Always enjoy visits with fellow Mat-Su residents in Juneau! This week, Brian Morgan from Wasilla stopped by.
Alaskan Friends and Neighbors,
I wish I could report that things are wrapping up here in Juneau, but since our one constitutional duty is to pass a budget and the Chair of the Budget Conference Committee, Rep. Seaton, has still not yet scheduled a meeting to hammer out the differences, I can’t give you that good news.
So what’s transpiring? And why aren’t things wrapped up? It boils down to the House Majority insisting on implementing a new broad-based tax and raising existing oil taxes, while the Senate Majority has no interest in these taxes. It also hinges on differences in views on the bill that would restructure the Permanent Fund (and result in lower PFDs).
On Friday, the governor stated that he’s going to get in the mix and offer a “compromise package.” My take on the points of consensus where we should focus are in Hot Topic #1 (scroll down). I’m guessing the governor’s proposal will involve less dollars in the hands of Alaskans (poor idea when we’re in a recession) than what I propose. With a government shutdown of July 1 looming, the sooner the budget is resolved the better – and again, it’s the only requirement we have.
Because I’m an outlier on the restructuring bill, and space is a factor here, I won’t repeat my proposal but will provide a link for those interested (see Hot Topic #1 at link): http://mailchi.mp/akleg/news-from-hughes-session-update-may-1-1380501?e=e6065c9a 5b.
What else has transpired since my last newsletter? The legislature passed the bill addressing opioid prescriptions. See Hot Topic #2 (scroll down) for my thoughts on this topic, including my concerns about the bill as well as my admiration for those working hard in our community to reverse the opioid crisis.
To see my thoughts on the cost of the session and per diem, be sure to check out Hot Topic #3.
Of course, like I hope you do every newsletter, please be sure too to view the photos to learn more about what’s happening – 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 on your behalf,
Buddy Whitt, one of my two fantastic aides, is enroute by ferry from Juneau then driving home through Canada as of this writing. He’ll be opening our Eagle River office this Wednesday for the convenience of those who reside in the Chugiak, Peters Creek, and Eklutna areas. It’s located at the Eagle River LIO at 12641 Old Glenn Highway. Joshua Banks is working in our Mat-Su office located at 600 E. Railroad Avenue in Wasilla. I am still in Juneau and thankful for technology so my staff can continue to support the work on behalf of District F.
The box Buddy is holding reminds me of a fun comment made by the person overseeing the shipment of office items and equipment from Juneau back to local offices. He remarked that our office won the prize for the least amount shipped back with only two boxes! Of course, there was no contest and no prize but I’m proud of the efficiency of our office, nonetheless!
Second Lieutenant Luke Heun, from Palmer, is one of the most recent graduates of the United States Military Academy! The top photos are of Luke at his commissioning ceremony at West Point with his brother Captain Zach Mierva. The bottom left photo is the Alaska flag that I had flown over the Capitol to honor Luke as well as his father Rob Heun who graduated from West Point in 1977 (Rob’s birthday was the same day the flag was flown). The bottom right photo is the flag being presented to Luke.
Congratulations to Luke and all other Alaskans who graduated from the five service academies this year! Thank you for your service and leadership!
– A Quote from a Constituent You Don’t Want to Miss –
“It just gets me, everybody in the oil industry has lost a lot already. Our machine shop has lost over half our employees, overtime, raises, and about $7,000 year in bonuses. We have all taken a major hit. Luckily my wife and I do ok without all the extras. But I am watching many friends and coworkers struggle to stay afloat. I am pretty sure more taxes will be the straw that breaks the camel’s back for many. I can not see where asking for more and getting less in the long run will help the state or any of its people.”
I filled in again as the Senate Majority Leader during Friday’s technical session.
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.
– Hot Topic #1 –
– Special Session Issue Update –
including…
– My Take on the Points of Consensus –
Now for an update on the eight items on the special session call…but before I provide that….
Allow me this week to point out what I see are the points of consensus among the House and Senate Majorities and Minorities – among most if not all 60 legislators – as a way to direct us to a solution and finish the work at hand. The governor plans to present a “compromise package” soon, but I’m guessing it will involve less dollars in the hands of Alaskans (poor idea when we’re in a recession) than what I propose.
I believe, in order to work together to get the job done, these three areas of agreement should be our focus:
1) The budget passed by July 1 – it could be argued that this one should go without saying, but because of all the revenue distractors out there, I believe we need this reminder. It’s our one and only constitutional duty – and no one wants a government shutdown if we can avoid one. Haggling over tax revenue measures doesn’t need to impede the budget process (number 3 below provides the alternative). Those that want to haggle can always still do so after the budget is passed.
2) Elimination of the cashable oil tax credits – we all realize we can’t afford to be paying out cash anymore to stimulate exploration and production. We can agree on this point. We can also start saving about $100 million to $200 million per year if we pass the bill that’s on the table that will eliminate the cashable credits (HB111). There’s not agreement at all though on the issue of raising taxes on the oil industry, so this point should be dropped.
