Dear Neighbors,

This year's legislative session is nearing the end. While many of you may join the chorus of “thank goodness” you may be interested in some of the critical issues we must still decide before midnight on May 11. We are working hard on the budget, on ways to address the fiscal gap, and many other issues of importance to Alaskans. This week and next, the following issues are being debated in the House and Senate:

Fiscal Gap Work:

The Percent of Market Value (POMV) approach to managing the Permanent Fund will be up for a vote in the House on Monday. In the Senate, the issue is under consideration through SJR 18 in the Senate Finance Committee. Under POMV, the total market value of the Fund (principal and earnings combined) would be averaged over the previous five years. Five percent of that average would be available to be withdrawn from the Fund. Under POMV, the principal of the Fund would also be automatically inflation-proofed. As the law is now, the Legislature must appropriate the inflation-proofing funding, and has done so each year.) You can read much more about POMV at http://www.apfc.org/pomv/index.cfm. The resolution that would place the question before the voters is HJR 26. You can read more about it at http://www.legis.state.ak.us/basis/
get_complete_bill.asp?session=23&bill=HJR26.

Yesterday, the House passed HJR 9, a resolution proposing a constitutional spending limit. It will likely be brought up for a reconsideration vote on Monday. HJR 9 would call for a question to be placed on the ballot asking Alaskans whether or not to amend Alaska Constitution to include a spending limit and limitations on the growth of the budget. HJR 9 was amended on the floor to include a sunset date; the spending limit would be repealed on July 1, 2009 unless it is put before the voters again before that date. A similar resolution, SJR 3, was up for a vote in the Senate on April 13th but the required two-thirds vote to put a question on the ballot failed because Senate Minority members refused to support it. You can read more about HJR 9 at http://www.legis.state.ak.us/basis/
get_complete_bill.asp?session=23&bill=HJR9 or contact Representative Bill Stoltze, the bill's sponsor, at 465-4958.

Budget Bills:

Yesterday, the Senate passed HB 375, the state's operating budget bill. As occurs every year, the operating budget bill will now go to a conference committee to work out the differences between the versions passed by the House and Senate. The minority did not vote for the section of the bill allowing the budget shortfall to be paid through the Constitutional Budget Reserve (CBR). The minority will likely continue to bargain for its “CBR vote” after the conference committee has finished its work in hopes they will get what they want in the budget. You can read more about HB 375 at http://www.legis.state.ak.us/basis/
get_bill.asp?session=23&bill=HB375 and get specific budget information at the Legislative Finance website at www.legfin.state.ak.us.

The Capital budget, which funds road, major maintenance, etc., is currently in Senate Finance. While the Senate majority would like to keep next year's Capital budget as small as possible, the House is asking that a number of projects be added. Negotiations are ongoing and I hope to see a finished product next week. The Capital budget is SB 257. You can track this bill at http://www.legis.state.ak.us/basis/
get_complete_bill.asp?session=23&bill=SB257.

Education Funding:

One very important issue for all legislators is education funding. The Senate Majority proposed adding $82 million to K-12 education funding and $15.8 million to the University of Alaska. However, the Senate Democrats did not support this. SB 283, as passed by the House, would increase K-12 education funding by $84.2 million, increase University funding by $15.8 million, and, in order to get the minority's support, fund various capital projects in rural areas. However, the Senate Majority has rejected the addition of those capital projects. Instead, the Senate Majority feels the top 15 school maintenance projects are more appropriate for an education-funding bill than docks and bulldozers. So, SB 283 is currently in conference committee.

Concerned that the conference committee may not be able to work out the disagreement, and wishing to support increased funding for both K-12 and university funding, the Senate added the $82 million increase for K-12 and the $15.8 million increase for the University of Alaska to the Operating budget we passed yesterday. While I would have much preferred these increases to be finalized before districts had to send out teacher lay-off notices, I am confident that Alaskan students will see significantly more money in their classrooms next school year and that teachers will not have to be laid off.

Committee Hearings Next Week:

For those of you who are paying close attention to particular bills being considered in various committees, please take note. As soon as the Operating budget conference committee members are appointed, most likely on Monday, the Legislature will go to the “24-Hour Rule.” That means that committees will no longer have to provide notice of bills to be heard the week before the hearing. Once the conferees are appointed, committees will only have to give 24-hours notice. So if you are following any bills, please check the Bill Action and Status Inquiry System (BASIS) daily at www.legis.state.ak.us/basis. Just click on the link for “Committee Meeting and Public Hearing Schedule” on the lower right side of the page and input the dates and/or committees in which you are interested.

Some of the bills in which you may be interested have been scheduled for hearings next week:

• SB 368, “Tobacco Tax/Licensing; Penalties” in Senate Finance on April 26th
• HB 428, “Civil Penalty: Underage Alcohol Purchases” in Senate Judiciary on April 27th
• SB 65, “Correctional Facility Expansion” in Senate Finance on April 27th
• HB 334, “Unlawful Exploitation of Minor/Child Porn” in Senate State Affairs on April 27th
• HB 273, “Parent's Waiver of Child's Sports Claim” in Senate State Affairs on April 29th

Please check BASIS for a full list of committee hearings in the House and Senate or call my office at 1-800-892-4843 for more information.

All of these and many other important issues must be decided by midnight on May 11th.

If you have any questions, concerns or suggestions about any of the bills before the Legislature, please do e-mail me or give me a call. I will appreciate the opportunity.

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