Legislature(2015 - 2016)WASILLA LIO
07/13/2016 05:30 PM Senate STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| SB5001 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB5001 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE STATE AFFAIRS STANDING COMMITTEE
July 13, 2016
5:33 p.m.
MEMBERS PRESENT
Senator Bill Stoltze, Chair
Senator John Coghill, Vice Chair
Senator Charlie Huggins
Senator Bill Wielechowski
MEMBERS ABSENT
Senator Lesil McGuire
OTHER LEGISLATORS PRESENT
Representative Cathy Tilton (on line)
Representative Lynn Gattis (on line)
COMMITTEE CALENDAR
SENATE BILL NO. 5001
"An Act relating to the Alaska Permanent Fund Corporation, the
earnings of the Alaska permanent fund, and the earnings reserve
account; relating to management of the budget reserve fund (art.
IX, sec. 17, Constitution of the State of Alaska) by the Alaska
Permanent Fund Corporation; relating to procurement by the
Alaska Permanent Fund Corporation; relating to the mental health
trust fund; relating to deposits into the dividend fund;
relating to the calculation of permanent fund dividends;
relating to unrestricted state revenue available for
appropriation; and providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 5001
SHORT TITLE: PERM. FUND: DEPOSITS; DIVIDEND; EARNINGS
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
07/11/16 (S) READ THE FIRST TIME - REFERRALS
07/11/16 (S) STA, FIN
07/13/16 (S) STA AT 1:00 PM WASILLA LIO
07/13/16 (S) STA AT 5:30 PM WASILLA LIO
WITNESS REGISTER
STEPHEN ST. CLAIR, representing himself
Mat-Su Valley, Alaska
POSITION STATEMENT: Testified in opposition to SB 5001.
LARRY DEVILBISS, representing himself
Palmer, Alaska
POSITION STATEMENT: Testified in opposition to SB 5001.
MIKE ALEXANDER, representing himself
Big Lake, Alaska
POSITION STATEMENT: Testified in opposition to SB 5001.
MIKE COONS, representing himself
Palmer, Alaska
POSITION STATEMENT: Testified in opposition to SB 5001.
GARVAN BUCARIA, representing himself
Wasilla, Alaska
POSITION STATEMENT: Testified in opposition to SB 5001.
K.D. SINCLAIR, representing herself
Wasilla, Alaska
POSITION STATEMENT: Testified in opposition to SB 5001.
DON HOPKINS, representing himself
Soldotna, Alaska
POSITION STATEMENT: Testified in opposition to SB 5001.
LEE COLLINS, representing herself
Kenai, Alaska
POSITION STATEMENT: Testified in opposition to SB 5001.
DANIEL LYNCH, representing himself
Soldotna, Alaska
POSITION STATEMENT: Testified in opposition to SB 5001.
FRED STURMAN, representing himself
Soldotna, Alaska
POSITION STATEMENT: Testified in opposition to SB 5001.
LARRY SMITH, Director
Kachemak Resource Institute
Homer, Alaska
POSITION STATEMENT: Testified in opposition to SB 5001.
WALT MONEGAN, Commissioner
Department of Public Safety
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 5001.
CHAD SAMSKAR, representing himself
Nikiski, Alaska
POSITION STATEMENT: Testified in opposition to SB 5001.
KAREN PERRY, representing herself
Chugiak, Alaska,
POSITION STATEMENT: Testified in opposition to SB 5001.
MARNIE HARTILL, representing herself
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 5001.
BETH FREAD, representing herself
Palmer, Alaska
POSITION STATEMENT: Testified in opposition to SB 5001.
BRUCE GERAGHTY, representing himself
Wasilla, Alaska
POSITION STATEMENT: Testified in opposition to SB 5001.
STEPHEN WRIGHT, representing himself
Wasilla, Alaska
POSITION STATEMENT: Testified in opposition to SB 5001.
TIM WALTERS, President
Mat-Su Ed Association
Wasilla, Alaska
POSITION STATEMENT: Testified in support of SB 5001.
DONALD WESTLUND, representing himself
Ketchikan, Alaska
POSITION STATEMENT: Testified in support of SB 5001.
ROBERT STEINKE, representing himself
Juneau, Alaska
POSITION STATEMENT: Testified on SB 5001.
GEORGE PIERCE, representing himself
Kasilof, Alaska
POSITION STATEMENT: Testified in opposition to SB 5001.
LARRY MCMAHILL, representing himself
Houston, Alaska
POSITION STATEMENT: Testified in opposition to SB 5001.
ED MARTIN, representing himself
Cooper Landing, Alaska
POSITION STATEMENT: Testified in opposition to SB 5001.
ANDREW WRIGHT, representing himself
Wasilla, Alaska
POSITION STATEMENT: Testified in opposition to SB 5001.
