I met with Peter House, owner of Deep Tree, a technology company in Mat-Su specializing in data risk management and security. He sees technology potential and wants Alaska to seize coming opportunities to grow our private sector economy (and yes, to diversify it too!).
Peter and I discussed the possibility of Alaska housing secure data centers for the USA, as opposed to information storage located overseas. With our cool temperatures and wide open spaces, this is a possible industry opportunity for our state.
I will continue to champion young entrepreneurs who have a passion to see Alaska and Alaskans reach their potential!
Alaskan Friends and Neighbors,
It’s going far too fast, but I hope you are having a wonderful summer enjoying all our great state has to offer. This week I was able to be back in southcentral, meet up with constituents, do a little fishing, and spend time on the homefront – and boy, did I love every minute!
Looks like I’ll be headed back to Juneau with other lawmakers later this week where the conference committee is expected to hammer out final details of the capital budget. To avoid projects sitting idle, to leverage federal match dollars (at a rate of $1 state to $9 federal), and to prevent federal dollars intended for Alaska going to another state, it’s time to wrap up SB23. This will be the third special session – or as some like to call it: the special, special, special session.
The lingering question is, will there be a fourth special session? That will be up to the governor. If you glance at the list of bills in Hot Topic #1, after the capital budget passes, all but three bills have been addressed. And yes, all three are revenue measures, better known as tax legislation.
What are they? Another income tax, a tripling of the fuel tax, and the Permanent Fund restructure / PFD cap bill.
The next question you may be asking: are these revenuemeasures needed? Let’s discuss that for a moment.
Although you’ll hear people throw out all kinds of numbers about where we are, the most important one right now to realize is that this year less than $75 million in reductions that will hold were made.
Why is this significant? You might want to sit down for this: the lack of political will to make more substantial reductions puts us on a path that will require not only half of your PFD but a growing amount – up to two-thirds of it AND not a small but a size-able broad-based tax (larger than what Rep. Seaton’s income tax bill had proposed) PLUS a fuel tax. A family of five would take a hit of $8000 – $10,000 per year.
If Alaskans are okay with this trajectory, sit back and relax; the train is moving down the tracks. If it’s not; Alaskans should speak up. I’ll talk about this more on my next Facebook Live.
Meanwhile, in this week’s edition, I’ve included several short special features of ‘news-you-can-use.” Interested in public access? Schools? State land sales? Student loan savings? Quotes from constituents and Alaskans – always favorite sections of the newsletter – await you as well.
As always, please stay tuned for my next Facebook Live. 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.
Working on your behalf,
Giving a legislative update to the Chugiak – Eagle River Chamber of Commerce, along with Rep. Dan Saddler and Rep. Cathy Tilton.
Great questions from the crowd, which included important points about the challenges we face, made this an excellent event. If you’d like to know more about the Chamber and the fine work that they do for the community, visit their website here.
Special Feature This Week: News-You-Can-Use!
Alaska Department of Natural Resources
Land Parcels Sales
Begin July 26
In just two days, the Alaska Department of Natural Resources Over-the-Counter (OTC) sales for unsold land parcels will begins at 10:00 am on Wednesday, July 26th. These land parcels are available on a first come, first served basis only.
Initially, the available OTC land parcels will be priced at 30% above their appraised value. Those prices will reduce to 15% above fair market value after two weeks. If after two additional weeks the parcels have not sold, there will be an additional reduction.
To see the location of the land parcels and find out more information about Alaska Department of Natural Resources land sales, please visit their website here, contact them at landsales@alaska.gov, or call (907)269-8400.
Larry Barsukoff of Wasilla is VP of JW Industries and is passionate about the need for better management and accountability of finances in the public sector.
He is also a visionary who believes Alaska could have a “Silicon Tundra” if we were more business-friendly. Larry believes our time zone puts us at a strategic advantage, allowing us daytime hours to interact with various domestic and foreign markets.
It’s an honor and pleasure to meet with Alaskans who want to see Alaska be successful in every way possible. This selfie was our attempt to include the State Seal in the photo!
Curious What Input
Constituents and Other Alaskans
are Giving?
(Group 1 of 2)
“Thank you very much for refreshing my memory on where you stand. I appreciate you putting your constituents first.”
“Thank you Senator Hughes for your votes and I’m very glad you are there representing us.”
“No new taxes!!! No change to the Permanent Fund as it is now set up. It works fine. Restore our PFD’s for 2016 & 2017. Stop ALL spending on a gas pipeline. If it was viable the oil companies would be doing it. We could balance the budget on the money now being spent for this nonsense. AND the State has no business getting into competition with private enterprise. Pay our debts to oil companies that came up on promise from the State. This would help to get the found oil into the pipeline.”
“When you go back to work please remind all the people there that they are elected representatives. I think too many of them forget that.”
“Sales tax preferred over income tax.”
“Thank you for your service to our state and our community.”
“I truly appreciated your thoughtful and considerate words, helping the folks understand where we are budget-wise.”
“As a sloper I don’t see a compromise (HB111). This will hurt us, especially the small producers. It takes billions to start a field, not thousands. The state will never learn. Keep up the fight Senator.”
