  postage  in  first  year)                                                                    
     Professional licensing programs  within the Division of                                                                    
     Corporations, Business  and Professional  Licensing are                                                                    
     primarily  funded by  Receipt Supported  Services, fund                                                                    
     source 1156  Rcpt Svcs (DGF).  Licensing fees  for each                                                                    
     occupation  are  set  per AS  08.01.065  so  the  total                                                                    
     amount  of revenue  collected approximately  equals the                                                                    
     occupation's actual regulatory costs.                                                                                      
Senator von  Imhof MOVED to  report SB 132 out  of Committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
impact note. There being NO OBJECTION, it was so ordered.                                                                       
SB 132  was REPORTED out  of committee with seven  "do pass"                                                                    
recommendations  and  with  on previously  published  fiscal                                                                    
note: FN 1 (CED).                                                                                                               
9:08:01 AM                                                                                                                    
AT EASE                                                                                                                         
9:10:18 AM                                                                                                                    
SENATE BILL NO. 235                                                                                                           
     "An Act relating to certain  investments of state funds                                                                    
     in  the Russian  Federation and  financial institutions                                                                    
     profiteering from the  Russian Federation's invasion of                                                                    
     Ukraine; providing  indemnity and immunity  for certain                                                                    
     investment actions  taken in  compliance with  law; and                                                                    
     providing for an effective date."                                                                                          
9:11:13 AM                                                                                                                    
LUCINDA  MAHONEY,   COMMISSIONER,  DEPARTMENT   OF  REVENUE,                                                                    
discussed  the presentation,  "SB  235 Divestment  Regarding                                                                    
Russian  Entities"  (copy on  file).  She  related that  the                                                                    
presentation  would provide  the committee  with an  overall                                                                    
bill summary.  She said that the  intent of the bill  was to                                                                    
divest from  certain investments in Russia  and to establish                                                                    
policies  relating to  companies that  could potentially  be                                                                    
profiteering from  buying and selling Russian  securities on                                                                    
the  secondary  market.  She  relayed  the  general  subject                                                                    
matter that would be discussed in the presentation.                                                                             
9:13:20 AM                                                                                                                    
Commissioner Mahoney  pointed to  slide 2,  "Alaskan Russian                                                                    
     ?SB 235 Bill Summary                                                                                                       
     ?Sanctions and Status                                                                                                      
     ?Market Overview                                                                                                           
     ?Treasury Investments                                                                                                      
     ?Actions by Institutional Investors                                                                                        
     ?Fiduciary Standards                                                                                                       
      Questioned and A                                                                                                          
     ?Appendix A Additional slides  presented to House State                                                                    
     Affairs on 3/10/22                                                                                                         
Commissioner  Mahoney  looked  at  slide  3,  "SB  235  Bill                                                                    
     ?Prohibits  investment in  and  requires divestment  of                                                                    
     Russian assets in funds subject to AS 37.10.                                                                               
     ?Assets  include  all  sovereign debt  of  the  Russian                                                                    
     Federation and publicly traded  securities of a company                                                                    
     identified   by  the   United   States  Department   of                                                                    
     Treasury, Office of Foreign Assets (OFAC).                                                                                 
     ?Provides  for a  180  day exit  from  the assets  once                                                                    
     ?Divestment is  not required  for comingled  funds, but                                                                    
     the  fiduciary   is  required  to  request   that  fund                                                                    
     managers consider divestment annually on January 31.                                                                       
Commissioner  Mahoney  explained  that OFAC  is  a  division                                                                    
within  the  U.S.  Treasury   that  had  identified  Russian                                                                    
institutions that were close to  Vladimir Putin and that has                                                                    
a significant  role in the  Russian economy and  were likely                                                                    
to  be financial  contributors to  the invasion  of Ukraine.                                                                    
She shared that all the  institutions had been identified in                                                                    
Federal Executive Order 14024,  which was issued on February                                                                    
24, 2022.  She said that the  state had elected to  use this                                                                    
federal guideline  to identify  the investments  that should                                                                    
be  divested   from;  13  major   Russian  firms   had  been                                                                    
identified  in the  order with  the  overall goal  to be  to                                                                    
cripple  the core  infrastructure of  the Russian  financial                                                                    
system and inhibit Russias  ability  to continue to fund the                                                                    
Ukraine invasion. She  said that the as  entities were added                                                                    
or deleted to the list defined  by OFAC, the state would add                                                                    
or delete those  entities from divestment. She  spoke to the                                                                    
180-day exit  from identified assets  and stated  that there                                                                    
was currently no exchange market  for the state to conduct a                                                                    
transaction and the valuations  were uncertain and volatile.                                                                    
She  added  that  it  was unclear  how  ownership  would  be                                                                    
transferred  or  what  would occur  while  the  Society  for                                                                    
Worldwide    International   Financial    Telecommunications                                                                    
(SWIFT)  system  was shut  down.  She  shared that  a  final                                                                    
concern  was  how  the  state  could  be  assured  that  the                                                                    
divested   investment   would    not   be   transferred   to                                                                    
unscrupulous entities.                                                                                                          
9:17:20 AM                                                                                                                    
Senator  von Imhof  pointed to  the second  bullet point  on                                                                    
slide  2. She  understood  the  date on  which  the list  of                                                                    
identified assets  had been released from  OFAC was February                                                                    
24, 2022.                                                                                                                       
9:17:35 AM                                                                                                                    
Commissioner Mahoney agreed.                                                                                                    
9:17:39 AM                                                                                                                    
Senator  von  Imhof  asked  what   day  Russia  had  invaded                                                                    
9:17:45 AM                                                                                                                    
Commissioner Mahoney did not have the information.                                                                              
9:17:49 AM                                                                                                                    
Senator von  Imhof believed  that the  dates were  the same,                                                                    
February 24, 2022. She wondered  whether OFAC might have had                                                                    
prior knowledge of  the invasion to release the  list of key                                                                    
divestment securities on the same day of the invasion.                                                                          
9:18:25 AM                                                                                                                    
Commissioner Mahoney continued to address slide 3:                                                                              
     ?Precludes the Commissioner of Revenue or other                                                                            
     fiduciary from conducting business with banks who are                                                                      
     "profiteering" from the Russian invasion of Ukraine.                                                                       
Commissioner Mahoney  relayed that several weeks  ago it had                                                                    
been reported  in several media  networks that  certain Wall                                                                    
Street companies  were profiteering  from the  invasion. She                                                                    
said that  under the legislation  the state  would determine                                                                    
whether  banks  were  profiteering  from  the  invasion  and                                                                    
consider seeking alternative financial partners.                                                                                
9:20:13 AM                                                                                                                    
Co-Chair Stedman wondered whether  short sales firms working                                                                    
in  derivative   markets  were  including   in  profiteering                                                                    
9:20:30 AM                                                                                                                    
Commissioner Mahoney replied that  if the state became aware                                                                    
that  companies  were  profiteering from  the  invasion  the                                                                    
state would  conduct due diligence  to determine  whether to                                                                    
continue to do business with the entity.                                                                                        
9:20:50 AM                                                                                                                    
Co-Chair  Stedman assumed  that included  large Wall  Street                                                                    
firms and large banks.                                                                                                          
9:20:56 AM                                                                                                                    
Commissioner Mahoney replied in the affirmative.                                                                                
9:21:04 AM                                                                                                                    
Senator Wielechowski noted that  profiteering was defined in                                                                    
the  bill  as  making  an excessive  or  unfair  profit.  He                                                                    
wondered if the administration  was okay with doing business                                                                    
with companies  that were making  a mediocre profit  off the                                                                    
of the invasion.                                                                                                                
9:21:28 AM                                                                                                                    
Commissioner  Mahoney   replied  that   the  bill   did  not                                                                    
specifically  define   profiteering  as  making   a  certain                                                                    
percentage. She said that a  figure would be established and                                                                    
developed  in  policy  and   would  reflect  the  day-to-day                                                                    
changes of the market.                                                                                                          
9:22:04 AM                                                                                                                    
Senator  Wielechowski  wondered whether  the  administration                                                                    
would  be amenable  to the  legislature setting  policy that                                                                    
making  any  profit  at  all   off  the  invasion  would  be                                                                    
verboten. He asserted that the  position of the state should                                                                    
be that no profit at all  should be made from the killing of                                                                    
the Ukrainian people.                                                                                                           
9:22:28 AM                                                                                                                    
Commissioner Mahoney  replied that the  administration would                                                                    
be open to amendments to the legislation.                                                                                       
9:22:36 AM                                                                                                                    
Senator von Imhof wondered whether  a hedge fund bet long or                                                                    
short on  an oil stock    would that be addressed  under the                                                                    
9:23:02 AM                                                                                                                    
Commissioner  Mahoney  replied  that   it  would  depend  on                                                                    
whether the  stock was involved  with funding  the invasion,                                                                    
meaning it  was a Russian  entity that potentially  would be                                                                    
profiting to fund the war.                                                                                                      
