Senate Republican Caucus  Highlight on Success
“Making a Difference”

Juneau - The five members of the Senate Republican Caucus commented today on their role during the 25th Legislative Session and highlighted policy areas where their interaction made a difference.

“We focused on five significant areas where we believed we could make a difference in the process,” Sen. Gene Therriault, R-North Pole, said.  “Although the majority in our political system has control of the political levers, the minority tries to ensure that the majority’s power is used correctly, fairly, and with the best interests of the entire state in mind.  The minority’s role is to use its voice to highlight problems, when necessary, and work cooperatively on solutions to them.”

With that in mind, the Senate Republican Caucus focused on five key issues:  1) Restoring credibility to a legislature damaged by recent criminal convictions, 2) ensuring adequate and dependable education funding, 3) saving state oil revenue surplus, 4) developing a long-term fiscal policy, and 5) securing energy cost relief.

Restoring Credibility  In December of 2007 the Senate Republican Caucus urged the Senate leadership to make changes in key leadership positions in light of the ongoing public corruption investigation.

“We appreciate the Senate leadership replacing the chair of the powerful Rules Committee,” Sen. Fred Dyson, R-Eagle River, said.  “Although a small step, it was a positive move in the direction of restoring public trust.”

Education Funding   A long time advocate for fair and reliable education funding, Sen. Gary Wilken, R-Fairbanks, called attention to an oversight that involved HB 273, publicized as the bill that increased student funding $100 per student.  Wilken discovered that HB 273 removed previously funded school grants, with the effect that the $100 increase to the student BSA was a mere $11.58 in the first year.  Wilken offered an amendment on the Senate floor that would increase funding, but the amendment was rejected by the Senate coalition.

Although the Senate coalition refused to fix the problem before HB 273 passed, they eventually agreed to a temporary fix that would provide an additional $20 million in the form of energy relief grants to the school districts.

“I’m pleased that they responded to the information that I provided and made good on the promises made early on in the session to educators,” Wilken said.

Saving Surplus  The Senate Republican Caucus has always advocated that the legislature control spending in an attempt to increase savings.  During this session, the Senate Republican Caucus kept up the call for savings.  On March 19, in a press release distributed statewide, the Senate Republican Caucus publically challenged the Senate to save an additional $3.6 billion.

“At that time the State Department of Revenue had projected FY 2008 revenues to exceed $8.5 billion,” Therriault said.  “Saving a total of $7 billion seemed reasonable.  The Legislative Finance Division assured us that this amount was justifiable if the operating and capital budgets stayed reasonably contained, or even reduced from the amount spent last year.”

The Senate Republican Caucus tried to increase savings one last time when the state’s FY 2009 operating budget was on the Senate floor.  Therriault offered an amendment to set aside an additional $1.9 billion of the projected oil tax revenue.  The amendment was rejected by the Senate coalition.

“Although my amendment was voted down, we were pleased that our continued pressure paid off in the end,” Therriault said. “By April 2, the Senate had set aside a total of $5 billion dollars.”

Long Term Fiscal Policy  Sen. Dyson and his colleagues are proponents of the state developing a long-term fiscal policy that would guide future legislators and encourage more disciplined spending and savings.  Last year Wilken and Dyson both introduced bills to that end:  SB 25 and SB 134.

“We hoped to get these bills on the table to encourage debate and to put many minds to the task of developing a plan,” Dyson said.  “That’s the benefit of the committee process.”

Although the bills got little attention in committee, the Senate Republican Caucus kept up the pressure throughout 2007 and 2008.

Eventually the Senate passed HB 125, Budget Planning & Long-range Fiscal Plan, which incorporated some of the contents of Dyson’s SB 25.

“Although the expectations set forth in the bill are vague, which might cause the governor confusion about what to submit each year to the legislature, this was a positive step forward,” Dyson said.

Energy Cost Relief  Recognizing that the soaring cost of oil would heavily burden Alaska citizens while at the same time fill state coffers with record breaking revenues, Wagoner and Therriault pre-filed SB 217.  After initial criticism the bill was changed to provide a $750 per year credit to every Alaska resident’s electric bill.

Instead of discussing options for immediate energy cost relief, the Senate appropriated funds to expand an existing program that provides weatherization grants to low income homeowners, a long-term approach to the problem.

