All right, welcome everybody to the first Republican Senate Minority Caucus meeting here.
And I just want to quickly, we have a very hard cut off at 11.30, so I want make sure
that we get everything covered.
I have to go a little bit before that.
Okay, so yeah, I just wanna do a quick introduction.
I'll keep myself simple.
It's simple, Senator Micronk.
I represent District R, which is
you know, pretty much about a third of the state of Alaska,
lots of rural communities, and West Fairbanks.
And, you now, it's really an honor to be the minority leader,
but as I always refer to it, we're all leaders,
we are all elected people here,
and each and every one of us has our own leadership qualities
that we bring to the table.
And I look forward to working together with each of our members
and using those leadership quality.
So with that, I'll turn it over to whoever wants to.
cut in and introduce themselves.
I think we have two new members, Senator Tilton
and Senator Rauscher, so I
think that we should probably let
them one of those two go first and
introduce themself.
Well, I guess we'll do ladies first today.
Hi, everybody.
I'm a.
Senator Kathy Tilton, I'm just getting used to saying Senator.
I've been in the house for 11 years, so I am pretty a mess of memory at saying I have a house member,
but have been here on the job in this Senate for four weeks, appointed by the governor.
And that was quite an honor to have your district back you for that.
kind of getting our feet on the ground here in the Senate. It is a little bit of a different body
with a bit different culture, but I'm really enjoying the time here. My first
bill that I did was actually a resolution.
It was SR-4 and the resolution was to honor the semi-quincentennial
of the United States of America,
which is the 250th anniversary of
the signing of The Declaration of Independence.
So it was quite an honor to have the first bill
that was voted on, well,
resolution, the 1st item that
was voting on in the Senate was that resolution
and it passed unanimously that day with many,
many co-sponsors.
I feel really strongly about celebrating our heritage and
making sure that our young people are getting educated in that.
It was not a mandate for the school, so there was no many attached.
But there's many organizations that have items that education can look at.
See, it's America250.org has many free things.
a contest where kids can actually win a trip to DC.
So it's pretty exciting and I'm really, really honored and
pleased that my colleagues voted right along with me with that on the floor.
Some things that I am working on in my office specifically might not be the biggest
items that we're working in overall in the legislature.
But specifically in office, I was looking at some regulation dealing in titling of vehicles.
And that deals with a regulation.
titling vehicles that is not in alliance with the federal regulations and hopefully we'll be able to get that through pretty easily
Through this legislature and the next thing I'm kind of starting to dive into will be on elder fraud
unfortunately, my mother was just a
person who was Just scammed
for a large amount of money through elder fraud through a phone call using AI to impersonate my voice and
using cryptocurrency for the means of paying what they told her that she needed to bring, to pay for that.
So I have a bill being drafted right now that we'll look at putting some guardrails on cryptocurrency kiosks.
And as I said, these may not be the biggest things happening in the legislature, but in Alaska our elder fraud is higher than it is anywhere in
Many people here in this building have had the same kind of scam calls made to them.
And so I feel very strongly that we need, as legislators, we
need to protect the people of Alaska and I think that there needs to be sideboards on that.
So that's something that I'm going to working on.
There's many big issues that were working with the course, what's happening with
the budget, that happening the gas line, which happening in those other areas.
But I will let my colleagues go ahead and talk about those.
Thank you, Senator Tilton.
Senator Rousher.
Yeah, thank you.
Senator Rausher here, I represent district O.
It comes from, it goes from Valdez to beyond Healy.
It goes out to Big Lake for nearly nine years now.
It's almost a decade now I've served on resource committees.
I have been in the house for nine year during that time.
at times I was vice chair of resources.
I had a chair energy and my district
is basically has a good deal of taps running through it.
It's the port of Valdez, Port McKinsey.
I mean McKinley, yeah, right, port McKinsy.
Major mining prospects in the west
who's sitting there in significant components
of the Alaska LNG.
corridor. Two ports of call is always important. There's farming, coastal communities as well as
the interior. We have a piece of there and I also sit on transportation.
Transportation, I have over 475 miles of federally funded state maintain highways,
not to mention the railways up and down that corridor in the rail belt.
So I appreciate the fact that I'm able to say hi to you all, and
my interests are obviously resources and transportation.
And I'll be looking forward to advance those while I am sitting here in
the Senate.
Well, I sit on resources with Senator Rauscher, and
so much of what we've been doing on
resources this year has been gasline related,
and that's got the prospect to be
transformational for us as a state.
I get a reminder of that on a regular basis.
