Dear Friends and Neighbors,
Although you’ve probably picked up that my focus has been #AllAboutTheBudget from day one, we made that official in the House with HCR 23, setting aside other bills until we pass the operating budget over to the Senate. I welcome this opportunity in this historic year when we face a $3.8 billion shortfall. This past week, I heard three of the governor’s tax bills (motor fuel, alcohol and cruise head taxes) – along with many Alaskans testifying – in two standing committees. In addition, I sit on Corrections, Fish & Game and Transportation Finance Subcommittees, where we’re looking hard at department budgets, including ideas submitted through the Idea Line (400 so far) and via #AllAboutTheBudget on social media.
A theme is beginning to resonate: Alaskans want substantial, not slight, reductions first. After large reductions, we’ll need to use some interest off the Permanent Fund (not the Fund itself). My job is to look out for the best interest of Alaskans, so I’ve been troubled to discover that no analysis was done before the tax bills were drafted to assess how they’d impact individuals, families, communities, regions or our state economy. Instead, it was all about how much they would bring in to pay for government. Yes, we must act this year, but no, we don’t need to fix everything in one year – and that is a blessing because the livelihoods of Alaskans are at stake. We need to do this right.
Representative Max Gruenberg served our state well..
Max was somebody you couldn’t help but like – even love. In a way, it’s fitting that he passed yesterday, on Valentine’s Day. Everybody loved Max. When he disagreed with someone on the other side of the aisle, he didn’t jab or make the other person look bad or uncaring; he zeroed in on what he thought was best and right for Alaskans in the wording of the bill, down to the minute detail. We could all learn a lesson or two from Max – at least I know I could. Although I didn’t have the blessing of working with him as many years as some, the few I did were filled with what I now realize were very precious encounters. His helpful fingerprints are all over my power of attorney bill, and for that I am grateful, and for that Alaskans will be better off. We will miss Representative Gruenberg’s steadfast presence and love for the law in the Capitol. My thoughts and prayers are with his wife, Kayla, and their family.
This graph is featured in my video below. It is clear that our biggest cost drivers by far are the formula spending in the Health & Social Services budget (Medicaid at $641 million) and the Education & Early Development ($1.247 billion in K-12 formula). It just so happens that these budget items are also the most ferociously defended when it comes to discussing spending reductions and efficiencies. I’m all for healthy and educated Alaskans but also know that money isn’t the cure-all, especially since I’ve learned that other states are doing a great job, spending not just a little less, but a tremendous amount less. The reality of our budget challenge is this: if we do not look at foundational changes, then every dollar we spend that can’t be covered by incoming oil revenue or interest off the Permanent Fund, will have to come from an Alaskan’s pocket either in the form of a tax or a reduced PFD check. It’s that simple, folks. Let me know what you think! Take my budget survey before it closes at the end of the month (and please note that it’s more user-friendly on a laptop than it is on a smart phone).
Here is the second table covered in the video clip below. These are the tax proposals that the governor has introduced. You can find more information about all of these bills here. Under the new rule suspensions via HCR 23, we are now under the 24 hour rule for noticing meetings and bill hearings, so it is more important than ever to stay tuned to the legislature. If you have any questions about where bills are in the process, or would like to submit public comment on any of the bills listed above you can email me at rep.shelley.hughes@akleg.gov or call 907-465-3743 or 866-565-3743. My office and I are here to serve you!
Photo highlights of the week…
How many people can we cram into my office? Eight of my friends from the Mat-Su Homebuilders and I make nine. That’s the record so far this session!.
How low will you go (on the PFD that is)? Heard the latest estimate on what the governor’s bill could mean? Listen to find out the dollar amount along with other pertinent info every Alaskan needs to know. Thanks for listening to my weekly brief videos. Please “like” my page so you don’t miss my future mini-reports. www.facebook.com/AKShelleyHughes
I look forward to seeing you soon in Palmer! Join me for a Senate F / House 11 & 12 Town Hall meeting on February 27th at the Palmer Senior Center (Mat-Su Senior Services, 1132 S Chugach St, Palmer, AK) from 10:00 a.m. to 12 noon. Senator Bill Stoltze, Rep. Cathy Tilton and I will be in attendance to hear from you. Questions? Call my office at 907-465-3743 or 866-565-3743 for more information.
Best,
