Had the opportunity on Wednesday to speak with Alaskans interested in our state’s future at the Anchorage Economic Development Corporation’s 3-Year Economic Outlook Luncheon.
Click here to see the slide presentation which overviewed present trends in jobs, housing, and consumer optimism and forecast trends in population, employment, income, oil prices, and other indicators.
Alaskan Friends and Neighbors,
August is just about upon us, so keep enjoying your summer to its fullest! Now that we’re done in Juneau – at least for the time being – and home for a while, I plan to squeeze in the whole summer in one month.
As you are probably aware, the legislature convened last week for the Third Special Session to pass SB23, the capital budget, to fund infrastructure projects in the state.
The capital budget took some twists and turns along the way. As I mentioned last week, the House at an earlier point had inserted their version of the operating budget into the capital budget. Since the operating budget had already passed last month, these sections were removed last week.
While I am a huge supporter of infrastructure projects in our state, including in the Mat-Su, I voted against this budget along with 17 other legislators for two very simple reasons. First, the legislature has no business picking winners and losers by choosing to follow certain statutes and ignore others. Secondly, certain items in the bill gave me cause for concern, particularly as we face a fiscal shortfall. Allow me to explain.
As a legislator, I believe in the rule of law. I respect the legislative process. The bill to restructure the Permanent Fund, cap the PFD, and repeal the current PFD formula (SB26) has not passed the legislature. The capital budget was our final chance in 2017 to follow the current Alaska law regarding the PFD; SB23, the capital budget, failed to do that. The capital budget bill ignored the current statutes regarding the PFD.
At the same time, the bill met the statutory obligation (albeit the minimum requirement) to pay the oil tax credits.
In other words, the bill abided by the statutes when it came to the oil tax credits but it violated statutes when it came to the PFD payout.
What is the point of having a nation of laws, when the powers that be can decide which ones to follow and which ones not to follow?
Another reason for my no vote? Some of the items. $50 million was restored to an uneconomic gasline project when these funds weren’t even scheduled to be used in the coming year by the project. Funds were pulled from the Juneau Access Road project ($25 million) and from the Knik Arm Crossing project ($2.5 million) and redirected to the ferry system and to Kivalina School. In tight times, funds should not be allotted to the Arctic Winter Games when they can be raised by private sponsors. The list goes on.
The good news is that the capital budget brings back federal dollars into the state that Alaskans had sent to Uncle Sam via income taxes paid to the IRS. SB23 leverages $1.2 Billion dollars in federal funds. The capital budget spends about $200 million in state funds, drawn from the Statutory Budget Reserve.
It is critical for the legislature to make wise decisions regarding the use of state funds. Although I’m very glad the construction industry can move forward due to the bill’s passage, I remain concerned that the legislature chose to fund certain projects such as the gasline while failing to follow the law and fully fund the PFD. This decision to shortchange the PFD will negatively impact certain sectors of the private economy; in addition to family household budgets, it will negatively impact the retail industry, small businesses, restaurants, and service industries.
Now that the capital budget is passed, you may be wondering: what’s next? Check out Hot Topic #1 to find out where we go from here. Remember, only three bills remain that the governor hoped to pass this summer – and they’re all tax/revenue measures.
Be sure to check out the photos to see if you recognize anyone, the two sets of constituent quotes, and the various sections that may be of interest to you – too many to name. Scroll down to see the topics!
In closing, I want to point you to the article below in which I share a bit of personal news that I believe many of you may have already heard. I’m your public servant, and you deserve to hear the straight scoop from me rather than from the rumor mill.
As always, please stay tuned for my next Facebook Live which I expect to occur this evening at 7pm. Be sure to “like” my Senator page to get a heads-up. It’s your chance to weigh in, ask questions, and make suggestions. Last week’s was full of good information – scroll down to the very bottom of this newsletter to view it.
PLEASE NOTE! Because a special session is not expected immediately, we will move to a monthly (or as-needed) newsletter rather than weekly. We know you’ll miss these Monday morning messages, so call my office if you’re curious what’s up! 907-376-3725.
Working on your behalf,
Special Feature This Week: News-You-Can-Use!
Additional New Parking
West Butte Trailhead
The Matanuska-Susitna Borough’s most popular hiking trail—West Butte—will open 70 parking spaces in a new lot today. The parking lot removes vehicles from the road, ending a chronic safety problem for the Borough.
Some 24,000 hikers climb the Butte annually on just the West Butte Trail, not including the private trailside hikers on Bodenburg Loop.