My house is about a mile from TAPS,
running right through my district,
and so this is potential for the next version of
that.
You know, I think among the six of us in our caucus, at least,
you know I find various levels of enthusiasm for the project,
but I'd think what we're definitely united on is we all want this project to go through.
You recognize the potential transformational value of it.
And more importantly than that, given some things that have been happening around here lately,
I would think we are united. We don't want the legislature to be the reason that this
project doesn't happen.
If there is anything that slows it down or anything else,
then we don't want to be the cause of that.
So as I said, we've been having lots of hearings
on resources on the gas line,
making sure we're understanding the terms
and the expectations for the project.
We just had the rail ready in yesterday
talking about their readiness
for a large scale construction project,
they seem pretty ready.
We had DOT in a couple of weeks ago.
They're not as ready for it.
Can up their game a little bit.
We've heard from some of the producers, Exxon and Hill Corp have already signed gas sales
agreements with Glenfarn.
GlenFarn has filed their initial regulatory documents with the FERC in order to be able
to begin construction here soon.
Unfortunately, we've seen FID pushed back initially.
We were told last year they were hoping to have F ID at the end of January.
Now they've pushed it back a little bit to the into March from what we can understand
we're having right now about property taxes, again, we don't want to be the ones that slow
this thing down or stop it. And so primarily it seems like what we are waiting on is firm
gas sales agreements to signed with Asian or other overseas export customers because
that's the volume that comes with that export is what's truly going to bring the gas costs
Just having the line from the slope down to South Central is going to
solve our shortage issue, but it's not going solve
our cost of energy issue until we get those export volumes through.
So, trying to keep as close an eye on that as we can.
Thank you, Senator Rice, Mr. Kaufman.
Well, thank you.
Senator Kaufman, I'm on the finance committee.
And I guess I think of myself a little bit as the informal quality manager.
in the building. That's my background and so I'm always trying to approach policy from
an improvement process sort of methodology. And I believe that we don't lack ideas or
resources. We follow through execution, stability in our planning processes and how we go about
Also big on an enforceable spending cap.
I think that'll be important to assure stability in the state, particularly as people start
to talk about new revenue sources.
I second the comments.
We don't want to be the reason why the gas line somehow doesn't come through.
But there's diligence we have to do, so there has to that process, but we just don t want
to send the wrong signals while we're trying to see the information that will allow the
legislative decision process.
Yeah, let's let us open it for questions something
Eric Stone with Alaska Public Media
Hi, so thanks for doing this
I wanted to start out by so I want to ask the quality manager a question
Governor Mike Dunlevey has
made his fiscal plan, sort of the pitches,
it's a way to make the budget process better,
to makes things more predictable.
I'm curious, for your assessment of,
does it solve the process issues that we have
with the budgets, the debates over the PFD,
and then like...
You talked about an enforceable spending cap to see the spending
cap in this fiscal plan as adequate and just any other
general thoughts you might have on the plan is a hole. So that's
the revenue side. And then also the spend and cap the sunset
reviews and the other piece that I the PFD amendment, of
course.
Thank you, Eric. Yeah, I thank the governor for putting it
forth. We do have a near term revenue crunch. It's just the
the situation that we're in for a variety of reasons. I won't recount them all right now.
So sunsetting, those are interesting thoughts, but I have, since I've been in the legislature,
even before when I was running for office in 2020, I said one of the core policies we need to improve
five-year trailing average and you know all those details are available on my
website senatorcoffman.com and if anyone's interested go look there and we can
always answer any questions and so I believe you need a constitutional cap.
I'm of the opinion that we should put limitations on government in the
any hard spending amounts in the Constitution.
So I look at it a little bit differently
because we get into a revenue crunch
and something is constitutionally mandated as,
you know, so you could have that.
If a dividend was enshrined in The Constitution,
you get that with defined benefits once we agree to it.
You're locked in constitutionally.
You can't have a diminishment of benefits.
So I believe we need to be very careful
with putting obligations, spending obligations
funding obligations into the Constitution.
And it's a better approach, in my opinion,
to go with limitations on government in the constitution
because that's really what it is.
It's the contract between the government and the people
that we won't go too far with things.
That's my opinion. I think the governor is definitely touching on things that we need to consider.
But I just have a different core philosophy.
I think for myself, I'm on board in principle
with what he's trying to do.
I sent it, as Senator Kauffman said,
we definitely need some side boards.
There's no way that we're going to pass a tax bill
and just say that, we are over and done with it
and that that fixes the problem,
that were going be back here the next year
doing the same thing again.
