Although we see vacationers from all over strolling through the Capitol daily, this small group is not the typical camera-carrying bunch. These six include my three small grandchildren, two of my four children and one of my son-in-laws! They were in town along with 30 other family members for my sister’s wedding on Saturday. A large group came by to see me in action on the Senate floor, and I captured this photo of a few of them afterward, before they toured the building.
Alaskan Friends and Neighbors,
As you probably saw in the news last week, the governor proposed a “compromise package” to the legislature in an attempt to bring the session to a close with a budget passed. The House Majority rejected the proposal the same day it was offered, and although I have concerns about the six items the governor recommended, it did move forward important conversations and various conference committees have since held meetings (scroll down to Hot Topic #1 for an update on special session progress).
What’s important to know at this point is that if a budget is not passed by July 1, initial steps will be taken to begin a state government shutdown. The other important thing to know is that the special session is due to adjourn by this Friday by midnight. There are many moving parts as we move into this final week, and before I comment on a myriad of possible outcomes, a wise man named James once wrote that we should be “quick to listen and slow to speak.” So although you may want to know my take on each possibility, I will refrain until I know more what each of the conference committee reports and final bills look like.
As you can see by a couple of the photos in this newsletter, my family was in Juneau this past week (for my sister’s wedding). I carved out time to spend as much time as possible with them as we celebrated this exciting event and being together. And, by the way, in case you’re wondering: I still attended some meetings and floor sessions while they were here, to ensure that the conservative values we share have a voice in the debates and negotiations. And if you haven’t t seen my comments on Facebook or in the last newsletter, I am only claiming just enough per diem to cover my lodging expenses for the days that I am in Juneau doing legislative work – not for family days.
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,
– A Quote from a Constituent You Don’t Want to Miss –
“Sen. Hughes, these quotes jumped out of an article I just read, and I immediately thought you should see them since the governor and the house majority continue to try to get their foot in the door with an income tax. I hope legislators realize that Alaskans can’t bear any more income taxes, no way, no how!
‘Americans are paying more than twice the amount of federal taxes they were when President John F. Kennedy first took office in 1961. Yes, that’s adjusted for inflation with a jump from $4,121 per person in current dollars 46 years ago to $10,114 in 2016. And yes, that’s per person, not per taxpaying person.’
The above quote included amounts per American, per person. The following quote includes amounts per taxpaying American, per taxpayer.
‘In 1961 about 49 million Americans paid federal taxes. In current inflation-adjusted dollars, they paid $15,477 per taxpayer in federal taxes. Ninety-three million Americans paid federal taxes in 2016, broadening that tax base by almost 100 percent since JFK. But the federal tax burden per taxpayer jumped to $35,053.’
I hope the legislature gets that putting more burden on those of us who are working stiffs in a state that is already expensive is not fair. Cut the budget instead!”
A photo from the Mat-Su Miners’ opening and victorious game against the Pilots on June 5. They started the season on a good note with a score of 8-7. Hope you can get out and enjoy cheering on our local teams this summer. I know I sure will when we finish things up in Juneau!
Photo courtesy of the Frontiersman
– A Quote from a Constituent You Don’t Want to Miss –
“Do not support the ‘compromise’ education head tax. This amounts to nothing more than a modified income tax that only affects Alaska residents. If a compromise is needed, then it must only be in the form of a sales tax, which everyone would pay. Only settle for what’s fair for all!”
Following a session last week, I was able to bring guests in Juneau onto the Senate Chambers floor.
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 –
A quick reminder: unlike during the regular session, we can only deal with bills the governor put on the call for the special session – so we’re limited to these eight items.)
1. HB 57 Operating Budget – Conference Committee
This week, the budget conference committee held three meetings to reconcile the differences between the House and Senate versions of the budget. The committee agreed on items for the Department of Administration, Department of Commerce, Community, and Economic Development, Department of Corrections, Department of Law, Department of Military & Veterans Affairs, Department of Public Safety, Department of Revenue, and the Judiciary. You can click here to see all of the items that were negotiated on for each department as well as the items that are still being worked on. I am disappointed that there have been a number of budget increases done by the House that were accepted by the committee, but there are still other departments that will be negotiated this week where we may be able to see savings in the budget. Even though the Governor sent out pink slips to state employees, we can avoid layoffs and a government shutdown if the committee finishes its work and 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 conference committee agreed upon and adopted the report found here. The bill will go back to both chambers for a concurrence vote. 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 versions of the bill both end the use of refundable (cash) credits for oil and gas companies, but the House version includes an increase in the production tax, while the Senate version did not. There are a few other differences, including the interest rate and pertaining to ring-fencing. The committee met briefly for an organizational meeting, and it is anticipated that they will meet again this week. Members are Rep. Tarr (Chair – lead), Rep. Josephson, and Rep. Talerico, Sen. Giessel, Sen. Stedman, and Sen. Olson.
