I was able to get away from Juneau for less than 24 hours (don’t worry – not on the state’s dime!) to attend Palmer High’s graduation. What a breath of fresh air to be surrounded by aspiring young people! I sure wish I could’ve stayed to also attend the ceremonies at Colony, Mat-Su Central, Wasilla, Burchell, Valley Pathways, Mat-Su Career & Tech, Twindly Bridge, Mat-Su Middle College, and Chugiak, but had to head back to the capital for legislative business. I love to support graduates and wish each and every District F graduate the very best in their futures! See more photos including ones taken by my aide, Joshua Banks, who attended other ceremonies on my behalf.
Greetings, Fellow Alaskans:
The big news? The income tax bill was defeated on the Senate floor on Friday and is dead. Scroll down to read about it under Hot Topic #1.
Another new development? Because the Senate and House have appointed a conference committee to resolve differences between the two versions of the operating budget (HB57), the 24-hour rule has begun. Find out in Hot Topic #2 what that means as far as how quickly things can move – which can be important if you’re following a particular bill. As far as the differences between the two versions of HB57, the House has proposed increasing the budget and using more Permanent Fund Earnings to pay for government operations, while the Senate has incorporated numerous reductions.
As I mentioned last week, a conference committee has been appointed for SB26 (PFD Restructuring Bill). I anticipate meetings on this bill this week. While both the House and Senate passed their own versions of the Permanent Fund restructuring bill, there are significant differences between the versions. The House’s bill hinges on passage of a broad-based tax and raising oil taxes. The question is, will the differences be reconciled or will the bill implode?
The Senate is also near completion of its work on HB111, which will make changes to the oil and gas tax credits. The bill is scheduled on the Senate floor today, in fact. The Senate Majority agrees with the House Majority that cashable credits need to be eliminated. Although there are some differences in how the backlogged, existing credits can be applied and how future losses will be handled, the major difference between the House and Senate version is that the House’s version raises taxes on oil companies of all sizes; the Senate version does not. If the House does not concur with the Senate’s version, this bill will too require a conference committee.
While things will continue to stay very busy, my staff and I will continue to listen to you and do our best to respond to your questions and comments as quickly as we can.
I’d like to make a point here that dawned on me this week. Facebook and Twitter resemble infinity. One page or thread or link leads to another, leads to another, leads to another, etc. Because of this, I confess that I am not able to see every comment and every post. I literally receive hundreds of notifications daily, more than I have the time to check. Some inquiries require article-length responses. For this reason, I am going to keep encouraging those that want to be sure to get a response, to call my office at 907-465-3743. You can also ask your question on Facebook Live. If we run out of time to get to every question, please call the office. It’s always your best guarantee. Please know that I want to connect with you when you reach out!
Of course, like I hope you do every newsletter, please be sure too to view the photos 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! Constituent quotes await you as well – always interesting to know what others are saying.
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 the last video.)
Working daily in Juneau for you,
Speaking against the income tax bill prior to my ‘no’ vote on the Senate floor on Friday. Pulling hard-earned money out of the private sector when we’re officially in a recession is a bad idea. Penalizing productivity is not the right action when we should be encouraging it. An income tax would cause significant out-migration of wage earners and retirees, cripple small business (we have an unusually high number per capita so the impact would be severe), and deepen and prolong the recession. If you’d like to hear what my proposal is to address our fiscal situation, tune in to my Facebook Live tonight at 7pm or watch the saved video afterward on my Facebook page (Senator Shelley Hughes). Also, scroll down to Hot Topic #1 to read about the “The Defeat of the Income Tax.”
– A Constituent Quote You Don’t Want to Miss –
Regarding the defeat of the income tax bill.
“Way to go, Shelley. Thank you for your vote. Like children, the spenders in Juneau have to be told: stop spending and get with reality. Install a budget that reflects our resources; not our wishes.”
Preparing for the Senate Finance Committee hearing on SB 34, a piece of legislation designed to bring Alaskan identification cards and drivers licenses into compliance with the federal REAL ID Act. Constituents have expressed privacy concerns related to the data-sharing required for this unfunded federal mandate. SB34 was merged with HB16 on Saturday in the Senate Rules Committee. Military bases will begin requiring REAL ID compliant drivers licenses or passports for entry starting June 6 unless the person has active duty ID. Airlines will require the same starting next January. A number of states are not compliant with the real REAL ID Act.
