By Rep. Louise Stutes, R-Kodiak
For The Cordova Times
Dear Friends and Neighbors
Greetings from rainy Juneau!
I am delighted to have such an active role in fisheries and marine transportation issues.
However, since the budget is our top priority this year, my newsletters will begin with a budget update. These proposals are simply a starting point, so please contact me with any questions, concerns, or ideas. I want to hear from you!
Budget Update:
On Feb. 13 the House Finance Committee introduced the State Revenue Restructuring Act, HB 115 “Income Tax, PFD Credit; Permanent Fund Income.”
If passed, this bill would raise an estimated $1.84 billion the first year and $2.24 billion the second year. It would significantly close our fiscal gap, while stabilizing and growing the PFD for future years.
The 2 main components of the legislation are:
- Responsible, structured use of the Permanent Fund Earnings Reserve. This closes the budget gap while maintaining, protecting, and growing the dividend in the future.
- New revenue from an income tax. This is expected to raise approximately $60 million to $70 million per year from non-residents. In 2015, Alaska had more than 90,000 out-of-state workers accounting for $2.7 billion in untaxed earnings.
In addition to HB 115, the House is looking at:
- Smart budget cuts
- Oil and gas tax reform and subsidy reductions
You can view HB 115’s supporting documents at http://www.akleg.gov/basis/Bill/Detail/30?Root=HB%20115#tab5_4
Public testimony for HB 115 is Friday, Feb. 17th, from 1:30 p.m. to 3:30 p.m. Those looking to testify can do so at the Kodiak Legislative Information office.
If you do not have access to an LIO, call 907-465-4648 for a call-in number to testify.
Fisheries Update:
On Feb. 14th, House Fisheries heard and passed HB 87.
- Four amendments were proposed but were either withdrawn or rejected by the committee. These amendments related to where the boards may meet, how long the terms of the board members are, and whether or not personal use fishing could be considered a conflict of interest.
On Feb. 16th, House Fisheries heard a presentation by the Commercial Fisheries Entry Commission (CFEC) on the $3,000 permit fee cap that is currently in place.
- The CFEC charges a fee based on 4/10 of 1 percent of the average economic value of the fishery over the previous three years. Some participants in particularly high-value fisheries could see permit fees go up by approximately $10,000; most of these permits are on large vessels that fish pelagic fish either statewide or in the Gulf of Alaska. Legislation was proposed last year, in conjunction with the fisheries business and landing tax increase, that would have removed the cap for interim use and limited entry permits.
On Tuesday, Feb. 21, the Fisheries Committee will be holding an informational presentation by the Alaska Resource Consortium and the Kodiak Seafood and Marine Science Center (KSMSC).
On Thursday, Feb. 23, the Fisheries Committee will bring back HB 56 “Commercial Fishing loans,” sponsored by Rep. Dan Ortiz, I-District 36. This bill increases the aggregate amount a borrower may hold unpaid from $300,000 to $400,000.
Transportation Update:
On Feb. 14, the House Transportation Committee had a presentation from the Office of Management and Budget on HB 60 “Motor Fuel Tax; Transportation Maintenance Fund.”
- The purpose of this presentation and Q & A was to figure out exactly how the increased taxes would be spent. I want to ensure that proceeds from any increase in marine fuel tax will be used to support ports and harbors and the marine highway system. Luckily, I am in a good position as co-chair to represent our district’s interest.
On Feb. 21, the House Transportation Committee will be introducing and discussing a committee substitute for HB 60
On Feb. 23, the House Transportation Committee will be taking amendments on HB 60.
Thank you for listening and please reach out to me with any of your thoughts and ideas at 907-465-3271 or Rep.Louise.Stutes@akleg.gov. I would love to hear from you!