3) Use of some earnings reserve to pay for government services for the first time – I’m fairly sure that all 60 legislators realize the math problem at hand, and that they agree that the only way to fill the gap left by oil prices that plummeted, is to use some of the interest income off the Permanent Fund (not the principle). There’s not agreement though on how or whether to restructure the Permanent Fund or how much or whether to reduce the PFD or how or whether either or both of these things should be accompanied by new taxes or increased old taxes and which taxes…. The list of the tangled web of positions is long when it comes to disagreements, but the point of agreement – to use some of the earnings reserves – is something we all agree is part of the mathematical solution. Why not agree to a simple, moderate draw of earnings reserves for the first time? A draw in its purest form – no taxes, no restructure, just a simple draw. And wow, just think: if we agreed on this one point today, we could wrap things up, pass the budget, and adjourn in short order!
So now, below is your update on the eight items the governor put on the call and where we are with each one…. (And just a quick reminder before the overview: unlike during the regular session, we can only deal with bills for which the session was called – so we’re limited to these eight items.)
1. HB 57 Operating Budget – Conference Committee
The budget conference committee held a short organizational meeting, but the chair, Rep. Paul Seaton, has not reconvened the committee to reconcile the differences between the House and Senate versions of the budget. Due to inaction, on June 1, the governor had to issue pink slips to state employees. We can however avoid layoffs and a government shutdown if the budget passes prior to July 1. Members of the committee are Rep. Seaton (Chair – lead), Rep. Foster, Rep. Pruitt, Sen. Hoffman (Chair), Sen. MacKinnon, and Sen. Olson.
2. HB 59 Mental Health Budget – Conference Committee
The bill is part of the operating budget and is also in conference committee. It is typical for this bill to be reconciled and move forward alongside the operating budget bill. Members of the committee are Rep. Seaton (Chair – lead), Rep. Foster, Rep. Pruitt, Sen. Hoffman (Chair), Sen. MacKinnon, and Sen. Olson.
3. SB 26 Permanent Fund Restructuring – Conference Committee
The conference committee members for SB 26 has been selected by both the House and Senate, but they have yet to meet. Members are Sen. MacKinnon (Chair – lead), Sen. Egan, Rep. Foster (Chair), Rep. Seaton, and Rep. Thompson.
4. HB 111 Oil Tax Credits – Conference Committee
The House and Senate agreed to end the use of refundable (cash) credits for oil and gas companies, but the House insists on increasing how much companies pay in taxes. The Senate did not agree with this portion and so this bill will be going to a conference committee. Members are Rep. Tarr (Chair – lead), Rep. Josephson, and Rep. Talerico, Sen. Giessel, Sen. Stedman, and Sen. Olson. As of the date of this writing, no conference committee has been scheduled, but House Finance did postpone a Friday, June 2 hearing on HB111. Because the House Finance is not in possession of the bill, this is an odd scheduling.
5. SB 23 Capital Budget – In House Finance Committee
On May 12, the Senate passed the Capital Budget and the bill is in the House Finance Committee who had hearings two weeks ago but has not held any hearings since. The Senate created a budget that is much leaner than in the past, but there is concern that the House will add more projects and increase the budget. If this occurs, this bill could too end up in a conference committee.
6. HB 60 and SB 25 Motor Fuel Tax – In House and Senate Finance Committees
Both versions are in their respective Finance Committees. There have not been any hearings scheduled, but it’s possible one of the bills could be moved out of committee and onto the floor for a vote.
7. HB 159 and SB 79 Opioid Prescriptions – Passed Legislature
HB 159 passed the House two weeks ago and last Thursday was passed by the Senate. Because the Senate made some changes the bill will have to go back to the House who will then concur with the changes or reject them.
8. Broad Based Tax – Bill yet to be Filed
The Governor has included in the session call “An act or acts to increase an existing tax or to establish a new broad-based tax for the purpose of generating new revenues for the State.” No bill has been proposed since the special session began that fits this description but it’s possible the governor will introduce another income tax bill or a sales tax bill.
PLEASE NOTE: We are still under the “24 Hour Rule” which allows committee meetings to be scheduled just a day in advance. 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: HB111) to 559-245-2529 to enroll. You’ll receive an enrollment confirmation and instructions on how to stop receiving the alerts.
Steve Wackowski has been selected by Department of Interior Secretary Ryan Zinke as the Senior Advisor for Alaska Affairs. Alaska will be well-served! I’ve been privileged to work with Steve on unmanned aircraft systems issues as one of our UAS Legislative Task Force members as well as on resource development issues. A friend, colleague, and super-smart and capable guy. Congrats Steve!
And speaking of Secretary Zinke, along with many Alaskans, I welcome the good news he brought to our state last week. See more about that by scrolling down this newsletter to the photo of the secretary.
– A Quote from a Constituent You Don’t Want to Miss –
“In oilfield work, we have lost thousands of jobs, hours cut, wage freeze, and lost bonuses. Shouldn’t the government cut back like the rest of us?”