“Weatherizing homes is good for lowering fuel consumption and will reduce the future cost to homeowners, but we haven’t done anything to deal with costs suffered by homeowners this winter,” Therriault said. “Constituents want energy relief now.”

“It’s shameful,” Wilken said during a floor debate.  “We’ve got $13 billion sitting in a coffee can and we can’t help people across the state who are hurting.  We have nine days left to do something.  If we don’t do something while we are here, shame on us.”

That same day on the Senate floor Wagoner offered to remove his name from the bill if doing so would inspire the co-chair of the Finance Committee to hear the bill.

“My bill could provide relief to Alaskans now by lowering electric bills $750 in this coming year,” Wagoner argued.  “The way the bill is set up, it could assist about 90 percent of all Alaskans.”

Shortly after the Republican Caucus members’ impassioned floor speeches, the legislature appropriated $10 million into the capital budget for an energy assistance program that targets energy needs of some Alaskans.

“I’m glad that the Senate coalition reached a little deeper to find funds for energy relief for a few,” Wagoner said, “but this is one of the Senate’s biggest failures this year.  There are many middle-class Alaskans also feeling the pinch that could have used some help.  My bill would have provided that help and also set up an energy council to look at how to address energy needs and distribution in Alaska long term.”

# # #

Senate Majority Declines Republican Caucus’ Challenge to Save $2.6 Billion of Alaska’s Windfall

Juneau – Sen. Gene Therriault, R-North Pole introduced an amendment on the Senate floor yesterday during the debate on the state’s FY 09 operating budget that would have bolstered savings and paid down debt by $2.6 billion.

“Today the Legislature faces record breaking surpluses,” Sen. Therriault said. “Rather than spend this new flood of money we challenged the Senate to save funds for future generations to use for future state budgets. Regrettably they refused the challenge saying it would be fiscally irresponsible.”

Although we are currently experiencing surplus revenues we continue to be advised by economists that we should be saving more in anticipation of deficits in the near future.

The Senate voted against the amendment by a vote of 12 nays to 6 yeas. Sen. Fred Dyson, R - Eagle River, Sen. Tom Wagoner, R- Kenai, Sen. Con Bunde, R - Anchorage and Sen. Gary Wilken, R - Fairbanks, co-sponsored the amendment.

Therriault’s amendment to the operating budget would have set aside $1.9 billion of the projected FY 09 oil tax revenue and deposit it into the constitutional budget reserve, a long term state savings account. This fund has been in existence for thirteen years. Over the last even years the Legislature has borrowed $5.2 billion dollars from the CBR. The Legislature is constitutionally required to repay those funds. The CBR earns considerably more in interest than other Alaska short-term savings accounts.

Therriault introduced a separate amendment that would have appropriated $700 million of the current year’s surplus to pay down the state’s obligation to the Teachers’ Retirement System. By making this deposit the state would have realized an additional savings of $46 million dollars. The Senate voted against this amendment 13 nays to 5 yeas.

“The debt to the CBR is constitutionally unavoidable and must be paid down.” Sen. Con Bunde, R-Anchorage, said. “Most Alaskans realize that in times of surplus it is wise to pay down debt.”

Senator Dyson Presents Economist’s Report
Calls for Record Breaking Savings to Match Record Breaking Revenue

Juneau – Sen. Fred Dyson, R – Eagle River, presented a report at the Senate Republican Caucus press availability today that was prepared by Dr. Scott Goldsmith, an economist and director of the Institute of Social and Economic Research.

“We’ve been asking thoughtful and knowledgeable people around the state for their opinion about what we should be doing with this record breaking revenue year, and specifically how much Alaska should have in its rainy day fund,” Dyson said.  “Dr. Goldsmith responded with a thorough and thoughtful answer.  I’m presenting his paper in the hope that his analysis will give guidance to our colleagues as they move through the process of considering the state’s capital and operating expenses for the coming year.”

The state’s capital and operating budgets are under consideration this week and next in house and senate committee hearings.  Senator Dyson, a member of the Senate Finance Committee, asked for the Goldsmith study.

“For years Alaskans have been asking us for a long term fiscal plan,” Dyson said.  “The general consensus is that Alaska will experience a deficit before it begins to enjoy a revenue stream from the gas line.  We need a plan that imposes rational restraints on spending and encourages substantial savings to assist us through those lean years.”

