GENERAL SUBJECT(S): BALANCED BUDGET PLAN - Public Testimony The following overview was taken in log note format. Tapes and handouts will be on file with the Senate Finance Committee through the 21st Legislative Session, contact 465-2618. After the 21st Legislative session they will be available through the Legislative Library at 465-3808. Time Meeting Convened: 9:10 A.M. Tape(s): SFC-99 #66, Side A PRESENT: X Senator Parnell X Senator Adams X Senator Torgerson X Senator P. Kelly X Senator Donley 9:20 Senator Green X Senator Leman X Senator Phillips X Senator Wilken ALSO PRESENT: DAVID TEAL, Director, Division of Legislative Finance; PHIL OKESON, Fiscal Analyst, Division of Legislative Finance; aides to committee members and other members of the Legislature. LOG SPEAKER DISCUSSION 000 Co-Chair Parnell Convened the meeting and outlined the schedule. At 10:00 a.m. Co-chair Torgerson will hear bills. At this time the committee will consider public testimony on the Balanced Budget. Glen Biegel Testified before the committee via teleconference from Anchorage. Referred to his written statement "The Alaska Moderator". He read his statement into the record. He said we did have the tools to provide necessary incentive to people for budget. (Poor quality teleconference) May not make sense to cut programs. What is important is that solutions be considered so that local areas can figure their own capital projects. This would be a unique opportunity for Legislators to coordinate local efforts. Need local oversight and local suggestions to overcome their difficulties. Concluded his comments. Senator Parnell What does one do with unorganized areas of the State where there is no taxing? Mr. Biegel No implementation of tax on local level. Local individuals and local legislators put together a group. Purpose would be individuals who understand local needs and which ones are more critical. Decisions have to be made and it is better for the local commission to do this. Senator Phillips "Are you talking about local REAA's?" Mr. Biegel "Yes." Senator Phillips Asked about the unbalance between organized and unorganized areas in the State. Mr. Biegel He said there was much wasted area in the State. However, they can come up with ways to reduce government and will be able to come up with a more balanced level. Cannot be taken care of on a statewide level. Senator Phillips Query. Mr. Biegel Indicated he was a full time administrator and also has other jobs. In response to Co-chair Parnell he said he just provided a basic, simple overview. Senator Leman Appreciated his proposed plan. Refers to the Moderator Plan, page 2. Apparently it was garbled and unintelligible. Co-chair Parnell Thanked Mr. Biegel. Asked James Fisher to join the committee. James E. Fisher Was invited to join the committee. With reference to his handout, he told the committee that a staffer cautioned that the devil was in the details. Income tax is essential to pay for our civilization and the needs of our State. Economist David Reaume's warning. Body should invoke a state tax with lower rate during months that our economy is low and higher rate when economy is good. Senator Leman Knows Mr. Fisher approximately forty-five years. Even though he does not agree with David Reaume he appreciated the ideas forwarded by Mr. Fisher. Senator Wilken Query. Mr. Fisher Income tax statute that money would be utilized for education. Would find greater acceptance over grumbling. Not have retribution. Senator Phillips Not voting for income tax and his district did not go along with this either. He asked how would services be paid for in areas that are requesting such and no taxes are being paid? This was putting undue burden on those who do pay for their own services. Everyone has responsibility to solve the problem; not be part of it. Mr. Fisher Those receiving services are those in the middle range. We get the benefits, we can do the paying. Others should help along. Must be a compassionate government. Co-chair Parnell Returned to Anchorage LIO for further testimony. Charles McKee Testified via teleconference from Anchorage. Referred to his web site. Been resident for approximately 30 years. Alaska could be economic capital of the world. Could be long range view. Co-chair Parnell Thanked everyone for testifying. Called attention to the handout from Kip Knudsen. Thoughtful ideas presented. Will stand in recess briefly to prepare for bill hearing. 440 Co-chair Parnell adjourned the committee at approximately 9:40 a.m. SENATE FINANCE COMMITTEE LOG NOTES 03/26/99 Page 3