After recently defeating cancer, I was pleased to welcome the American Cancer Society – Cancer Action Network to my office.
Pictured from left to right is Emily Nenon, staff – Alaska government relations director; Marko Lemtukei, a volunteer from Wasilla; Noel Crowley-Bell, a volunteer from Palmer; Jackson Blackwell, a volunteer originally from Soldotna who is now a student at Boise State; and Kelly Marre, a volunteer and long time friend from Wasilla.
Among other things, we talked about SB15 which I am a co-sponsoring. It would prohibit the sale of e-cigs to minors.
Friends and Neighbors,
Before I plunge into the business at hand, and because family should come first for all of us, please grant me the privilege of a grammy-brag moment! My youngest daughter had her first child last week, and I’m in love with Bode Newton Cox. I’m now blessed to have six precious grandchildren!
Okay, now the plunge. I’d like to highlight in my opening remarks some new information I learned yesterday. It comes from an article written by J. Scott Moody, a Founding Partner at Key Policy Data and a nationally recognized public policy economist whose work has appeared in Forbes and CNN Money among other publications. Hold onto your hats.
If our state government workforce was at the U.S. average as far as compensation and employment ratios (derived by dividing government employment by private employment), we could have saved $48 billion in today’s dollars from 1979 to 2016. In 2016, we could have saved $1.7 billion alone.
That $1.7 billion is nothing to blink at when you consider we’re facing about a $2.3 billion shortfall.
You’ll want to read the whole article, but here are a couple of tidbits to whet your appetite:
- Our average state government compensation in 2016 was 55% higher than the average private sector compensation ($105,759 vs $68,152) in Alaska. 55% higher! That’s the highest ratio in the nation. The U.S. average? 19%. And to think our ratio in Alaska was just 9% back in 1979.
- Alaska employed 9.6 state workers for every 100 private sector workers in 2016. The national average? 4.26 state workers for every 100 private sector workers. Our state employment ratio is 125% higher than the national average and the second highest in the nation.
Now please understand that I do believe that our large land mass and the fact that we don’t have roads connecting all our communities are good reasons to have a larger number of state employees than the national average. But more than double the number? Is that truly necessary? And compensation levels – what happened there? They likely were too low in 1979, but the increase since then has been a whopping 552% increase (and that was not a typo)!
Here’s a link to the compensation and travel report for the top paid state employees in the executive branch in Alaska:
http://doa.alaska.gov/dof/reports/resource/ctep/2017_fullreport.pdf .
Here’s the link for the compensation and travel report for the legislative branch:
http://akleg.gov/docs/pdf/2017Report.pdf.
Lastly, here’s the link to Moody’s article which is specific to Alaska’s workforce numbers and compensation rates:
http://alaskapolicyforum.org/2018/02/right-sizing-alaskas-state-government-workforce/.
That’s it for now, folks. Before you proceed to the rest of this newsletter – which we work hard to make relevant for you – please quickly note the bullets below.
- Be sure to catch my weekly Facebook Live: #Telling_it_like_it_is Tuesday at 7pm on my senator page. It’s a chance to hear what’s happening in Juneau without the filter of the media and also a chance for you to weigh in on the issues.Like and follow my page so you get a reminder notification each week.
- Also mark your calendar for my next coffee chat. Saturday, March 24, 9am at Vagabond Blues in Palmer and at 11:30am at the Chugiak Cafe to connect with me in-person (scroll down for the details).
Working on your behalf,
4-H members visiting the Capitol and allowing us to help them prepare breakfast for hungry aides and legislators! The students’ visit is always a highlight for me during our time in Juneau.
Pictured here is a selfie with students from Chugiak and the Interior, and my meeting with (left to right) Dane Nemec of Faribanks, Alex Holmer of Eagle, and Max Weaver of Chugiak. Rep. Cathy Tilton and Rep. Tammie Wilson got my thumbs-up for the waffles they just finished making.
Hard to believe!
A sneak peek into the budget process
underway this week in the
House Finance Committee
The House Minority Republicans have been offering a series of modest, reasonable reductions based on actual spending for items in fiscal year 2017. Their amendments are being turned down one after the other.
Here’s just one example to give you a taste of what’s been happening.
