SENATE STATE AFFAIRS COMMITTEE  January 26, 1995 3:35 p.m. MEMBERS PRESENT Senator Bert Sharp, Chairman Senator Randy Phillips, Vice-Chairman Senator Loren Leman Senator Jim Duncan Senator Dave Donley MEMBERS ABSENT All Members Present COMMITTEE CALENDAR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 19 "An Act relating to the location of the convening of the legislature in regular session." SENATE CONCURRENT RESOLUTION NO. 2 Relating to reimbursement of expenses for residents who travel to the capital city to attend legislative sessions or to testify before legislative committees. SENATE CONCURRENT RESOLUTION NO. 3 Creating the Long Range Financial Planning Commission. PREVIOUS SENATE COMMITTEE ACTION SB 19 - No previous senate committee action. SCR 2 - No previous senate committee action. SCR 3 - No previous senate committee action. WITNESS REGISTER Senator Drue Pearce State Capitol, Juneau, Alaska, 99801-1182¶465-3755 POSITION STATEMENT: prime sponsor of SCR 3 Bill Miles, Aide to Senator Pearce State Capitol, Juneau, Alaska, 99801-1182¶465-3755 POSITION STATEMENT: prime sponsor of SCR 3 C. S. Christensen, Alaska Court System 303 K. Street, Anchorage, AK 99501¶264-8228 POSITION STATEMENT: testified on SCR 3 Pam Neal, Alaska State Chamber of Commerce 217 2nd Street, Suite 201, Juneau, AK 99801¶586-2323 POSITION STATEMENT: in favor of SCR 3 Jack Fargnoli, Office of Management & Budget P.O. Box 110001, Juneau, AK 99811-0001¶465-4678 POSITION STATEMENT: testified on HCR 3 Chuck Achberger, Juneau Chamber of Commerce 124 W. 5th Street, Juneau, AK 99801¶586-6420 POSITION STATEMENT: testified on SB 19 Jamie Parsons 2218 Emily Way, Juneau, AK 99801¶789-9201 POSITION STATEMENT: opposed to SB 19 and SCR 2 Charles Northrip, Juneau Economic Development Council & Small Business Development Center 400 Willoughby Ave., # 211, Juneau, AK 99801¶463-3662 POSITION STATEMENT: opposed to SB 19 and SCR 2 Chip Wagoner 3294 Pioneer Ave., Juneau, AK 99801¶586-1867 POSITION STATEMENT: opposed to SB 19 Brad Pierce, Office of Management & Budget P.O. Box 110001, Juneau, AK 99811-001¶465-4660 POSITION STATEMENT: testified on SB 19 Judy Erickson, Capital Information Group P.O. Box 021804, Juneau, AK 99802-1804¶586-3118 POSITION STATEMENT: opposed to SCR 2 ACTION NARRATIVE TAPE 95-1, SIDE A Number 001 CHAIRMAN SHARP calls the Senate State Affairs Committee to order at 3:35 pm. The chairman asks permission of the committee to introduce bills on behalf of the committee with the understanding that a draft copy of any bills introduced would be circulated to members at least a day prior to submission to the Senate Secretary. There is a brief discussion about the Chairman's proposal, but no objection is raised. Therefore, the chairman's proposal is approved. SSTA - 1/26/95 SCR 3 LONG RANGE FINANCIAL PLANNING COMMISSION  CHAIRMAN SHARP brings up SCR 3 as the first order of business before the committee and calls the first witness. Number 050 SENATOR PEARCE, prime sponsor of SCR 3, notifies committee members that there is a sponsor substitute in their bill packets, and notes that Chairman Sharp has suggested it be introduced as a State Affairs Committee substitute. Senator Pearce thinks, with declining oil revenues and an increasing fiscal gap, long-range fiscal planning is becoming more important. It is the intent of the House and Senate presiding officers that SCR 3 and HCR 1 give the legislature something on which to focus. These resolutions are not perfect, but they are on the table and we are open to comments and suggestions. This issue needs to be taken up now. Number 105 SENATOR PEARCE states there are eighteen entities which formally support SCR 3: the State Chamber of Commerce, Anchorage Chamber of Commerce, Alaska Oil & Gas Association, Alaska Municipal League, Common Sense for Alaska, National Federation of Independent Businesses, Resource Development Council, and others. The senator informs the committee that, although she cannot speak for Governor Knowles, the governor does support the concept of a long-range financial planning commission. Number 122 SENATOR PEARCE informs the committee that the sponsor substitute for SCR 3 was prepared to incorporate suggestions presented by the governor. The difference between the original and the substitute are: page 2, paragraphs (2) and (3), specify that one Senate member and one House member be from the minority; page 2, line 22, specify that one of the public members of the commission be the chairperson; page 3, paragraph (9), change the reporting deadline from 1996 to October 1, 1995. SENATOR PEARCE thanks the committee for scheduling SCR 3 and asks for their consideration of the resolution. Number 