9:23:23 AM                                                                                                                    
Senator von Imhof  noted that there was a  180-day exit time                                                                    
once assets had been  identified. She offered a hypothetical                                                                    
of several traders  from Goldman Sachs trading  in oil stock                                                                    
and  asked whether  the  state would  divest  from the  bank                                                                    
under the legislation.                                                                                                          
9:23:49 AM                                                                                                                    
Commissioner  Mahoney   asked  for  a  restatement   of  the                                                                    
9:24:00 AM                                                                                                                    
Senator  von  Imhof restated  her  question.  She wanted  to                                                                    
understand  how  far reaching  the  bill  went in  terms  of                                                                    
determining which companies to divest from.                                                                                     
9:25:18 AM                                                                                                                    
Commissioner Mahoney replied  that she could not  speak to a                                                                    
scenario  until she  understood  the  specifics, which  were                                                                    
everchanging.  She  said  that  the intent  was  to  do  due                                                                    
diligence with  companies and  then determine  whether there                                                                    
was a suitable alternative for  the services provided by the                                                                    
9:27:10 AM                                                                                                                    
Senator  von Imhof  understood the  intent of  the bill  but                                                                    
felt  that  the  practical evaluation  and  execution  would                                                                    
result in some grey area.                                                                                                       
9:27:35 AM                                                                                                                    
Commissioner   Mahoney  assured   the  committee   that  she                                                                    
intended  to  follow the  intent  of  the  bill and  do  her                                                                    
fiduciary duty to the state.                                                                                                    
9:28:00 AM                                                                                                                    
Co-Chair   Bishop  spoke   of  the   countrys   history   of                                                                    
divestment during wartime. He  stressed that the right thing                                                                    
to do was to divest.                                                                                                            
9:29:08 AM                                                                                                                    
Senator  Wielechowski  cited page  4  of  the bill  and  the                                                                    
definition of  profiteering as  otherwise  seeking financial                                                                    
gain in the purchase or  sale of Russian sovereign debt.  He                                                                    
cited the  bills  definition of  Russian sovereign  debt,  a                                                                    
debt  instrument  that  is  issued   by  the  government  of                                                                    
Russia.  He pointed out that in  other areas of the bill the                                                                    
term  Russian Federation  was used.  He wondered whether the                                                                    
use  of  both   Russian   Federation   in  some  areas,  and                                                                    
 Russian  Government   in  others,   was  intentional  or  a                                                                    
drafting error.                                                                                                                 
Commissioner Mahoney believed that it was a drafting error.                                                                     
Senator  Wielechowski  understood  that  the  definition  of                                                                    
Russian sovereign  debt should read  a  debt instrument that                                                                    
is issued by the Russian Federation.                                                                                            
Commissioner  Mahoney   replied  that  she  would   need  to                                                                    
research the issue further before providing an answer.                                                                          
9:30:03 AM                                                                                                                    
Senator Wilson discussed the final  bullet point on slide 3.                                                                    
He  wondered about  the vetting  process  used to  determine                                                                    
businesses  that  might  be profiteering  or  may  be  doing                                                                    
business with other businesses that might be profiteering.                                                                      
9:30:31 AM                                                                                                                    
Commissioner   Mahoney  said   a   questionnaire  would   be                                                                    
developed  for  companies  reportedly  profiteering  by  the                                                                    
media. The questionnaire would  query business practices and                                                                    
associations. Responses to questions  would trigger a search                                                                    
for alternative  providers of  financial services  and could                                                                    
possibly result in the state changing providers.                                                                                
9:31:25 AM                                                                                                                    
Senator  Wilson wondered  how the  legislation would  impact                                                                    
the mission of the treasury division.                                                                                           
9:31:32 AM                                                                                                                    
Commissioner  Mahoney responded  that  the goal  was not  to                                                                    
negatively impact  or violate current fiduciary  duties, but                                                                    
to identify alternative provider of  the same service. If no                                                                    
alternative  providers  were   available,  the  state  would                                                                    
continue  to  work  with   the  entity  while  communicating                                                                    
dissatisfaction  with  that  entitys   profiteering  on  the                                                                    
invasion in Ukraine.                                                                                                            
9:32:12 AM                                                                                                                    
Senator  Olson   asked  whether  the  divestment   could  be                                                                    
extended to allies of Russia, such as Belarus.                                                                                  
9:32:32 AM                                                                                                                    
Commissioner  Mahoney  stated that  the  idea  had not  been                                                                    
considered in the legislation.                                                                                                  
9:32:51 AM                                                                                                                    
Co-Chair Stedman  spoke to Senator  Wielechowskis  question.                                                                    
He  did not  think that  the treasury  had much  exposure to                                                                    
Russian  investments. He  felt  that  the aggregate  dollars                                                                    
that  the treasury  had under  management,  compared to  the                                                                    
dollars  exposed to  Russia, were  minimal. He  thought that                                                                    
those assets could be held in cash.                                                                                             
9:33:38 AM                                                                                                                    
Commissioner  Mahoney  replied  that  the  amount  that  the                                                                    
treasury had  currently invested  was $7 million,  which was                                                                    
minimal. She stated  that treasury would be  impacted by the                                                                    
portion of  the bill  that addressed profiteering;  when the                                                                    
state was  buying and selling  bonds, they  would scrutinize                                                                    
companies that could be  potentially profiteering, which she                                                                    
believed was significant.                                                                                                       
9:34:22 AM                                                                                                                    
Co-Chair  Stedman  understood   that  the  commissioner  was                                                                    
referring to the bond underwriter.                                                                                              
9:34:50 AM                                                                                                                    
Commissioner Mahoney replied in the affirmative.                                                                                
9:35:09 AM                                                                                                                    
Co-Chair  Stedman understood  that  when  companies went  to                                                                    
issue or create  bonds, if they had exposure  to the Russian                                                                    
Federation,  the  state would  no  longer  do business  with                                                                    
9:35:45 AM                                                                                                                    
Commissioner  Mahoney   reiterated  that  the   state  would                                                                    
evaluate whether there was  an available alternative company                                                                    
to  work  with,  then  may cease  doing  business  with  the                                                                    
9:36:09 AM                                                                                                                    
Co-Chair  Stedman  thought  that they  were  discussing  two                                                                    
separate  issues: buying  and selling  a bond  portfolio and                                                                    
bond   issuance.  He   noted  the   various  bond   issuance                                                                    
activities  in  the  state.  He  requested  clarity  in  the                                                                    
discussion between bond issuance and bond trading.                                                                              
9:36:57 AM                                                                                                                    
Commissioner  Mahoney  agreed  that  the  issues  should  be                                                                    
clear. She  said that  she was not  addressing geo  bonds or                                                                    
municipal bank  bonds but  rather the  issuance of  bonds by                                                                    
various companies throughout the U.S.                                                                                           
9:37:14 AM                                                                                                                    
Senator Wielechowski  understood that  if Goldman  Sachs was                                                                    
found  to  be profiteering  the  state  would no  longer  do                                                                    
business with them.                                                                                                             
9:37:38 AM                                                                                                                    
Commissioner  Mahoney explained  that if  Goldman Sachs  was                                                                    
found to be  profiteering, the state would try  to work with                                                                    
other managers  in a  manner that  would not  compromise the                                                                    
states fiduciary duty.                                                                                                          
9:38:09 AM                                                                                                                    
Senator Wielechowski  asked what  the commissioner  meant by                                                                    
 try to.                                                                                                                        
9:38:24 AM                                                                                                                    
Commissioner  Mahoney   replied  that  there  would   be  an                                                                    
evaluation of the bond issuance  fee structure, and assuming                                                                    
that the  fees were  the same  the state  would switch  to a                                                                    
non-profiteering  company. The  bill stated  that the  state                                                                    
would  identify  at  least three  alternative  companies  to                                                                    
choose from. She reiterated that  fiduciary duty would guide                                                                    
the  ultimate   choice  the  state  would   make  concerning                                                                    
9:39:01 AM                                                                                                                    
Senator  Wielechowski   wondered  whether  the   bill  would                                                                    
prohibit  the Alaska  Permanent Fund  Corporation (APFC)  or                                                                    
the   Alaska  Retirement   Management   Board  (ARMB)   from                                                                    
profiteering off the of the invasion of Ukraine.                                                                                
9:39:15 AM                                                                                                                    
Commissioner  Mahoney   replied  that  the   bill  excluded,                                                                    
specifically, APFC and ARMB.                                                                                                    
9:39:22 AM                                                                                                                    
Senator  Wielechowski understood  that  both entities  could                                                                    
legally  invest  in  companies  that  were  making  chemical                                                                    
weapons, bombing Ukraine, tied  to oligarchs, tied to senior                                                                    
political leaders,  and making  and excess or  unfair profit                                                                    
off the war in Ukraine.                                                                                                         
9:39:56 AM                                                                                                                    
Commissioner  Mahoney   responded  that  neither   of  those                                                                    
entities would  do anything to  violate U.S.  sanctions, but                                                                    
the bill did not specifically address those entities.                                                                           