Rep. Tammie Wilson noted that the “actual” in FY2017 for printing, copying, transportation, consulting and for environmental conservation and economic development fees was $619,300 under statewide fisheries management in the Department of Fish & Game. $619, 300.
The Governor’s request this year? $2, 227,000. Quite the increase. More than triple in fact.
Rep. Wilson proposed an amendment to decrease the governor’s requested amount by $1 million, bringing the item total down to $1, 227, 000.
Quite reasonable in that $1,227,000 is STILL ABOUT DOUBLE the amount spent for this item in FY2017.
Did the House Majority Democrats and Independents on the House Finance Committee adopt the amendment? No, they all voted against it.
This is how it’s been going in House Finance amendment after amendment – and just thought you’d like to know.
Thanks to those at the table who are offering common sense reductions despite the opposition – Rep. Tammie Wilson, Rep. Lance Pruitt, Rep. Steve Thompson, and Rep. Cathy Tilton.
Now a dictator for life…
General Secretary Xi Jinping
Alaska LNG project thoughts…
Partnering with China: risky business?
Something got my attention lately, and I’m thinking you’d like to be aware of it too.
I noticed recently that the governor’s proposed supplemental budget included granting the Alaska Gasline Development Corporation (AGDC) receipt authority. What does this mean? It means removing much of our legislative oversight of the $45-65 billion Alaska LNG project. It also means granting AGDC the ability to accept and spend third party dollars, including foreign dollars.
And what does that all mean when you boil it all down?
It means the governor/AGDC could decide to sell part or all of this project to a foreign entity, including to China.
Wow. That’s a big request to slip in a supplemental budget. Fortunately, legislators caught this and this huge decision will not slip through without some serious vetting.
So that got me thinking. In late February, the Communist Party of China decided to abolish term limits. That means General Secretary Xi Jinping could rule for life.
An emperor might be good for their national projects favored by the Chinese government, but will it be good for China’s economy overall? Experts have been eyeing the declining GDP in China and speculate that a sustained authoritarian regime will make their economy more fragile.
This is definitely worth considering as we contemplate the governor’s and Alaska Gasline Development Corporation’s overtures to China.
Another incredibly important consideration is that China has the ability to get as much gas as they could get from us from a combination of smaller projects in other locations – at much less cost. Read that again. It’s a really important point.
To pay more for Alaska’s gas, they are going to want something in return. What will they want? I think they will want to steer, even lead the project – and make sure China benefits in multiple ways and to a high degree: whether by way of their engineering and construction firms, whether by way of the ultimate price of the gas itself that they would pay and the overall project economics leaning in their favor, and whether by way of Chinese banks and financial institutions being big winners.
The vast majority of those weighing in let the House Finance Committee know they didn’t find this acceptable.
Alaskans also have figured out that the state government already gets a huge slice of the resource development revenue pie: 87.5% in fact.*
The people are allotted a small slice at 12.5% for their subsurface property right dividend (their PFD). HJR23 would allow the state to cut a big chunk of the people’s slice to use it for government.
In fact, within eight years, under HJR23, the state government would be taking almost 65% of the people’s slice (based on what future PFDs would be according to the current formula in statute). HJR23 indicated that of the 4.75% percent of market value draw from the Permanent Fund, at least 67% was for government and 33% of the draw could be used for PFDs.
Here’s another way of looking at what HJR23 proposed. Today Alaskans are allotted one-half of one-quarter and the government gets the rest. HJR23 sponsors say the government doesn’t get enough and needs more than half of what Alaskans are getting in addition. What might this look like in a few years if HJR23 were to pass and voters approved? The government being allotted 95% and the people 5%.
*Note: the 87.5% for government is made up of the 75% of revenue from resource development collected each year which is deposited into the general fund coffers, plus half of the income earned from the remaining 25% of annual revenue which is deposited into the Permanent Fund each year. The 12.5% for the people is the other half of the income earned from the 25% annual resource development revenue deposited into the Permanent Fund each year.
Essentially, what we must consider is this: what impact would China’s control of the project – and what’s good for them – have on our Alaskan economy, on jobs for our residents, and on our revenue return? I’ve not yet been convinced that it would be good for Alaska.
We all want more affordable energy for our in-state use to expand and diversify economic development and opportunities, and we all want new revenue streams to help pay for state government services, so I will continue to listen and consider what AGDC is proposing. But they’ve got a lot of questions to answer and a lot of convincing to do.