151 SENATOR DUNCAN asks Senator Pearce if the Governor agreed to the provision that all administration members have a non-voting membership. SENATOR PEARCE replies the administration wants the commission to have more public members than members from the legislature and the administration. The governor feels he will have a direct voice on the commission through the public members, which he will appoint. We did not want the commission to be dominated by people who are already in public service. Those members are there to be a resource to the commission. SENATOR DUNCAN states he will double-check with the governor on whether the governor approves of administration members being non- voting members. Senator Duncan thinks there should be a stronger voice from the administration on the commission. He asks if the members specified in the resolution are the ones appointed by the governor. Number 195 BILL MILES, Aide to Senator Pearce, responds he just received the substitute for SCR 3 and has not yet sent a copy to the governor's office. Number 198 SENATOR PEARCE adds that the members designated in the substitute are the same as were designated in the original resolution. Number 205 SENATOR DUNCAN asks why the commission is required to report by October 1, 1995, but the commission continues until January, 1997. SENATOR PEARCE replies that is probably an oversight, and the commission should probably be disbanded after the final report, unless there is interest shown in having the commission do additional work. Number 218 CHRIS CHRISTENSEN, General Counsel, Alaska Court System, states he has not had the opportunity to review the committee substitute for SCR 3, only the original version. Since the commission is intended to be a state planning commission, and not simply and executive planning commission, the judicial branch feels it should be allotted a seat on the commission. Mr. Christensen asks that the judicial branch be included in the long-term financial planning commission. Number 237 PAM NEAL, Alaska State Chamber of Commerce (ASCC), states ASCC supports SCR 3. In fact, ASCC's number one priority for the 1995 legislative session is fiscal planning to identify and employ innovative solutions to the state's budgetary problems. However, ASCC would like to offer some suggestions: technical experts should not be members of the commission, but should just serve the commission in a support capacity; review of state programs should include evaluating all services the state currently provides and identifying those traditionally provided by a state to its' citizens; identification of services not traditionally provided by a state, and which therefore could be eliminated or restructured; and insuring services are being provided efficiently and effectively. Only after Alaskans are assured that the state is providing just traditional government services, and these services are being provided efficiently and effectively, should the state look at other fiscal tools, such as increased taxation. Ms. Neal thanks the committee for allowing ASCC to present their ideas. Ms. Neal has provided the committee with copies of her testimony and copies of the ASCC resolution supporting long-term financial planning. Number 290 SENATOR RANDY PHILLIPS remarks that his constituency is opposed to the creation of another commission. His constituents suggested that groups in favor of the commission volunteer to fund it. Senator Phillips asks Ms. Neal if the ASCC would contribute funding for a long-range financial planning commission. Number 303 MS. NEAL states she has not seen a fiscal note for funding the commission. But speaking of government responsibilities, she thinks it is the government's responsibility to fund their own planning. SENATOR RANDY PHILLIPS states his constituents think the executive and legislative branches should be doing long-range financial planning in the first place. In addition, why not have volunteers do it, instead of spending the money? Number 315 JACK FARGNOLI, Member of the Policy Staff, Office of Management & Budget, states the governor supports the objectives of the legislation. But Mr. Fargnoli says he cannot offer an official position at this time since they haven't seen the proposed substitute yet. The governor is happy to work with the legislature on this legislation. Number 340 SENATOR DUNCAN asks Mr. Fargnoli if the governor has seen the proposed substitute. MR. FARGNOLI says he has been told that the governor's office has not yet seen the committee substitute. SENATOR DUNCAN comments he thinks the governor should have the opportunity to provide input before the resolution moves forward. MR. FARGNOLI responds that the governor