In response to learning that a broad-based tax would cost Alaskans $2 million a day:
“$2 million a day! We can’t have that. Government is already so bloated in Alaska!”
“No pfd restructuring, or new taxes without a public vote!”
And of course, I receive some with different views:
“Most people in this state support a modest income tax. You know why? We’re not children. More importantly, we understand what community means. It is a pleasure to contribute to financial stability of our state, especially when we can do so in a way that’s proportional to our means.”
A photo of Palmer Hay Flats from the Scout Ridge Overlook taken by my staff Joshua Banks. I hope you are all able to get out and enjoy our beautiful state this summer! Though I’d love to be out enjoying the great weather Mat-Su has been having lately, I am committed to finishing the work before the legislature on your behalf.
– Hot Topic #2 –
HB 159 Passage – Opioid Bill
Last Thursday, the Senate passed HB 159, a bill sponsored by the governor intended to help curb opioid abuse. The Senate made some changes to the bill that passed the House, so it will need to go back to the House for a concurrence vote.
The bill includes continuing education requirements for those with prescribing authority; limits prescriptions to 7-days (but allows the provider, via notations in a patient’s medical file, to waive this limit for chronic conditions, for hospice and cancer patients, and when travel distances apply); requires pharmacists to update the prescription database daily; and requires the department to issue individual prescriber reports to encourage prescribers to self-monitor, evaluate, and adjust their prescribing practices if needed.
With the rise in opioid addictions, overdoses, and deaths along with the prevalence of crimes committed by addicts, I understand the interest in making changes, but I also believe the state medical board, pharmacy board, nursing board, dental board and other boards of prescribers – who have been working on this issue – are the ones best suited to set the parameters, not legislators.
The bill makes multiple requirements of providers, including of those who aren’t overprescribing; for those who are overprescribing, the question is, will this bill cause them to change their behavior? For some it may, but I believe the bill missed the mark. I voted against the measure, not because I don’t believe there’s an opioid crisis – because there is and it’s tragic. I voted against the bill because it created extra steps for the thousands of good, non-overprescribing practitioners in our state (which likely will raise the cost of healthcare for consumers) without adequately addressing the real problem: targeting what I refer to as the “pill mill practitioners” and the “doc-shopping drug seekers.”
Although the bill that passed has its weaknesses, I want those who are dedicated to reversing the opioid trend to know that I wholeheartedly support and applaud their work in our community. There are many out there working daily to help individuals break free from addiction, and I’d like to acknowledge and thank a few who stay in regular contact with me to keep me abreast of the issues and challenges: Michael Carson and those at MyHouse, Philip LIcht and his team at Set Free Alaska, Terria Walters with Fallen Up Ministries, and recovery advocate, Mark Weaver. Thank you for your vision and commitment to end the destruction and devastation caused by opioid addiction.
Department of Interior Secretary Ryan Zinke signs a secretarial order in Anchorage to jump-start energy production in the National Petroleum Reserve of Alaska (NPRA). The order will also require an update to resource assessments for areas along the North Slope including the “1002 Area” which is a very small area (8% of a region the size of South Carolina) within the Arctic National Wildlife Refuge (ANWR). This is good news for the nation and Alaska! There couldn’t be a better time to move toward increased responsible resource development in NPRA and ANWR. This action has long been supported not only by Alaska’s elected officials, but by many Alaska Native leaders, both of which are represented in the group behind Secretary Zinke.
– Hot Topic #3 –
Cost of Session and Per Diem Discussion
A reporter inquired what I planned to take in per diem. He chose not to use any of my response in his article – why am I not surprised – but thought you might enjoy my response to him, especially my last remark:
“It’d be zero if the House Majority and governor weren’t demanding taxes.
It’d also be zero if we were meeting in southcentral (where I believe 32 or 34 of us could be staying in our own homes).
My plans? Let me preface it by saying I took zero last year for special session because I had a free place to stay – on my sister’s couch. This year, that’s not an option – she sold her house (good for her but bummer for me).
My plan is to take just what I need to cover my actual lodging expenses for the days I need to be in Juneau. I won’t be pocketing any extra.
The per diem issue though is a diversion from the real point we should be talking about: the $2 million per day it would cost Alaskans if a broad-based tax passed.”
– A Constituent Quote You Don’t Want to Miss –
In reference to Hot Topic #3 when I posted a similar comment on my Facebook page:
“Thank you for posting this. The beauty of the internet is that you, the representative, can communicate directly with the unwashed lumpen proletariat. People like me. Your post ads much to flesh out the article.”
In my office reviewing documents related to contract negotiations with public safety employees. While the Department of Administration is responsible for conducting negotiations with public employee unions, the Legislature has the final say as to whether or not they are approved. While I want to ensure that State employees receive fair pay, I will be looking through these contracts to make sure they are fair not just to the employees, but also fair to the private sector who pays the bills.
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.
***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.
For information on bills I’m co-sponsoring, click here.
For information on all bills filed by others, click here.
– 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 Monday evenings at 7pm 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.