Learn more, see the new trail brochure, get the link to online trailhead parking passes, watch the video at this link:
https://www.matsugov.us/news/new-parking-lot-for-popular-butte-trail
A Bit of Personal News
as shared on Facebook on July 25, 2017
I’m your public servant and you deserve to hear the straight scoop from me rather than from the rumor mill.
I just learned that I have breast cancer. I’m going to beat it.
Just like I beat a zipline ride hanging upside-down. I chose this photo for this post because “a merry heart doeth good like a medicine” and it makes me smile to think my son looks a little like how an artist might envision a Caucasian Jesus. I believe prayer works, and I believe Jesus heals.
My son has a great sense of humor and I’m sure was on the verge of saying something funny here as he gave me a pep talk before I took the plunge. I might need a pep talk every now and then on this cancer-defeating ride but am feeling healthy, strong, upbeat and confident as I stand ready to take this death-defying plunge.
(And to my husband and other 3 kids, I’m sure there’s a photo with you I could’ve used too – just came across this one first! xoxox)
ADDED NOTE:
I want constituents and Alaskans to know that I look forward to continuing to serve the district with vigor and am dedicated to continue to work to promote the best interests of Alaskans!
My deepest thanks to all of you who have reached out in support: offering prayers, positive thoughts, help, and encouragement – it means the world to me and to my family! Many of you have provided me with your wonderful testimonies of overcoming cancer. Thank you. It thrills me too to hear that my sharing my present challenge has inspired some who’ve neglected screenings, to get back on track.
As many of you know, I am a strong supporter of diversifying our economy. In particular, I’m interested in seeing technology, unmanned aircraft systems (UAS), and entrepreneurship in general play into this important goal for Alaska. Well, the work of a few Alaskans I met last week intersects all three of these passions!
Jose McPherson and his team are working to ensure the safe operation of UAS. Their new Alaska-based company has developed a recovery system allowing UAS to operate in areas without fear of damaging people or property by deploying small parachutes should the aircraft experience failure.
Curious What Input
Constituents and Other Alaskans
are Giving?
(Group 1 of 2)
“I am totally sick of crooked politicians regardless of party.”
“No Gasline funding! The project has been dead for three years and AGDC has been sitting on their hands for even longer. Why are we funding six-figure executive salaries and offices in Houston and Asia for no work?”
“I do not support the gas line funding at this time, and I want to see our Alaskans get their full PFD now and every year. Its worth 60 Billion dollars, its not about saving the PFD its about raiding and taking it from the people to over spend on government who can’t seem to keep their spending in check.”
“The state of Alaska is not in the oil business. Ugh…Why does the state and local governments dont get it? They are not oil companies.”
“Need to restore the money back to the Juneau access project and Knik Arm Crossing.”
“What is The Community Assistance Program? I want to know what this is. And why does it cost 8 million?”
“Thank you for all of your efforts. I’m continually impressed by your integrity–something rare in this legislature.”
“We cannot continue to bleed money on useless projects and take the PFD from our most vulnerable Alaskans. Please convince the rest of the legislature shut down the Gasline project and restore the PFD.”
“Thanks for fighting the good fight in Juneau, Senator!”
Alaska Department of Transportation
Summer Road Work Information
For overview of planned projects throughout the Central Region:
Central Region Road Construction 2017.
For more detailed information on specific projects:
Central Region Projects.
Above is a 2-page document overviewing the changes made to the Capital Budget (SB23). As you can see, the restoration of funding for the full permanent fund dividend was removed. The operating budget was taken out as it had previously passed (had been inserted earlier into the House version).
Among other items, funding from the Knik Arm Crossing project and the Juneau Access project were redirected to Kivalina School and the ferry system. Funding that was removed from the gasline project in the Senate version was restored in the final capital budget.
Rather than the $288 million set aside to pay credits owed to small oil companies in the Senate version, $20 million was set aside in the final version (in addition to $57 million in the operating budget for the statutory minimum of $77 million).
My first stop after landing at the airport, returning from Juneau, was the Palmer Picnic where former Mayor John Combs received the Citizen of the Year Award presented by current Mayor Edna DeVries. Although not in the photo, Council Member Linda Combs was beaming with pride during the presentation.
In addition, numerous neighbors received beautification certificates and signs to display in their well-tended, lovely yards. Above are a few of the awardees.
Last but not least, along with the locally grown veggies and hot dogs roasted by Council Members Brad Hanson and David Fuller, attendees got to test their dexterity with chopsticks at the noodle chute as shown in the bottom right photo in the grouping of four (in honor of Palmer’s Sister City, Saroma, Japan).
