government relations meeting...

GOVERNMENT RELATIONS MEETING AGENDA Tuesday, January 26, 2016 | 8:00AM

Chamber Office

I. Call to Order / Establish Quorum – Derek Miller, Chair

II. Call for Conflict of Interest Disclosures – Derek Miller, Chair

III. Approval of the Agenda

IV. Approval of MinutesA. January 19, 2016 Minutes

V. PresentationA. Alaska’s Fiscal Situation: Use of Permanent Fund Earnings presented by

former Alaskan Senator, Gary Wilken

VI. Unfinished BusinessA. Juneau Fly-In

VII. New BusinessA. Discussion on Chamber’s fiscal position as we prepare for Juneau

VIII. OtherA. Staff Report B. Committee Chair Report C. Committee Member Comments D. Guest Comments

IX. Next Meeting - February 2, 2016 featuring Jack Wilbur, Interior Gas Utility BoardMember with an update on the Interior Energy Project

Government Relations Committee Meeting Tuesday, January 19, 2016 | 8:00AM

Chamber Office

Call to Order: The regular meeting of the Government Relations Committee was called to order on Tuesday January 19, 2016 at 8:01am by Derek Miller, Chair. Committee Members Present: Anna Atchison, Rebecca Dean, Jenny Mahlen, Derek Miller, Tammy Randolph, John Ringstad and June Rogers. Quorum was established. Committee Members Absent: Sarah Lefebvre, Sarah Obed and Lorna Shaw. Guests Present: Jennifer Bump, Clark Milne, Lance Roberts. Staff Present: Liz Wolfe, Lisa Herbert. Marc Smith. Agenda: Hearing no objections, the agenda was approved as presented. Minutes of Previous Meeting: The minutes of the December 15, 2015 meeting were approved as presented. Presentation: None New Business: The committee discussed the 2016 Juneau Fly-in. The dates will be February 16-18th and the reception will be on the 17th at the Juneau City Museum. Staff shared the participant list with the committee and let them know that the room block will release today. The committee discussed who they would like to have meetings with during the fly-in. They would like to meet with the Senate President, Speaker of the House, Commissioner of Revenue and the Lt. Governor. They also discussed a possible group meeting with Senate Finance Co-Chairs MacKinnon and Kelly and reaching out to Senator Coghill on criminal justice reform. Members were asked to let staff know if they would like to help solicit sponsors or to volunteer at the reception. The committee also discussed the advocacy agenda pamphlet and priorities hand out. There is some question about how the Board of Directors would like the committee to handle bill tracking this session. Government relations would like to have a joint meeting with the Energy committee. Derek will reach out to Rick. The Chamber is co-hosting a luncheon on the arctic on 3/14. We will need volunteers for check-in. Lisa recently attended a fiscal breakfast and would like to put a luncheon together. Unfinished Business: There was no unfinished business discussed at this meeting. Other Communication: Staff shared some of the changes that are on the horizon for the luncheons. The Chair thanked the committee for volunteering to serve in 2016. Next Meeting: The Chair reported that the next regular meeting of the Government Relations Committee will be on Tuesday, January 26 at 8:00AM at the Chamber’s office. Adjournment: The Chair adjourned the meeting at 8:58AM. Respectfully Submitted, Liz Wolfe Advocacy & Operations Manager

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Anchorage

The campaign’s many co-chairs now include Vince Beltrami, president of the Alaska AFL-CIO; former Democratic

The group has also hired a pair of lobbyists, who alongside operatives from the AFL-CIO met with legislators this

“We want to be as effective and reach as many people and help influence them do the right thing, as broadly as we

crisis that show, among other things, that nearly four in five people think that the situation will hurt them or their

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Alaska budget-reform coalition adds allies and ramps up Juneau lobbying... http://www.adn.com/article/20160123/alaska-budget-reform-coalition-ad...

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Several lawmakers who met with Alaska’s Future

representatives said the presentations were factual, aimed at

showing that the public won’t vote them out of office for

turning to the Permanent Fund to help pay for government —

a move that will likely result in smaller annual dividend

checks.

In its presentation, the group was “very square about ‘This is

some information,’” said Rep. Lynn Gattis, R-Wasilla.

“Their goal is to get all Alaskans from different groups to

work together,” she added. “They’re not telling us what to

do.”

