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Conference approves using
Fund's income on services and protecting dividend
Delegates
call on Legislature to consider broad based tax...Governor says taxes not on
table
The Conference of Alaskans completed work yesterday, [Thursday] endorsing
the use of Permanent Fund income for state services and approving a new way
of managing earnings from the Permanent Fund called Percent of Market Value,
or POMV.
The delegates agreed that Fund's income could be used for essential state
services under two conditions;
--dividends must be paid out before the Funds income is utilized.
-- the Legislature must take action to balance the state's books by
considering a state income tax, other broad-based taxes and quote “other
alternative sources of income.”
The Conference also recommended that annual dividend checks be protected in
the state Constitution.
And the delegates also supported a “prudent balance” for the state's
Constitutional Budget Reserve, but didn't specify a dollar amount.
In a written statement issued after the Conference adjourned, Governor
Murkowski applauded the Conference's recommendations except for the
conditions placed on use of the Fund's income for essential state services.
Murkowski's statement read... "I will forward the Conference report to
the Legislature so that the body can fully consider the outcome of the
Conference. The legislation which I will present to the Legislature will
only focus on the four key questions I asked the Conference to debate
regarding the Permanent Fund and the CBR."
The POMV plan would base the amount of money available for dividends, and
possibly some costs of state government, on the fund's total value.
The percent of market value plan has been a goal of the fund's board of
trustees, who say it will bring predictability to distribution of fund
earnings.
A change from the current method of spending will require a vote of
Alaskans.
Governor Murkowski called the conference during his State of the State
speech.
Assembly gets draft
business plan from Eaglecrest
The Eaglecrest Board of Directors and managers have drawn up a draft long
range business plan for the financially strapped City owned ski area.
Eaglecrest is facing half million dollar budget deficit.
Business Manager Gary Mendivil says two out of the last three seasons have
been bad. He says the losses, credits, and refunds have had a devastating
impact on the ski areas' fund balance.
The draft long range fiscal plan was presented to the Juneau Assembly last
night. [Wednesday]
Mendivil says the key to increasing revenues is turning Eaglecrest into a
year-round recreation area.
To increase revenue the plan calls for summer commercial tours, dog sled
tour businesses, lodge rentals, and food service operations.
Long term improvements and revenue sources include bringing electrical power
to the area, future chair lift upgrades, trails, cabin rentals, and a
bunkhouse.
The city generally provides a subsidy to the ski area of about $330,000 a
year. Last year the Assembly appropriated $363,000.
With the Assembly wresting with a 2 million dollar budget deficit for next
fiscal year, Deputy Mayor Jim Powell suggested that Eaglecrest business
managers should prepare alternative budgets, including a budget that makes
provisions for a zero subsidy from the City.
Assembly member Randy Wannamaker requested that privatizing the ski area
should be looked into.
After the meeting, Mendivil said privatizing the ski area was considered
back in the 1980's but there were no bidders.
Eaglecrest will submit their fiscal year 2005 budget in May.
Meanwhile, Eaglecrest got off to a good start this season, although the past
few weeks the weather has taken a turn for the worse.
The sub zero temperatures during the last couple weeks of January and now
warm weather has cut into the number of people visiting the ski area.
Mendivil says they're hoping Winter will return. He says typically, February
and March are good snow months.
Delegates favor income tax as additional
state revenue source
In a straw vote last night, 69 percent of the delegates to the Conference of
Alaskans say they favor an income tax as an additional source of state
revenue.
Another 13 percent said they might favor such a tax. And 18 percent said
they were opposed to the idea.
The 55 delegates to the three-day conference in Fairbanks have been asked by
Governor Murkowski to offer their recommendation on whether to use the
Alaska Permanent Fund as a means of helping to balance the state budget and
pay for some state services.
But the delegates have strayed from the original agenda.
The income tax question was spurred in part by a presentation by former
Governor Jay Hammond. He is pushing a plan for distributing permanent fund
earnings as higher dividends, then recapturing part of that for state
spending with an income tax.
