HB 259-PERMANENT FUND DIVIDEND; 25/75 POMV SPLIT  12:28:59 PM CHAIR SPOHNHOLZ announced that the final order of business would be HOUSE BILL NO. 259, "An Act relating to use of income of the Alaska permanent fund; relating to the amount of the permanent fund dividend; relating to the duties of the commissioner of revenue; relating to funding for state aid for school districts, the state boarding school, centralized correspondence study, and transportation of pupils; and providing for an effective date." 12:29:12 PM CHAIR SPOHNHOLZ opened public testimony on HB 259. 12:29:59 PM CARRIE HARRIS argued that putting money in the hands of the people creates jobs, and that the PFD payouts create more jobs. She urged that public officials should read written testimony sent to their emails. She emphasized that she is against HB 259 and mentioned that she plans to vote for a constitutional convention. She reiterated that a traditional PFD should be put forth so "the people" can use the money to create jobs and keep it in our local economies. She opined that the judicial council should be abolished. 12:32:23 PM DIANNE MACRAE Emphasized that the private sector cannot compete against the government "doing everything for everyone." She mentioned that Alaska's schools are fully funded and yet are ranked towards the bottom when compared to other states which could exemplify that money does not always solve problems. She stressed that we are "destroying our children with lack of an education and more of an indoctrination." She declared her disgust with the idea of comparing Alaska's budget with other states state and local spending. She remarked that budget cuts should be made to programs that provide needles to drug users [Syringe Service Programs are non-government affiliated nonprofits]. CHAIR SPOHNHOLZ reminded testifiers that the testimony is not about the previous presentation, but instead about HB 259. 12:34:56 PM APRIL ORTH testified in opposition to HB 259 and mentioned that the PFD was not intended to be used to fund the government and is meant to be used for the people. She reminded the committee that the PFD is meant to be shared wealth that is constitutionally mandated. 12:36:19 PM GAIL LIMBAUGH-MOORE testified in opposition to HB 259. She remarked that the 25/75 split is unacceptable to her and gave her preference for a 50/50 split. 12:37:07 PM TERRI LYONS testified in opposition to HB 259. She opined that money will not solve problems in our education system. She stated that, according to statute, the PFD cannot be used on education. She postulated that attempting to use the PFD for education is a front to take the PFD away from Alaska residents. 12:38:22 PM ED MARTIN testified in opposition to HB 259. He recollected paying a school tax of $10 in the 1970s. He argued that the PFD currently benefits all Alaskans, and that the proposed bill would instead benefit "some special interest teachers union." He also mentioned the current rate of inflation. 12:40:43 PM BERT HOUGHTALING testified in opposition to HB 259. He suggested that the House Ways and Means Committee is attempting to subvert the rights of Alaskans for the PFD. He commented on past bills that have attempted to utilize the PFD in ways other than directly paying Alaskans. He insisted that the PFD belongs to the citizens of Alaskans. He claimed that the school districts have 10 percent fewer students and that their budget is not cut. 12:42:45 PM MICHAEL GARHART testified in opposition to HB 259. He argued that the proposed split does not benefit all Alaskans. He spoke in favor of the current 50/50 split. He insisted that that the state has stolen from the PFD and that it has negatively impacted the state's economy. He alluded to Senator Shower's bills to protect the PFD and expressed his disappointment that those bills have not been spoken of in committee meetings. 12:44:00 PM ALAPAK MOORE testified in opposition to HB 259. 12:45:55 PM JEN GUNDERSON testified in support of HB 259. She noted the necessity to find a sustainable way to fund our schools. She commented that to have thriving schools, school districts must have reliable and consistent funding. She mentioned that in Fairbanks, Alaska they are facing a $19 million deficit, schools are closing, the student to teacher ratio is increasing and teachers are being offered contracts that reduce their pay and healthcare coverage. She stated that we can't expect our teachers to stay in a system where they are unfairly compensated, especially given the recent difficulties of their jobs due to the pandemic. She emphasized that it is the constitutional duty of the committee to provide adequate funding for Alaska's schools. 12:47:01 PM KATHY SWANSON testified in opposition to HB 259. She commented about her preference to return to the statutory formula. She commented that spending money on education may not result in improvements. She referenced that Alaska currently "spends the most, with the worst results." She suggested spending money on reading specialists instead of on schools as a whole. She commented that PFD money as it is currently spent, goes "right back into our economy." She suggested that household income has a significant impact on children's proficiency in school. 12:49:18 PM TIM DORAN testified in favor of HB 259. He declared that now is the time to invest in Alaska's public education system and its students. He referred to a degradation in the base allocation, primarily due to inflation. He noted that in Fairbanks, three schools had to close, and there have been reductions in support staff and issues in recruitment and retention. He noted that HB 259 is a step towards fulfilling the state's constitutional responsibility for education. He insured that investment in education pays off. 12:52:29 PM DAVID HURN testified in opposition to HB 259. 12:53:10 PM JOHN LARSON testified in support of HB 259 and mentioned that Alaska is falling behind in keeping up with inflation regarding public education. He commented that HB 259 provides an eloquent and equitable solution to the dual questions of funding the PFD and funding public education. He remarked that the "P" in PFD stands for "permanent" and includes all generations of future Alaskans. He mentioned that providing more funding to the schools will result in smaller classes which can lead to better education and less crime. He concluded with the thought that "if you think education is expensive, try ignorance." 12:55:44 PM PETE HOEPFNER, Vice President of the Cordova School Board, testified in support of HB 259. He listed many negative factors that school districts face today including the cost shifting from the state to communities, withdrawing the school bond debt reimbursement, teacher retention/recruitment issues, the current retirement system that incentivizes teachers to leave the state after 5 years, declining base student allocation funding, and the rising cost of health care. Mr. Hoepfner mentioned that HB 259 could help to stabilize education funding. HB 259 would address the recommendations of the legislative fiscal working group and create a workable solution to fund the PFD, allow a stable source of revenue for education, and allow districts to concentrate on education, innovation, and student achievement rather than continuing to reduce programs and staff while classroom sizes increase beyond capacity. 12:57:39 PM CHAIR SPOHNHOLZ closed public testimony on HB 259. [HB 259 was held over.]