DAVID EASTMAN, representing himself
Wasilla, Alaska
POSITION STATEMENT: Testified in opposition to SB 5001.
PAUL KENDALL, representing himself
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to SB 5001.
EDWARD WITBECK, representing himself
Kenai, Alaska
POSITION STATEMENT: Testified in opposition to SB 5001.
BILL SPENCER, representing himself
Big Lake, Alaska
POSITION STATEMENT: Testified in opposition to SB 5001.
MARGARET E. PICKARD, representing herself
Wasilla, Alaska
POSITION STATEMENT: Testified in opposition to SB 5001.
ACTION NARRATIVE
5:33:28 PM
CHAIR BILL STOLTZE called the Senate State Affairs Standing
Committee meeting to order at 5:33 p.m. Present at the call to
order were Senators Huggins, Wielechowski, Coghill (via
teleconference), and Chair Stoltze.
SB5001-PERM. FUND: DEPOSITS; DIVIDEND; EARNINGS
5:34:10 PM
CHAIR STOLTZE announced the consideration of SB 5001 and opened
public testimony.
5:34:35 PM
STEPHEN ST. CLAIR, representing himself, Mat-Su Valley, Alaska,
testified in opposition to SB 5001. He cited a statement by ISER
[Institute of Social and Economic Research] that said "Any
alterations or changes to the permanent fund is the most
regressive tax that could possibly occur, worse than a sales tax
or an income tax."
5:38:10 PM
LARRY DEVILBISS, representing himself, Palmer, Alaska, testified
in opposition to SB 5001. He opined that a sustainable level of
government has not been found and that must happen first.
5:41:46 PM
MIKE ALEXANDER, representing himself, Big Lake, Alaska,
testified in opposition to SB 5001. He said the Legislature has
done a good job of cutting government so far but nothing
happened in 2016.
5:42:56 PM
MIKE COONS, representing himself, Palmer, Alaska, testified in
opposition to SB 5001. He stated that he opposed Governor Walker
"raiding the permanent fund" and doing such would set a
precedent.
5:44:16 PM
GARVAN BUCARIA, representing himself, Wasilla, Alaska, testified
in opposition to SB 5001, stating that nothing will affect the
state's economy more than passing the bill. He emphasized that
it is important to change the size of government before reducing
the permanent fund dividend. He asked that a transition be done
gradually. He advocated cutting large capital expenditures for
roads and the AKLNG pipeline.
5:47:30 PM
K.D. SINCLAIR, representing herself, Wasilla, Alaska, testified
in opposition to SB 5001. She agreed with the previous testimony
and opined that cutting the dividend in half would not save
money because it is used to buy food and heat homes in the
winter.
5:51:00 PM
DON HOPKINS, representing himself, Soldotna, Alaska, echoed the
previous testimony opposing SB 5001. He pointed out that the
budget problem did not happen overnight and noted that ten years
ago the state budget was roughly $2.5 billion and has since
grown to an unsustainable level. He quoted former Governor Jay
Hammond who said that the "Permanent fund provides about the
only lens through which the public could and would view more
realistically the true cost versus expense of development." He
opined that people want an equal share which aligns with the
state constitution that directs managing the resources for the
maximum benefit of the people.
5:54:19 PM
LEE COLLINS, representing herself, Kenai, Alaska, testified in
opposition to SB 5001. She revealed that she is a senior whose
income is very limited. She questioned why people did not get to
vote on the dividend reduction.
5:55:33 PM
DANIEL LYNCH, representing himself, Soldotna, Alaska, testified
in opposition to SB 5001. He stated that he questioned paying
$660 million for TransCanada to leave the state. He noted that
plans in the past have not been predictable. He added that he
was concerned with repealing inflation-proofing and its
reevaluation in three years.
5:57:11 PM
FRED STURMAN, representing himself, Soldotna, Alaska, testified
in opposition to SB 5001. He said his biggest concern relates to
not cutting the budget and opined that the budget is still
bigger than it was and government employees are given raises.
5:59:47 PM
LARRY SMITH, Director, Kachemak Resource Institute (KRI), Homer,
Alaska, testified in opposition to SB 5001. He said Governor
Hammond would have said SB 5001 does the singularly bad thing of
decoupling the dividends from the permanent fund, because it
will lead to its death. He added that Governor Hammond would
also have believed that twice as much of the earnings should be
put in the fund. He said the only part of SB 5001 that appeals
to him is doubling the contribution to the permanent fund.
6:01:42 PM
WALT MONEGAN, Commissioner, Department of Public Safety,
Anchorage, Alaska, said he is speaking as the commissioner and
an Alaskan in support of SB 5001. He set forth that having been
part of law enforcement and public safety since 1971, he has
long appreciated that a crisis averted is better than any
possible response. He said Alaskans are staring at a crisis that
will only grow in scale if critical measures aren't taken to
address it now.