5. SB 23 Capital Budget – In House Finance Committee
On May 12, the Senate passed the Capital Budget. This past Saturday, the House Finance adopted and passed out a committee substitute (found here) which is in third reading on the House floor tomorrow.
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 during the special session for this bill.
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 is awaiting a concurrence vote in the House.
8. SB 12 Income Tax – Senate Labor & Commerce
The Governor has included in the session call an act that would create a broad-based tax. In his “compromise plan”, the governor is pushing for SB 12 to 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.
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: SB23) to 559-245-2529 to enroll. You’ll receive an enrollment confirmation and instructions on how to stop receiving the alerts.
With Chugiak, Peters Creek, and Eklutna in Senate District F, I have a small office in the Eagle River Legislative Information Office (at no extra cost to the State, by the way) located at 12641 Old Glenn Hwy. If you’d like to meet with me at this location, please feel free to call 907-622-8963 to set up an appointment, and I’ll be happy to connect with you there (once I am back from Juneau, of course)!
My aide, Buddy Whitt, will be covering both the Eagle River office and the Mat-Su office beginning this week. My other aide, Joshua Banks, will be taking a leave of absence until the second week of August to do an internship with a CPA firm in Anchorage as part of a degree program.
– A Quote from a Constituent You Don’t Want to Miss –
“I urge you all to hold your ground against these taxes and against this so called “compromise”. As a Federal employee, I have survived government shutdowns and furloughs. Should the government shutdown and all “non essential” employees are sent home, doesn’t that mean we can cut more?”
A screenshot of the “compromise package” that Governor Walker proposed last week to the Legislature. Please see Hot Topic #2 below to see more details about each item.
– Hot Topic #2 –
Governor Walker’s “Compromise Package”
Last Monday, Governor Walker came out with his “compromise package” that he hoped would end the stalemate between the Senate Majority and the House Majority. The House Majority immediately shot down his proposal as they continue to wish to close the budget gap (plus some) this year through new taxes and raising existing taxes, rather than close it in phases over a three-year period as economists have recommended, and as the Senate Majority’s plan has proposed. (The Senate seeks to avoid an income tax and avoid raising oil production taxes while using some, not all, of our reserves while we continue to nudge down the budget). As I mentioned earlier, the Senate is waiting for Governor Walker to answer some questions, but for now, the items in his “compromise package” are below./div>
- HB111 – The governor proposes to allow for the Senate’s version to go forward but with “100% ringfencing”. Ringfencing would prevent an oil company with a carry-forward loss on a project in a certain field, from applying it against taxes for another field. This means that losses for a new field under development cannot be applied until that field is in production. In other words, a company could not apply a loss in a developing field to taxes owed in an already producing field.
- SB12 – The governor wants the legislature to pass the “Education Head Tax” provided that it raises at least $100 million in revenue (the current version if passed would raise about $50 Million). Many of you have let me know that because the amount each person pays is based on wages/income, and although it raises less than the income tax bill (HB115) defeated in May, you view this bill as an income tax. Also of note, this bill as currently written would be paid by even fewer Alaskans than HB115. Retirement/pension benefits, social security benefits, and capital gains would not be taxable under SB12. Only wages and net earnings for a person who is self-employed are taxed under SB12.
- HB60/SB25 – The governor request the passage of either version of the Motor Fuels Tax bill. If this bill passes, the motor fuels tax will double initially and within two years, the tax will triple, going from 8 cents per gallon, to 24 cents.
- SB26 – The governor proposes the passage of the Senate’s version of the Permanent Fund Restructuring bill. This version would result in a PFD calculation that is lower (a $1000 PFD check) than what the House passed (a $1250 PFD check), but it would not include language requiring an income tax and increased oil taxes like the House version included.
- HB57/HB59 – The governor proposes passing the House version of the operating budget. If the House version were to be the final budget, it would mean that all the Senate reductions to the budget would be restored.
- SB23 – Pass a capital budget with the governor’s priorities as well as payments for deferred maintenance and delinquent oil and gas tax credits. We are not entirely sure what the governor’s priorities are, but we should hear from him soon.
If you haven’t yet, please let me know what you think of these items!
Wish I had some photos of non-related constituents to include but no such recent visits to the capital. My grandsons, however, visited me in Juneau along with my husband, Rock, this past week. I am happy to report though that I’m hearing from many constituents – hundreds in fact, through phone calls, emails, and social media.
– A Constituent Quote You Don’t Want to Miss –
“Please cut the budget. If this was a company, your company, that is exactly what you would do. Let the state shut down if that is what it takes. Start with that as your base and do what other large companies have had to do. You speak for us. Tell them no.”
Floor sessions will likely be daily occurrences this week, with the special session ending at midnight this Friday, June 16. To avoid initial steps being taken on July 1 to begin a government shutdown, a budget must be passed by June 30.
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, contact my
Chief of Staff: 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.