“Thank you for explaining these important issues each week which makes it easier to understand what is happening in Alaska.”
“The Walker gas line needs to be killed. Save that money!”
“I have learned to live on a very [strict] budget with six kids. You learn real quick what is important and sacrifices have to start with my wife and I. The Legislators need to have the same mindset and start with being fiscally responsible and not waste money with drawing out sessions or renovating multiply buildings so you can have a fancy office in Anchorage.”
“The timing of initiating the income tax needs to be now.”
“How can members of the Legislature refer to a state income tax as a “broad based” tax when only 40% of Alaska residents are employed?”
“Like your efforts.”
“Get the capitol out of Juneau, downsize our government, and start governing like Jay Hammond would do. Remember, lack of good leadership, and cronyism, nonsensical civic mindlessness, pure waste, has hurt Alaska time and again. Socialism only works until the people with money run out.”
Special Feature This Week: News-You-Can-Use!
JUST ONE WEEK LEFT!
Dept. of Education & Early Development
Seeking Your Feedback:
Every Student Succeeds Act
The Every Student Succeeds Act (ESSA) is a federal law that was passed in December of 2015. It replaces the No Child Left Behind Act (NCLB) of 2001 and was designed to give states greater control.
Since the passage of the new law, the Alaska Department of Education and Early Development has been working on a plan to implement it. The Department is now request public feedback from Alaskans about the second draft of their application plan.
Public feedback will be open through July 31, 2017. To view the state’s application plan and give your feedback, please visit their website here.
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.
– Hot Topic #1 –
A Third Special Session?
With the second special session over, the questions you may be wondering are if there will be a third and what will be on the agenda.
Yes, a third special session is expected to begin this Thursday – and be a short one. The capital budget will be the sole agenda item, SB23. A number of projects will sit idle and federal match dollars ($1 state to $9 federal) are at risk if the capital budget isn’t resolved. Some federal dollars intended for Alaska could even be awarded to other states if the capital budget isn’t passed in a timely fashion.
It looks like the legislature will be calling itself back this round rather than the governor. This will require a 2/3 majority vote from both the House and the Senate. The House and Senate each passed its own version of a capital budget and now they must be reconciled so that both bodies agree on the same items.
Because the House’s version contains an operating budget within it – and the operating budget has already been passed – the first step will be that the Senate will not accept (not concur with) the House version.
A conference committee will then be appointed, with three members from each body, including the two Finance Co-Chairs from each, and one minority member from each. Because the capital budget began in the Senate, the Co-Chair for the capital budget, Sen. MacKinnon, will be the lead Co-Chair for the Conference Committee.
Discussions about the capital budget have been underway all year, with conversations recently between Sen. MacKinnon and House Co-Chair Rep. Foster to work out the final points that differ between the House and Senate versions of the bill. Several key items between the House and Senate versions must be resolved.
Among other differing items, the House version includes funds for the PFD to add to what was included in the operating budget; together the funds would give Alaskans their full PFD according to the formula currently in statute. The Senate version includes a $50 million reduction to the gasline and a $288 million paydown of some of the credits owed to small companies on the North Slope. The House version reduces funding for some road projects and reassigns the funds to the ferry system and to the Kivalina School project.
The legislature plans to gavel into the Third Special Session on Thursday, with the Conference Committee expected to meet that day. Leadership in the House and Senate have expressed hope that the capital budget will be passed the same or following day.
1. HB 57 Operating Budget – Passed Legislature
NO LONGER ON CALL – ITEM COMPLETED
2. HB 111 Oil Tax Credits – Passed Legislature
NO LONGER ON CALL – ITEM COMPLETED
3. 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 or second 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.
4. SB 23 Capital Budget – Awaits Senate Concurrence
EXPECTED TO BE ITEM OF CONSIDERATION FOR THE 3RD SPECIAL SESSION THIS WEEK (CALLED BY THE LEGISLATURE)
Negotiations between the House and the Senate have been ongoing the last several months, particularly in last several weeks, and as of this update seem to be on track for consensus. Senate members have been called back to Juneau by their leadership on Thursday as have been House members, to finalize the capital budget.
5. 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.
6. 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.
7. HB 159 and SB 79 Opioid Prescriptions – Passed Legislature
NO LONGER ON CALL – ITEM COMPLETED
PLEASE NOTE: As things progress each week, I will update this list, but to receive the most up-to-date information you can sign up for text alerts (see below) or can click on the links for each bill within this newsletter.
If you want to stay on top of the scheduling, 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.
This week I met with George Trabits (right), Geoff Trabits (center) and Dorwin Smith (left), of Trabits Group, LLC, a business located in Wasilla. They updated me on the work they are doing in mining as well as work in Alaska and in the lower 48 to develop FlexCem Lightweight Variable Density well cement.
FlexCem cements were developed by Trabits Group following completion of a research grant from the Department of Energy Geothermal Technologies Office (GTO). Under the GTO project, Trabits Group developed a cement that performs well in harsh geothermal conditions, with healing characteristics and the ability to remain stable even in temperatures of up to 572⁰F.