6:03:49 PM
CHAD SAMSKAR, representing himself, Nikiski, Alaska, testified
in opposition to SB 5001. He said does not see the benefit of
allowing the already bloated government to continue to spend at
the current level.
6:05:54 PM
KAREN PERRY, representing herself, Chugiak, Alaska, testified in
opposition to SB 5001. She asserted that SB 5001
institutionalizes higher spending levels while
disproportionately taking away from middle and lower income
Alaskans.
6:09:35 PM
MARNIE HARTILL, representing herself, Anchorage, Alaska,
testified in support of SB 5001. She thanked the governor for
the hard work and research that has gone into the bill and added
that she is not deterred by the people who are testifying about
"taking," "theft," or other entitlement terms because the
governor is trying to sustain the PFD.
6:12:59 PM
BETH FREAD, representing herself, Palmer, Alaska, testified in
opposition to SB 5001. She asserted that the state is not ready
for restructuring of the permanent fund dividend when the
government continues to over spend.
6:15:40 PM
BRUCE GERAGHTY, representing himself, Wasilla, Alaska, testified
in opposition to SB 5001. He remarked that the budget has gotten
beyond what it ought to be.
6:19:25 PM
STEPHEN WRIGHT, representing himself, Wasilla, Alaska, testified
in opposition to SB 5001. He said the bill is an overarching
attempt to gain access to the permanent fund.
6:22:01 PM
TIM WALTERS, President, Mat-Su Education Association, Wasilla,
Alaska, testified in support of SB 5001. He asserted that the
bill is one part of a balanced plan to fix the crisis. He
advocated new sources of revenue and question further cuts to
public education.
6:24:13 PM
DONALD WESTLUND, representing himself, Ketchikan, Alaska,
testified in support of SB 5001. He stated that he questioned
capital projects. He added that he supported a sales tax that
exempts food and fuel as well as an income tax with no
exemptions.
6:27:04 PM
ROBERT STEINKE, representing himself, Juneau, Alaska, testified
in opposition to SB 5001.
6:28:45 PM
GEORGE PIERCE, representing himself, Kasilof, Alaska, testified
in opposition to SB 5001. He asked that legislators address
spending prior to taking money from the PFD. He asserted that
Alaskans own the resources and encouraged legislators to
override the governor's veto.
6:32:17 PM
LARRY MCMAHILL, representing himself, Houston, Alaska, testified
in opposition to SB 5001.
6:33:16 PM
ED MARTIN, representing himself, Cooper Landing, Alaska,
testified in opposition to SB 5001. He stated that the
government could not spend the PFD. He asserted that the
governor has violated statute law. He said statute mandates that
the dividend shall be paid.
6:36:29 PM
ANDREW WRIGHT, representing himself, Wasilla, Alaska, testified
in opposition to SB 5001. He asserted that no other plans have
been considered.
6:38:57 PM
DAVID EASTMAN, representing himself, Wasilla, Alaska, testified
in opposition to SB 5001.
6:41:43 PM
PAUL KENDALL, representing himself, Anchorage, Alaska, testified
in opposition to SB 5001. He suggested the first step is to
stabilize the PFD and then require a 60 or 90-day notice before
it can be engaged in any shape or form. He recommended that
compensation for all public employees be reduced.
6:46:46 PM
EDWARD WITBECK, representing himself, Kenai, Alaska, testified
in opposition to SB 5001. He said he questioned state spending
and asserted that the Alaska Constitution states that the
permanent fund was set up so the people would receive a small
percentage of what the state makes and the formula would not be
manipulated.
6:51:22 PM
BILL SPENCER, representing himself, Big Lake, Alaska, testified
in opposition to SB 5001. He asserted that the state has a
spending problem, not a revenue problem.
6:54:58 PM
MARGARET E. PICKARD, representing herself, Wasilla, Alaska,
testified in opposition to SB 5001. She revealed that she is a
senior who lives a very simple life and cutting the PFD will
affect her ability to pay her heating bill and other utilities.
7:00:45 PM
At ease.
7:08:20 PM
CHAIR STOLTZE reconvened the meeting and noted that testimony
was completed.
SENATOR WIELECHOWSKI reported that 30 people testified on SB
5001: 25 in opposition, 4 in support, and 1 was inconclusive.
CHAIR STOLTZE said the committee did its best to reach out
across the state. He remarked that a lot of knowledgeable people
testified on both sides of the issue. He set forth that the
committee's intent was to work hand-in-hand, in partnership with
the administration to try to have a meaningful discussion about
the governor's bill.
7:11:09 PM
SENATOR WIELECHOWSKI concurred and expressed appreciation for
the way the Chair Stoltze conducted the hearing today. He
remarked that letting the people in the audience participate
helped inform and shape the debate.