Every member of the Senate Republican Caucus has either introduced or co-sponsored a bill addressing this citizen request for a rational fiscal plan that includes spending caps and savings.  All but one of these bills was introduced in 2007.  All are still being held in the Senate Finance Committee.

Issuance of the Goldsmith opinion came out in the same month as Governing, a magazine published by Congressional Quarterly Inc., Saint Petersburg, Florida.  The magazine contains a report, “Governing: Measuring Performance; the State Management Report Card for 2008,”  that gives the State of Alaska a grade of C- in the area of money, a category that includes: long-term outlook, budget process, structural balance, contracting and purchasing, and financial controls and reporting.  Both documents were presented to the public and press at today’s press availability.

Senate Republican Caucus Reacts to News of Record Breaking FY 2008 Oil Revenues - Challenges Legislature to Increase Savings for Alaska’s Future

Juneau – Today the Senate Republican Caucus reacted to the Alaska Department of Revenue’s news that the General Purpose Unrestricted Revenue for FY 2008 is projected to be a record breaking $8.5 Million.

“This year’s projected revenue is almost 30% higher than last year,” Sen. Gary Wilken, R – Fairbanks, said. “With this dramatic increase in revenue comes an equally dramatic duty to exercise self-restraint in spending and to save for future generations of Alaskans.”

Repeatedly during the 25th Legislature, the Senate Republican Caucus has called for the creation of a long term fiscal plan that includes a commitment to saving. This year in particular, they stepped up the call.

“During the ACES debate last fall, we proposed that a mechanism be put into place to prompt future legislatures to set aside sizeable portions of the increase in oil tax revenue under the new law – particularly revenue generated by the progressivity component of the tax,” Sen. Gene Therriault, R- North Pole, said.

“While the $3.6 billion set aside in SB 256 sounds good, it is a fraction of what we should deposit into Alaska’s savings accounts in a banner year like this one,” Wilken said. “With Friday’s revenue forecast, the legislature has the financial ability to set aside far more money than $3.6 billion.”

The Senate Republican Caucus is challenging the legislature to set aside an additional $3.6 billion of surplus as savings or through a combination of deposits to savings and debt pay down.

“The Legislative Finance Division assures us that this amount is justifiable if the operating and capital budgets stay reasonably contained, or even reduced from the amount spent last year,” Therriault said.

The Senate Republican Caucus’ position is bolstered by a recent Institute of Social and Economic Research opinion. Dr. Goldsmith, an economist and director of ISER, suggests that Alaska should redouble its efforts to save money now and reduce the risk that future generations will be forced to meet Alaska’s operating and capital needs by imposing income tax, sales tax and dipping into the permanent fund earnings reserve account.

“Dr. Goldsmith suggests that we view the increase in revenues over the past few years not as a trend that will continue, but as a windfall,” Sen. Tom Wagoner, R- Kenai, said. “The best strategy for dealing with a windfall is to put as much as possible in the bank and spread the spending out over a long period of time. It’s prudent, it protects future generations. Let’s step up to the plate and do what’s right.”

“With the unpredictability of our oil and gas revenue stream, the revenues we enjoy now might not be enjoyed by future generations,” Sen. Con Bunde, R- Anchorage, said. “It’s not a question of whether we will face sizeable deficits in the future, it’s a question of when; now is the time to save.”

“If we discover in future years that this windfall is a permanent and predictable increase in income, then we can modify the savings plan,” Therriault said. “But for now it would be robbing from future Alaskan’s to spend our non-renewable resource dollars without a plan. A better public policy is to agree that the petroleum wealth of the state should be shared equitably among today’s and tomorrow’s Alaskans.”

# # #

Senate Minority Republicans Call for Responsible Criteria for Capital Spending

Juneau – Today Sen. Fred Dyson, R-Eagle River, together with the Senate Minority Caucus, presented to the press and public a comprehensive set of criteria for evaluating capital projects submitted by legislators for inclusion in the state’s capital budget.