A blast to Mat-Su’s past, last week! The first Matanuska Valley colonists arrived 82 years ago in the place we call home. The Senate Secretary provides calendars on our desks on the Senate floor that have tips for the legislative process and tidbits of Alaskan history. Figured this was a great one to show you!
– A Constituent Quote You Don’t Want to Miss –
“Do you have a Plan B? Because clearly Plan A isn’t working…”
From Shelley: Yes! Tune in this evening to my Facebook Live at 7pm or watch the recording afterward. Go to my Senator Shelley Hughes page to view.
The 2017 Colony High graduates walk across the stage to receive their diplomas. Proud of you Knights!
Way to go Wasilla Warrior Grads, Class of 2017! We look forward to your future achievements and successes. Photo credit to WHS Facebook page.
Mat-Su Career & Tech launches graduates to bright futures! Proud of these students! Photo credits to MSBSD and The Frontiersman.
Mat-Su Central graduates have partnered with their parents to successfully complete a rigorous homeschool program. Congrats, Class of 2017!
This 2017 Colony High graduate worked as a Senate page and is a neighbor of mine in District F, River Maketa. I know his mother, Laura, is incredibly proud of him as he heads to Army ROTC at Washington State. I wish you the best, River!
Always very exciting to hear what Burchell students plan to pursue after graduation. The sky isn’t even the limit for these young people! Photo credits to MSBSD.
Finishing one chapter and beginning a new one! It’s a thrilling and important time for young graduates. I wish them all the best of blessings in their pursuits.
Valley Pathways graduates have kept their eye on the prize and and have crossed the finish line. Excellent job! Nothing can stop them now as they approach their next starting line! Photo credits to MSBSD.
If anyone has photos of last week’s graduation ceremonies for Mat-Su Middle College or Twindly Bridge students that you’d like to submit, I’ll pick a couple to include in next week’s newsletter. If you attend and take photos at Chugiak High School’s graduation tomorrow evening (Tuesday), you’re welcome to submit a few too. I want to honor the graduates from District F the best I can since I can’t attend in-person!
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 Few Constituent Quotes You Don’t Want to Miss –
A flurry of comments – hundreds – came in after the income tax bill was defeated Here’s a sampling:
“Whoo hoo!”
“THANK YOU!!!!!”
“Thank God! Now cut the budget.”
“Yeah!”
“Thank you, Senator Hughes.”
“Excellent. Now back to that PFD raid…”
“I said it and again. Your commissioners have an assistant that have an assistant that have an assistant. Wake up.”
“Sweet lord! Wahoo! Thank you Shelley!!”
“Yay! Awesome news!”
“thatta girl”
“Glad to hear that. Now, will they slide a sales tax into the “agenda” to keep big government?”
Less than 10% of comments were negative but here’s a sampling of those too.
“I don’t support you. Never have. Never will. Better to take from those who work and have money than from those that are poor. Don’t you get that a sales tax will hurt low income people? I’m sure you don’t because you don’t care.”
“How stupid can you really be?”
On Friday, the Alaska Senate voted down HB 115, effectively eliminating any chance for an income tax to pass the Legislature this year. The bill is dead. It failed on the Senate floor 15-nays to 4-yeas.
As you may have read in numerous earlier newsletters, I am opposed to an income tax in Alaska, and so I voted No on the floor. In case you’re wondering, many more of you let me know you opposed the income tax bill than those who supported it.
Allow me to share a few points I made on the floor prior to casting my vote.
Opioid dependency issues have been a focus in Alaska, but there is another dependency problem we must face. Our state government has been addicted to spending money – in excessive amounts per capita compared to elsewhere. As we all know, when someone has an addiction, the person will spend all he or she has to feed the addiction, and when they run out, they try to get money from others. I believe that is what HB 115 is all about. We don’t have large amounts of oil revenue available anymore, and some lawmakers are trying to get the money from others – from you, from your neighbor, your co-worker, your grandparents. The income tax bill reflects the addiction problem of our state government. The first thing we must do is acknowledge our problem and address it.