9:40:13 AM                                                                                                                    
Senator  Wielechowski probed  whether  the commissioner  was                                                                    
aware  of   the  APFC  investing  in   companies  that  were                                                                    
currently in the U.S. Treasury sanction list.                                                                                   
9:40:21 AM                                                                                                                    
Commissioner Mahoney replied in the affirmative.                                                                                
9:40:34 AM                                                                                                                    
Senator  Wielechowski wondered  whether  it was  appropriate                                                                    
that  the  APFC and  ARMB  were  investing  in at  least  17                                                                    
different companies  that were  currently sanctioned  by the                                                                    
U.S.  Treasury  because  they were  tied  to  oligarchs  and                                                                    
senior political figures within the Putin Administration.                                                                       
9:40:58 AM                                                                                                                    
Commissioner  Mahoney replied  that she  did not  personally                                                                    
believe  it was  appropriate. She  added that  the APFC  and                                                                    
ARMB were  independent boards, and  the governor  wanted the                                                                    
bill  to  address  the investments  that  excluded  the  two                                                                    
9:41:23 AM                                                                                                                    
Senator Wielechowski  understood that the state  had roughly                                                                    
$300 million invested  in Russia. He asked how  much of that                                                                    
was invested in the APFC and ARMB.                                                                                              
9:41:39 AM                                                                                                                    
Commissioner  Mahoney replied  that there  was a  summary on                                                                    
slide  13  of  the  investments. She  said  that  the  total                                                                    
investment totaled  $333 million, with  most of it  being in                                                                    
stocks ($267 million)  which was majority owned  by the APFC                                                                    
at $153 million.                                                                                                                
9:42:33 AM                                                                                                                    
Senator von  Imhof noted that the  commissioner had repeated                                                                    
the  phrase   compromise fiduciary  responsibility   several                                                                    
times and wondered what that meant.                                                                                             
9:43:08 AM                                                                                                                    
Commissioner  Mahoney  replied  that  it  was  difficult  to                                                                    
answer the question because of  the everchanging market. She                                                                    
stressed  that  the  state  could  not  divest  from  closed                                                                    
markets but them  could come a time when  the decision could                                                                    
be made about monetization versus growth.                                                                                       
9:44:11 AM                                                                                                                    
Senator  von  Imhof surmised  that  holding  on action  with                                                                    
direct  investments  made  sense. She  wondered  about  bond                                                                    
sales. She  asked if  a bond middleman  with ties  to Russia                                                                    
offered  a sale  with minimal  fees, versus  one who  had no                                                                    
Russian  ties but  who  would charge  a  higher rate,  which                                                                    
would the treasury choose.                                                                                                      
9:44:58 AM                                                                                                                    
Commissioner  Mahoney replied  that it  would be  an unusual                                                                    
situation  where a  bond reseller  would offer  services for                                                                    
free. She could not respond to the question.                                                                                    
9:45:26 AM                                                                                                                    
Co-Chair Stedman  spoke to the  list of assets  mentioned by                                                                    
Senator  Wielechowski and  wondered  about  the timeline  of                                                                    
purchasing  of  those  assets. He  thought  more  detail  on                                                                    
purchases would be helpful.                                                                                                     
9:47:00 AM                                                                                                                    
MARCUS  FRAMPTON, CIO,  ALASKA  PERMANENT FUND  CORPORATION,                                                                    
related that  immediately after the invasion  of Ukraine the                                                                    
corporation  issued a  no-buy order  on securities.  He said                                                                    
that  most  were securities  that  had  been long  held  and                                                                    
through external managers.                                                                                                      
9:48:37 AM                                                                                                                    
Senator Wielechowski spoke  to the $219 million  in the APFC                                                                    
and  Mental  Health  reflected  on slide  13,  and  the  $94                                                                    
million in the ARMB, which  together comprised 90 percent of                                                                    
Alaskas   investment in  Russian  assets that  would not  be                                                                    
affected by the legislation.                                                                                                    
9:49:03 AM                                                                                                                    
Commissioner Mahoney agreed.                                                                                                    
9:49:35 AM                                                                                                                    
Commissioner  Mahoney  discussed  slide   4,  "SB  235  Bill                                                                    
Summary (continued)":                                                                                                           
     ?  May  allow investments  if  not  doing so  would  be                                                                    
     inconsistent       with      applicable       fiduciary                                                                    
     responsibilities   but   requires    at   least   three                                                                    
     alternative investment opportunities to be considered.                                                                     
     ?  Excludes Alaska  Permanent  Fund Corporation  (APFC)                                                                    
     and the Alaska Retirement Management Board                                                                                 
     (ARMB),   allowing   divestment  decisions   by   these                                                                    
     entities' boards.                                                                                                          
     ?   Exempts   those   taking  divestment   actions   or                                                                    
     inactions, in good faith, from liability for doing so.                                                                     
     ? Provides  reporting mechanisms to the  Legislature as                                                                    
     to the divestment activity undertaken.                                                                                     
     ? Expires on July 1, 2023.                                                                                                 
9:50:40 AM                                                                                                                    
Co-Chair  Bishop surmised  that  that  the anticipation  was                                                                    
that the war would be over by 2023.                                                                                             
9:51:04 AM                                                                                                                    
Commissioner Mahoney  said that  was the  hope but  that the                                                                    
administration would  come before the legislation  to change                                                                    
the expiration date if need be.                                                                                                 
9:51:13 AM                                                                                                                    
Senator Wilson understood that it  took 180 days to exit the                                                                    
market  and the  bill expired  in  2023. He  felt that  that                                                                    
would result  in only  6 months  of divestment.  He wondered                                                                    
whether the bill was only posturing.                                                                                            
9:52:18 AM                                                                                                                    
Commissioner Mahoney replied  that the goal of  the bill was                                                                    
to show support  to the policies of  the federal government.                                                                    
It was a show of solidarity with Ukraine against Russia.                                                                        
9:53:17 AM                                                                                                                    
Senator Wilson understood the intent of the bill.                                                                               
9:53:40 AM                                                                                                                    
Senator von  Imhof appreciated  the intent  of the  bill but                                                                    
thought  it was  unenforceable. She  noted that  someone was                                                                    
going to buy the assets the that states divested from.                                                                          
9:54:48 AM                                                                                                                    
Co-Chair Stedman  assumed the  $219 in  assets held  by APFC                                                                    
would  be at  cost  He  felt that  the  percent of  movement                                                                    
exceeded $219 million  from day to day.  He wondered whether                                                                    
the  corporation could  cut all  ties to  Russian investment                                                                    
Mr. Frampton said that the stocks were currently minimal.                                                                       
Co-Chair Bishop clarified that he  was talking about Russian                                                                    
9:56:31 AM                                                                                                                    
Mr.  Frampton said  that Russian  stocks were  worthless. He                                                                    
thought that  the market would  develop and  offered several                                                                    
what if scenarios to the effect.                                                                                                
9:57:44 AM                                                                                                                    
Co-Chair  Bishop asked  whether a  market could  emerge that                                                                    
would need to be monitored for profiteering.                                                                                    
Mr.   Frampton   thought   the   term   "profiteering"   was                                                                    
9:59:05 AM                                                                                                                    
Senator Wielechowski took issue  with the statement that the                                                                    
bill indicated the state stood  with Ukraine. He pointed out                                                                    
that 90  percent of the  states  current assets  invested in                                                                    
Russia were  exempt under the legislation.  He stressed that                                                                    
the bill allowed  the ARMB and the APFC, through  one of the                                                                    
largest sovereign  wealth funds  in the world,  to profiteer                                                                    
from the  invasion of Ukraine.  He argued that the  bill was                                                                    
toothless and wondered why it was being considered.                                                                             
AT EASE                                                                                                                         
10:00:03 AM                                                                                                                   
10:00:58 AM                                                                                                                   
Co-Chair  Bishop  discussed  the timeline  to  continue  the                                                                    
10:01:43 AM                                                                                                                   
Senator  Olson  asked  whether  the  presenter  agreed  with                                                                    
Senator Wielechowski's assessment of the legislation.                                                                           
Commissioner   Mahoney   thought   that  the   bill   showed                                                                    
unification  with  the  federal governments   policies.  She                                                                    
believed  that all  divestments added  up. She  admitted the                                                                    
divestment amount was small.                                                                                                    
Senator  Olson  noted that  90  percent  of the  $7  billion                                                                    
invested in Russia would not be subject to the legislation.                                                                     
10:03:06 AM                                                                                                                   
Commissioner  Mahoney  said that  the  $7  billion would  be                                                                    
subject to the profiteering component of the bill.                                                                              
Co-Chair Stedman though the total was $7 million.                                                                               
Commissioner  Mahoney  clarified  that $7  billion  was  the                                                                    
total in state  assets, $7 million was the  valuation of the                                                                    
investment is in Russia.                                                                                                        
Co-Chair Bishop requested further clarification.                                                                                
Commissioner  Mahoney clarified  that there  was $7  billion                                                                    
invested in total  - $7 million invested in  Russia prior to                                                                    
