SENATE BILL NO. 210
"An Act relating to the community revenue sharing
program; changing the name of the community revenue
sharing program to the community assistance program;
and relating to the municipal property tax exemption
on the residence of a senior, a disabled veteran, and
a widow or widower of a senior or disabled veteran."
2:00:20 PM
LAURA CRAMER, STAFF, SENATOR ANNA MACKINNON, explained SB
210:
With a $3.7 billion shortfall for Fiscal Year 2016 and
a projected shortfall of $4 billion for Fiscal Year
2017, the legislature is examining programs that were
created to provide assistance to communities when
Alaska was experiencing surplus revenues due to the
high price of oil. In 2008, the legislature created
the Community Revenue Sharing program, which
distributes funds to communities to be spent at their
discretion. The program was established under the
principle that when oil revenues were high, the wealth
would be shared with local communities.
Senate Bill 210 proposes changes to the program,
allowing for communities to continue to receive
assistance, while establishing a structure to phase
out the program as originally intended when created.
Additionally, the legislature has heard concerns from
communities throughout Alaska about the burden
unfunded mandates, enacted by the legislature, places
on local governments. At low oil prices, the burdens
on communities are enhanced and even limits local
decision making. Under SB 210, discretion is returned
to the local communities to enact certain property tax
exemptions. This would allow communities to structure
their tax exemptions to serve their residents and meet
the needs of the communities to the maximum extent
possible.
Senate Bill 210, helps communities transition to more
local control, while continuing to receive assistance
from the state as they become less reliant on state
resources to support local government.
Co-Chair MacKinnon requested a sectional analysis.
Ms. Cramer discussed the Sectional Analysis (copy on file):
Section 1: Updates AS 28.10.181(d) reflecting the
repeal of AS 29.45.030(i) and inserts reference to AS
29.45.050(x) where the definition of "disabled
veteran" is now located as a result of this
legislation
Section 2: Updates the program name change "community
assistance" in AS 29.20.640(b)
Section 3: Updates the program name change "community
assistance" in AS 29.45.020
Section 4: Updates AS 29.46.030(h) reflecting the
repeal to 29.46.030(e) - (h) and (j)
Section 5: Moves repealed language under AS
29.45.030(k) to this section
Section 6: Updates AS 29.45.040(f) reflecting the
repeal of AS 29.45.030(i) reference to AS 29.45.050(x)
where the definition of "disabled veteran" is now
located as a result of this legislation
Section 7: Amends AS 29.45.050(i) allowing a
municipality to exempt real property from taxation
making it optional under state statute and places
widow or widower as a qualifier under this section
Section 8: Adds the definition of "disabled veteran"
and "widow or widower" to AS 29.45.050(x)
Section 9: Moves repealed language under AS
29.45.030(e) and AS 29.45.030(i) to this section
Section 10: Updates the program name change "community
assistance" in AS 29.45.660(b)
Section 11: Updates the program name change "community
assistance" in AS 29.60.810 (A)
Section 12: Updates the program name change "community
assistance" in AS 29.60.850 and reduces the minimum
balance to $15,000,000
Section 13: Updates the program name change "community
assistance" in AS 29.60.855, changes the basic amount
to $384,000, and directs the department to reduce the
basic amount pro rata if the fund balance is less than
$15,000,000
Section 14: Updates the program name change "community
assistance" in AS 29.60.860(a)
Section 15: Updates the program name change "community
assistance" in AS 29.60.860(b)
Section 16: Updates the program name change "community
assistance" in AS 29.60.865
Section 17: Adds the community assistance program to
the definition of "state money" in AS 29.71.040(h)(2)
- Procurement Preference
Section 18: Updates the program name change "community
assistance" in AS 36.10.090(b)
Section 19: Adds the community assistance program to
AS 36.10.125(c) - employment preferences
Section 20: Adds the community assistance program to
the definition of "state money" in AS 36.15.050(h)(3)
- Alaska Product Preference
Section 21: Adds the community assistance program to
AS 44.33.020(a) (20) requiring the Department of
Commerce, Community and Economic Development to
administer the program
Section 22: Updates the program name change "community
assistance" in AS 46.07.080(2)(iii)
Section 23: Repeals AS 29.45.0303(a)(6), 29.45.030Вј
29.45.030(f), 29.45.030(g), 29.45.030(i), and
29.45.030(k)
2:06:42 PM
Co-Chair MacKinnon queried recommendations from the
committee.
Co-Chair MacKinnon stressed that the state was in a $4
billion deficit.
Co-Chair Kelly shared a history of the state's unfunded
liability.
Co-Chair MacKinnon stressed that the suite of bills
attempted to address the holes in Alaska's budget. She
remarked that the bills would provide an opportunity for
communities to understand the state's problems. She
stressed that the committee was attempting to address the
long-term fiscal problem, and the state could not continue
to address the major issue with budget. She remarked that
the funds were not available to continue to invest in the
same way as it had in the past.
SB 210 was HEARD and HELD in committee for further
consideration.