Had a great visit with Hayden Leavitt (left) and Chase Eckert (right), constituents with Golden Wheel Amusements, a family-run and Alaskan grown company headquartered in Chugiak that is celebrating their 50th anniversary. This was a business trip for Chase and Hayden, so I was fortunate that they took time to stop by the Capitol. Along with their carnival equipment which came by ferry from Whittier, the brothers came to Southeast to bring fun and excitement to kids and adults alike in Juneau and Ketchikan.
Greetings, Fellow Alaskans:
As we celebrate the graduations of high school and college students this week, I’ll be cheering them on with you (mostly from Juneau unfortunately) as they conclude this chapter in their lives! We have yet to conclude this “chapter” in the Legislature, so except for an occasional quick trip back to the district (not on the state’s dime I might add) I am remaining here in the capital representing you as we deal with monumental issues that impact every single Alaskan.
Speaking of celebrations, on Wednesday, the Senate passed SR 5 which recognizes the 150th anniversary of Alaska’s purchase! Alaska was a Russian colony for over 80 years when U.S. Secretary of State William Seward agreed on March 30, 1867 to the $7.2 million purchase ($123 million today). What a deal for the USA! As you know at that point, Alaska still had a long way to go before becoming a state – or even a territory in the interim.
Not until 1912 did Alaska officially became a territory of the United States with an elected legislature. This status still meant that the federal government controlled most of the laws governing Alaska, and it meant that the territorial governor was appointed by the US President. In the early 1900’s many efforts were made to grant statehood to Alaska, including the first attempt in 1916 by Alaska delegate James Wickersham. However, it wasn’t until 1958, after Alaska had drafted and approved its own constitution, that Congress passed the Alaska Statehood Act signed by President Eisenhower that year on July 7th, allowing Alaska to then become the 49th state on January 3, 1959.
Think about it: Alaskans have accomplished significant feats since the purchase from Russia 150 years ago up until today. Our amazing state has always been a shining example of a land of opportunity. Now, in 2017, we face decisions that will determine the degree to which we’ll extend those opportunities to our children and grandchildren. Alaska has been a wonderful place for my family to build a great life, from struggling with very little in the early years to a good, stable life in the present. That’s the kind of opportunity I want to extend to Alaskans for generations to come. I am honored to represent you with this goal in mind.
As we seek to keep our state a great place for Alaskans to build their lives, we must remain hopeful. The fiscal situation is serious but solvable. It in itself is an opportunity to get it right – to re-examine what our state government should and shouldn’t be, to re-consider our needs versus our wants, to re-evaluate what is constitutionally required as opposed to what is nice or helpful.
I admit I’m somewhat of an outlier in the legislature right now because I believe there are options available to us without reducing PFD checks and without resorting to an income tax. Some don’t want to see “a good crisis go to waste” but I’m not convinced we’re in a crisis when we have $16+ billion in savings and an overall operating budget, counting all fund sources, that has yet to be reduced to a size that our current private sector can afford. Economists advised us last year and this year, to avoid an economic crash landing, that we should not close the gap all at once and to instead use a phased approach, with the final step three years out from now.
We can do that without draining our reserves. Because our small population can only bear so much, we can’t close the gap mathematically without more reductions. If we do what Connecticut did in the 1990’s – institute an income tax before reductions – we can expect an out-migration and downturn like they had, except worse. Why worse? 1) We’re already in a recession and pulling money from the private economy will deepen and prolong it according to the experts; and 2) we’d move from #8 to the #1 costliest state for residents, so the out-migration of productive workers and retired folks would be greater than what has happened in other states – and the economic chain reaction would be ugly.
I believe we should diligently continue to make reductions for two years while using some savings, and then if there’s any remaining gap, fill it with a statewide sales tax. A sales tax on goods and services, excluding groceries and medicine, is quite fair and would result in the least amount of collateral damage to the economy in both the long and the short term compared to an income tax or a PFD reduction – and mean less out of Alaskans’ pockets because more than 2 million outsiders (tourists and non-resident workers) would share the load. By the way, non-residents would pay a larger portion of a sales tax than they would of an income tax (due to 2 million tourists visiting Alaska annually).
So that’s my two-cents. Although few in the halls in Juneau agree with me, thousands of constituents and other Alaskans have let me know this is also your preference. Thank you. Continue to speak up – and don’t give up.
The road ahead presents difficult challenges for Alaska, but they are not insurmountable. As the men and women who made this state the place it is, we too can work together to resolve the issues before us.
In this week’s newsletter, in response to numerous inquiries, I’ll walk through some of the options available to defeat the income tax. Scroll down to see Hot Topic #1, In Hot Topic #2, we’ll check out current DOT projects in Mat-Su. Additional resources are provided so that you can prepare for this summer’s Alaskan adventures wherever you go. Be sure to scroll down to see who from District F received Top 40 awards. Of course, constituent quotes as well await your inquisitive mind and reading pleasure below.
