HJR 14 - CONST. AM: PERMANENT FUND Number 1180 CHAIR COGHILL announced that the next order of business would be SPONSOR SUBSTITUTE FOR HOUSE JOINT RESOLUTION NO. 14, Proposing amendments to the Constitution of the State of Alaska relating to the Alaska permanent fund. [SSHJR 14 had been amended on 4/04/02.] Number 1232 REPRESENTATIVE CRAWFORD, sponsor, reiterated from his testimony from an earlier hearing that Alaska is the only state in the Union where the bottom 25 percent didn't lose ground to the top 25 percent in income over the last ten years, because of the permanent fund dividend. He acknowledged that the dividend has a good purpose and is a huge part of the state's economy. The permanent fund and the dividend both need to be protected, SSHJR 14 is a good way to do it, and it is recommended by the permanent fund board. He encouraged the committee to support it. Number 1330 REPRESENTATIVE JAMES said she doesn't like the legislation, but she indicated that she doesn't have a problem moving the resolution on to the House Judiciary Standing Committee. She said she isn't sure if this will be a priority before session ends. REPRESENTATIVE JAMES asked Representative Crawford to explain how he got his statistics on the 25 percent of the bottom and top levels of income. The statistics she has seen said that the poverty level has increased. She said she doesn't know if the dividend made the difference, except there are more people living in Alaska in poverty, who may have come here because of the dividend. There is good anecdotal information to support that. She said she favors protecting the dividend statutorily, not constitutionally. REPRESENTATIVE JAMES said there are some people who think the whole permanent fund belongs to them, and she disagrees with that assumption. She commented that she agrees that the money belongs to the state and to the people collectively, and what is done with the money is a decision for the legislature. She expressed concern about the extreme amount of poverty in the state and said that problem should be solved outside the permanent fund and the permanent fund dividend, so people have the opportunity to have a good job and take care of their own needs. This is a difficult issue because it is a political hot button. It needs to be dealt with and has to make good sense over the long term. CHAIR COGHILL said he still struggles with some of the issues in the resolution but is willing to move it on to the House Judiciary Standing Committee. Number 1628 REPRESENTATIVE STEVENS agreed to move the resolution out but expressed concern about the future of the permanent fund. REPRESENTATIVE HAYES moved to report SSHJR 14, as amended, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSSSHJR 14(STA) was reported out of the House State Affairs Standing Committee.