the decline in valuations.                                                                                                      
10:04:27 AM                                                                                                                   
Commissioner  Mahoney  pointed  to slide  5,  "Unprecedented                                                                    
Global Sanctions":                                                                                                              
     Banks and Financial Services                                                                                               
          ?Russian Central Bank restrictions imposed by US,                                                                     
          UK, Canada and EU                                                                                                     
         ?Swift ban enacted on seven Russian banks                                                                              
          ?Sanctions  imposed  on  Sberbank  and  VTB  Bank,                                                                    
          Russia's largest banks                                                                                                
          ?US persons prohibited from  investing in new debt                                                                    
          or  equity  issuance  from  certain  OFAC  Russian                                                                    
     Oil and Gas                                                                                                                
          ?US  bans   import  of  Russian   energy  products                                                                    
          including oil, liquified natural gas, and coal                                                                        
          ?Over  300 companies  have  withdrawn from  Russia                                                                    
          including   Boeing,   Airbus,  Visa,   Mastercard,                                                                    
         FedEx, UPS, Apple, Netflix, and McDonalds                                                                              
          ?Google, Meta (Facebook),  and TikTok have blocked                                                                    
          Russian state media channels                                                                                          
          ?BP, Shell, Exxon, and  Equinor are divesting from                                                                    
          billions in oil and gas developments                                                                                  
          ?US bans Russian aircraft from US airspace                                                                            
          ?Foreign  held asset  freeze and  travel bans  for                                                                    
          some politicians, officials,  oligarchs and family                                                                    
Commissioner Mahoney thought the committee was familiar                                                                         
with the current sanctions.                                                                                                     
10:06:43 AM                                                                                                                   
Commissioner Mahoney looked at slide 6, "Current Status of                                                                      
Russian Equity Investments":                                                                                                    
     ?Russian equities decreased by 53 percent in value in                                                                      
     ?Trading halted on February 25th for all Russian                                                                           
     listed equities.                                                                                                           
     ?Valuations are now highly speculative since they are                                                                      
     no longer provided by the market.                                                                                          
     ?All major stock indexes are taking Russian securities                                                                     
     out this month and passive index funds are holding                                                                         
     Russian securities at low to no value.                                                                                     
10:07:26 AM                                                                                                                   
Commissioner Mahoney discussed slide 7, "International                                                                          
Equity in Russia":                                                                                                              
     ?  Most institutional  investors  invest  in a  diverse                                                                    
     basket of global securities.                                                                                               
     ?   The   Morgan   Stanley  All-Country   World   Index                                                                    
     Investable  Market Index  (MSCI ACWI  IMI) is  a common                                                                    
     institutional  index that  incorporates  99 percent  of                                                                    
     globally publicly traded equities.                                                                                         
     ? The  index is  diversified across  48 countries    23                                                                    
     developed and 25 emerging  market  and includes roughly                                                                    
     9,300 securities.                                                                                                          
     ?   The  index   is   a  reasonable   proxy  for   many                                                                    
     institutional investor portfolios                                                                                          
Commissioner Mahoney pointed out the amount of equity                                                                           
benchmark comprised by Russia. She noted that the largest                                                                       
area was in energy.                                                                                                             
10:08:17 AM                                                                                                                   
Commissioner Mahoney addressed slide 8, "Treasury Russian                                                                       
Equity Investments 1/31/22":                                                                                                    
     Treasury  Russian equity  investments  0.23 percent  of                                                                    
     $50.6 billion in assets:                                                                                                   
     State  Investments  0.10  percent of  $7.7  billion  in                                                                    
          ? 0.10 percent of  state assets had Russian equity                                                                    
          exposure on 1/31/22 ($7.4 million).                                                                                   
          ? 1 passive/index investment manager.                                                                                 
     Defined  Benefit Retirement  Systems,  0.28 percent  of                                                                    
     $33.9 billion in assets                                                                                                    
          ?  0.28  percent  of   the  retirement  funds  had                                                                    
          Russian   equity   exposure  on   1/31/22   ($93.5                                                                    
          ?    7   investment    managers   4    active,   3                                                                    
     Participant Directed,  0.15 percent of $9.0  billion in                                                                    
          ? 0.15 percent of  participant directed assets had                                                                    
          Russian   equity   exposure  on   1/31/22   ($13.4                                                                    
          ?  4  investment  managers 2  managers  active,  2                                                                    
          passive/index funds.                                                                                                  
          ?  All   of  the   Russian  exposure   is  through                                                                    
          commingled funds where the ARMB  is not the direct                                                                    
          fiduciary for the funds.                                                                                              
     Treasury  has  directed  a  halt  to  the  purchase  of                                                                    
     Russian securities at this time  due to illiquidity and                                                                    
     risk uncertainty.                                                                                                          
10:09:38 AM                                                                                                                   
Commissioner Mahoney looked at slide 9, "What are others                                                                        
     ?   Research   and    surveys   administered   by   The                                                                    
     Pennsylvania Treasurer  show that as of  3/12/22, there                                                                    
     were a  total of  37 states  currently looking  into or                                                                    
     currently freezing  state money or pension  funds going                                                                    
     to Russian companies, investments or oligarchs.                                                                            
     ?  Other  actions taken  by  other  states include  the                                                                    
     ?  Looking into  or  currently  banning state  agencies                                                                    
     from doing business with Russian  state owned firms and                                                                    
            Blocking Russian  businesses and nonprofits from                                                                    
          acquiring property in their state for 1 year.                                                                         
              Looking   into    or   ending   sister   state                                                                    
          relationship with Russia.                                                                                             
          Officially condemned Russia's invasion.                                                                               
            Welcoming refugees.                                                                                                 
             Calling  on  businesses  to  ban  Russian  made                                                                    
     Norway Sovereign Wealth Funds                                                                                            
            Norway  announced that  they are  divesting from                                                                    
            Russian  assets at the  end of 2021 made  up 0.2                                                                    
          percent of Norway fund ($3 billion in total).                                                                         
             Recognize that  divestment  takes time  because                                                                    
          they  want  to  ensure   sales  are  not  made  to                                                                    
          sanctioned individuals/entities.                                                                                      
10:12:01 AM                                                                                                                   
Senator Hoffman asked about Norway and whether they would                                                                       
stop investing in Russia only for the duration of the war.                                                                      
Mr. Frampton said that a law had been passed in Norway that                                                                     
banned investment in Russia.                                                                                                    
10:13:06 AM                                                                                                                   
Senator Wielechowski  asked whether  the APFC  would support                                                                    
an amendment  that prohibited the  corporation to  invest in                                                                    
Russian assets.                                                                                                                 
Commissioner Mahoney said  that such an action  would take a                                                                    
vote of the trustees.                                                                                                           
Senator  Wielechowski  noted  that the  commissioner  was  a                                                                    
trustee on the board and  asked whether she would support an                                                                    
10:13:48 AM                                                                                                                   
Commissioner  Mahoney replied  that she  personally believed                                                                    
that Russian investments would not  be a good choice for the                                                                    
board to make at this time.                                                                                                     
10:14:12 AM                                                                                                                   
Commissioner Mahoney  addressed slide 10,  "Guiding Statutes                                                                    
for Investing":                                                                                                                 
     ? Prudent Investor Rule Summary                                                                                            
          ?  In   additional  to  other   considerations,  a                                                                    
          fiduciary  shall exercise  the  judgment and  care                                                                    
          under  the circumstances  then prevailing  that an                                                                    
          institutional   investor  of   ordinary  prudence,                                                                    
          discretion,  and  intelligence  exercises  in  the                                                                    
          management of large investments.                                                                                      
     ? ARMB/Treasury Statutes                                                                                                   
          ?  AS   37.10.071(c)  In   exercising  investment,                                                                    
          custodial,  or depository  powers or  duties under                                                                    
          this section, the fiduciary of  a state fund shall                                                                    
          apply the  prudent investor rule and  exercise the                                                                    
          fiduciary   duty  in   the  sole   financial  best                                                                    
          interest of  the fund entrusted to  the fiduciary.                                                                    
          Among  beneficiaries of  a  fund, the  fiduciaries                                                                    
          shall treat beneficiaries with impartiality.                                                                          
          ?  AS 37.10.210(a)  Consistent  with standards  of                                                                    
          prudence, the  board has the  fiduciary obligation                                                                    
          to manage  and invest  these asset  s in  a manner                                                                    
          that  is sufficient  to meet  the liabilities  and                                                                    
          pension   obligations   of  the   systems,   plan,                                                                    
          program, and trusts.                                                                                                  
     ? APFC Statutes                                                                                                            
          ? 37.13.120. Investment  responsibilities. (a) The                                                                    
          board   shall   adopt   regulations   specifically                                                                    
          designating   the   types  of   income   producing                                                                    
          investments  eligible   for  investment   of  fund                                                                    
          assets.  When adopting  regulations authorized  by                                                                    