I I thing that
You know, I quibble with some of the details and I think we need some stronger sideboards
as Senator Coughton said, as far as the spending cap side of it goes.
You part of what the governor has is projecting out there is based on some kind of rosy projections
and it's based based the gas line and so that's another thing that we have to make
sure that that goes through if we're going to, going make that plan work.
it's got to be tied to those other pieces otherwise we're just going to
be back in this same boat again in in a couple of years you know when
when icer came through a cou couple a few weeks ago one of the things that they
emphasized to us is the the volatility and the lack of
predictability not only in our revenue streams but just in how we budget
around here it is costing us growth in
our economy and then we wonder why
we have people leaving the state because they see the uncertainty that we're projecting
and they get uncertain about whether they're going to have a job or uncertain
about what they should invest in a business. That's the ultimate problem that
we need to fix is we want to make sure that
we as a state are a good and stable partner for business within our state to grow our economy.
saying that we need to be a high reliability partner and so Alaska needs to
be high-reliability partner that's with the business community with
the citizens we needs systems that function we
need things to do what they're chartered to-do business that comes up here and
goes through all of the effort of bringing their assets and resources to
bear to to work in Alaska need have assurance that
cause major disruption in our agreements with them.
So we need to tread very carefully.
Just the discussion of changes has an inhibiting effect
on business investment.
People are making long-term plans.
They're thinking things are a certain way
and they can get shaken from those plans
or at least put them on hold.
They get a little bit of trepidation
when we start looking too reactive.
So.
It's the reason why I've been advocating things like sensible control limits that they it's not harsh spending lids
It' s just some sort of plan that shows that we have a calculation for what we plan on spending and then along with that
Execution plan so that the state is on these what my vision is a four-year planning
system that looks forward four years into the future and then updates every two
years when we have financing plans that go with those execution plans. It's
basically a simple plan do act and fund accordingly plan that will try to get
the state where everybody knows what we're doing. What's our core?
core mission, what are we trying to get done? And this is coming from the Executive Branch.
This is my reform of the executive budget act. So the more that we can do things where
people can look at something and say, this where we're going, that this the direction
we are taking and this how we will get there, then we start to become that high reliability
partner that need to be in order to have people plan their lives to live here and plan investments
Thank you.
Corinne Smith with the Alaska Beacon.
Hi, thank you, our question is related
to the supplemental budget in the CBR draw.
How comfortable are members of the caucus
with a fast-track budget supplemental?
And basically, what are you negotiating for the CBR draw?
I mean, for myself, I think the majority leadership
is made pretty clear.
made it pretty clear that we're not going to do a whole lot
with it until it comes over from the house.
And so it's hard to have discussions
about any sort of a negotiation or anything
until you see what comes
over form that other body, why start talking about it
when it started to going
to change a half dozen times before it gets to us.
So I think we are keeping an eye on it.
But we're kind of letting it simmer for the moment until it makes its way through,
you know, comes out of house finance and makes it's way
through the house floor to see what happens.
Eric Stone, Alaska Public Media.
Just follow up on that a little bit.
Obviously, there's one thing that I can imagine being in a supplemental budget when it comes over to you guys,
match funding for DOT, I don't know for sure if that's going to be in there or not, but
I'm curious just sort of for your perspective on do you see that the match
funding in, referring to the Meet the Match letter, that particular match
funding? Do you say that as urgent as the construction industry is telling house
finance, for example, or do see it as less urgent and that, you know, a funding
wait until July. Just sort of curious what you guys think about that.
I know Senator Kaufman has an idea about this but my idea
about it is we have a very short construction season
and there are some projects that could actually start in June
and so for me and this is my opinion for
me the sooner the better but again that's just my perspective on
I'll just expand on the general question of the supplemental.
It should be narrow and focused to exactly what a supplemental should
be. And I think the opportunity to move it through and get it done, if
things start getting, you know, becomes a chia pet fuzzy with lots of other
things, it will not move as quickly.
to the core mission of what the supplemental should be to address those funding shortages
from the prior budget then and that's what it should
be and I agree also on the construction season
it is a critical thing. There's still there's
really get down to the bottom of the funding need versus the availability
because of timing the funds that were used. So there's a big story there but
we're listening and if there is a need for it I hope that it gets out there and
puts projects up and running with enough margins so that we have the
ability to do all the work that can do this construction season. There's been
So that's always an option. I don't know how big of an
option it is as far as the the general consensus in the Senate, but that is an
option that I've heard about.
What do you say?
Is it one that you personally would support?
It would something that would
support for now if we take that one out and then worry about the rest of the
supplemental as it comes.