Visitors from Mat-Su as part of the Alaska Primary Care Association’s advocacy efforts “on the hill” in Juneau: Kevin Munson, CEO of Mat-Su Health Services, Inc. (Wasilla) Melody West, Executive Director of Sunshine Community Health Center (Talkeetna clinic); and Cathy Watkins, Board VP for Sunshine Community Health Center (Willow clinic).
Thanks to those who’ve written letters of support for this important bill, SB119, the Alaska Health Care Consumer’s Right to Shop Act, that will help nudge down healthcare costs in Alaska by allowing free market principles to operate more than they currently are.
If SB119 passes, you’ll want to shop! You’d be motivated because you could share in the savings via an incentive check back from your insurance if you decided to choose a provider who charges less than average for that particular service or procedure.
If you haven’t dashed off a note yet to support the bill, please send it to me at Senator.Shelley.Hughes@akleg.gov and I’ll make sure it gets to the correct committee chair.
On February 24 I participated in two townhalls with local residents, one at the Palmer Senior Center and the other at the Chugiak-Eagle River Senior Center.
My colleagues and I heard from many constituents on relevant issues such as the budget, the PFD, senior care, school safety and more. I took notes and brought them back to Juneau with me to review as bills and items move through the process here.
If you couldn’t make it to either of these townhalls, or if you did, please don’t miss out on my upcoming coffee chats! See details below.
I want to hear from YOU
Saturday, March 24, 2018
Your voice matters.
Mark your calendar!
Two options for your convenience.
Palmer Coffee Chat
Saturday, March 24, 2018
9:00 a.m. to 10:30 a.m.
Vagabond Blues
642 S Alaska St
Palmer, Alaska 99645
Chugiak Coffee Chat
Saturday, March 24, 2018
11:30 a.m. to 12:30 p.m.
Chugiak Cafe
18575 Old Glenn Hwy
Chugiak, Alaska 99567
Michael West, State seismologist and research associate professor at Alaska Earthquake Center at UAF.
My first meeting with Dr. West a few years ago was so impressive that immediately afterward, I took him to the third floor to meet with Gov. Parnell’s chief of staff so the administration would be aware of the opportunity at our doorstep to better monitor earthquake activity throughout Alaska.
Serving You on Committees
Please note that my committee assignments have changed due to my exit from caucus.
- Senate Education — Member
- Unmanned Aircraft Systems Legislative Task Force — Co-Chair
- Alaska Commission on Post-Secondary Education — Member
- Senate Law Finance Subcommittee
Great to see Doug Isaacson, North Pole City Councilman, and former state representative from the Fairbanks area.
For additional information,
contact my staff:
Buddy Whitt
Buddy.Whitt@akleg.gov
907-465-5025
Aimee Bushnell
Aimee.Bushnell@akleg.gov
907-465-3743
Shawn Uschmann, constituent and Alaska Director of External Affairs at AT&T.
For information on all bills filed by others,
click here.
For information on bills I’m co-sponsoring,
click here.
Passed Legislation
Bills I sponsored that are now law
SB6 — “Industrial Hemp Production” — Unanimously passed Senate last year, and the House this past Monday morning. This bill allows new economic opportunity for farmers. Livestock ranchers interested in hemp as an easy-to-grow, nutritious crop for feed. The bill awaits a concurrence vote in the Senate for minor changes that occurred as the bill traveled through the House.
SB16— “Digital Assets Act”— My office began work on bill in 2016, but in odd twist, the House version passed (I provided the language for it). Unanimous, it has been signed into law. Online tools designating who gets your electronic assets after you die will now be recognized by the state. If you’d like to give your photo, social media, email, music or other electronic assets or accounts to particular people, your wishes will be carried out. If your will designates who will get them, Facebook, iTunes, Shutterfly, etc. now must comply.
Legislation Update
Bills I’m Sponsoring
Click on bill number for more info. Detailed descriptions are also available in previous editions of newsletters which you can find here.
SB32 — “Interchangeable Biological Products” — Passed Senate. Awaits 2nd hearing in House Finance, its final committee referral. Will increase access to affordable biosimilar medications (made from living cells rather than chemicals) by allowing substitutions in some cases, similar to generic medications.
