Dear Friends and Neighbors,

Below is an update on legislation making progress through the Senate.

I also want to highlight the upcoming Anchorage Delegation Townhall meeting on Saturday, March 14, 2:00 PM to 4:00 PM at UAA Wendy Williamson Auditorium. Please bring your questions and comments, I hope to see you there.

Supporting a Responsible Fiscal Plan

Last week, my colleagues and I on the Senate Resources Committee introduced a new version of the governor's tax bill, SB 227, based on public input and further research:

• Eliminated the proposed sales tax.
• Changed the oil production tax structure from a tax on net profits to a tax on gross value on oil. This switch would reduce complexity and improve predictability for the industry and is estimated to bring in more than $1 billion in revenue to the state.
• Expanded the Corporate Income Tax to match my bill, SB 113, that was recently vetoed. This would have no impact on local Alaska businesses or Alaskans' pocketbooks.
• Fixed the corporate tax structure to capture approximately $120 million annually owed to the State by Hilcorp. In 2020, Hilcorp formally took over BP's assets and found a state tax loophole that allowed them to avoid paying the same tax that BP had paid for decades.
• Added a modest Education Head Tax, based on yearly income, ranging from $20 to $60 once a year. Alaska had this Head Tax until it was repealed in 1980 when oil prices were high. The revenue would fund public education operating and capital expenses.
• Maintained the governor's proposed 15-cent surcharge per barrel of oil transported through the pipeline. This revenue would be used for pipeline corridor infrastructure maintenance, such as the Dalton Highway.
• Removed the governor's expiration dates on the corporate taxes. This maintains fiscal stability and predictability, without betting on an unrealized gasline.
• Read the new version of the bill here. Official revenue estimates are being updated and will be reviewed in the Senate Finance Committee.

Why do we need new revenue? Because the governor himself handed the legislature a budget with a $2 billion deficit and asked us to figure it out. That means we don't have enough funding available to fix crumbling schools, maintain a steady workforce that helps ensure all ranges of businesses and schools can stay open, fix roads or even pay a full dividend. Over the years, the dividend has been chipped away because of failure of our oil tax system. Throughout my career I have advocated to fix our deeply broken oil tax structure that has cost Alaska billions and billions of dollars.

Learn more about the bill in my video below.

Introducing an amendment to the Governor's tax bill that will increase taxes on certain oil companies.

Updates on Personal Legislation

Last week, my bill SB 21 was heard in the Senate Finance Committee. This bill would establish the Alaska Work and Save Program, which would set up an automatic state-wide retirement program for qualified employees. This means that any qualified worker who is not offered a private retirement program through their employer will be enrolled in an individual retirement account (IRA) program. It allows Alaskans save for a dignified retirement, and reduce the strain on government assistance programs in the future.

This Wednesday, February 25, my bill SB 187 will be heard for the first time in the Senate Education Committee. This bill will require school lunch programs to remove petroleum-based food dyes from the food they serve at school. There is an abundance of evidence telling us that those food dyes lead to adverse health effects that disproportionately affect children. Removing these dyes from school lunch programs is a small step to fixing our food system. I invite you to review the bill, call my office for questions, and consider submitting written public testimony to Senate.Education@akleg.gov, or call (907) 563-9085 at the 3:30PM on Wed, Feb. 25.

Community Councils

Russian Jack Community Council's next meeting is Wednesday, March 11, 6:30 PM to 8:30 PM, in person at the Village Rec Building (4430 Reka Dr) and Zoom. Learn more here.

Northeast Community Council's next meeting is Thursday, March 19, 7:00 PM to 9:00 PM, in person at Creekside Park Elementary Gym (7500 E. 6th Ave) and Zoom. Learn more here.

Scenic Foothills Community Council's next meeting is Thursday, May 7, 6:30 PM to 8:30 PM, in person at Congregation Beth Sholom (7525 E. Northern Lights) and Zoom. Learn more here.

Please feel free to drop me a line via email, Facebook, or phone (465-2435). The Legislative Information Office has staff available to the public during session, but do reach out to us to schedule a meeting if you find yourself in Juneau through May. Keep an eye out for more townhall opportunities in the district.

Warmly,