– Hot Topic #1 –
Third Special Session Adjourned
Capital Budget Passed
Early last week it was announced that a Third Special Session would indeed be called by both chambers of the legislature in order to take up and pass SB23, the capital budget.
In most cases, a special session is called by the governor; however, the legislature does have the power to call a special session with a 2/3 majority vote or poll in both chambers. Senate President Kelly and House Speaker Edgmon announced that 2/3 of the members were in agreement to enter into a third special session.
On Thursday, July 27, the legislature convened in Juneau. The bill passed both bodies of the legislature (Senate: 15 yeas to 4 nays; House: 27 yeas to 13 nays). For my thoughts on the capital budget, please see my opening remarks at the beginning of this newsletter.
Shortly after passage, both houses gaveled out sine die, concluding the Third Special Session.
At this point, it is not known when and if the governor will call the legislature back into session. Governor Walker has noted on several occasions that it is his wish that the legislature pass bills that institute new revenue measures (i.e. taxes).
The three revenue bills are listed below, items #5, #6, and #7.
Time will tell what the Governor plans to do. If another session is called, it likely will not be until later in the fall. I will be sure to keep you updated!
1. HB 57 Operating Budget – Passed Legislature
NO LONGER ON CALL – ITEM COMPLETED
2. SB 23 Capital Budget – Passed Legislature
NO LONGER ON THE CALL – ITEM COMPLETE
3. HB 111 Oil Tax Credits – Passed Legislature
NO LONGER ON CALL – ITEM COMPLETED
4. HB 159 Opioid Prescriptions – Passed Legislature
NO LONGER ON CALL – ITEM COMPLETED
5. SB 26 Permanent Fund Restructuring – In Conference Committee
NOT ON CALL BUT COULD BE ADDED BACK TO A SPECIAL SESSION CALLED BY THE GOVERNOR
The conference committee for SB26 did not meet during the first, second, or third special session, so there have been no changes or compromises presented. SB26 restructures the Permanent Fund, changing the calculation of the PFD to a percent of mark value (POMV) model. The bill also caps the dividend amount to Alaskans and allots a portion of the POMV annual draw from the earnings reserve for funding state services. Members of the conference committee for SB26 are Sen. MacKinnon (Co-Chair – lead), Sen. Hoffman, Sen. Egan, Rep. Foster (Co-Chair), Rep. Seaton, and Rep. Thompson.
6. HB 60 and SB 25 Motor Fuel Tax – In House and Senate Finance Committees
NOT ON CALL BUT COULD BE ADDED BACK TO A SPECIAL SESSION CALLED BY THE GOVERNOR
Both versions are in their respective Finance Committees. The governor may add this bill back to the call for consideration now that the operating budget bill has passed, since the governor still appears to want additional revenue measures as soon as possible.
7. SB 12 Income Tax – In Senate Labor & Commerce
NOT ON CALL BUT COULD BE ADDED BACK TO A SPECIAL SESSION CALLED BY THE GOVERNOR
The Governor had included in the first special session call an act that would create a broad-based tax. In his “compromise plan”, the governor proposed SB 12 be used as the broad-based tax. The monetary impact on working Alaskans is smaller than the earlier income tax bill, HB 115 ,but the SB 12 tax is still bracketed, based on income. It is possible the governor may add this bill to the call now that the budget bill has passed.
* * * * *
PLEASE NOTE: To receive the most up-to-date bill information, you can sign up for text alerts or can click on the links for each bill within this newsletter.
A short text alert can keep you informed. It’s easy to sign up. Text a bill number (ex: SB23) to 559-245-2529 to enroll. You’ll receive an enrollment confirmation and instructions on how to stop receiving the alerts.
As follow-up to my announcement on the Senate floor last week, this event is this Saturday: food, fun, games, and more!
If your child is in need of shoes for the 2017-18 school year, sign up at the link below and come August 5th from 1-4pm to the Northgate Alaska field with the tent! Students entering grades K-12 are eligible.
PLEASE NOTE: Once registration is closed, shoes aren’t guaranteed, but children and families are welcome to enjoy the festivities and food. For location and more information, to register, and to learn how you can help, please click HERE.
Curious What Input
Constituents and Other Alaskans
are Giving?
(Group 2 of 2)
“GAS LINE FUNDING RESTORED?!?! &^%#%&*() what the?!?!?!”
“I see 2.18 million is being re-appropriated to the Kivalina School from our Vets, but how will our veterans be affected?”