The campaign’s overtures, however, weren’t embraced as warmly by all who received them.

Reed, the lobbyist, invited the House Democratic minority caucus to lunch this week at the high-end Capital Inn,

a block or so from the state Capitol. But the Democrats ultimately canceled and chose instead to hear a

presentation from Joelle Hall, the AFL-CIO’s political director, while Reed and Sparks waited outside the room.

In an interview, three House Democratic caucus members argued that Alaska’s Future was essentially a tool of

Duncan and GCI aimed at using the Permanent Fund to close the budget gap instead of more progressive

measures, like a graduated income tax or increased taxes on oil producers.

The income tax proposed by Walker is only expected to raise $200 million, and the tax increase he’s proposed for

the state’s big oil producers will raise about half that. Those sums are dwarfed by the state’s $3.8 billion

deficit and by the amount of money that could be drawn from the Permanent Fund.

“There’s something disturbing about some of the richest people in the state hiring political consultants to tell us to

cut the dividend,” Gara said, adding that he’d rather hear from his own constituents than from “a guy who owns a

Learjet.” (Duncan owns a company that has leased a jet to GCI, records show.)

The Democrats pointed to the group’s decision to hire Sparks and political consultant Mike Dubke, who both

worked on Republican U.S. Sen. Dan Sullivan’s campaign in 2014, as evidence that it planned to launch political

attacks against lawmakers who don’t support their agenda.

Asked about the labor groups’ endorsement of Alaska’s Future, Rep. Chris Tuck, D-Anchorage, and himself a

union official, said Sparks and Dubke were “hired to get those other groups on board.”

“It reeks of a shadow government,” he said.

Sparks referred questions about those comments to Beltrami, who said Alaska’s Future was not created under

terms that have “anything to do with the election.”

“It only has anything to do with these next 90 days,” he added, referring to the length of the legislative session.

The suspicion is reasonable, Beltrami said, because Democrats and unions fought against Sparks and Dubke in

the U.S. Senate election “in probably the biggest knockdown, drag-out political fight in Alaska’s history.”

'Doesn’t require partisanship'

Beltrami himself had initially expressed skepticism about working with the pair, but he said his reluctance

softened after a meeting at an Anchorage coffee shop.

“This budget shortfall isn’t a Republican or a Democrat challenge,” Beltrami said. “It’s an Alaska challenge. It

doesn’t require partisanship.”

Alaska's Future, in its charter, says that "every conceivable solution to Alaska’s budget deficit requires using

Permanent Fund earnings to support essential public services."

Members believe, however, that that step "is not a complete solution and that other shared sacrifices will be

required," and they also say a sustainable dividend needs to be part of any plan.

Knowles, the former Democratic governor, said Duncan recruited him to participate in the campaign and that he

signed on because of the threat posed by the budget crisis to the state’s economy and residents. Without major

changes and use of Permanent Fund earnings, Knowles said, Alaskans’ dividends could be at risk.

“It’s going to depend on people standing up and working together on this,” he said in a phone interview.


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RELATED:

Walker's State of the State: 'The budget, the budget and the budget'

GCI recruiting allies as it ramps up campaign to tackle Alaska's fiscal crisis

Alaska’s Future’s financial backers include the Alaska

branches of the National Education Association, the

Associated General Contractors, and the AFL-CIO, with some

of the money expected to go toward television and radio ads.

Beltrami said his group expected to give more than $100,000.

Alaska’s Future plans to disclose full information about its

donors, Sparks said, but it wasn’t available Friday.

The group's two lobbyists in Juneau are each being paid

$30,000 — Reed Stoops, and Ashley Reed, who also have

$55,000 and $50,000 annual lobbying contracts with GCI.

Beltrami said the AFL-CIO’s lobbyist, Don Etheridge, who’s

paid $10,000 monthly, has also been working on the

campaign.

Lawmakers, however, discounted the impact of their meetings with the group. Sen. Mike Dunleavy, R-Wasilla,

called the information he got from Alaska’s Future a single “data point.”

“I can’t count the groups that will come down here” to lobby, he said.

Sen. Berta Gardner, D-Anchorage, said she appreciated the work being done by Alaska’s Future and other groups

like the Rasmuson Foundation “to get people up to speed, to raise the issue.”