          this  section  or   managing  and  investing  fund                                                                    
          assets,  the   prudent  investor  rule   shall  be                                                                    
          applied by  the corporation. The  prudent investor                                                                    
          rule  as applied  to  investment  activity of  the                                                                    
          fund  means that  the  corporations hall  exercise                                                                    
          the  judgment  and  care under  the  circumstances                                                                    
          then prevailing that  an institutional investor of                                                                    
          ordinary  prudence,  discretion, and  intelligence                                                                    
          exercises  in the  designation  and management  of                                                                    
          large investments  entrusted to it, not  in regard                                                                    
          to  speculation, but  in regard  to the  permanent                                                                    
          disposition  of fun  ds, considering  preservation                                                                    
          of  the purchasing  power of  the  fund over  time                                                                    
          while  maximizing the  expected total  return from                                                                    
          both income and the appreciation of capital.                                                                          
10:15:32 AM                                                                                                                   
Co-Chair Stedman  looked at the first  bullet. He considered                                                                    
the Prudent Investor  rule and noted that  the committee was                                                                    
not an  institutional investor and followed  the Prudent Man                                                                    
Rule,  which  was the  forerunner  of  the Prudent  Investor                                                                    
Rule. He  shared that  the two rules  varied as  the Prudent                                                                    
Man  Rule   might  consider  the  divestment   from  Russian                                                                    
investments something that should  happen more immediately                                                                      
before  the  implementation  of   nerve  gasses  or  nuclear                                                                    
weapons by  the Russian  Federation. He thought  that action                                                                    
should  be  swift  and   final  concerning  divestment  from                                                                    
Russian assets.                                                                                                                 
10:17:43 AM                                                                                                                   
Commissioner  Mahoney suspected  that the  trustees of  both                                                                    
boards would  likely agree. She  said that  public testimony                                                                    
would  need  to  be  taken and  that  the  public  sometimes                                                                    
testified in favor of divestment  from various entities. She                                                                    
wondered where the boards could  draw the line about when to                                                                    
divest and  remain independent and not  influenced by social                                                                    
events. She reiterated that she,  personally, was in support                                                                    
of divestment from Russia.                                                                                                      
10:19:26 AM                                                                                                                   
Co-Chair  Stedman   thought  that   there  was   an  obvious                                                                    
difference between  a group  in society  that might  want to                                                                    
invest in carbon neutral companies  or divest from companies                                                                    
that  endangered  the  environment,   and  the  burning  and                                                                    
shelling  of entire  cities, the  bombing of  hospitals, and                                                                    
the bombing of bomb shelters  full of children. He contended                                                                    
that under  those circumstances the  decision to  divest was                                                                    
not a difficult one.                                                                                                            
10:20:11 AM                                                                                                                   
Senator  von  Imhof noted  that  the  APFC  had not  held  a                                                                    
meeting since February 24, 2022.  She assumed that there had                                                                    
been  meetings  with  the  Department  of  Revenue  and  the                                                                    
governor to  craft the  bill. She  wondered whether  it made                                                                    
sense that the board might meet to discuss the bill.                                                                            
10:20:44 AM                                                                                                                   
Commissioner Mahoney replied in the affirmative.                                                                                
10:20:51 AM                                                                                                                   
Senator  von  Imhof  asked  whether   the  APFC  wanted  the                                                                    
legislature  to  provide  guidance to  the  board  regarding                                                                    
divestment from Russian assets.                                                                                                 
10:21:07 AM                                                                                                                   
Commissioner  Mahoney  replied  that the  bill  specifically                                                                    
excluded the  two funds because of  their independent nature                                                                    
and  the  importance  of following  statue  and  maintaining                                                                    
fiduciary duty. She  said that there could  be trustees that                                                                    
did not have the same opinion  as she and the members of the                                                                    
committee. She thought  that a meeting could  take place for                                                                    
the  board to  vote  on the  issue and  after  the vote  the                                                                    
legislature could weigh in on the matter.                                                                                       
10:22:15 AM                                                                                                                   
Senator  von  Imhof  recalled  the  commissioners   comments                                                                    
about  public comment  on the  divestment  or investment  in                                                                    
environmental  or social  issues  and  that the  legislature                                                                    
might  provide   some  guidance   to  the  APFC   on  social                                                                    
investing.  She felt  that the  legislature would  oblige in                                                                    
providing guidance to the board.                                                                                                
10:22:59 AM                                                                                                                   
Senator  Wielechowski   agreed  with  Senator   von  Imhofs                                                                     
comments and welcomed the  possibility of providing guidance                                                                    
to the board  some baseline of standards  for investment. He                                                                    
asked whether  the corporation  wanted suggestions  from the                                                                    
legislature or would they rather handle to issue in-house.                                                                      
10:24:04 AM                                                                                                                   
Commissioner  Mahoney  replied  that  she  was  one  of  six                                                                    
trustees but  stated that  it was an  important issue  to be                                                                    
discussed by the  board. She replied that  the board follows                                                                    
the fiduciary duty outlined in statute.                                                                                         
Co-Chair  Bishop asked  whether APFC  quit investing  on the                                                                    
day of  the invasion of Ukraine,  or had they pulled  out in                                                                    
10:25:20 AM                                                                                                                   
Mr. Frampton  replied that many  of the  Russian investments                                                                    
were  managed  by  external  managers.  Those  managers  had                                                                    
discretion  to divest.  He did  not have  exact numbers  but                                                                    
shared that Russian values were  in decline in January 2022,                                                                    
and that investments had declined soon after the invasion.                                                                      
SB  235  was  HEARD  and   HELD  in  committee  for  further                                                                    
10:26:40 AM                                                                                                                   
AT EASE                                                                                                                         
10:29:16 AM                                                                                                                   
Co-Chair Bishop  handed the gavel  to Co-Chair  Stedman. Co-                                                                    
Chair Stedman  cited a response  letter from  the department                                                                    
dated March 10,  2022, that responded to  questions from the                                                                    
previous forecast. (copy on file)                                                                                               
^PRESENTATION: DEPARTMENT OF REVENUE, SPRING FORECAST                                                                         
10:30:33 AM                                                                                                                   
DAN STICKEL,  CHIEF ECONOMIST, ECONOMIC RESEARCH  GROUP, TAX                                                                    
DIVISION,    DEPARTMENT    OF   REVENUE,    discussed    the                                                                    
presentation,  "Spring  2022  Forecast  Presentation  Senate                                                                    
Finance Committee" (copy on file).                                                                                              
10:30:49 AM                                                                                                                   
Mr. Stickel looked at slide 2, "Agenda":                                                                                        
     1. Forecast Background, Economic Indicators, and Key                                                                       
     2. Spring 2022 Revenue Forecast                                                                                            
          ?Total State Revenue                                                                                                  
          ?Unrestricted Revenue                                                                                                 
     3. Petroleum Forecast Assumptions Detail                                                                                   
          ?Oil Price                                                                                                            
          ?Oil Production                                                                                                       
          ?Oil and Gas Lease Expenditures                                                                                       
          ?Oil and Gas Transportation Costs                                                                                     
          ?Oil and Gas Credits                                                                                                  
10:31:11 AM                                                                                                                   
Mr. Stickel pointed to slide  4, "Background: Spring Revenue                                                                    
     1. Historical, current, and estimated future state                                                                         
    2. Updates key data from Fall Revenue Sources Book                                                                          
     3. Official revenue forecast used for final budget                                                                         
     4. Located at tax.alaska.gov                                                                                               
10:32:01 AM                                                                                                                   
Mr. Stickel  addressed slide  5, "Key  Economic Indicators."                                                                    
The  slide detailed  the indicator  units on  an annual  and                                                                    
quarterly  basis. He  stated that  the GDP  had been  stable                                                                    
over the last year. The 4   quarter of 2021 will be released                                                                    
on  March 31,  2022,  and  will be  the  first quarter  that                                                                    
reflects higher oil prices. He  relayed that employment went                                                                    
up 2  percent in 2021, as  well as the first  month of 2022.                                                                    
He lamented  that the  numbers were  still down  50,000 from                                                                    
July 2019.  He stated  that wages  and salaries  had largely                                                                    
recovered from  the pandemic and  bankruptcies, foreclosures                                                                    
and mortgage  delinquencies were  holding at low  levels. He                                                                    
shared that 2021 ended in pre-pandemic levels for housing                                                                       
10:34:46 AM                                                                                                                   
Mr. Stickel pointed to slide 6, "Spring Forecast                                                                                
     ? The economic impacts of COVID-19 and geopolitical                                                                        
     events are uncertain; DOR has developed a plausible                                                                        
     scenario to forecast these impacts.                                                                                        
     ? Key Assumptions:                                                                                                         
          o   Investments:  Stable   growth  in   investment                                                                    
          markets,  5.86  percent  for   FY  2022  and  6.20                                                                    
          percent for FY 2023+.                                                                                                 
          o  Federal:  The  forecast  incorporates  stimulus                                                                    
          funding  as of  March  1,  2022, includes  updated                                                                    
          estimates of IIJA funding.                                                                                            
          o  Petroleum:  Alaska  North Slope  oil  price  of                                                                    
          $91.68per  barrel  for  FY 2022  and  $101.00  per                                                                    
          barrel for FY 2023.                                                                                                   