“Don’t they even care?? Do they know many people are being forced to live below the poverty level because of the PFD cap? Don’t they even care that 15,000 of their fellow Alaskans and their kids are being FORCED to live poor, below the poverty level?”
“We will remember who voted against full funding of our PFD!”
“Please restore the full PFD or face the wrath of the voters in 2018. Thank you.”
“Thank you Senator for your honesty, hard work, and transparency. We are counting on you!”
“The gas tax bill will further damage the economy. Please vote NO!”
“Senator thank you for understanding of what it means to be a public servant. You have shown more responsibility and transparency then any politician in my memory. Thank you for your integrity and honesty and understanding of what it means to serve those who have in trusted you.”
Special Feature This Week: News-You-Can-Use!
– Hot Topic #2 –
IS PUBLIC ACCESS IMPORTANT TO YOU?
Still Time to Weigh in
Klutina Road Proposed Settlement
As I mentioned in last week’s newsletter, the governor has announced that a settlement has been reach with Ahtna in order to end the Klutina Road Access lawsuit. This is the first time that an RS2477 land and access issue has been settled in Alaska, so I believe it requires our full attention and a full grasp of the particulars of the agreement as well as a careful analysis of what the long term effect, both foreseen and unforeseen, may be. That’s where you come in!
The Governor’s Office is seeking public comment and will conduct a number of public meetings to hear your thoughts on the proposed settlement. (See dates/times below.)
(Added information for your consideration.) The Alaska Outdoor Council has expressed the following concerns regarding the settlement:
- Converts the RS 2477 status to a ANCSA 17(b) easement, making it a criminal violation of trespass to pullover or park overnight on the Klutina Road (“overnight” is not defined).
- It would also make it a criminal violation to pick berries, mushrooms, or any wild plants within the public rights-of-way, or gather firewood along the Klutina Lake Road because it would be a 17(b) easement.
- The settlement would also vacate the current public right-of-way along the north shore of Klutina Lake and move it at least 746 feet back from the lake shore (nothing in the Settlement will require the State to ever construct any road or trail connecting the proposed public access along the Klutina River to state-owned lands 7 miles beyond the agreed upon Klutina Lake Road).
- The settlement would create a precedent for all Alaska Native Corporations and Alaska Native villages to negotiate a settlement with the State on the 10,000 miles of RS2477 rights-of-way on lands they choose to own under the agreements of the Alaska Native Claims Settlement Act (ANCSA) of 1971 (all existing RS 2477 were established on federally owned lands prior to there being chosen by Alaska Natives under the ANCSA).
- Additionally, the settlement would make an actual land transfer of the only State of Alaska-owned highway-accessible rest area, campground, parking, and boat launch facility on the federally-owned Gulkana Wild & Scenic River to the Native Village of Gulkana. The State will then build another facility, minus the campground, with Fish & Game Fund monies on the other side of the Richardson Highway from the current boat launch.
Here are the times and locations for the public meetings:
• Tuesday, August 1, 2017, from 3 P.M. to 5 P.M. at the Gulkana Hall, Gulkana, AK (traveling north on Richardson Highway, turn right at the sign for the village after the Gulkana River bridge)
• Tuesday, August 1, 2017, from 6:30 P.M. to 8:30 P.M. at the Alaska Bible College Murdock Campus Center at 200 College Rd., Glennallen, AK
(Convenient for District F Residents:)
• Wednesday, August 2, 2017, from 6 P.M. to 8 P.M. in Room 104 of the Atwood Building, 550 West 7th Avenue, Anchorage, AK
(Convenient for District F Residents:)
• Thursday, August 3, 2017, from 6 P.M. to 8 P.M. in Meeting Room 1-3, Curtis D. Menard Memorial Sports Center, at 1001 S. Clapp Street, Wasilla, AK
• Monday, August 7, 2017, from 6 P.M. to 8 P.M. in the Noel Wien Library auditorium, located at 1215 Cowles Street, Fairbanks, AK
For more information, to read the states proposed settlement, and/or if you would like to make your public comment online, please visit the website set up by the state specifically for this issue located here.
Comments must be received by 4 p.m., Alaska Time, on August 30, 2017 and sent either to klutina.settlement@alaska.gov or mailed to Alaska Department of Law, c/o Natural Resources Section – Klutina/Gulkana Comments, 1031 W. 4th Ave., Suite 200, Anchorage, AK 99501-1994.