definitely would like to see the proposed committee substitute. SENATOR DUNCAN asks the chairman if SCR 3 will be held in committee until the governor has a chance to respond to the committee substitute. Number 341 CHAIRMAN SHARP replies that SCR 3 will be held over for consideration at the next meeting of the State Affairs Committee, which will be on Tuesday, January 31, 1995. Some of the suggestions made by witnesses today will be considered. Number 347 SENATOR PEARCE states that many of the questions brought up at a meeting earlier this week with the governor's office have been addressed in the committee substitute. Senator Pearce appreciates the committee holding the SCR 3 for further work, and notes that the resolution will have to have a Finance Committee hearing since there is a fiscal note attached to it. CHAIRMAN SHARP announces that SCR 3 will be held until the committee meeting Tuesday, January 31, 1995. SSTA - 1/26/95 SB 19 LEGISLATIVE SESSIONS TO BE IN ANCHORAGE  Number 368 SENATOR SHARP brings up SB 19 as the next order of business before the Senate State Affairs Committee and calls the first witness. Number 373 SENATOR RANDY PHILLIPS, prime sponsor of SB 19, states SB 19 relates only to the legislature convening during regular session in Anchorage instead of in Juneau, and is not an entire capital move. SB 19 complies with the FRANK (Fiscally Responsible Alaskans Needing Knowledge) Initiative. Should this pass, the legislature will begin meeting in Anchorage in January, 1998. Those are the main components of this bill. Number 386 CHUCK ACHBERGER, Juneau Chamber of Commerce, asks that Juneau be given some time to work on being a better capital city. Some of the problems that need work, such as housing, require a long-term investment. Juneau is on the right track, but needs time to respond to the problems it has. Number 402 JAMIE PARSONS, Former Chairman, Alaska Committee, states he is opposed to SB 19. Collectively, Alaskans voted against the Capital Move Initiative this fall. Recently, The Alaska Committee and the Better Capital City Committee met and agreed to merge into one organization with the mission of following up and seeing to fruition issues which will make state government work better for all Alaskans. Mr. Parsons requests that the Nineteenth Alaska State Legislature give Juneau a few years of uninterrupted breathing room to allow the community to address some of these issues: housing, land and air access, and electronic and telecommunications access. To solve these problems, the community and the legislature will need to work jointly. MR. PARSONS thinks there are more pressing problems the state should be dealing with at this time. The last issue the state needs at this time is one that pits different regions of the state against one another. Number 432 SENATOR LEMAN adds that the previous several speakers hit upon two problems that are also of concern to him. A third problem he is concerned with is transportation to Juneau. Senator Leman states that at this time transportation is as good as it has ever been, but he asks Mr. Parsons what plans there are to help ensure that good, competitively priced transportation will continue to be available. Number 445 MR. PARSONS replies that the Global Positioning System (GPS) will eliminate at least 80% of weather interrupted arrivals and departures. The Alaska Committee has been working with Alaska Airlines on airfares and flight schedules, and will continue to do so. A representative from Alaska Airlines will be in town next week to meet with the Alaska Committee/Better Capital City Committee. The airfares now are very good. We have recently been made aware that the Alaska Airlines flight schedule is not as convenient for the legislature this year. We contacted the airline, and as of February 1, the schedule will be changed for the legislature's convenience. Number 465 CHARLES NORTHRIP, Director, Juneau Economic Development Council (JEDC) and The Southeast Alaska Small Business Development Center, states that many of the businesses he works with are engaged in the housing industry. Mr. Northrip states that measures like SB 19 make providing housing much more difficult, in that every time the capital move issue comes up, it dampens housing development. MR. NORTHRIP also states there is a possibility that the GPS being installed at the airport may increase competition by attracting more air carriers to Juneau. Since the GPS will decrease the incidence of flights being weathered in or out of Juneau, each of which costs approximately $10,000, Juneau will become a more attractive destination for air carriers. MR. NORTHRIP states the JEDC is working with building