Hammond says restoring an income tax would capture money from out-of-state
workers and again give Alaskans an incentive to keep a lid on state
spending.
Bunde wants Permanent Fund to take up
workers comp shortage
Anchorage Senator Con Bunde wants the state use the Alaska Permanent Fund to
patch a 20 million dollar gap in a program designed to pick up unpaid
workers compensation claims.
Bunde says he's not optimistic the Legislature will go along with him. But
he says this fix is more fair than asking businesses to cover the shortfall
left by insolvent insurance companies.
State officials say Alaska's workers comp insurance program faces a crisis
as it wrestles with unpaid claims from four insolvencies. The largest of
them could leave the state with 60 million dollars in claims.
Fremont Indemnity Company had handled about 27 percent of workers comp
policies in Alaska before a California court found it insolvent in 2003.
The Alaska Insurance Guaranty Association Fund was created to pick up such
claims by charging an assessment on the pool of similar carriers.
But the fund only generates about four-point-two million dollars a year.
That's not enough to cover unpaid claims this year and the fund is expected
to be more than 20 million dollars short over the next five years.
State changing standardized
tests
The standardized tests taken by Alaska elementary and middle-school students
will take a new form, starting next year.
The state Department of Education has approved a new line of tests to
replace those given in grades 4, 5, 7, and 9.
Rather than compare a student's score to a national average, the new tests
will be pass-or-fail, just like the benchmark tests given to 3rd, 6th, and
8th graders, and the high school graduation qualifying exam.
Education Commissioner Roger Sampson says the tests had to be changed to
comply with the federal "No Child Left Behind" Act.
Testing firm "data recognition" replaces the current test
contractor, C. T. B. McGraw-Hill.
Sampson says the 5-million dollar contract will save the state 12-million
dollars over six years.
It also means tests will be given in April, rather than February, and data
recognition says it can have results ready by May.
Rate of aviation accidents down in Alaska
during 2003
The number of aviation accidents hit a 20 year low in Alaska last year.
There were 117 accidents.
Commercial aviation accidents, like air taxi, or the major passenger
carriers and cargo operators decreased from 39 in 2002 to 23 in 2003.
In the General Aviation category the number of accidents also declined from
97 to 94. However, the number of fatalities increased by five, from 14 in
2002 to 19 in 2003.
The state saw no accidents in the scheduled carrier category which includes
major airlines like Alaska, United, Delta, and Frontier.
The FAA has targeted Alaska with specific goals in a five year strategic
plan designed to decrease accidents in the general aviation, air taxi, and
commuter segments by 20 percent.
Coast Guard Auxiliary
gathering in Juneau
The 17th Coast Guard Auxiliary holds its annual winter statewide conference
in Juneau beginning tomorrow. (Friday)
Noreen Folkerts, commander of the Juneau Flotilla, says about a hundred of
the 450 members statewide will be in the Capital City for the conference.
Special guests include Governor Frank Murkowski and National Transportation
Safety Board member Kevin Quinlan.
Training classes are part of the conference and there's an awards banquet
planned Sunday night. Admiral James Underwood, 17th District commander, will
be the keynote speaker.
The conference will be held at the Baranof.
Highways bill moves down the road in Senate
A massive highway spending bill is moving into high gear in the Senate,
despite the objections of the White House.
The 318 billion dollar package easily cleared a procedural hurdle and
could be approved as early as this evening.
The election-year jobs and construction package has come under attack both
for being too expensive and for not doing enough to shore up the nation's
roads.
Conservatives who agree with the administration that the bill can't be
afforded fell far short in their effort to hold up the measure.
Supporters of the bill insist it's paid for by the highway trust fund,
financed by the 18 cents in federal taxes drivers pay for every gallon of
gas.
The Bush administration yesterday threatened to veto the Senate bill because
it's too costly and adds to the deficit.