“In the past we have asked the co-chairs of the Senate Finance Committee to develop specific criteria for capital spending and to date we have received no clear direction about spending caps and priorities for capital projects. Today we offer a comprehensive evaluation process for consideration by the legislature, the Governor and the public. We hope this will inspire new conversation about responsible and disciplined capital spending and look forward to having our criteria improved upon and utilized” said Dyson.

For four years Dyson and other conservative Republican senators have tried to interest their colleagues in developing rational and fair criteria with which to evaluate state wide capital spending. Sadly, calls for reform have been ignored as have been requests to submit a defensible, sustainable long range fiscal plan at the beginning of the legislative session rather than at the end.

Those interested in reviewing Dyson’s capital spending criteria may contact his office at 907-465-2199.

# # #

Caucus Congratulates Wes Keller on Appointment
Keller’s experience will serve District 14 well

Juneau - The Senate Minority joins others around the state today in congratulating Wes Keller on his appointment to the Alaska House of Representatives for District 14.

“Having worked with Wes for several years as chief of staff to Sen. Fred Dyson, the senate minority is familiar with his work ethic and desire to fairly represent the people he will serve. We look forward to working with him,” said Senate Minority Leader Gene Therriault, R-North Pole.

Keller was chosen by Gov. Sarah Palin to replace former Rep. Vic Kohring, who resigned July 19.  Keller was confirmed by House Republican majority members on Thursday and will be sworn in today in Wasilla.

Senate Minority Supportive of Budget Vetoes
Caucus Applauds Governor’S Efforts To “Live Within Our Means”

Juneau - Members of the Senate Republican Caucus reacted favorably today to Gov. Sarah Palin’s reduction of Senate Bill 53, the state capital budget, by more than $230 million.

“The budget grew despite cautions from the administration, and consequently the governor had to exercise her power to bring it more in line with revenues,” said Senate Minority Leader Gene Therriault, R-North Pole. “While our individual members are still going through the vetoes, we are supportive of the Governor’s efforts to control spending.”

“Although we are still digesting the details to make sure the criteria were applied consistently and equitably throughout all regions, we appreciate the administration’s deliberative process to fairly evaluate projects based on what is affordable and a legitimate state function,” Sen. Therriault said.

“The most consistent comment we have heard from voters is that there is too much state spending. The governor was elected with a huge approval rating, and I think this is what the people have asked her to do. The budget is unsustainable. We’ll be in a deficit in a couple of years and it’s better to make cuts now,” said Sen. Con Bunde, R-Anchorage.

Because of concerns regarding the level of overall state funding, all five members of the Senate Republican Caucus voted against Senate Bill 53 when it was on the senate floor. On May 22, the caucus sent a letter to Gov. Palin encouraging her to identify areas where spending could be reduced and judiciously exercise her line-item veto authority. The letter is attached.

Caucus letter sent to Governor Palin
http://www.aksenateminority.com/pdfs/25/veto_letter20070522.pdf

Last Minute Wrangling Mars End of Session
Caucus pleased with successes despite flawed process

Juneau - While praising passage of landmark legislation that could eventually lead to an Alaska natural gas pipeline, members of the Senate Republican Caucus expressed disappointment at end-of-session conflicts over funding for revenue sharing, education and the retirement systems that snarled an orderly adjournment.

“Unfortunately we ended with what the media labeled ‘legislative chaos of the worst kind.’ This seems to have stemmed from a lack of communication between the Senate leadership and the House of Representatives and is likely to overshadow some of the good work that was accomplished this year,” said Senate Minority Leader Gene Therriault, R-North Pole.

Caucus members were pleased with passage of a comprehensive ethics package that addresses lobbying and disclosures laws in both legislative and executive branch ethics statutes, and with enactment of an omnibus anti-crime bill that makes a number of statute changes relating to the state’s legal, correctional and public safety systems.

Members of the caucus voiced concern over the size and sustainability of the capital and operating budgets.

“We can whistle past the graveyard, but the fact is, we are going to pay the piper here very soon, and we need to figure out how we are going to fill fiscal gaps. Those will come sooner than later if budgets grow at 20 or 25 percent,” said Sen. Gary Wilken, R-Anchorage, who served from 2003 to 2006 as co-chairman of the Senate Finance Committee.

Escalating budgets also give rise to the need for a long range fiscal plan, which was proposed by Sen. Fred Dyson, R-Eagle River, but stalled in the Senate Finance Committee this year.