NOTES
*RS2477: Revised Statute 2477 is found in section 8 of the Mining Law of 1866. It granted states and territories rights-of-way over federal lands that had no existing reservations or private entries. The law remained in effect until Congress repealed it in 1976. In Alaska, the opportunity to establish new R.S. 2477 rights-of-way generally ended January 17, 1969, when the federal government issued PLO 4582 – the “land freeze” – to prepare for settlement of Alaska Native land claims. Though no new rights-of-way could be established after federal land was reserved or appropriated, or after the law was repealed in 1976, these actions did not extinguish pre-existing rights.
R.S. 2477 rights-of-way could be established in Alaska from 1884 (the Organic Act, which extended general land laws to the new territory), to 1969 (PLO 4582). From its territorial origins to today, Alaska has consisted mainly of federally owned land. During its 84 years of application in this state, many rural mail routes, mining trails, and other transportation routes became R.S. 2477’s through use or acceptance. The State of Alaska, Department of Natural Resources has documented hundreds of historic routes that qualify as R.S. 2477 rights-of-way. Surface transportation between Alaska’s rural communities and other resource destinations still relies heavily on our cross-country trails, used by snowmachines, dogsled teams, and four wheel all-terrain vehicles.
(credit for Notes to Alaska Dept. of Natural Resources)
Wondering what’s happening with a certain bill? A short text alert can keep you informed. It’s easy to sign up. Text a bill number (ex: SB1) to 559-245-2529 to enroll. You’ll receive an enrollment confirmation and instructions on how to stop receiving the alerts.
Celebrating and sending off a constituent to the Army ROTC program at Washington State. Best of luck to River Maketa! (River was a Senate page this year after graduating a semester early from Colony High School.) Thank you, River, for stepping up to serve our nation.
Serving You on Committees
Please note that my following committee assignments will be changing due to my exit from caucus at an upcoming Committee on Committees meeting (date to be announced).
- Senate Finance — Member
- Senate Resources — Member
- Senate Education — Member
- Senate Labor and Commerce — Vice-Chair
- Unmanned Aircraft Systems Legislative Task Force — Co-Chair
- Joint Armed Services — Member
Serving You on Finance Subcommittees
My seats on these subcommittees are also subject to change.
- Department of Education and Early Development
- Department of Law
- Department of Administration
- Department of Transportation and Public Facilities
For additional information, contact my
Chief of Staff: Buddy.Whitt@akleg.gov
907-622-8963 (Eagle River office)
907-376-3725 (Mat-Su office)
For information on bills I’m co-sponsoring, click here.
For information on all bills filed by others, click here.
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.
***Please note that due to the close of the regular legislative session, the earliest any of the following bills (which have not yet passed) will see action will be January 2018 when the legislature reconvenes in regular session.***
• SB6 — “Industrial Hemp Production” — The bill had its second hearing in House Finance two weeks ago but was not moved out of committee nor scheduled for a floor vote prior to the end of the regular session. This means the bill will not be passed in 2017. When the next regular session begins in January 2018, I am hopeful the bill will move to the House floor for a vote.
• SB16— “Digital Assets Act”— Even though my office began work on this bill last August, the House version of the bill leapt ahead and passed. (My office provided the language to Rep. Claman about 3 months ago, so I’m happy with the language in his HB108 obviously!) I carried HB108 on the floor and am proud to say that it passed the Senate unanimously. It awaits the governor’s signature.
• SB32 — “Interchangeable Biological Products” — The House Finance Committee held an initial hearing on the bill. We await scheduling for a second hearing and public testimony. Because the regular session has ended, the earliest this can now occur is January 2018.
• SB96 — “Alaska Education Transformation Act” — Senate Education Committee Bill Relating to Education and School Districts is in the Senate Finance Committee. I am hopeful SB96 will continue to move through the committee process in 2018.
• SCR4 — “Task Force on Unmanned Aircraft Systems” — Passed unanimously both the House and Senate, and awaits the governor’s signature.
• SB111 — “Alaska State Defense Force Powers” — Introduced and assigned to State Affairs and Finance Committees. I am hopeful SB111 will receive hearings in January.
• SB119 — “Alaska Health Care Consumers Right to Shop Act” – Introduced and assigned to Labor and Commerce as well as Finance. I am hopeful SB119 will receive hearings in January.
– 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.
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!
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
Mat-Su Office
600 E. Railroad Avenue
Wasilla, Alaska 99654
907-376-3725
Chugiak Office
12641 Old Glenn Hwy, Ste 201
Eagle River, Alaska 99577
907-622-8963
Best regards,
Copyright © 2017 Senator Shelley Hughes. All rights reserved.