SB96 — “Alaska Education Transformation Act” — As former Education Committee Chair, my office worked with both chambers and all caucuses to draft this bill. Goal is to bridge achievement gap, to employ technology – not for technology sake – but to improve student success, to partially address teacher retention/shortage problem, to streamline administrations, to promote collaboration between districts. Awaits 2nd hearing in Senate Finance Committee.
SCR4 — “Task Force on Unmanned Aircraft Systems” — Passed unanimously. Task Force met Dec. 7. Updated on industry and worked on privacy solutions. Rep. Neal Foster is my co-chair.
SB111 — “Alaska State Defense Force Powers” — Awaits State Affairs, Finance Committee hearings. Restores right-to-bear arms to state militia. Eliminates changes from administration to administration.
SB119 — “Alaska Health Care Consumers Right to Shop Act” — Had one hearing in Labor & Commerce and public testimony is still open for anyone who has yet to weigh in. SB119 would allow consumers with health insurance to receive a check for a portion of savings if they chose a provider who charges less than average cost for procedure. Requires providers and insurance companies to readily provide cost information, including out-of-pocket costs, to consumers.
SCR15 — “Proclaiming March 27, 2018, as Alaska Education and Sharing Day.” — Will be heard in the Senate Education Committee on Friday morning at 8:00 a.m. Aligns with proclamations issued by every U.S. president since 1978 at the request of members of the Jewish faith. The resolution emphasizes the importance of values and morals as part of a complete education, preparing students to become responsible and engaged citizens.
SB194 — “An Act relating to disorderly conduct; and relating to indecent viewing or photography.” — Awaiting a hearing in Senate State Affairs, this bill is designed to protect your right to privacy in regard to drones. Because the FAA has jurisdiction over airspace above private property and the operation of aircraft, this limits the approach a state can take to address privacy issues. This bill addresses these issues from the standpoint of loitering over private property. The bill was filed as a placeholder and is a work in progress. Sen. Hughes expects the bill to go through a number of changes prior to its completion and passage. The work and concept behind the bill was initiated by the Unmanned Aircraft Systems Legislative Task Force co-chaired by Sen. Hughes and Rep. Foster.
SB195 — “Victim Restitution Act” — The senate version of HB216. Awaits a hearing in Senate Judiciary. This bill would make victim restitution payments the first priority from permanent fund dividends when criminal offenders are ineligible to receive their PFDs. The funds would be routed through the Violent Crimes Compensation Board. Any remaining monies left in an offender’s PFD would be directed to the operation of domestic violence and sexual assault programs, mental health services and substance abuse treatment for offenders, and incarceration costs.
What are Alaskans Saying
about the Issues?
Constituent Quotes
on the budget, taxes, guns / school safety,
healthcare and more!
“Yes to a free market for Insurance!!! Time to cut the budget (We must redefine our ways on how we do business).”
“I value many services that our state government supplies, for example troopers and road development and maintenance. However, I do believe that any government, especially ours here in Alaska, should limit its spending in consideration of supporting the individual and businesses. Simply put I do not think that income taxes in Alaska are required at this point. I also very much support limiting social services and definitely support work or volunteer requirements for Medicaid recipients. I also support drug tests for welfare recipients, but I realize that is another issue entirely. Thank you for the opportunity to voice our opinions.”
“I’m glad y’all are looking at distance learning as a great choice. Why can’t some of the session be the same way, since the majority of the legislature doesn’t live in Juneau?”
“We are strongly in favor of SB 119. Our health care costs in Alaska are much higher than any other state we have looked at. Having the ability to shop the prices would certainly be a start at reducing the cost.”
“You have Constitutional mandates and then you have the frills that at one time you had the money to do. Now you don’t and those frills are now seen by those who got those nice things as mandated entitlements! Enough! Nicely and firmly inform those that have expected those “entitlements” that they need to take responsibility for those nice things. Then cut off the funding and return to what is only Constitutionally mandated.”
“This [note] is to support spending cap SB196. We urge you all NOT to vote on any kind of Income Tax and also give the Alaskans back their Full PFD. You have only reduced 3% of daily operations of the department and agencies over the last three years. There is so much more that can be reduced. You all can do it. Stop taking from the people to run the State. Our Governor loves to spend. Tie his hands. Stop spending. We do everyday at home. If we cannot afford, we do with out.”
