(SitNews) - Reflecting on the close of the 28th Alaska Legislature, Governor Sean Parnell on Friday highlighted his legislative agenda and thanked legislators for their historic work on behalf of Alaskans. The governor’s priorities this year included advancing an Alaska gasline, and reducing state spending while paying down Alaska’s debt relating to the state’s unfunded pension liability.

After reaching what the Governor called a historic alignment among the State of Alaska, the Alaska Gasline Development Corporation (AGDC), the producers, and TransCanada, Governor Parnell introduced Senate Bill 138, seeking public hearings and legislative approval of the necessary framework for Alaska to become an owner in the Alaska LNG Project.

For the first time in Alaska’s history said the Governor, all the necessary parties for a project are aligned, the Legislature has authorized the State to proceed with the other parties into the early engineering and design phase, and a clear path forward on a gasline has been initiated that can create thousands of jobs and fuel Alaskan homes and businesses.

“As an owner in the Alaska LNG Project, Alaska will control her own destiny,” Governor Parnell said. “I appreciate the Legislature’s thorough review of SB 138, and I look forward to working with legislators in the future to get Alaska’s gas to Alaskans.”

With the passage of SB 138, the Alaska LNG Project now moves into the Pre-FEED (Pre-Front End Engineering and Design) phase – a half-billion-dollar commitment, spread across all parties, to further refine the engineering and cost challenges of the project.

Governor Parnell also focused on reducing state spending and paying down Alaska’s debt by tackling Alaska’s biggest cost driver, its unfunded pension debt. In addition to reducing spending by $1.1 billion, the Legislature passed House Bill 385, the governor’s legislation to pay down Alaska’s unfunded pension liability by infusing $2 billion into the Teachers' Retirement System and $1 billion into the Public Employees’ Retirement System from the Constitutional Budget Reserve Fund. With the $3 billion infusion, the state will be able to make lower annual payments to the pension plan and better control state spending.

“We are committed to paying down Alaska’s debt and strengthening Alaska’s already stellar fiscal position,” Governor Parnell said. “In passing House Bill 385, legislators are putting our state on a more secure financial footing, while also ensuring our great grandchildren aren’t saddled with this debt.”

The 15-member Alaska Senate Majority established five major priorities to accomplish over the two sessions of the 28th Legislature including putting more oil in the pipeline, creating affordable in-state energy, controlling state spending, stopping federal overreach and breaking the cycle of crime.

Natural Gas Pipeline

“Once again, the Republican majority, along with some of our Democratic colleagues in the Senate Majority, recognized that it is ‘Time to Act’,” said Senator Cathy Giessel (R-Anchorage Hillside/Turnagain/N. Kenai). “We moved an in-state natural gas pipeline closer to the finish line of becoming a reality. We strengthened education for the future, with funding calling out innovative approaches, personalized learning and broadband expansion. Legislation addressing alcohol abuse and prevention, criminal law restructuring, tax reductions and regulatory reform have all been part of our work. This second session of the 28th Legislature was even more productive than the first session. We are advancing progress in our Last Frontier to make it an economically vibrant state for our families into the future.”

“Regarding significant legislation and accomplishments, we seemed to have largely begun the process to stem the oil production decline on the North Slope due to the new regime under Senate Bill 21, while earning essentially the same revenue for the state as we earned under ACES,” said Senator Peter Micciche (R-Soldotna). “We made the tough decisions to move forward on the large diameter natural gas pipeline and LNG project as a team. We tackled the PERS/TRS unfunded liability through a substantial infusion into the fund; eliminating the significant debt liability from the future for our children and grandchildren. We reduced spending through many hours with a financial scalpel, and created a spending level reset with a message that we will be more responsible moving forward.”

Delivering Affordable In-state Energy to Alaskans

With Alaskan families struggling with the high cost of living, the Alaska Senate Majority responded by putting forth a plan to build a large-diameter in-state gasline. This is the first time all three of the major producers have joined with the state to begin a project of this magnitude. The gasline, along with other energy cost-savings initiates including LNG trucking to Fairbanks, will deliver affordable energy to Alaskans and help pay for basic government services such as roads and schools for decades.

