Senate Bipartisan Working Group 2008 Session Wrap up

Senate Bipartisan Working Group Saves,
Protects and Builds Alaska in 90 Days
Historic Session Saves Five Billion Dollars

The Senators hold a post-session news conference in the Capitol Building. Members of the Senate Bipartisan Working Group present President Green with a framed photo of herself with all their signatures on the last day of the 2008 session.

(JUNEAU) – It may be remembered as one of the most important legislative sessions in decades. Today the Senate Bipartisan Working Group concluded the 25th session of the Alaska Legislature after meeting or exceeding all its stated goals.

“The Bipartisan Working Group concentrated on the things that bring us together and the problems that Alaskans needed addressed and that has paid off in spades,” said Senate Majority Leader Johnny Ellis, D-Anchorage. “I truly believe we accomplished the most productive legislative session of the past two decades.”

“We resolved statewide issues that have been left unfinished for years,” said Senate President Lyda Green, R-Wasilla. “That happened because the atmosphere in the Working Group was respectful and cooperative and that is what brought us together to solve issues like community revenue sharing, increased education funding and saving billions of dollars of the surplus.”

The Senate Bipartisan Working Group focused its efforts this session to “Save, Protect and Build” the state to the benefit of all Alaskans.

Here are some of the highlights from the 2008 session:

1) Saving the Surplus

The Alaska Senate went on a savings spree this session.

Deposits to the Constitutional Budget Reserve and the Statutory Budget Reserve were made under several different bills that brought the total amount of savings this session to five billion dollars.

• $2.6 billion CBR deposit in the FY 08 supplemental budget
• $1.0 billion SBR deposit in the FY 08 supplemental budget
• $1.0 billion CBR deposit in the FY 09 operating budget
• $400 million CBR deposit in the FY 08 capital budget

2) The “3-Legged Stool”

Education Funding (HB 273), Community Revenue Sharing (SB 72) and PERS/TRS (SB 125)

The Senate created a three-pronged package of support for local governments this session. The bills will create new educational opportunities for Alaska’s children by making a significant boost in school funding. Another relieves the crushing financial burden caused by the shortfall in the public employees retirement system while another bill shares a portion of the state’s enormous oil wealth with local communities that can place downward pressure on local taxes.

3) Public Safety

Omnibus Crime Bill - The Legislature rolled several crime bills into Senator Lesil McGuire’s legislation (SB 265) to bar convicted sex offenders from receiving a Permanent Fund Dividend if they do not keep their personal information current on the state Sex Offender Registry. The result is an omnibus crime bill that makes more than a dozen changes to the state’s criminal code to meet the constantly changing needs of law enforcement and the judicial system to fight criminal behavior and protect citizens.

Prescription Database Bill -  Senate Bill 196 creates a prescription drug database monitoring program that doctors, pharmacists and hospitals can use to make certain medications are being used properly and law enforcement personnel can use to stop illegal distribution and abuse. The bill contains numerous safeguards to protect patient privacy. It was sponsored by Senate President Lyda Green and co-sponsored by Senate Majority Leader Johnny Ellis.

Sex Offender e-mail Registration - Senate Bill 185 requires convicted sex offenders to register their e-mail addresses, instant messaging addresses and any other internet communication identifiers with the Alaska Department of Public Safety. SB 185 also gives judges the ability to require these offenders to wear electronic monitoring devices for the entire duration of probation or parole. It was sponsored by Senator Bill Wielechowski.

4) Responsible Operating and Capital Budgets

The Alaska Senate passed the state’s FY 09 operating budget, House Bill 310, after a thorough and complete review of all the spending increases proposed by the Palin administration. The Senate Finance Committee used three guiding principles.

• No new state positions unless absolutely necessary
• Refrain from backfilling the loss of federal funds with state general funds
• Curb expansion of existing programs without sound justification

The Senate Finance Committee trimmed the overall increase in the administration’s operating budget by almost five percent.

The capital budget bill, Senate Bill 221, will save, protect and build Alaska from Barrow to Ketchikan. It funds a wide range of public safety, transportation and education projects in a fiscally responsible manner that still saves billions of dollars of the state’s surplus oil revenue for a rainy day.

The final capital budget was larger than some recent years - but so were the state’s needs. It used $1.2 billion in general fund revenue.

5) Addressing High Energy Costs

Expanding Home Energy Conservation and Weatherization Programs

Senate Bill 289 expands two home energy and weatherization programs operated by the Alaska Housing Finance Corporation to help Alaskan families cope with record high home heating costs.

Renewable Energy Fund

House Bill 152 creates a renewable energy fund and deposits $50 million per year over the next five years into the Renewable Energy Fund. The Alaska Energy Authority would administer the fund through grants for renewable energy projects. AEA would then submit the grants to the Legislature for funding as part of the capital budget process.

6) Natural Gas Pipeline

Senate Concurrent Resolution 22

The Alaska Legislature is calling on Governor Sarah Palin to consider more options for bringing North Slope natural gas reserves to market.

SCR 22 calls on the administration to amend its call for a special session to include in-state gas pipeline proposals and to formulate a plan for the distribution of natural gas throughout the state.  

The Senate Resources Committee held a series of hearings throughout the 2008 session on issues related to a gas pipeline project. Unsuccessful applicants for the AGIA license testified before the committee on the merits of their application. Enstar gave a presentation on its plan for a bullet line from the North Slope to Southcentral Alaska and members of the Palin administration’s gas pipeline team updated the committee on the review it is undertaking on TransCanada’s AGIA application.   

The Resources Committee will be the first Senate committee to will review any pipeline project proposals whether it is an AGIA application, a bullet line proposal or the Denali Pipeline Project.

7) Long Range Fiscal Plan

House Bill 125 imposes a duty on Governors to annually submit a long-range fiscal plan to the Legislature. The bill requires the Governor to annually provide a ten year forward estimate of the state’s major sources of revenue and uses of funds, in addition to the annual spending plan for the next fiscal year.

8) Workforce Development

Vocational Education Accounts (HB 2)

This legislation creates the Vocational Education Account within the state general fund to help pay for classes and programs in schools and educational institutions statewide.

The bill also increases the percentage of unemployment insurance funds that are dedicated to technical and vocational education programs throughout the state.   With this increase, the bill allocates approximately $10,000,000 to the University of Alaska and a number of regional training centers with technical and vocational education programs.

Film Incentive Program

The Film Incentive Program was sponsored by Senate majority Leader Johnny Ellis. It authorizes the Department of Commerce, Community, and Economic Development to issue transferable tax credits against corporate income tax liability to film producers for 30 percent of qualified expenditures in the state on qualified projects, with a 10 percent bonus for Alaska hire and a 2 percent bonus for rural or winter spending. It also establishes a film office in Department of Commerce, Community & Economic Development.

9) Affordable Housing

Senate Bill 231

This legislation is an effort to alleviate homelessness in Alaska. It grants the state the authority to expand programs to number of Alaskans without a place to call home. It also provides extra funding for homeless programs.

SAVE • PROTECT • BUILD