“Count me in the camp that is wide awake, supports an income tax or other additional revenue options, and opposes a spending cap. I also expect the Legislature and administration to show reasonable restraint in budgeting and spending.”
“As a retired educator and a survivor of the school shooting in Bethel in 1997 I encourage you and the legislature to consider legislation emulating the Utah State policy that allows staff with a concealed weapons permit to have the option to carry their weapons to school. While this may sound extreme I submit that nothing is more important then the protection of our children while they’re attending school. Utah has not had a single school shooting since the policy allowing licensed staff to carry.”
“Gun free zones are a proven failure. They do not work! They leave the inhabitants of these zones at risk and defenseless as prey.”
“Do not take support money from NRA. College campus and schools should continue to be gun free zones even for concealed weapon licenses.”
Headstart stops by the office to give an update: Mark Lackey, Executive Director CCS Early Learning; Erika Short, Board Member and parent of student, CCS Early Learning; Michelle Plummer, Board Member and parent of student, CCS Early Learning.
Wake up, Alaskans
your wallet is at stake
Wake up, Alaskans. While you were working or busy with your families, more people took the microphone to tell House Finance members to fund this or that – and that they’d be okay with an income tax – than the people who called in to urge members to reduce spending (90 were for more spending, 11 were for more reductions.
Some say “that must be reflective of what Alaskans think then.”
I beg to differ.
I’ve heard from literally thousands upon thousands of Alaksans since oil prices first dropped 3+ years ago – by phone, by email, by text, via social media, and in-person. I don’t think that this 90/10 split is at all reflective of Alaskans as a whole, and I can tell you with great confidence, the split is certainly not reflective of Senate District F.
Remember, the governor’s proposed budget is higher than last year’s and he wants a payroll tax and more than half your PFD over time.
Remember too that we’ve only reduced 3% of daily operations of the departments and agencies over the last 3 years – we are NOT at bare bones.
What do you think?
Speak up to let the legislature know where you stand; tell your friends and neighbors to speak up. Write House members. Write Senate members. Their emails are below for your convenience.
Since the opportunity to call in to testify in the House on the budget is over, think now about making time to call in when the opportunity is scheduled in the Senate. I will let you know when that will be as soon as find out. (I’ll inform you via Facebook – “like” my Senator Shelley Hughes page so you get notified.)
If you want a growing budget, new taxes, and increasing cuts to your PFD, the momentum is in your favor. If you don’t agree, speak up. (And if you do agree, you’re more than welcome to speak up too.)
Senator.Tom.Begich@akleg.gov
Senator.Click.Bishop@akleg.gov
Senator.John.Coghill@akleg.gov
Senator.Mia.Costello@akleg.gov
Senator.Dennis.Egan@akleg.gov
Senator.Berta.Gardner@akleg.gov
Senator.Cathy.Giessel@akleg.gov
Senator.Lyman.Hoffman@akleg.gov
Senator.Shelley.Hughes@akleg.gov
Senator.Pete.Kelly@akleg.gov
Senator.Anna.MacKinnon@akleg.gov
Senator.Kevin.Meyer@akleg.gov
Senator.Peter.Micciche@akleg.gov
Senator.Donny.Olson@akleg.gov
Senator.Mike.Shower@akleg.gov
Senator.Bert.Stedman@akleg.gov
Senator.Gary.Stevens@akleg.gov
Senator.Natasha.vonImhof@akleg.gov
Senator.Bill.Wielechowski@akleg.gov
Senator.David.Wilson@akleg.gov
Representative.Chris.Birch@akleg.gov
Representative.Mike.Chenault@akleg.gov
Representative.Matt.Claman@akleg.gov
Representative.Harriet.Drummond@akleg.gov
Representative.David.Eastman@akleg.gov
Representative.Bryce.Edgmon@akleg.gov
Representative.Neal.Foster@akleg.gov
Representative.Les.Gara@akleg.gov<