Supporting the diversification of our economy and job growth remains a priority of mine. I am a watch dog – and when needed, a bull dog – when it comes to ensuring state policy and the departments that work with businesses in Alaska are business-friendly!
Curious What Input
Constituents and Other Alaskans
are Giving?
(Group 2 of 2)
“Shelley, thank you for giving us this information for our education. It very much helps.”
“The AK Permanent Fund Dividends earnings belong to the people of Alaska, not to expand government. The institution of a state income tax in a recessionary economy is a ludicrous notion at best, and would have a devastating effect on the economy, and quite possibly plunge us into a recession or depression of which we may never recover.”
“Defund the gas line. Defund Walker’s oil buddies making a half a million a year. Offices in Houston and Japan…really is a total waste”
“As a hardworking nurse and electrician in the fine state of Alaska we request that you either put the proposal of income tax and attaching our permanent funds to the vote of Alaskans. We prefer that you do what you were elected to do and cut the budget. Alaska’s economy is faulting. There is no excuse for the state budget to be so high. We are tired of working hard to support [frivolous] spending.”
“Implementing the income tax is the best direction for our state, opposed to destroying my career, my future with my husband, and most importantly taking away opportunities for students to grow, learn, and succeed. We also strongly support the PFD restructuring.”
“You are doing an awesome job, Shelley!”
“Hi. The young man [in your post] who shot the bear saved lives and should receive further recognition. Grown men would have perhaps failed. This young man was extraordinary.”
“I am not willing to pay Walker’s broad based tax, no matter who introduces it. I will move before I will give in to this idiocy. A tax such as this, especially during a recession, is a recipe for economic disaster.”
“No matter how you slice it, there is no conceivable scenario that the State of Alaska will have anything resembling a balanced budget without new, broad-based taxes.”
“Thank you for standing firm against any new taxes. Also there should be no change to our Permanent Fund. We don’t need a “guaranteed” amount for the dividend. Just hands off any change and let it go as originally planned.”
“I love Alaska and what is stands for but can say a state income tax would have significant bearing on my choice to continue to reside in Alaska…. I know I’m not alone in that an income tax would influence residents to leave the state.”
“If you want to grow the economy – build some infrastructure, put some land in private ownership and get the government out of the way.”
“First off let me thank you for your service, and attempts to bring common sense to the Alaskan governance. I am writing today to ask that you continue your stance on reducing the state budget during this recession. Adding individual and corporate tax burdens will further mire any recovery delaying return to a healthy economy.”
Providence Health Systems will be holding a Senior housing Fair on Wednesday, August 23rd from 11am until 4pm at the Anchorage Senior Activity Center. This would be a great opportunity to see all of the options that are available to our most precious and vulnerable Alaskans.
Special Feature This Week: News-You-Can-Use!
– Hot Topic #2 –
IS PUBLIC ACCESS IMPORTANT TO YOU?
Your Opportunity to Weigh in on the
Klutina Road Proposed Settlement
During the regular legislative session I had the opportunity as a member of the Senate Resources Committee to hear the Alaska Attorney General Jahna Lindemuth speak about the ongoing lawsuit between the State of Alaska and Ahtna, Inc. regarding Klutina Road public access.
The State of Alaska was pursuing a settlement with Ahtna over the issue, which was a cause of great concern to me and to many of you (I know because a number of you contacted me about it). This area is often used for sport fishing and hunting, and the possible loss of public access – a fundamental right of Alaskans – was something I took seriously. I did not want to see the precedent of giving away RS2477* road access set because this would mean decreased land access problems for Alaskans in the future.
Last week the governor announced that a settlement has been reach with Ahtna in order to end the 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.
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)
Special Feature This Week: News-You-Can-Use!
Alaska Commission on Postsecondary Education is offering you options to save on your students loans
Good news that may be helpful to you if you’re an Alaskan resident with outstanding student loan debt!
The Alaska Commission on Post Secondary Education has announced that Alaska residents may apply to reduce their student loan interest rate. Residents may apply to reduce their current interest rate to 4.95%. Follow the link here to learn more.
In addition to lowering your interest rate, you may be able to consolidate your loans. You’ll receive one monthly bill for your education loans instead of multiple bills (but you’ll retain the option to exclude federal loans to avoid losing benefits if you chose). For more information follow the link above.
For those only wanting policy and Juneau news, please skip! For those wanting this week’s glimpse into the life of a legislator outside of the legislative world, here you go!
We live in a great state for sure! Had a super weekend break celebrating my 39th wedding anniversary with husband Rock via halibut fishing in Homer before I head back to Juneau later this week. Sore left arm meant I needed a little help from awesome deckhand, Chelsea, holding this nice catch.
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.
I cannot tell you how excited that my friend and our former Department of Natural Resources Commissioner Joe Balash has been nominated to be the Assistant Secretary of the Interior for Land and Minerals Management. This is good news for the USA and GREAT news for Alaska. Congratulations Joe! Just what Alaska needs right now – someone who understands the importance of responsible resource development. You can read the entire press release from Secretary of the Interior Ryan Zinke here.
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.
