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Operating Budget Passes the House
The operating budget, HB108, has passed the House. It is now on the way to the Senate for further consideration. The $8.9 billion dollar budget was guided by a sense of fiscal responsibility and prioritized essential state service and commitments to education, health and public safety.
K-12 education is a major portion of the FY12 budget. The foundation and pupil transportation programs total $1.14 billion in general funds (20% of the general funds). The University of Alaska general fund totals $663.2 million (11.6 % of general funds).
Large portions of the budget are consumed by the Department of Health and Social Services with nearly $2.5 billion, or 27% of the entire state operating budget. Department of Transportation & Public Facilities is nearly 6% of the general fund budget and Department of Corrections with nearly 5%.
Domestic violence and sexual assault initiative of $3 million in the Governor’s Office was moved into the base budget to reflect the consensus that on-going work is needed to address the epidemic in our communities.
Power Cost Equalization is funded at $34.3 million and the Energy Assistance Program is funded at $21.1 million. The budget also includes $400 million for the oil and gas tax credit fund and $60 million for community revenue sharing.
The price of oil needed to balance our budget stands at $83 a barrel. If the Governor’s oil tax proposal takes effect, we will need oil at $95 a barrel to cover current costs.
I commend the House Finance Committee and Subcommittees for their hard work. I enjoyed hearing from residents who came to testify to the Finance Committee and appreciate the time you took to put your comments on the record.
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HB 36 Initiative Disclosure
HB 36 passed the House on a 35 to 5 vote. If adopted, the measure will strengthen disclosure requirements for voter initiatives, similar to the requirements placed on individual candidates. It will also require the Lt. Governor’s office to hold two public hearings in each of the four judicial districts, with an opportunity given for pro and con viewpoints to be presented.
The legislation is the result of several highly publicized state-wide campaigns that led to APOC violations due to problems with financial reporting. One example is ballot measure 4, the mining initiative, which was well funded on both sides of the issue. At the time, it was difficult knowing who was backing the campaigns. The ballot language was general and less precise than language found in current federal and state law.
Strengthened public disclosure and better public education will improve the initiative process and benefit Alaskans with a more open public process, improving the checks and balances which are inherent in our representative government.
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HCR 22 Establishment of Northern Waters Task Force
Community and Regional Affairs Co-Chairs Bob Herron (Bethel) and Cathy Munoz have collaborated with Representatives Alan Austerman (Kodiak) and Reggie Joule (Kotzebue) to create a Northern Waters Task Force. HCR 22 passed out of the CRA committee today.
Alaska has a unique role and interest in the development of U.S. Arctic policy on navigation routes, resource development, military activity and commerce. With the rapid recession of the Arctic icepack, nations are actively promoting and defending their interests. The Task Force will assess and facilitate the creation of a joint state and federal entity to coordinate United States and Alaska interests.
Trans-arctic shipping, commercial transportation, fishing rights, wildlife protection, emergency response, and port development are a few of the many issues that will be addressed by the Northern Water Task Force.
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University Land Bill
House Bill 295 passed out of the House Community and Regional Affairs committee today with four amendments. The bill includes approximately 200,000 acres of state owned land located throughout Alaska for proposed transfer to the University of Alaska. As a land grant school, the university has yet to receive its’ constitutional land allotment. Proposed revenues generated through the sale of home site parcels, leases, and in certain cases, mineral development will be used to generate revenue for university programs. The bill includes approximately 30,000 acres of land in southeast Alaska. In the Juneau area, a small parcel near Auke Lake and a large tract near Lena on the hillside above the new Glacier highway bypass are included.
The four amendments deleted 3 parcels in the Haines borough for potential borough allotment selections, 40 acres surrounding the Tenakee boat harbor, and the Mite Cove parcel at Pelican. The committee also approved historical covenant language on a 5 acre parcel at Sumdum in Endicott Arm.
Over the past 10 years, several legislative attempts resulted in a lawsuit filed by SEACC to stop the sale of any of the lands. SEACC successfully challenged the university on the constitutional dedication of funds clause, which disallows dedicated revenues for a specific purpose. Current legislation requires legislative annual appropriation of university receipts, thus addressing the constitutional problem identified in the lawsuit.
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Legislative Update
Thanks to everybody who came to the constituent meeting on Saturday. We received a lot of feedback and will be working specifically on several issues that were brought to our attention.
It is a great pleasure to welcome returning legislators to Juneau and begin work on the second half of the 26th Alaska State Legislature. I am enclosing a brief overview of the Governor's and Legislature’s priorities, as well as specific issues that we are working on for Juneau and Southeast Alaska. Please let me know if there is anything that I can do to assist you, or if you would like more detailed information on any of the subjects covered in this communication.