          o  Non-Petroleum:  Continued economic  growth.  75                                                                    
          percent  of capacity  assumption  for 2022  cruise                                                                    
          season, minerals prices based on futures markets.                                                                     
10:35:20 AM                                                                                                                   
Mr. Stickel looked at slide 7, Relative Contributions to                                                                        
Total Revenue: FY 2021:                                                                                                         
     Total State Revenue: $29.8 Billion                                                                                     
     Investment Earnings; 65.8 percent                                                                                          
     Federal Revenue: 25.4 percent                                                                                              
     Petroleum: 5.4 percent                                                                                                     
     Other Revenues: 2.6 percent                                                                                                
     Non-Petroleum Corporate Income: 0.4 percent                                                                                
     Fisheries: 0.3 percent                                                                                                     
     Tourism: 0.1 percent                                                                                                       
     Mining: 0.1 percent                                                                                                        
 Mr. Stickel discussed slide 8, Relative Contributions to                                                                       
Total State Revenue: FY 2023:                                                                                                   
     Total State Revenue: $16.4 Billion                                                                                     
     Petroleum: 31.4 percent                                                                                                    
     Federal Revenue: 31.2 percent                                                                                              
     Investment Earnings: 30.0 percent                                                                                          
     Other Revenues: 4.7 percent                                                                                                
     Non-Petroleum Corporate Income: 0.8 percent                                                                                
     Fisheries: 0.7 percent                                                                                                     
     Tourism: 0.6 percent                                                                                                       
     Mining: 0.5 percent                                                                                                        
10:36:29 AM                                                                                                                   
Senator von  Imhof remarked  that slide 8  and slide  7. She                                                                    
wondered  what  had  been  included  in  the  $29.8  billion                                                                    
revenue total on slide 7.                                                                                                       
10:36:53 AM                                                                                                                   
Mr. Stickel replied that there was a detail on slide 11.                                                                        
10:37:07 AM                                                                                                                   
Mr.  Stickel  looked  at  slide  10,   Unrestricted  Revenue                                                                    
Forecast:  FY 2021  and Changes  to  Two-Year Outlook.   The                                                                    
slide summarized the  key changes between the  fall 2021 and                                                                    
spring  2022 revenue  forecasts. He  said that  Alaska North                                                                    
Slope  Oil (ANS)  price increased  by approximately  $16/bbl                                                                    
for  FY 22  and  $30/bbl for  FY 23,  which  was related  to                                                                    
continued recovery  and stabilization in the  oil markets as                                                                    
they recovered from the pandemic.  He added that the Russian                                                                    
invasion of  Ukraine had cause  oil prices to spike  just as                                                                    
the  spring forecast  was being  finalized. He  related that                                                                    
the total forecast  of UGF had increased by  $1.2 billion in                                                                    
FY 22, and  $2.4 billion for FY 23    driven by the increase                                                                    
in oil price.                                                                                                                   
10:38:22 AM                                                                                                                   
Co-Chair Stedman queried the data  point for where the price                                                                    
would be to be above or below the revenue projection.                                                                           
10:38:38 AM                                                                                                                   
Mr.   Stickel  replied   that  for   FY   22  the   forecast                                                                    
incorporated 8  months of actual  prices through the  end of                                                                    
February  2021.  He  furthered that  the  average  of  March                                                                    
through June was in the range of $114/bbl.                                                                                      
10:38:58 AM                                                                                                                   
Co-Chair Stedman  understood that  the $114/bbl was  used on                                                                    
the performance side as a  benchmark for revenue projections                                                                    
for FY 22.                                                                                                                      
10:39:13 AM                                                                                                                   
Mr. Stickel replied in the affirmative.                                                                                         
10:39:23 AM                                                                                                                   
Senator Hoffman  thought that the  current price of  oil was                                                                    
$108/bbl.  He  understood  that   the  U.S.  was  no  longer                                                                    
importing  Russian  oil  and  that  the  NATO  Nations  were                                                                    
considering  following suit.  He  wondered  whether the  oil                                                                    
forecast  remained  the  same  with the  exit  of  the  NATO                                                                    
10:40:07 AM                                                                                                                   
Mr.  Stickel replied  that  his forecast  was  based on  the                                                                    
futures market.  He said that  the issue would  be addressed                                                                    
on future slides.                                                                                                               
10:40:19 AM                                                                                                                   
Mr. Stickel  looked at slide  11, which looked at  the total                                                                    
state revenue  for FY 21 and  the forecast for FY  22 and FY                                                                    
23. He  said the  unrestricted general  fund (UGF)  would be                                                                    
discussed for  most of the presentation.  The slide included                                                                    
UGF,  designated   general  fund  (DGF),   Other  Restricted                                                                    
Revenue, and Federal  Revenue. Total State revenue  in FY 21                                                                    
was $29,765.6. He  said that FY 22 and 23  were projected to                                                                    
be $15,783.1 and $16,435.4 respectively.  He noted the FY 21                                                                    
had two significant  one-time impacts of the  banner year of                                                                    
the  return  on  the  permanent fund  and  federal  stimulus                                                                    
10:41:58 AM                                                                                                                   
Co-Chair Stedman noted the permanent  fund was calculated on                                                                    
a five-year  basis at 5  percent of market value  and varied                                                                    
from year  to year. He  thought that this footnote  could be                                                                    
added to the slide.                                                                                                             
10:42:50 AM                                                                                                                   
Senator  von  Imhof  asked  whether  the  $16.2  billion  in                                                                    
investment revenue was realized or unrealized.                                                                                  
10:43:02 AM                                                                                                                   
Mr. Stickel replied that it  was both. He explained that the                                                                    
transfer to the  general fund from the  permanent fund, 5.25                                                                    
percent of the  trailing average market value  for 2021, was                                                                    
shown a UGF    and gains above and beyond  that transfer was                                                                    
shown as other restricted general fund revenue.                                                                                 
10:43:35 AM                                                                                                                   
Senator von Imhof understood that  unrealized meant that the                                                                    
fund had  gained on paper but  had not been sold  to realize                                                                    
the  gain. She  thought  an  FY 20  column  would reflect  a                                                                    
significant market drop due to Covid-19.                                                                                        
10:44:27 AM                                                                                                                   
Mr.  Stickel replied  that  the spring  FY  20 forecast  had                                                                    
reflected downward markets, which  rebounded towards the end                                                                    
of the fiscal year.                                                                                                             
10:44:52 AM                                                                                                                   
Mr.  Stickel  looked  at  slide  12,   Unrestricted  Revenue                                                                    
Forecast:  FY2021 to  FY 2023  Totals,   which detailed  the                                                                    
four  main  sources  for  unrestricted  revenue:  Investment                                                                    
Revenue   Alaska Permanent Fund,  Investment Revenue   Other                                                                    
Investments,   Petroleum  Revenue,   Non-Petroleum  Revenue,                                                                    
their history and forecast for FY 22 and FY 23.                                                                                 
10:45:21 AM                                                                                                                   
Mr. Stickel  pointed to  slide 13,   Unrestricted Investment                                                                    
Revenue: FY 2021 to FY  2023 Totals.  The slide detailed the                                                                    
investment sources    the  largest of  which was  the Alaska                                                                    
Permanent   Fund,  but   also  included   other  investments                                                                    
totaling $3,120.9  historically, and $3,064.6  and $3,376.6,                                                                    
respectively, for FY 22 and FY 23.                                                                                              
10:46:04 AM                                                                                                                   
Mr. Stickel  pointed to  slide 14,  "Unrestricted Investment                                                                    
Revenue: Percent of Market Value (POMV) Transfer Forecast":                                                                     
     ? Permanent Fund total return for FY 2021 of 29.7                                                                          
     ?The statutory POMV rate changed to 5 percent                                                                              
     beginning FY 2022.                                                                                                         
          ?For FY 2019 FY 2021 this rate was 5.25 percent.                                                                      
     ?Forecast assumes Permanent Fund's long-term total                                                                         
     return expectation of 6.20 percent for FY 2023+; 5.86                                                                      
     percent for FY 2022.                                                                                                       
     ?Differing Permanent Fund returns and petroleum                                                                            
     deposits could significantly alter actual POMV                                                                             
The slide showed a chart  of the estimated percent of market                                                                    
value (POMV)  transfer to the  general fund over the  next 5                                                                    
10:46:39 AM                                                                                                                   
Mr.  Stickel looked  at  slide  15,  Unrestricted  Petroleum                                                                    
Revenue:  FY 2021  to FY  2023 Totals.   He listed  the main                                                                    
sources  of the  taxes,  Petroleum  Property Tax,  Petroleum                                                                    
Corporate Income  Tax, and the  Oil and Gas  Production Tax.                                                                    
He said that the CARES  legislation had allowed companies to                                                                    
carry back  certain losses for  2018, 2019, and  2020, which                                                                    
Alaska adopted into the tax  code. He estimated $2.4 million                                                                    
in FY  2021, and $79.4  million in FY  22 for the  CARES act                                                                    
refunds,  which were  baked into  the forecast.  He expected                                                                    
positive income for corporate income  tax moving forward. He                                                                    
thought  that  given  the  higher   price  forecast  it  was                                                                    
expected  that the  production tax  revenue would  be higher                                                                    
over the next two fiscal years.                                                                                                 
10:48:33 AM                                                                                                                   
Senator  Wielechowski wondered  if the  production corporate                                                                    
income  tax in  FY 22  and  FY 23  would change  if all  the                                                                    
operating oil companies on the  North Slope were exclusively                                                                    
C corporations.                                                                                                                 
10:48:45 AM                                                                                                                   