While we have reduced the unrestricted general fund (UGF) portion of the budget over the past few years, most of those reductions have been in the capital budget. In the operating budget (agency spending), we’ve been able to backfill much of the cut UGF funds with federal, designated, and other funds. Because of this, the rhetoric that “we’ve already cut to bare bones” is false. We can reduce more of the UGF, and in fact, mathematically must reduce more.
Based on our small population, even with using some of the earnings reserves, we cannot sustain a budget as large as we had during the high oil price years. We have to face our new reality: there aren’t enough Alaskans, not enough pockets to make up the difference. If we turn on a tax spigot now, will those mathematically necessary reductions be made or will the tax spigot just be turned up higher? We all know it would be the latter.
Also when considering an income tax, we absolutely cannot ignore the fact that we are officially in a recession. Sucking money out of the struggling private sector will make matters worse. Economists and tax experts have stated that an income tax would deepen and prolong the recession. Penalizing productivity is the wrong action to take. We need more productivity right now! States that have implemented income taxes have experienced slowed economic growth. Numerous studies show a decrease in taxes leads to an increase in GDP, and an increase in taxes leads to less investment, less job growth, a slowed economy, and out-migration of wage-earners and retirees.
The US News and World Report has ranked Alaska’s economy as 50th in the nation. According to the U.S. Bureau of Labor Statistics in March, Alaska ranked 49th in unemployment at a rate of 6.4%. According to a USA Today report, Alaska is the fourth most expensive state to live in our nation. Will an income tax help Alaska improve in any of these areas? No, it will not.
In fact the House’s plan to impose an income tax and reduce PFDs would put Alaska as the #1 most expensive state. This scenario would likely result in more significant out-migration than what other states have experienced; after all, all 49 states would be cheaper places to live than in Alaska.
An income tax would have thrust us into an economic tailspin at this juncture. I was proud to press the NO button on Friday and glad to see HB115 defeated.
If you’re wondering more about what my proposal is to adjust to our new fiscal reality, tune in tonight to my Facebook Live at 7pm or watch the saved recording anytime afterward. If you want to know where I think we can make reductions, whether we will drain our savings if we don’t close the whole gap this year, and what the revenue options are that will cause the least amount of collateral damage to the economy and result in the least amount or money out of your pocket, tune into my Facebook Live.
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
Manny Budke is a high school senior who will graduate this Thursday in Hoonah. He interned in our office for a few days earlier this session. Congratulations to this wonderful young man!
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 second hearing in House Finance this past Friday but was not moved out of committee nor scheduled for a floor vote as hoped.
• 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.
• 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 –
– 24-Hour Rule –
Now that we have a conference committee for the operating budget, the Legislature is under what is called the “24-Hour Rule.” What does this mean exactly, you ask? Committees will now be able to hear a bill with just a prior-day’s notice rather than a prior-week’s notice.
This change allows bills to move much more quickly through the legislative process. The “24-Hour Rule” was created under the Legislature’s Uniform Rules to allow unfinished business to be readily tended to in the final days adjournment. While this rule allows for good bills to pass, it can also allow bad bills to sneak through quickly – so it’s a time that requires diligence and caution.
In the last few weeks, the Senate has focused on the few major bills with the goal to wrap up the session. These key bills are the ones that the House and Senate leadership agreed to address prior to adjournment. The House, however, has continued to hear dozens of non-major personal bills in the last few weeks; these are bills positioned to move quickly. To be clear, the Senate isn’t under obligation to hear any of these non-major bills coming over from the House before adjournment. These House bills will still be ‘alive’ when the legislature reconvenes in January 2018.
Since the pace has picked up, if you’re tracking any particular bill, this is a great time to sign up for bill text alerts, so you can receive up-to-the-minute updates. It’s easy to sign up. Text a bill number (ex: HB111) to 559-245-2529 to enroll. You’ll receive an enrollment confirmation and instructions on how to stop receiving the alerts.
– 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!
Facebook Live Video:
TELLING IT LIKE IT IS FROM JUNEAU
#NoFilter
Please note: Due to accompanying a friend to the emergency room, we didn’t broadcast Facebook Live last Monday evening. We will broadcast tonight though at 7pm via my Senator Shelley Hughes Facebook page. Below is the prior week’s recording.
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.