contractors, the City & Borough of Juneau, banks, and realtors, and making housing its' top priority. Number 513 SENATOR RANDY PHILLIPS states that two-thirds of his constituents want to move not only the legislature, but the whole capital. Senator Phillips believes citizen access is a real problem which Juneau needs to address. Number 532 CHIP WAGONER thinks, in regards to Senator Phillips concern about access to the capital city, Juneau's delegation in the legislature would vote for a road out of Juneau, a communications system, and a computer system. Mr. Wagoner thinks Juneau will support access issues if other members of the legislature will. Mr. Wagoner says he is speaking as a republican and wants the republican majority to succeed. However, he does not want the legislature wasting their time on a capital move bill. He wants the legislature to be promoting timber, logging, mining development, fishing, supporting the University of Alaska deferred maintenance program, and perhaps working on a food bank for Juneau. Bigger issues, even to people in Eagle River, are crime, budgetary problems, lack of development, lawsuits with the federal government, the subsistence issue, reallocation of resources, etcetera. Mr. Wagoner restates he wants the republican majority to succeed, and concentrate with the limited time and funds available on the issues that count to Alaskans. Number 560 SENATOR LEMAN asks Mr. Wagoner if he has seen the "Contract with Alaska". MR. WAGONER responds he has not seen it, but he has heard of it. SENATOR LEMAN asks Mr. Wagoner to take a look at the contract and get back to him with comments he might have. Number 570 BRAD PIERCE, Policy Analyst, Office of Management & Budget, informs the committee he put together the consolidated fiscal note for SB 19. Although OMB took a fresh look at this issue, and did not simply pull information from previous fiscal notes, the cost figure is in the same ballpark as last year. The estimated figure would be about 2.6 million per year. Mr. Pierce also informs members that a revised fiscal note from the Division of Postsecondary Education has been submitted to the committee. TAPE 95-1, SIDE B Number 580 CHAIRMAN SHARP notes that SB 19 has considerable fiscal notes, which will be scrutinized in detail in the next committee of referral, the Finance Committee. SENATOR RANDY PHILLIPS makes a motion to discharge SB 19 from the Senate State Affairs Committee with individual recommendations. Number 565 SENATOR DUNCAN objects. Senator Duncan states he wants to go on record as objecting, and that he will recommend "do not pass" on the committee report. With that statement, he removes his objection. Number 525 CHAIRMAN SHARP comments there is considerable difference between the ballot question that was decided this fall and SB 19, and the discussion is healthy. But he also has constituents who complain about accessing the capital. Senator Sharp does not know how one would solve that problem in a state as big as Alaska, or whether it is solvable. Senator Sharp notes that he has been fortunate in the six years he has been in Juneau in that he has never had a problem acquiring adequate housing; nor has he had a problem with travelling into or out of Juneau. Number 512 SENATOR LEMAN adds that he has found the people of Juneau to be very hospitable. Since the capital move issue has reemerged, he has noticed an increased attention to detail. However, he has noticed frustration on the part of people that government is inaccessible to the people. Senator Leman suggests perhaps having all day hearings around the state: bringing the legislature to the people. Number 487 SENATOR DUNCAN thinks Senator Leman's suggestion is a good one, and that a change in the Uniform Rules would be needed in order to do something like that. Senator Duncan says he would be happy to work on doing that. He would certainly advocate holding meetings around the state. Number 481 SENATOR LEMAN comments he went with Representative Mackie and a group of people to Prince of Wales Island. That was a big deal to the residents of the island. We had a public forum, they got a chance to express their concerns, and the people really seemed to appreciate it. Number 473 CHAIRMAN SHARP, hearing no objection or further comments, orders SB 19 released from committee with individual recommendations. SSTA - 1/26/95 SCR 2 REIMBURSEMENT FOR TRAVEL TO CAPITAL CITY  SENATOR SHARP brings up SCR 2 as the last order of business before the Senate State Affairs Committee and calls the first witness. Number 467 SENATOR RANDY PHILLIPS, prime sponsor of SCR 2, states the resolution would provide access to state government. This is a request