Governor's Program
Education
Merit High School Scholarship Program
College prep program with four years English, Math, Science and three years Social Studies
Scholarship amount based on achievement: C+ = 50% funding, B = 75%, A = 100%
Domestic Violence
More VPSOs and Police Officers
Tougher Sentencing and Prosecution
Resource Development
In-State Gas-Line
Trans-Canada/Exxon Mobil Gasline Proposal
Mining
Outer Continental Shelf Development
ACES – evaluation of current tax policies
Tourism Marketing and Support
University Lands Bill
State’s Rights Over Federal Intrusion
Outer Continental Shelf Development
Cook Inlet Beluga Whale Listing
Tourism Ocean Zones
Legislature’s Program
Capital and Operating Budgets for Juneau
Johnson Youth Center Remodel
Auke Bay Intersection
Extension of Glacier Highway to Cascade Point
Alaska Class Ferry
AMHS Rehabilitation Funds
Terminal Upgrades
Egan Drive Improvements
Riverside Drive Improvements
Education
Forward fund public K-12
Needs based scholarships
Strategies to reduce Alaska’s drop-out rate
Southeast Intertie Development
Kake to Petersburg Intertie
Thayer Creek, Angoon
AK/BC Project
HB 161 (Subport building legislation)
In Senate Finance Committee
Working with Senate Leadership and Juneau Delegation
Working with mental health managers and trustees on cost estimates
Preparing for hearing
A lot of work but still favorable for success
HB 30 (Public Employee Retirement System)
A return to a defined benefit retirement system
In House Labor and Commerce Committee
On Senate Side (SB 23) – In Senate Finance
Looking at a longer range strategy to fix retirement system
Gaining bi-partisan support
Limited opposition but in powerful positions
HB 270 Senior In-Home Care and Nursing Home Care
Medicaid reimbursement rates set via income eligibility
Income eligibility set at 2003 rates (equal to $1,656 per month)
Bill would bring income eligibility to 2010 rates (or $2,022 per month)
HB 235 (WICHE Loan Forgiveness Program)
Partial loan forgiveness for students entering health care career training not offered in Alaska
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Special Session
Hundreds of protesters organized outside of the Egan Center on the first and only day of the special session. Represented were groups for and against the energy stimulus money and another group advocating for medical care for disabled and senior citizen Alaskans.
The highlight of the session was a special presentation made in honor of Lu Young, wife of Congressman Don Young. Congressman Young, accompanied by his daughter, received an Alaska State flag presented in a glass encased box as a special recognition of the many years of service that Mrs. Young has given to Alaska. The flag had flown in her honor at the State Capitol. It was a very emotional moment, and the Congressman received a standing ovation.
The votes went quickly. The stimulus money was accepted with a 45 to 14 vote. 45 votes were necessary to override the Governor’s veto.
I have studied the energy issue very closely for months. A recent statement reviewed by the lead counsel of the Department of Energy ensures that Alaska does not need to adopt a state-wide energy building code as referenced in the stimulus bill. I also learned that these funds are part of the same revenue source that Alaska has participated in since 1996. In recent years, we have received approximately $500,000 a year from the Federal Government for energy programs, and the $28 million will be a continuation of that funding stream.
Lt. Governor Campbell received all but four votes. The four members voting against the confirmation were Rep. Thomas, Rep. Crawford, Senator Kookesh and Senator Paskvan. I sat in on a hearing earlier in the day, and learned more about his background including 9 years on the Anchorage Assembly. He is a fiscal and social conservative, a career military man, and has a lengthy record of public service. He was accompanied at the hearing and swearing-in ceremony by his wife, two daughters and granddaughter.
Senator Stedman of Sitka proposed an additional item for consideration, the override of several projects in his district vetoed by Governor Palin. The motion made by Senator Hoffman also included override consideration of funding for an Anchorage Courthouse project. There was general concern with the approach of adding additional items to the limited agenda. The motion failed by a wide margin, however all of southeast legislators supported the proposal.
I was not happy with the decision to hold the special session in Anchorage. Early on, I understood that the agenda would be limited to two issues, the Lt. Governor vote and the $28.6 million energy stimulus vote. With the major renovation of the House and Senate Chambers under way, and the need to address the override issue immediately, I focused on studying the two issues we would be called to vote on. I am pleased we have a new Lt. Governor and the energy issue can finally be put to rest.
Here at home we are anxious to get a decision on the Kensington 404 permit. The official comment period ended on August 3. We are very enthusiastic about a positive outcome of the 404 permit.
It is an honor to serve district 4 in the Alaska Legislature. Please do not hesitate to contact me if you need assistance.
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House passes resolution to support Kensington Mine
The Alaska State House unanimously passed a resolution, HR12, sponsored by Rep. Cathy Muñoz which re-affirms the House’s long term commitment to the Kensington Gold Mine.
The Kensington Mine is a vital project to the community of Juneau. Couer Alaska has spent more than $30 million on studies to develop the mine in an environmentally responsible fashion, and $33 million on preliminary construction.
Due to the August 2006 injunction imposed by the 9 circuit court, some of the 70-plus permits authorizing the mine that were in place are now in jeopardy. Decision of the U.S. Supreme Court is imminent, and should the Court rule in favor of the mine, the federal and state agencies need to be ready to assist Couer in seeking continuations and reinstatement of these important operational permits.
Review letter from COEUR: COEUR Ltr.pdf (27.83 kb)
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House Bill 35: Notice & Consent of Minor's Abortions
HB 35 recently passed the House of Representatives 22 to 14. The proposed law would require parental consent for an abortion for girls aged 16 and younger. There are flexible provisions to allow exemptions to the consent requirement in cases of violent home life, rape and incest by allowing for a notarized statement by another adult of the known abuse. This can be provided by a legal aged sibling, neighbor, grandparent or other involved adult.
I voted in favor of this legislation and am comfortable that the language in the bill provides important parental involvement while also protecting our most vulnerable citizens with straightforward provisions that allow a teenager to avoid involving abusive parents in the decision.
The bill is now on its’ way to the Senate where it is expected to face difficult passage. Already, there is an effort on the Senate side to amend the intent to parental notification with the hope that the less restrictive designation would build greater support for its’ ultimate passage.
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