Sen. Elton and Isabel
Senator Kim Elton's 
Legislative Survey
April 2006

Senator Kim Elton
Room 115, State Capitol, Juneau, AK 99801
* 465-4947 Phone * 465-2108 FAX

  I recently sent out a survey to constituents asking for input on various issues. In future surveys I will follow the suggestions many of you made to add a "Don't Know" option and, where appropriate, add space to explain your answers. Thank you to those of you who took the time to reply. Below are the results of the March survey.

1. The legislature is considering changes to Alaska's oil tax recipe. It is generally acknowledged (except by oil companies) that the existing oil tax formula has not worked for years. Pedro van Meurs, the state's oil tax expert, says the existing tax structure is regressive, out of synch and 'allows wealth to slip through the fingers of Alaska' when oil prices are high. There are three major proposals before the legislature that change taxes on Alaska's oil to collect more when prices are high and less when prices are low.
- Do you prefer: 

     a. A version proposed by some legislators that taxes oil company net profits at a 30 percent rate and allows oil companies to take credits totaling 15 percent on investments they make in Alaska to explore for and produce oil? When oil prices are at $40/barrel (bbl), this proposal brings an additional $1.2 billion into state coffers. 
               Responses: 263 (55%)
     b. A version first proposed by the state's international oil tax expert Pedro van Meurs that taxes oil company net profits at 25 percent and allows a 20 percent Alaska investment credit? When oil prices are at $40/bbl, this proposal brings an additional $795 million into state coffers.
               Responses: 159 (33%)
     c. An amended version of Mr. van Meurs' plan presented to the legislature by the governor right after he met with leaders of BP, Exxon and Conoco that taxes oil company net profits at 20 percent and allows a 20 percent Alaska investment credit? When oil prices are at $40/bbl, this proposal brings an additional $425 million into state coffers. 
               Responses: 55 (12%)

2. Juneau access via the Lynn Canal corridor has been a subject of intense study and debate for many years. The governor and the state are no longer recommending a road to Skagway. He is instead recommending a $258 million road to a point opposite Haines with new shuttle ferries connecting to Haines and Skagway.
- Do you prefer:

     a. Existing ferry service? 
               Responses: 81 (17%)
     b. The governor's plan?
               Responses: 139 (29%)
     c. Improved ferry service?
               Responses: 257 (54%)

3. Funding for education in the 1990s fell behind rising costs and, over the past few years, increases have only matched higher annual costs. The increase proposed for this year by the governor falls short of increased costs and will force school district cuts.
- Do you prefer: 

     a. The school budget presented by the governor? 
               Responses: 82 (17%)
     b. Adding some dollars to allow some additional educational opportunities?
               Responses: 369 (77%)
     c. Cuts to the governor's educational funding proposal?
               Responses: 26 (6%)

4. Congress originally proposed transportation project 'earmarks' that funded a bridge to Gravina Island (costing $230 million) and a bridge across Knik Arm (costing $660 million-$1 billion). The earmarks were later removed but the governor has proposed phased funding for both projects totaling $180 million next year. The phased funding will delay many planned local transportation projects across the state.
- Do you prefer: 

     a. Appropriating the money for Gravina Island? 
               Responses: 59 (13%)
     b. Appropriating the money for the Knik Arm crossing? 
               Responses: 50 (10%)
     c. Appropriating the money for both? 
               Responses: 68 (14%)
     d. Not funding either project? 
               Responses: 300 (63%)

5. General fund revenues in this fiscal year exceed spending in this year by about $1.4 billion. The governor has proposed spending all the $1.4 billion windfall in this fiscal year and next year. The governor's spending plans do not include depositing any of the windfall in the permanent fund or constitutional budget reserve savings accounts or reinstating a revenue sharing plan with municipalities for local services or local tax relief.
- Do you prefer:
 
     a. Saving some of the windfall?
               Responses: 97 (21%)
     b. Using some of the windfall for municipal revenue sharing? 
               Responses: 99 (20%)
     c. Doing both rather than adding to base government spending? 
               Responses: 281 (59%)

6. An initiative will be on the November ballot that establishes a tax on natural gas 'stranded' for lack of a gas pipeline that can take Alaska's gas to market. The purpose of the tax is to nudge the major North Slope producers toward a pipeline that 'unstrands' the valuable gas resources owned by Alaskans and leased to the producers.
- Do you prefer: 

     a. That voters approve a natural gas reserves tax? 
               Responses: 367 (77%)
     b. That voters reject a natural gas reserves tax? 
               Responses: 110 (23%)

7. In 1998 the legislature expanded Alaska's Medicaid by introducing the Denali KidCare Program. In 2003, legislation reduced eligibility from 200% of the Federal Poverty Level to 175% with no adjustments for inflation (eligibility has since been reduced at least another 10% when inflation is factored in). The reason: $500,000 in state savings and $1.5 million in federal funds saved annually. As a result, over 2,000 children and 300 pregnant women have fallen out of the program. I recently introduced a bill that will restore eligibility to its original level.
- Do you prefer: 

     a. Restoring health care to 2,300 Alaskans?
               Responses: 414 (87%)
     b.  Saving $500,000 in state funds, and $1.5 million in federal funds. 
               Responses: 63 (13%)

8. An initiative has just been approved by the lieutenant governor that will shorten the legislative session from four months to three.
- Do you believe:

     a. That shortening the legislative session will push legislators to work more efficiently; that legislative work could be sufficiently completed within a shorter time period? 
               Responses: 168 (35%)
     b. That shortening the legislative session would take power away from the Legislature and give it to the executive branch, judicial branch and lobbyists? 
               Responses: 309 (65%)
 

 

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