Mr. Stickel replied  that roughly 70 percent of  oil and gas                                                                    
production  in the  state was  from C  corporations, so  the                                                                    
expected change  would be  that the  total revenue  would be                                                                    
higher by approximately $100 million per year.                                                                                  
10:49:08 AM                                                                                                                   
Co-Chair Stedman asked what number  for the price of oil was                                                                    
used in the C corp/S corp calculation.                                                                                          
10:49:14 AM                                                                                                                   
Mr. Stickel  replied that the  figure would be based  on the                                                                    
Spring Forecast.                                                                                                                
10:49:26 AM                                                                                                                   
Co-Chair Stedman understood that was  $101/bbl for FY 22 and                                                                    
10:49:34 AM                                                                                                                   
Mr. Stickel  replied that there  was not  a company-specific                                                                    
confidential detail that  would be subject of  the tax. They                                                                    
would  scale  up to  100  percent  what the  department  was                                                                    
forecasting for  the companies  that represented  70 percent                                                                    
of production, which was projected at $340 million.                                                                             
10:49:59 AM                                                                                                                   
Senator  Wielechowski  remarked   that  the  department  had                                                                    
testified earlier  that S corp  provisions were  costing the                                                                    
state between 80 and $100  million under the old forecast of                                                                    
$71/bbl oil.  He felt at  higher per barrel oil  costs would                                                                    
increase the expense to the state for S corps.                                                                                  
10:50:33 AM                                                                                                                   
Mr. Stickel agreed to provide that information.                                                                                 
10:50:45 AM                                                                                                                   
Mr.  Stickel   pointed  to  slide  16,    Unrestricted  Non-                                                                    
Petroleum  Revenue:  FY  2021  to  FY  2023  Totals,   which                                                                    
outlined some  of the sources of  non-petroleum revenue. Mr.                                                                    
Stickel shared  that the largest component  of non-petroleum                                                                    
revenue was taxes, and the  slide detailed the FY 21 through                                                                    
FY 23 numbers on the following:                                                                                                 
     Fisheries Taxes                                                                                                            
     Insurance Premium Tax                                                                                                      
     Mining License Tax                                                                                                         
     Motor Fuel (Refund Fuel Surcharge)                                                                                         
     Non-Petroleum Corporate Income                                                                                             
     Other Taxes                                                                                                                
Mr. Stickel relayed that Corporate  Income Tax was typically                                                                    
the  largest funding  source on  the non-petroleum  side. He                                                                    
noted that estimates for CARES  act allowance for carry-back                                                                    
losses  on  non-petroleum  revenue  were  expected  at  $6.7                                                                    
million in FY  21, $79.5 million in FY 22.  He said that the                                                                    
stat expected  only $15 million  in corporate income  tax in                                                                    
FY  22, growing  to $125  million in  FY 23.  He noted  that                                                                    
strong mineral  prices suggested  a significant  increase in                                                                    
mining taxes in FY 23.                                                                                                          
10:52:10 AM                                                                                                                   
Co-Chair Bishop  wondered whether  the Cruise  Ship Gambling                                                                    
Tax would be included in Other Taxes.                                                                                           
10:52:20 AM                                                                                                                   
Mr. Stickel responded that that  tax was in the unrestricted                                                                    
category and would fall under the Other Taxes column.                                                                           
10:52:43 AM                                                                                                                   
Senator Hoffman  asked whether the elimination  of the Motor                                                                    
Fuel Tax  required passage of  legislation to  implement the                                                                    
zero tax.                                                                                                                       
10:52:58 AM                                                                                                                   
Mr.  Stickel clarified  that the  Motor  Fuel (Refined  Fuel                                                                    
Surcharge) line  reflected only the Refined  Fuel Surcharge,                                                                    
which  was  not  expected  to  go   to  zero     but  to  be                                                                    
reclassified from unrestricted to designated.                                                                                   
10:53:29 AM                                                                                                                   
Mr. Stickel  discussed slide 18,  Petroleum  Detail: Changes                                                                    
to Long-Term Price Forecast,  which  was a comparison of the                                                                    
fall and spring  forecasts. He noted a change  had been made                                                                    
in the forecasting of oil prices  in fall 2022; two years of                                                                    
features  market   outlook  had   previously  bee   used  to                                                                    
forecast, the  shift in  the fall had  been to  use features                                                                    
market  outlook for  as many  years  a s  was available.  He                                                                    
shared those  prices had fluctuated  since the  forecast had                                                                    
been produced.                                                                                                                  
10:54:49 AM                                                                                                                   
Co-Chair Stedman remarked that  there would be a significant                                                                    
difference in the calculations due  to the volatility of the                                                                    
10:55:18 AM                                                                                                                   
Senator von Imhof  wondered how long the  price would remain                                                                    
above $100/bbl. She asked whether  $101/bbl had been used in                                                                    
the  projections  while  the   market  was  so  historically                                                                    
10:56:04 AM                                                                                                                   
Mr.  Stickel noted  that $101/bbl  was an  average over  the                                                                    
fiscal year.  He said that  monthly average prices  had been                                                                    
incorporated  and the  market  suggested  that prices  would                                                                    
start the fiscal year over  $100/bbl and end under $100/bbl.                                                                    
He agreed there was  significant uncertainty surrounding the                                                                    
forecast and  the current  time-period was  one of  the most                                                                    
volatile   since  the   beginning   of   the  pandemic.   He                                                                    
characterized the forecast as a   most likely within a range                                                                    
of uncertainty.                                                                                                                 
10:56:56 AM                                                                                                                   
Senator Hoffman understood that  600,000 barrels per day had                                                                    
had been  previously purchased in  Russian oil.  He wondered                                                                    
how significant the ending of  purchasing of Russian oil was                                                                    
and   whether  the   state  would   eventually  resume   the                                                                    
relationship with Russia.                                                                                                       
10:57:49 AM                                                                                                                   
Mr. Stickel remarked that there  was no explicit forecast of                                                                    
Russian crude and Russian crude  purchases. He said that the                                                                    
run-up  in  prices  since  April   2020  there  had  been  a                                                                    
situation  where  demand  had rebounded  strongly  form  the                                                                    
pandemic while supply  had been slower to catch  up with the                                                                    
demand.  This   had  been  the  fundamental   driver  behind                                                                    
increased oil prices and the  Russian situation had added to                                                                    
the equation.                                                                                                                   
10:58:27 AM                                                                                                                   
Senator  von Imhof  believed  that  a fiscally  conservative                                                                    
approach would be to spend conservatively in FY 23.                                                                             
10:59:02 AM                                                                                                                   
AT EASE                                                                                                                         
10:59:29 AM                                                                                                                   
10:59:35 AM                                                                                                                   
Co-Chair Stedman discussed the  timeline for the duration of                                                                    
the meeting.  He hoped  Mr. Stickel  could remain  to finish                                                                    
the presentation.                                                                                                               
Mr. Stickel stated he was happy to oblige.                                                                                      
11:00:03 AM                                                                                                                   
Mr. Stickel pointed to slide  19,  Petroleum Detail: Nominal                                                                    
Brent Forecasts Comparison  as of March 21,  2022.  He noted                                                                    
that  the  slide  had  been   update  the  previous  day  to                                                                    
incorporate the most recent future  market projections as of                                                                    
close  of business.  He  pointed out  to  the committee  the                                                                    
states proximity to the futures market projections.                                                                             
11:00:59 AM                                                                                                                   
Co-Chair Stedman  spoke of fluctuating oil  prices and asked                                                                    
whether the  numbers on  the slide would  change if  the oil                                                                    
price went  down $20  in the  next two weeks    or  were the                                                                    
futures markets static.                                                                                                         
11:01:34 AM                                                                                                                   
Mr. Stickel agreed  that there had been a  lot of volatility                                                                    
around the  numbers for FY  22 and FY  23. He said  that the                                                                    
later years  looked more stable  at a price hovering  in the                                                                    
11:02:05 AM                                                                                                                   
Mr.  Stickel  looked at  slide  20,   Petroleum Detail:  UGF                                                                    
Relative  to Price  per Barrel  (without POMV):  FY 23.   He                                                                    
offered that  the side explored  the question of  how higher                                                                    
or lower oil prices would affect the UGF.                                                                                       
11:02:45 AM                                                                                                                   
Co-Chair Stedman  asked Mr. Stickle  to discuss  the expense                                                                    
level  and how  the state  would fare  under the  governors                                                                     
fiscal plan for FY 23.                                                                                                          
11:03:10 AM                                                                                                                   
Mr.  Stickel  agreed  to  provide  the  information  to  the                                                                    
11:03:37 AM                                                                                                                   
Co-Chair Stedman  requested a  breakdown of  the incremental                                                                    
build up and a prioritization of expenditures.                                                                                  
11:04:11 AM                                                                                                                   
Mr.  Stickel looked  at slide  21,  Petroleum  Detail: North                                                                    
Slope Petroleum Production Forecast.   He explained that the                                                                    
slide reflected  the high  and low  case oil  production for                                                                    
the  north Slope  over  the  next 10  years.  The slide  was                                                                    
created  I  collaboration  with the  Department  of  Natural                                                                    