Yeah.
Same.
Hello senators, thank you for your time and you were mentioning that the the budget has a long ways to go through
House before it comes to you
But at this point would you say that your caucus supports the supplemental request from the governor's budget?
And is there anything in that request that? The caucus specifically doesn't support?
Just speaking for myself, I think Senator Kaufman made me
cover that as long as it's a focused supplemental budget with
just the needs that we have to pay for, somebody else could
chime in on that, but I'm supportive of just that.
Karen Smith with the Alaska Beacon.
Thank you. I wanted to ask about education and the I guess the caucus position or thoughts on
the funding needs that are still being communicated from districts and you know many districts facing
steep deficits and serious school maintenance needs and yeah would you support more funding
towards those facilities needs or things like that or what is the position of the Caucus?
Sorry if I'm talking too much, but we have to look at the totality of the budget.
There's no revenue ranger that's going to come riding to the rescue.
There are a lot of ours in that little alliteration,
but there's there is no easy answer that is going
to be come in the form of additional funding now.
Other than, thankfully, oil prices are creeping up a little bit.
So as we're dealing with the totality of the budget and trying to allocate to all of
the needs and all the folks here in the legislature know what it's like.
We're in our offices.
We meet with people.
from from all over the state from our own districts and they come to us with the
needs that they have and the needs are compelling from child care to to elder
care, to public safety, roads and bridges, all of that we hear it all. The budget
process that were in right now is the process of trying to figure out how we
can do the best job of meeting all those needs and education is very
important. It'll fit in into that process. We'll do
This is a very difficult year because of the current place we're in with the revenue cycle relative to resource revenue and with, I guess, really resource revenues, the big thing with
the details within that funding stream that we get from, from oil and gas.
Thank you.
Question.
Do you think the state is reliable partner for education in Alaska?
Thanks.
Thank you for that.
No, I think we need to work towards that on all fronts.
But part of that reliability is making sure that the funding that we provide goes to excellent
execution, that it's on task, it is doing exactly what we have to do.
all of our agencies. There's improvement projects that need to be done
across the state in all departments and some of those may take investments.
Maybe we need a better computer system, maybe we
need other things training. Lord knows what.
There is a host of things that we
need do to improve delivery of governance
in Alaska and I think we
need work towards that but we
need that vision. We need
kind of build support for that type of visionary path forward for Alaska.
Senator Myers.
Yeah, to that point about being a partner is, you know, when there's a partnership,
there are two sides to it, and there is some things that we can do.
You know so for example, I took over the school health insurance bill to allow the
school districts to pool their health insurances with the state.
And that's something that
You know stretch their dollars a little further at the same time the districts have a part to play as well
And some districts are more able to do that than others, you know in Fairbanks for example, You
Know, we've
Made a lot of hard choices over the last couple of years and I commend our school board for that
To to the point where we actually now have
A slight budget surplus at at our School District right now
and
You know, some people are not happy about the way that some of that happened, obviously.
You in my district, we've had five schools close in the last three years.
And so I've have had some folks not
happy with me,
obviously, and also not
happy for their school district.
But you have to recognize where you are,
not only in terms of our budget around here,
but in term of the number of kids that are in
the school districts.
And, you know.
So those are the harsh realities that
you know, sometimes we have to bump up against.
And so there's a give and take, there is a partnership,
you now, it's not just, you
know we supply what the districts want,
it is,
you there are some back and forth here for us to work on.
So I went out to apologize here,
where we are on a pretty hard stop here today.
So, I know some of us have
to get out of here.
So apologize for that,
maybe we could do a little longer one
in the next press conference.
But I, as if anybody has any real quick
closing comments in our next minute and a half.
feel free. I guess my closing comment is you know both in terms of budget and fiscal plan and in
terms gas line we're really sitting at a kind of a precipice right now kind on the knife edge and
we do things right our state couldn't live really good here in five years and if we
do thing's wrong we are just going to slowly slide downhill and I think we need to keep that
Yeah, and you know just a quick comment. It's like, you you we do we have the budget we had the gas line
We have a rural health transformation. We had a lot of stuff on our plate this year
You know, I know all six of us, um,
You don't send it against not here, but you don we pride ourselves in accountability
You now working with the majority obviously is going to be key to getting things done and then them working
With us you now trying to treat us as equals and, y'know, that that's important to us and um
You, know we always lead with integrity. That's one of our baselines, ya know
And I think as we progress this during this last session here,
we'll show that each and every day in our work we do.
So with that, thank you for coming,
and we are going to have to leave.