“It took the Alaska State Legislature in 1973 to prevent Alaskans from owning a portion of the Trans-Alaska Pipeline,” said Senator Fairclough (R). “This year, the Legislature voted to not repeat history and took the next step in a long process to a provide energy relief to Alaskans and economic opportunities for our children.”

Controlling State Spending

After years of expansive state spending, the Senate and House majorities worked hard to craft fiscally responsible budgets that adequately fund the needs of Alaskans and, at the same time, hold the line on expansive government growth.

SB 119, the capital budget, focuses on maintaining current assets, finishing current projects, and addressing critical needs. The budget was reduced by $250 million from the previous year, while still investing in public schools, deferred maintenance of infrastructure, the State Library and Archives, the UAA engineering school, and the UAF Power and Heating plant.

HB 266, the operating budget, invests $9.1 billion in total funds, which represents a 2.2 percent reduction in spending over the previous year. Road maintenance, K-12 public education funding, deferred maintenance, employee pay and benefits, and the University of Alaska System were given priority. State government operations were reduced by $51.4 million in unrestricted general funds (UGF) from FY14, a 2.2 percent reduction.

“Last year, the Legislature applied the brakes to rapid growth and, in this budget, reduced the ‘Day to Day’ operating spending of the state,” said Senate Finance Co-Chair Pete Kelly (R-Fairbanks). “We took a budget that was going like a runaway train and stopped it dead in its tracks. This year, we actually put it in reverse. This reduction allowed us to add funding for the education system for FY15 and FY16.”

"I appreciate the work this Senate Majority did to finish important statewide projects like SLAM and the Capitol renovation,” said Senator Dennis Egan (D-Juneau). “And our work on the PERS/TRS liabilities puts Alaska on a stronger fiscal foundation."

Fighting Federal Overreach

This session, the Senate Majority sent several messages to the federal government through Freedom of Information Act requests, reauthorization of the Citizens Advisory Committee on Federal areas, and legislative resolutions critical of federal actions with Pebble Mine, the Izembek road, and Tongass Forest. The Senate Majority also sent a strong message urging the Federal Government to reign in the NSA and let Alaskans decide the fate of our lands, waters and minerals.

“It has been a humbling privilege to serve,” said Senator Fred Dyson (R-Eagle River). “The great challenge we face is the protection of civil liberties. I pray that future legislatures will stand strong in the protection of our constitutions.”

Breaking the Cycle of Crime

Alaska prisons will hit their capacities within two years based on current rates of the growth of crime. The cost of our prison system is draining state dollars away from other public needs like education, public health, roads to resources, and deferred maintenance. That’s why the Senate Majority implemented proven practices to reduce recidivism, streamline justice delivery, cut costs, and protect Alaska's youth from emerging threats.

“Thanks to a bipartisan effort by the legislators believing Alaska can no longer solve crime by building more prisons, Senate Bill 64 implemented proven-practices to reduce recidivism, cut the cost of incarceration, improve public safety, and better make the punishment fit the crime,” Senator John Coghill (R-North Pole) said.

Creating a Brighter Future for All Alaskans

Finally, the Senate Majority made substantial progress toward paying down debt, laying the groundwork for vital infrastructure, lowering the tax burden on Alaskan families, updating old laws, streamlining government regulations, and protecting the health and safety of all Alaskans.

For example, HB 385 pays down $3 billion in public retirement debt, lowering Alaska’s annual payments and saving tax dollars over the long-term. HB23 pushes forward a plan to build the Knik Arm Crossing, which would span 1.7 miles between Anchorage and the Mat-Su Valley.

“I am proud of the performance and accomplishments of a great team over the past two years of the 28th Legislature,” said Senator Micciche. “Particularly this session, the Senate has worked effectively in meeting the primary needs of most Alaskans while reducing runaway spending for the first time in many years. Ultimately, the philosophy of this session will continue into the future as we balance what it takes to be open for business with quality-of-life services and the conservation of our pristine environment. We’ve proven that we can have both adequate employment opportunities and great economically important projects without compromising the natural resources we Alaskans hold so dear.”

Edited by Mary Kauffman, SitNews



Source of News: 

Office of Gov. Sean Parnell
www.gov.state.ak

Alaska Senate Majority
www.akleg.gov

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