CHAIR STOLTZE said he wants to give the administration the
opportunity to reconsider their participation.
7:12:44 PM
SENATOR HUGGINS seconded Senator Wielechowski's comments and
cited comments by the governor that violate the law and the
Legislature's word.
7:15:14 PM
SENATOR COGHILL thanked the Chair and all who testified. He
agreed with several things that were said the Legislature was
not done making cuts. He said he listened intently and will take
instruction from the comments.
CHAIR STOLTZE thanked the public for their participation.
[SB 5001 was held in committee.]
7:17:43 PM
There being no further business to come before the committee,
Chair Stoltze adjourned the Senate State Affairs Committee at
7:17 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB5001 ver A.pdf |
SSTA 7/13/2016 1:00:00 PM SSTA 7/13/2016 5:30:00 PM SSTA 7/14/2016 10:00:00 AM |
SB5001 |
| SB5001 Sponsor Statement - Governor's Transmittal Letter.pdf |
SSTA 7/13/2016 1:00:00 PM SSTA 7/13/2016 5:30:00 PM SSTA 7/14/2016 10:00:00 AM |
SB5001 |
| SB5001 Hearing Request - DOR 7.11.16.pdf |
SSTA 7/13/2016 5:30:00 PM |
SB5001 |
| 0513-DOR-PFD-07-07-16.pdf |
SSTA 7/13/2016 5:30:00 PM SSTA 7/14/2016 10:00:00 AM |
SB5001 |
| SB 5001-Fund Cap-Dup-CVCF-07-07-16.pdf |
SSTA 7/13/2016 1:00:00 PM SSTA 7/13/2016 5:30:00 PM SSTA 7/14/2016 10:00:00 AM |
SB5001 |
| SB 5001-DOR-TRS-07-07-16.pdf |
SSTA 7/13/2016 1:00:00 PM SSTA 7/13/2016 5:30:00 PM SSTA 7/14/2016 10:00:00 AM |
SB5001 |
| SB 5001-DOR-TAX-07-07-16.pdf |
SSTA 7/13/2016 1:00:00 PM SSTA 7/13/2016 5:30:00 PM SSTA 7/14/2016 10:00:00 AM |
SB5001 |
| SB 5001-DOR-APFC-07-07-16.pdf |
SSTA 7/13/2016 1:00:00 PM SSTA 7/13/2016 5:30:00 PM SSTA 7/14/2016 10:00:00 AM |
SB5001 |
| SB 5001-DOC-PHC-07-06-16.pdf |
SSTA 7/13/2016 1:00:00 PM SSTA 7/13/2016 5:30:00 PM SSTA 7/14/2016 10:00:00 AM |
SB5001 |
| SB5001 (APFPA) presentation for SSTA 7.13.2016.pdf |
SSTA 7/13/2016 1:00:00 PM SSTA 7/13/2016 5:30:00 PM SSTA 7/14/2016 10:00:00 AM |
SB5001 |
| SB5001 sectional analysis 7.12.2016.pdf |
SSTA 7/13/2016 1:00:00 PM SSTA 7/13/2016 5:30:00 PM SSTA 7/14/2016 10:00:00 AM |
SB5001 |
| SB5001 summary 7.12.2016.pdf |
SSTA 7/13/2016 1:00:00 PM SSTA 7/13/2016 5:30:00 PM SSTA 7/14/2016 10:00:00 AM |
SB5001 |
| SB5001 flow chart 7.13.2016.pdf |
SSTA 7/13/2016 1:00:00 PM SSTA 7/13/2016 5:30:00 PM SSTA 7/14/2016 10:00:00 AM |
SB5001 |
| SB 5001 Support Document - Ltr to Senator MacKinnon re CSSB 128(FIN) - 5.12.16.pdf |
SSTA 7/13/2016 1:00:00 PM SSTA 7/13/2016 5:30:00 PM SSTA 7/14/2016 10:00:00 AM |
SB 128 SB5001 |
| SB 5001 - Supporting Document - News-Miner Article 7.12.2016.pdf |
SSTA 7/13/2016 1:00:00 PM SSTA 7/13/2016 5:30:00 PM SSTA 7/14/2016 10:00:00 AM |
SB5001 |
| SB5001 Administration Letter to Senate State Affairs Regarding Participation - 7.12.2016.pdf |
SSTA 7/13/2016 5:30:00 PM |
SB5001 |
| SB 5001 - Public Testimony Packet #1 (11 POMS & 3 Resolutions) 7.13.2016.pdf |
SSTA 7/13/2016 5:30:00 PM |
SB5001 |
| SB 5001 - Public Testimony Packet #2 (7 POMS & 1 Resolution) 7.13.2016.pdf |
SSTA 7/13/2016 5:30:00 PM |
SB5001 |