Resources (DNR),  which could  speak to  any nuances  in the                                                                    
production forecast. He shared  that the general outlook was                                                                    
expected stable  to slightly increased  production, reaching                                                                    
535,000/bbl by FY 2030.                                                                                                         
11:04:58 AM                                                                                                                   
Co-Chair Stedman  asked for further  detail on FY 23  and FY                                                                    
24 and  the high and  low expected numbers for  those years.                                                                    
He noted  that FY 23 had  a steeper incline on  the positive                                                                    
side and  thought that the  projections could be  tracked in                                                                    
real-time. He  said that price  was of concern  to committee                                                                    
members as volume was more easily predicted.                                                                                    
11:06:20 AM                                                                                                                   
Mr.  Stickel reiterated  that a  more nuanced  discussion on                                                                    
oil prices  could be had with  DNR. He said that  one of the                                                                    
significant  contributors to  the uncertainty  would be  the                                                                    
performance of some  new developments as well  as the timing                                                                    
of those developments.                                                                                                          
11:07:16 AM                                                                                                                   
Co-Chair Stedman  suggested working  with the  Department of                                                                    
Natural Resources (DNR) on the  issue to keep track over the                                                                    
upcoming months.                                                                                                                
11:07:43 AM                                                                                                                   
Senator  Wielechowski   noted  the   significant  divergence                                                                    
between the high and low cases  on the slide, within a short                                                                    
period  of  time.  He  queried what  would  be  required  to                                                                    
accomplish 600,000bbl in FY 23 or 400,000/bbl in FY 23.                                                                         
11:08:05 AM                                                                                                                   
Mr. Stickel  stated that he  would work with DNR  to provide                                                                    
further insight to the committee.                                                                                               
11:08:13 AM                                                                                                                   
Senator  von Imhof  opined  that  there were  uncontrollable                                                                    
factors that affected the forecast.                                                                                             
11:08:59 AM                                                                                                                   
Mr. Stickel  addressed slide 22,  Petroleum  Detail: Changes                                                                    
to  North   Slope  Petroleum  Production   Forecast,   which                                                                    
offered a comparison between the  spring and fall forecasts.                                                                    
He  related  that  there  was  very  little  change  in  the                                                                    
production forecast from fall to spring.                                                                                        
11:09:21 AM                                                                                                                   
Mr. Stickel  pointed to slide  23,  Petroleum  Detail: North                                                                    
Slope  Allowable  Lease   Expenditures,   which  showed  how                                                                    
allowable  lease  expenditures  for   the  North  Slope  had                                                                    
changed over  the last decade,  as well as the  forecast for                                                                    
the  next 10  years. He  shared that  also included  was the                                                                    
average  annual  employment in  the  industry,  this was  to                                                                    
illustrate the  correlation between company spending  in the                                                                    
industry and employment. He said  that the expenditures were                                                                    
important  because  they were  part  of  the production  tax                                                                    
calculation and  because they were  an important  measure of                                                                    
investment in the  industry for the state.  He revealed that                                                                    
the pandemic had led decreased spending  in FY 21 due to low                                                                    
oil  prices  and  production  curtailments.  He  noted  $1.5                                                                    
billion  in  capital  expenditure   and  $2.4  of  operating                                                                    
expenditure in  FY 21. He  said that  operating expenditures                                                                    
were expected  to remain stable  in the current  fiscal year                                                                    
and then increase in future  years. He said that significant                                                                    
increases in  capital expenditures  were expected for  FY 23                                                                    
through FY  25, based on  new field investments  included in                                                                    
the production forecast.                                                                                                        
11:11:15 AM                                                                                                                   
Senator  Wielechowski noted  the significant  projected jump                                                                    
in capital  and operating expenditures. He  thought that the                                                                    
projected  development forecast  remained flat  and wondered                                                                    
whether the expenditure was meant  to off-set decline due to                                                                    
the pandemic.                                                                                                                   
11:11:39 AM                                                                                                                   
Mr. Stickel replied that over  time production would decline                                                                    
in  any oil  basin. He  said  that the  slide reflected  the                                                                    
investment the department projected would be necessary.                                                                         
11:12:01 AM                                                                                                                   
Co-Chair  Stedman  asked  about how  the  industry  reported                                                                    
their expectations of capital  expenditures to that were the                                                                    
basis for the department's projections.                                                                                         
11:12:23 AM                                                                                                                   
Mr.  Stickel replied  that companies  reported actual  lease                                                                    
expenditures on  their annual tax returns  and filed monthly                                                                    
informational filings.  Twice a year in  preparation for the                                                                    
forecast,  operators  were  required  to  produce  a  5-year                                                                    
projection  of capital  and operating  costs. He  added that                                                                    
the department reached out to  producers, key explorers, and                                                                    
development   companies   as   well  as   examining   public                                                                    
information, to develop the aggregated production forecast.                                                                     
11:13:09 AM                                                                                                                   
Mr. Stickel  pointed to slide  24,  Petroleum  Detail: North                                                                    
Slope  Transportation  Costs.   He  stated  that  the  slide                                                                    
showed  the cost  of getting  oil  form the  North Slope  to                                                                    
market. He  related that  transportation costs  impacted the                                                                    
value  of  oil  for  both  tax  and  royalty  purposes.  The                                                                    
forecast was  $9.40/bbl in FY  23 for  transportation costs.                                                                    
He  said that  it was  expected that  the cost  would remain                                                                    
under $10/bbl in the out years.                                                                                                 
11:14:09 AM                                                                                                                   
Mr.  Stickel  discussed  slide 25,   Petroleum  Detail:  Tax                                                                    
Credits for Purchase  Detail.  He shared that  prior to 2016                                                                    
companies were able to generate  the tax credits for various                                                                    
activities and  the tax credits  could be applied  against a                                                                    
liability  or  turn  them  into  a  tax  credit  certificate                                                                    
available  for   state  purchase.  He  furthered   that  the                                                                    
availability  to earn  the credits  for  state purchase  had                                                                    
been  phased  out through  legislative  action  in 2016  and                                                                    
2017. He  said at the this  point no new credits  were being                                                                    
earned  that were  available for  state purchase.  He stated                                                                    
that  prior to  2016, the  legislature had  appropriated the                                                                    
full amount  required to  purchase the  outstanding credits.                                                                    
Mr. Stickel continued to discuss slide 25.                                                                                      
11:16:13 AM                                                                                                                   
Co-Chair Stedman understood that in  FY 23, $101/bbl oil was                                                                    
being used in the graph on slide 25.                                                                                            
11:16:16 AM                                                                                                                   
Mr. Stickel agreed.                                                                                                             
11:16:18 AM                                                                                                                   
Co-Chair Stedman  asked that $10 increments  be applied from                                                                    
$101/bbl  down  to  $70/bbl  and  up  to  $110/bbl.  He  was                                                                    
uncomfortable  setting up  budget expectations  at $101/bbl.                                                                    
He  spoke  of  a  request from  the  administration  in  the                                                                    
Operating  Budget to  add 233  new employees.  This did  not                                                                    
include  the Alaska  Marine Highway  System (AMHS).  He said                                                                    
that  all three  branches of  government had  approached the                                                                    
legislature about  wage inflation and employee  turnover. He                                                                    
related that  when all three  branches were  concerned about                                                                    
the same  issue it  increased the  urgency and  pressure. He                                                                    
did  not wasn't  the  financial  state of  the  state to  be                                                                    
reliant on  the war in  Ukraine. He believed that  other oil                                                                    
prices should be considered and applied.                                                                                        
11:19:04 AM                                                                                                                   
Senator Olson remarked that the  tax credits had been a sour                                                                    
issue for many years. He  wondered whether there was support                                                                    
from the  administration to pay  off all the tax  credits in                                                                    
FY 23,  since there was  steady revenue and  federal dollars                                                                    
coming into the state.                                                                                                          
11:19:30 AM                                                                                                                   
Mr.  Stickel recalled  that the  deputy commissioner  of the                                                                    
department  that  the  administration supported  making  the                                                                    
statutory appropriation.                                                                                                        
11:19:44 AM                                                                                                                   
Co-Chair    Stedman    understood   that    the    statutory                                                                    
appropriation would be at $101/bbl.                                                                                             
Mr. Stickel replied in the affirmative.                                                                                         
Co-Chair  Stedman solicited  further  questions. He  thanked                                                                    
Mr. Stickel  for the presentation.  He discussed slide  2 of                                                                    
the presentation and noted that  the bottom two lines on the                                                                    
slide were helpful.  He also appreciated the  format. He and                                                                    
encouraged  that  the same  format  should  be used  on  the                                                                    
summary tables for the fall and spring forecasts.                                                                               
Co-Chair Stedman discussed housekeeping.                                                                                        
11:23:25 AM                                                                                                                   
The meeting was adjourned at 11:23 a.m.                                                                                         

Document Name Date/Time Subjects
032222 Spring 2022 Revenue Forecast SFIN Presentation 2022.03.22.pdf SFIN 3/22/2022 9:00:00 AM
SB 235 States Reaction to Russia (003).pdf SFIN 3/22/2022 9:00:00 AM
SB 235
SB 235 Divestment TL Senate.pdf SFIN 3/22/2022 9:00:00 AM
SB 235
SB 235 DOR Senate Finance 3_22_2022 SB235 SFIN.pdf SFIN 3/22/2022 9:00:00 AM
SB 235
SB 235 State Financial Pressure Against Russia (003).docx SFIN 3/22/2022 9:00:00 AM
SB 235
SB 235 Support Hykes.pdf SFIN 3/22/2022 9:00:00 AM
SB 235
030222 DOR Response to March 2022 Order of Operations SFIN 2022.03.10.pdf SFIN 3/22/2022 9:00:00 AM
032222 DOR Response to SFIN Spring FC Presentation 2022.03.30.pdf SFIN 3/22/2022 9:00:00 AM