Of course, like I hope you do every newsletter, please be sure to view the photos and to learn more about what’s happening in our state’s capital – you may even see someone you know and/or learn about a new development on an issue you’re passionate about!
Remember too my Facebook Live tonight at 7:00 p.m – Yes we are still having it! Your questions will be front and center, so please tune in! (And you can scroll to the bottom to see last week’s.)
Working daily in Juneau for you,
My staffer, Aimee Bushnell, recently departed my office to head to an internship in Washington, D.C., but I want to take this opportunity to thank my three terrific aides for their hard work in Juneau. Joshua Banks (left) is back at our district office at the Mat-Su LIO. Buddy Whitt (right) is assisting here in Juneau.
– A Constituent Quote You Don’t Want to Miss –
“I am writing to ask for your support for CSHB 111 [Senate Resources version]. My business supports the oil and gas industry. Since oil prices have dropped, I have lost many clients and significant revenue. I know many businesses in the same financial crunch. Alaska cannot keep increasing taxes on the oil companies. No industry will pour millions of dollars into facilities and production if they knew (or thought) that they would be taxed at a higher rate at some time in the future.”
The Senate Finance Committee heard testimony from Ken Alper, Director of the Tax Division with the Alaska Department of Revenue on Thursday and Friday on SCS CSHB 111(RES), the oil tax credit bill. The Senate version removes the large tax increases and eliminates the cashable credits, allowing instead for a carry-forward-loss system that is standard worldwide.
– A Constituent Quote You Don’t Want to Miss –
“We are on the same page and I trust you to serve my best interests. Re: the income tax…one Fed-ex pilot…says that he will definitely leave Alaska if we get an income tax….Income tax punishes the producers among us.”
Listening to public testimony on HB111 and taking notes. The camera is typically stationed behind my seat for these meetings – so that’s the back of my head!
Congratulation to the
– Top 40 Under Forty Award Winners –
from District F
Congratulations are in order to three residents of Mat-Su, Jake Libbey, Jeff Miller, and Greg Stuckey, for receiving Top 40 Under 40 Awards from the Alaska Journal of Commerce. These distinguished awards recognize Alaskans under 40 years of age who have demonstrated extraordinary professional excellence and a commitment to their community. I’d like to honor and thank these three gentlemen for their unusually high-level of leadership. The future is bright for our state when we have outstanding individuals such as these. Scroll down to see their photos and please join me in congratulating them along with all the 2017 winners: Top 40 Under 40 2017 Class
Jake Libbey (center) is the CEO of Crystal Clear Creative. He lives in Wasilla with his wife, Lacey; their two daughters, Alera and Lilly; and one sheepadoodle named Susitna. Jake’s favorite quote: “In matters of style, swim with the current; in matters of principle, stand like a rock.” – Thomas Jefferson
Jeff Miller (center) is Senior Executive Vice President of Operations for Cruz Companies. Jeff lives in Palmer with his wife Monica; his three children: Taylor, Graycen, and Cole; his dog, Kay; his cat, Tik-Tak; and Brownie, his horse. His favorite quote: “The definition of insanity is doing the same thing over and over again and expecting a different result.” – Albert Einstein
Greg Stuckey (center) is Director of Single Family Housing Programs for the United States Department of Agriculture. Greg lives in Palmer and will soon be married to Kathleen McConnell. His favorite quote is, “Limits, like fear, is often an illusion.” – Michael Jordan
It has been an absolute joy to be visited by so many high school students during this legislative session. As many of you know, I have a passion for student learning and success. Spending time with young people who show a zeal for their futures has been a pleasure.
Next week, high school seniors throughout District F will be celebrating the completion of their secondary educations at graduation ceremonies. Congratulations to the Class of 2017! I wish each of you the very best in your next steps and beyond. What an exciting time!
Community members, if you’d like to cheer for the grads, below are links to the graduation times and dates for District F seniors.
Mat-Su Borough School District High School Graduation Ceremonies
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.
– A Constituent Quote You Don’t Want to Miss –
“Dear Shell[e]y. Please please vote no on HB115. This bill is a disaster for our state economy. The effects of this will be far reaching and will not help grow our economy. People are already taxed enough. Why can’t our representatives see how people in our state are already struggling enough to make ends meet. This is a VERY BAD IDEA. PLEASE VOTE NO!!!”
I have received calls and inquiries from many of you concerned about HB 115, the income tax bill sponsored by Rep. Paul Seaton, passed by the House, and under consideration in the Senate. Many of you have asked me what happens next. The bill is currently in the Senate Labor and Commerce Committee. We’ve held numerous meetings to review the bill, hear expert testimony, and hear from the public. As many of you know, I am steadfast and unwavering in my opposition to an income tax which would penalize hard working Alaskan families. Below are some of the options available that I see to stop the bill from becoming law.
- Option 1 – The Senate Labor and Commerce Committee chooses to not move the bill out of committee so the bill doesn’t go to the next committee nor to the floor for a vote. Be aware though that because the bill is not technically “dead,” the governor could place the bill “on the call’ in a special session.