“I was very disappointed that the Senate chose not to discuss or implement a long-term fiscal plan. With the information we now have, we know that we are probably going to be in a deficit budget situation at least a year from now, and I consider that to be irresponsible,” Dyson said.

Equally disappointing was the lack of legislative action on a bill that would have required school districts to define “unexcused absence” and provide interventions for truancy.

Senate Bill 31 was pre-filed by Sen. Con Bunde, R-Anchorage, in January, but never moved from its first committee of referral.

“Reducing truancy is important not only because we want our children to stay in school, but it’s also closely related to juvenile crime. The attorney general’s office informed me today of the strong correlation between truancy and the rate of murder because so many truants are also vulnerable as runaways. I have great hopes that next year the committee process will work and we’ll be able to move the truancy bill forward.”

Also left on the table was Senate Bill 80, which would have prevented oil companies from deducting costs of repairs due to lack of maintenance or improper maintenance of property or equipment.

“We fought the good fight and we didn’t get the bill cleared through the process, we’ve got next year, maybe we’ve got a special session, we’ll just have to see what comes down,” said Sen. Tom Wagoner, R-Anchorage.

Therriault also noted that a bill he pre-filed in January that would have tightened security measures pertaining to personal information and addressed the increasing risk of identity theft never received a single hearing.

Bill Strengthens Child Prostitution Laws
Omnibus bill includes Dyson’s SB 157

Juneau - Sen. Fred Dyson, R-Eagle River, announced that a bill he sponsored, Senate Bill 157, has been amended into House Bill 90, which passed the Senate today.

SB 157 increases the crimes of prostituting a child to felonies, thus increasing the jail time, fines and providing forfeiture of property used in these horrendous crimes against children. Including the SB 157 provisions, HB 90 also now makes the employment of a prostitute a crime in state law. This is the first “John Law” in Alaska statutes.

“Prostitution and trafficking children is all too common in Alaska, and scores of children are being prostituted in Alaska each year. The impact on the children is devastating and it is way past time we put the predators in prison for long stretches,” Sen. Dyson said.

Sen. Dyson’s legislation is based upon recommendations from the Federal Trafficking in Persons Task Force in Alaska.

Sen. Dyson said more work needs to be done, including finding safe, secure housing and treatment for the children show are victims of prostitution. Prostituting children is very lucrative and the pimps are a great danger to the children. The legislature appropriated $52,000 this year for security equipment at the proposed housing unit at the new Salvation Army facility in Anchorage.

State authority for the state to take custody of prostituted children and money for housing and treatment will be a project for the summer and fall, Sen. Dyson said.

The House is expected to approve the amended bill in the next two days.

Resolution to Expedite Point Thomson Appeal Progresses
SCR 3 moves from Senate Judiciary Committee

Juneau -  A resolution asking the governor and attorney general to allocate adequate resources and take all steps necessary to expedite the court’s consideration of ExxonMobil’s Point Thomson appeal advanced to the Senate Rules Committee today.

SCR 3 moved from the Senate Judiciary Committee today after the committee modified the language to clarify that resolving the issue out of court is acceptable and encouraged, a change supported by resolution sponsor Sen. Gene Therriault, R-North Pole.

“It was never my intention to indicate that the Legislature was itching for a court battle over Point Thomson. We are most interested in getting the area into development and production for the benefit of the state’s citizens,” Therriault said.

ExxonMobil is appealing the final decision by the Commissioner of the Department of Natural Resources to deny ExxonMobil’s proposed plan to develop the Point Thomson Unit and to terminate the Point Thomson unit.

On October 27, 2005, the director of the State Division of Oil and Gas rejected the Twenty-second plan of development from operator ExxonMobil Production, and found the Point Thomson unit in default for lack of an approved plan of development. On November 27, 2006, the commissioner of the Department of Natural Resources terminated the unit.

ExxonMobil, as the operator of the unit and as a lessee, along with BP Exploration, Chevron U.S.A. and ConocoPhillips Alaska, Inc., are appealing

the commissioner’s November 27, 2006 decision and the December 27, 2006 denial of reconsideration to Superior Court.

SCR 3 is co-sponsored by senators Tom Wagoner, Gary Wilken and Fred Dyson, all members of the Senate Republican Caucus.