“I think it is having an impact,” she said.

But asked if she would ultimately vote for the measure that the group is pushing — spending earnings from the

Permanent Fund — Gardner said she wanted to see which plans ultimately emerge from the legislative process,

and which elements they include.

“We have to have a full plan,” she said. “It’s all in the details.”

Contact Nathaniel Herz at [email protected] or on Twitter

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55 Comments Sort by

Jack Wright · Chief Executive Officer at RetiredBudget reform? You mean a butt cover for public employees. As if the unused sick, and vacation payis so much we can't afford to lay them off when the government shuts down, Public employees havea huge unfunded liability. Add up the hole in the retirement fund and all those "perk" days and theliability is BILLIONS. And now even more lobbyists are lining up to eat the dividend. LET THE PORKFLOW. BUDGET REFORM... got to go, it's raining on my leg.Like · Reply · 2 hrs

Art Chance · University of Alaska SoutheastWe did the "back of the matchbook" math on laying off State employees back in Cowper andwe'd have had to go for supplemental appropriations to pay for the leave. The State doesn'tbudget for leave really; it has a bit of an allocated terminal leave account to deal with normalattrition, but any significant layoffs and the State would need GF to pay out the leave.Like · Reply · 2 hrs

Art Chance · University of Alaska SoutheastEverybody in this "coalition" has their hooves so far in the trough that only their curly little tails aresticking out.

Like · Reply · 4 · 3 hrs

Timothy Boese · Audio for Video, camera support, photography at Timothy C Boese Audio/VideoYou know the astroturfers are out in force when they respond to each commenter individually andoftenLike · Reply · 4 hrs

Joe StudebakerThe trouble with the evaluation and discussion Alaskans are having about supporting stategovernment after oil is that less than half of Alaskans work. So asking Alaskans to opine as towhether we need an income tax is like asking two wolves and a sheep to vote on what to eat fordinner. We need elected Alaskans to show some leadership. We cannot afford anywhere near theamount of government oil built, and we are right now spending one-time reserves at the rate of$400,000 per hour according to Governor Walker. Taxes on Alaskans cannot support the governmentthat oil built but new taxes can prolong the agony that Alaskans now face. And taxing the minority ofAlaskans who work makes absolutely no economic sense.


Richard PhillipsIts easy to look at other sources when your own is up for taxation. For once I agree with the far right.Cut spending pork instead of looking to tax or raiding the dividend. Cutting top heavy governmentcomes to mind


John Kelsch · Fairbanks, AlaskaThere's no doubt the state needs to trim some fat and raise some taxes, working together we can getthrough this but threaten the future economy by attacking the PFD is as foolish as the policies thatgot us here again and again.


Michael Chambers · Artist at Self employedIsn't it nice that Ben Sparks, a resident of New Jersey rolls into town and states that the PF is up forgrabs. Perhaps Ben should go back to Jersey and assist their state in incorporating more taxes.


Brian Sweeney Jr · Owner/ President at Sweeney Brian F Jr MD APCLook at our combined state/local per capita spending in 2013 compared to other states in my linkbelow. AK is at levels 100% higher than most states. It is ridiculous. It is an unsustainable situation ifwe only look for revenue sources. GCI, unions, and non-profits fear cuts for obvious reasons. Weshould aim for some number 30% or so higher than where other states spend and that is being overlykind to spending. Forget this reduce the dividend idea. Eliminate the dividend. 17% of the checks aresent out of state anyway and the feds take their piece of the payout every year anyway. Ifsomeon... See More

Like · Reply · 8 · 21 hrs · Edited

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Restore Order and Sustainability in our Fiscal House

When the Senate adjourned in April 2014, Alaska's revenues were projected to beabout $4.5 billion dollars for the coming 2015 firscal year. Our savings of nearly $12billion could cover projected budget shortfalls for almost a decade.

By December 2014, oil prices had dropped 40% taking with them nearly 50% of allanticipated state income. Suddenly, savings which could last a decade, would now beexhausted in just 3 years.