Representative.Jason.Grenn@akleg.gov
Representative.David.Guttenberg@akleg.gov
Representative.DeLena.Johnson@akleg.gov
Representative.Jennifer.Johnston@akleg.gov
Representative.Andy.Josephson@akleg.gov
Representative.Scott.Kawasaki@akleg.gov
Representative.Sam.Kito.III@akleg.gov
Representative.Gary.Knopp@akleg.gov
Representative.Chuck.Kopp@akleg.gov
Representative.Jonathan.Kreiss-Tomkins@akleg.gov
Representative.Gabrielle.LeDoux@akleg.gov
Representative.John.Lincoln@akleg.gov
Representative.Charisse.Millett@akleg.gov
Representative.Mark.Neuman@akleg.gov
Representative.Dan.Ortiz@akleg.gov
Representative.Justin.Parish@akleg.gov
Representative.Lance.Pruitt@akleg.gov
Representative.George.Rauscher@akleg.gov
Representative.Lora.Reinbold@akleg.gov</span
Representative.Dan.Saddler@akleg.gov
Representative.Paul.Seaton@akleg.gov
Representative.Ivy.Spohnholz@akleg.gov
Representative.Louise.Stutes@akleg.gov
Representative.Colleen.Sullivan-Leonard@akleg.gov
Representative.Dave.Talerico@akleg.gov
Representative.Geran.Tarr@akleg.gov
Representative.Steve.Thompson@akleg.gov
Representative.Cathy.Tilton@akleg.gov
Representative.Chris.Tuck@akleg.gov
Representative.Tammie.Wilson@akleg.gov
Representative.Adam.Wool@akleg.gov
Representative.Tiffany.Zulkosky@akleg.gov
– Let Your Voice Be Heard –
– Participate in Public Testimony –
Public testimony is available for every bill heard in a committee. Follow bills you have interest in on the Alaska State Legislature Page. To testify, go to your local Legislative Information Office (LIO) which you can find here. If you are unable to testify, written testimony can also be submitted by sending an email to the committee.
Public testimony times on bills
that might interest you:
Find it here!
For budget bills, tax bills, and Permanent Fund bills in the Finance Committees, please arrive 15 minutes early for sign-in process, and please arrive 15 minutes prior to the end of the allotted time or testimony may close early. Public testimony may be limited to two minutes per person, so it’s best to prepare concise comments.
Also be sure to look out for the new Capitol Quick Clips. These don’t have a schedule, rather they are made as a hot topic comes around!
Watch our most recent Capitol Quick Clip, No. 4 #ShelleysStraightScoop Want to do your part to avoid taxes and the erosion of your PFD?
Join Shelley on Facebook Live each week to ask questions and give input.
We typically broadcast Tuesdays at 7pm, but watch for a notification on Facebook as the day/time is subject to change.
Be sure to “like” the “Senator Shelley Hughes” Facebook page www.facebook.com/AKShelleyHughes
so you’ll get a heads-up each time we air!
#Telling_it_like_it_is Missed Live FB broadcast? Watch it here and don’t forget to catch the next one! #NoFilter
Every Tuesday at 7pm
TIPS TO STAY IN THE LOOP
More important than ever!
TIP #1: The Alaska State Legislature web site is the place to track bills, locate and contact your legislators (session), and access committee information. Questions? Try the help wizard or call 1-800-478-4648.
TIP #2: SMS Bill Tracking! Once you know what bill(s) you want to monitor, here’s a convenient way to track what’s happening. Text any bill number (ex: SB1) to 559-245-2529 to enroll in text alerts for that particular piece of legislation. You’ll receive an enrollment confirmation as well as instructions on how to unsubscribe.
TIP #3: How to Get in Touch with Shelley! Give our office a call at (907)465-3743 or 800-565-3743 in Juneau or (907) 376-3725 or (907) 622-8963 in district or send an email to Sen.Shelley.Hughes@akleg.gov.
Buddy Whitt – Chief of Staff
Buddy.Whitt@akleg.gov
Aimee Bushnell – Legislative Aide during session
Aimee.Bushnell@akleg.gov
Mat-Su Office (closed while in Juneau)
600 E. Railroad Avenue
Wasilla, Alaska 99654
907-376-3725
Chugiak Office (closed while in Juneau)
12641 Old Glenn Hwy, Ste 201
Eagle River, Alaska 99577
907-622-8963
Best regards,
Copyright © 2018 Senator Shelley Hughes. All rights reserved.