to the City & Borough of Juneau to provide access to the citizens of the state. There are 5.3 million dollars in CBJ's rainy day account. By investing a few dollars in providing access, Senator Phillips thinks the capital move issue, over time, will go away. This is another way of enabling citizens to have access to the capital city. SENATOR DUNCAN asks Senator Phillips if people would be reimbursed for travel to testify at all legislative committees, including Legislative Council and Budget & Audit. SENATOR RANDY PHILLIPS replies it would include all committees. Legislative Affairs Agency, through the Legislative Council, will set up qualification criteria with the City & Borough of Juneau. Whether or not airfare would be paid for people to attend the Legislative Budget & Audit Committee would be a policy decision that would have to be made. Number 430 SENATOR DUNCAN asks Senator Phillips if the City of Anchorage will pay expenses for people who want to attend a meeting being held in Anchorage. SENATOR RANDY PHILLIPS thinks if the legislature was in Anchorage, then the City of Anchorage should pay travel expenses for people to attend hearings in Anchorage. SENATOR DUNCAN thinks many people are frustrated with administrative programs, and if a person has to fly in to Anchorage from Sleetmute, shouldn't the City of Anchorage help pay for their travel? Number 416 SENATOR RANDY PHILLIPS responds most complaints he hears about state government originate from programs administered in Juneau. SENATOR DUNCAN thinks SCR 2 should apply to government programs in every community in the state, not just Juneau. Number 403 JUDY ERICKSON, former member of the Alaska Committee, hopes if the committee moves out SCR 2, an actual dollar figure will be attached to the resolution. We have homeless people here in Juneau, and as a taxpayer, she has a problem with the legislature asking Juneau to reimburse people to travel to Juneau. Ms. Erickson thinks Senator Phillips should poll his constituents on how many would want to pay travel expenses for residents from other areas to attend the legislature if it was moved to Anchorage. Number 386 SENATOR RANDY PHILLIPS says Juneau has to look at SCR 2 as an opportunity. If only airfare is reimbursed, travelers will still have to pay for meals and lodging. Juneau can make some money off SCR 2. MS. ERICKSON responds videoteleconferencing would be a good step towards better access. The subject has come up before the legislature several times, but it has been rejected. She believes the people of Juneau would support helping fund videoteleconferencing. Number 360 JAMIE PARSONS, former member, Alaska Committee, thinks it is important to continue dialogue with air carriers. He also thinks videoteleconferencing would improve access for many citizens. For clarification, the City & Borough of Juneau has an obligation to the community to have 10 million dollars in the Rainy Day Account by 1997. So the money used on the Alaska Committee campaign was basically a loan that has to be repaid. Number 343 SENATOR RANDY PHILLIPS asks how that money is going to be repaid. MR. PARSONS replies more than 2 million dollars a year is coming in from the 1% sales tax. SENATOR RANDY PHILLIPS asks Mr. Parsons why he does not think spending money from the Rainy Day Account will help Juneau fend off the capital move issue. Number 338 MR. PARSONS responds more effect could be had by helping fund videoteleconferencing and emphasizing electronic access than by using money for travel funds. Number 333 CHARLES NORTHRIP, Juneau Economic Development Council, states that access isn't as simple as having airfare: access is a time issue. Many people, even if they can afford a plane ticket, do not have the time to come to the capital. Mr. Northrip adds his support to testimony already given supporting videoteleconferencing and improved airline service. Mr. Northrip does not think SCR 2 would be the best use of funds for improving access to the capital. Number 310 CHAIRMAN SHARP states the committee will be holding SCR 2 for further consideration. The chairman reminds members that on Tuesday, January 31, 1995 the committee will be hearing SCR 4, SJR 11, and SB 40. Number 302 SENATOR DONLEY announces he has a proposal in the committee which would amend the U.S. Constitution regarding campaign spending limits. An amendment to the U.S. Constitution is the only way to address this question. Campaign spending limits are an appropriate alternative to public financing of elections. Senator Donley asks for support and rapport on SJR 4 from other committee members. Number 270 CHAIRMAN SHARP adjourns the Senate State Affairs Committee meeting at 4:50 p.m.