- Option 2 – The Senate Labor and Commerce Committee Chair could entertain a motion to move the bill out of committee, and because an objection would certainly result (I’d call an objection), a roll call vote would be taken but would more than likely fail. Again, be aware that the bill could still be placed on a call by the governor for a special session.
- Options 3 – The presiding officer, in this case, the Senate President, has the authority to refer a bill at any time to a committee. He could assign the bill to the Rules Committee (which essentially would remove it from the Senate Labor and Commerce Committee). The Rules Committee could schedule it for a vote on the Senate floor. Because there are not the votes in sup, the bill would fail on the Senate floor. The bill would be dead, so the governor couldn’t place it on a call for a special session – but he could put a slightly or very different income tax bill on a call for a special session. Because of the obvious lack of support in the Senate, however, it is unlikely the governor would go this route.
As always, I welcome your input on this and any other policy under consideration in the legislature. Please feel free to call me at (907)465-3743 or email me at Senator.Shelley.Hughes@akleg.gov.
Serving You on Committees
Please note that the only committees on which I serve that are active currently – to deal with key legislation – are 1) Senate Resources (to deal with the oil tax bill), 2) Senate Labor & Commerce (to deal with the income tax bill), and 3) Senate Finance (to deal with two bills just mentioned as their second committee of referral).
- 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
The subcommittees have ”closed out” for now and the FY2018 budget is currently awaiting finalization in a joint conference committee. My seat on these subcommittees, however, continues through next year, so if you have ideas for efficiencies, reductions, and improvements in any of these areas, don’t hesitate letting me know.
- Department of Education and Early Development
- Department of Law
- Department of Administration
- Department of Transportation and Public Facilities
For additional information related to Senate Education and Senate Labor & Commerce, contact my excellent aide: Joshua.Banks@akleg.gov
For additional information related to Senate Resources and Senate Finance, contact my amazing aide: Buddy.Whitt@akleg.gov
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.
• SB6 — “Industrial Hemp Production” — The bill had its first hearing in House Finance this past Monday. A second hearing and public testimony is scheduled for next Friday, May 12 starting at 1:30pm. We hope the bill is moved out of committee and that the Rules Chair will schedule it soon for a vote on the floor. If you would like to listen to the presentation from this last Monday you can follow this link.
• 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 2 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 heard the bill on Wednesday and will schedule a second hearing and public testimony in the near future. If you would like to watch the hearing from Wednesday, you can do so by following this link.
• SB96 — “Alaska Education Transformation Act” — Senate Education Committee Bill Relating to Education and School Districts is in the Senate Finance Committee.
• 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.
For information on bills I’m co-sponsoring, click here.
For information on all bills filed by others, click here.
– Hot Topic #2 –
– Road Construction Projects –
It’s that time of year again!
As all of you know, with the summer season comes road construction and improvement projects throughout the state including in the ever-growing Mat-Su. After work by the Mat-Su delegation this past year, Gov. Walker re-instated the Knik Goose Bay Road Project. Stay tuned for more information on this effort in a future update.
We’ll overview four projects below that are currently underway. If you would like to keep up-to-date on projects in the Mat-Su and throughout Alaska, the Department of Transportation has a wonderful interactive map that you can use.
1. Glenn Hwy / Eklutna Overpass – The Department of Transportation is currently working on construction of a roundabout at Klatt Road and the Johns Road intersection just off the Eklutna Road exit. Construction is planned to be completed by June 2, 2017.
2. Parks Hwy in Wasilla – DOT is currently working on an improvement project on the Parks Hwy between Church Road and Pittman Road. Once this project is completed, the section of the Parks Hwy will be expanded from two lanes to a divided four lane section. The project is scheduled to be completed by August 2017.
3. Bogard Road and East Seldon Rd. – A roundabout is being constructed at the intersection of Bogard Road and East Seldon and should be completed by August 15, 2017.
4. Lucas Road Improvement – DOT is currently working on an improvement project for Lucas Road from the Parks Hwy intersection to West Spruce Avenue. This project will be completed by July 31, 2017.
REMEMBER – being informed and driving for the conditions you are in is the most effective way to ensure your safety and the safety of drivers around you. Before you travel, be sure to check out the Department of Transportation’s Road Condition and Map and know before you go. And as always, buckle up and drive safely!
– 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 to ask questions and give your input on Facebook Live every Monday evening at www.facebook.com/AKShelleyHughes.
Watch tonight 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 send an email to Sen.Shelley.Hughes@akleg.gov.
If you are looking to get in contact with a specific legislative aide:
Buddy Whitt – District Director, Legislation
(907)622-8963 – Buddy.Whitt@akleg.gov
Joshua Banks – Research, Legislation
(907)376-3725 – Joshua.Banks@akleg.gov
Best,
Copyright © 2017 Senator Shelley Hughes. All rights reserved.