The House Transportation Committee, led by Alaska Republican Don Young and
top Democrat Jim Oberstar of Minnesota, is seeking even more money, 375
billion dollars, and has proposed raising the gasoline tax. But the idea is
strongly opposed by the White House and House G-O-P leaders.
Man robs Anchorage credit
union
The F-B-I is investigating Anchorage's third bank robbery of 2004.
Special Agent Eric Gonzalez says a man entered the Alaska U-S-A Credit Union
branch on DeBarr Road shortly after 10-30 this morning, displayed a gun and
demanded cash from a teller.
The suspect fled on foot with an undisclosed amount of cash. Investigators
are asking anyone with information to call the F-B-I or the Anchorage Police
Department.
Week end stay requirement
dropped by airline
Alaska Airlines says it is simplifying its fare structure, including the
Saturday night stay rule.
The Seattle-based airline says it is closing the gap between highest and
lowest fares and reducing the number of fares in each market.
Instead of a weekend-night stay, Alaska's fares will have a one-night
minimum stay or none at all.
The airline's marketing vice president, Gregg Saretsky, says people
shouldn't have to spend a weekend night somewhere just to save a buck on a
ticket.
Bill would limit soft
drinks sales in schools
Bethel Representative Mary Kapsner says one way to help shrink the problem
of obesity among Alaska children is to stop selling sugary soft drinks at
public schools.
Kapsner told a House committee yesterday that House Bill 80 is one step
lawmakers can take to help control the growing weight problem among the
young.
The measure would prohibit the sale of carbonated beverages or drinks
containing more than 42 grams of sugar per 20-ounce serving between. Sales
would not be allowed between 8 a-m and 5 p-m.
Soft drinks that are more than 50 percent fruit juice would still be
allowed.
Many cash-strapped school districts say they need to sell the drinks to
raise money for school activities that they otherwise could not afford.
Mary Francis, executive director of the Alaska Council of School
Administrators, says the group has no formal position on the bill, but she
believes generally the thinking is that the decision should be made locally.
Record temperature set in Capital City
Juneau set a record high temperature for the date yesterday.
Meteorologist Brian Tassia says it hit 44 degrees. That broke the prior
record of 43 degrees set in 1998.
The forecaster says it will be warm today, in the low 40s, but will not
reach a record.
Boy Scout auction
fundraiser set for Friday night
A fundraiser auction is planned tomorrow evening by the Southeast Alaska Boy
Scout Council.
Council Commissioner Loren Rasmussen was among the guests on KINY's Capital
Chat this morning.
He says items have been rounded up from merchants around town. Juneau
Senator Kim Elton will be the auctioneer.
The auction begins at 6:30 Friday evening at the Yacht Club.
Elmendorf among test sites
for new uniforms
Elmendorf Air Force Base is among nine to try out a new battle uniform with
tiger-stripe patterns in green, gray and blue instead of the traditional
Army standard with splotchy patterns.
Senior Master Sergeant Jacqueline Dean, chief of the Air Force Uniform Board
office in the Pentagon, says airmen at Elmendorf and eight other bases
worldwide are participating in the evaluation.
Officials say the impetus for the change came from Air Force Chief of Staff
General John Jumper, who thought the Army's standard battle dress uniform
didn't suit Air Force needs.
Dean says the striped pattern and green-gray-blue colors seem to blend in
better around airplanes, but the pattern also is designed to distinguish air
crews from members of the other services.
Deans says besides a distinctive look, the new uniforms are designed to be
better fitting, longer lasting and more economical.
Crimson Bears claw Golden Bears
The Lady Crimson Bears defeated the Bartlett Golden Bears by a score of 61
to 37 in high school basketball action last night in Anchorage.
Tasha McCoy was the Bears high scorer with 18 points.
The Crimson Bears take on the West Anchorage Eagles tonight.
On Friday night the Bears move to the Mat Su to take on the Palmer Moose
(Copyright ©2004
Alaska Juneau Communications - KINY Radio)
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