Commited to taking Alaska's fiscal crisis seriously, the Alaska Senate cracked downhard on both operating and capital spending. Working across party lines, GeneralFund spending in both the operating and capital budgets was reduced by $777million dollars in a single fiscal year including:

Hundreds of responsible reductions to the operating budget which save the State at least $300 million inunrestricted general funds. Targeted reductions were taken in all branches of government and all departmentsaveraging an across-the-board 10% decrease.

Capital budget expenditures were reduced $481 million from last year alone and totals $2 billion less thancapital spending in 2012

Click to Enlarge Click to Enlarge Click to Enlarge

Catastrophic Drop in Oil Prices Undermines Alaska's Fiscal Certainty Nearly 90% of all State income is realized directly from oil production which hasbeen declining for years. When the price collapsed last fall, billions inanticipated revenue evaporated. This dependence on a single resource leavesAlaska financially vulnerable to market forces beyond our control.

The Alaska Senate Majority believes that a short-term financial focus willeventually leave the State of Alaska with increasingly grim budgeting options.Sustainability should be our long-term goal, not just getting by from year to year.

Fortunately, Alaska's past leaders foresaw a day when oil production would waneand provided legal frameworks for saving a portion of Alaska's oil wealth. OurConstitutional Budget Reserve contains nearly $10 billion in savings. This allowsAlaskan's the time to engage in a conversation on budget priorities and ourability to fund those priorities. Many of our members are actively surveying theirdistricts to learn what Alaskan's expect from their government and what revenueoptions they prefer.

Alaska Senate Majority :: Budget Responsibly https://www.alaskasenate.org/2016/priorities/budget-responsibly/

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Click to Enlarge

Governor's Budget Conference ~ Watch Now > Senator Hoffman - We Can't Spend Money WeDon't Have ~ Watch Now >

Senator Micciche: Alaska Must Make ToughDecisions ~ Watch Now >

Alaska Senate Majority :: Budget Responsibly https://www.alaskasenate.org/2016/priorities/budget-responsibly/

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Last year the Senate considered a bill to end Daylight Saving Time (DST). The currentversion in the House recommends that Alaska move to the Pacific Time Zone, and stilleliminate DST. If approved, this would place Alaska in the same time zone as Seattlefor four months of the year, and one hour behind Seattle for the rest of the year.

Do you support or oppose moving Alaska off of DST and onto PST for part of the year? Earlier polling on DST

Strongly support Somewhat support Somewhat oppose Strongly oppose

In your opinion, is current state spending too high, about right or too low?Budget details here

Too high About right Too low Unsure

Which statement best reflects your view on the size of government?

State services have been cut enough. We need to enact new revenue measures now We must right size government before asking working Alaskans to pay new taxes Other (provide details in comments field below) Neither/unsure

Do you support or oppose enacting a statewide sales tax of 5% to raise $700 million dollars (about 20% of the currentbudget gap)?


Do you support or oppose enacting a statewide income tax at 25% of Federal Income tax liability to raise $1 billion(about 30% of the current budget gap)?


Do you support using a portion of the Permanent Fund earnings for K-12 Education? More about education funding

Yes, use up to 75% of payable dividend amount Yes, use up to 50% of payable dividend amount Yes, use up to 25% of payable dividend amount

Alaska Senate Majority :: 2016 Poll https://www.alaskasenate.org/2016/poll

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No, I oppose using Permanent Fund earnings for public education

Do you support capping the dividend and using the balance of Permanent Fund earnings for general public services?Budget details here

Yes, I support capping the dividend at $800 Yes, I support capping the dividend at $1000 Yes, I support capping the dividend at $1200 Yes, I support capping the dividend at $1500 No, I oppose capping the dividend

The Alaska LNG project involves the State partnering with Exxon, BP and ConocoPhillips. In the event our partnersexit the project, should the state of Alaska go-it-alone on a pipeline project, even if it means risking the principal of thePermanent Fund? Independent report on pipeline options

Yes No Unsure

Is funding for K-12 education:More about education funding

Too low About right Too high I care more about results than funding Unsure

Do you support or oppose expanding the educational choices available to parents, such as charter schools, vouchersand language immersion programs?


Do you have any comments, suggestions or concerns for your Senator?

Your First Name

Your Last Name

Your Email ~ Required *

Your zip code or Senator's name ~ Required so we can forward your comments. *

IP Address

Alaska Senate Majority :: 2016 Poll https://www.alaskasenate.org/2016/poll

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