The first session of the 21st Legislature came to a slow, agonizing end as the House watched the Senate fight over the wording of the House's long-range fiscal plan. In the end the Senate could not agree upon a long-range fiscal plan of their own. In the last half-hour of the session House Speaker Brian Porter asked Governor Knowles to call a special session of the Legislature starting the next day.

Governor Knowles' Executive Proclamation was restricted to getting the long-range fiscal plan passed by both chambers, create a task force to analyze additional revenue sources to help pay for the long term plan, and to pass the capital budget that the House had passed by a vote of 40 - 0. The capital budget was being held by House Speaker Porter, in a typical end-of-session strategy to get the Senate to pass a long-range fiscal plan. The fiscal plan is the key piece to balancing Alaska's budget. The Senate had stripped out most of the language in the version of HB 231 that the House had sent over to them in regards to a long-range fiscal plan.

House Finance Committee

The Conference Committee on HB 50 - the operating budget - concluded the final touches to the departmental budgets earlier this week. Continued cuts to state agency budgets were difficult to make. Large formula-driven programs including education and costs for our increasing prison population necessitating budget increases, made the task even more difficult. Municipal Assistance and Revenue Sharing cuts will be felt by all communities in the form of reduced general fund contributions by the state. Demands by the general population to "cut the budget" will start to be felt as the fat disappears and cuts are applied to the bone.

With the compounding effects of budget cuts plus lacerations to municipal assistance to local government, I felt strongly about the continuation of adequate funding for the Power Cost Equalization program (PCE). Senate Bill 157, as it was passed by the Senate recommended reducing the subsidy by manner of raising the "floor" (referring to the range of allowable rates paid to the utility), and reducing the monthly maximum usage level (from 700 kWh/month to an average of 350 kWh/month). The House corrected some of the PCE problems with SB 157. We redid the floor level back down a little. Then we adjusted the maximum usage up to 500 KWH/month. The House also added $3.6 million more to the Senate Capital budget, raising PCE funding from the Senate number of $12.1 million to a total of $15.7 million for the next year.

Fisheries Legislation

Only two pieces of fisheries legislation made it through both houses this session. SB 146, which increases the cost of commercial fishing crew licenses from $30 to $60, and non-resident's crew licenses from $90 to $125. This increase will continue to support the Fishermen's Fund at the rate it has been funded. The additional costs are designated to the Fish and Game fund. I don't like it, but, unfortunately, they keep cutting the F&G budget and this will replace about $385,000 of the $1.6 million that was cut. HB 217, relates to fisheries cooperative contracts, as required by the American Fisheries Act, to collect payments from factory trawlers for their final landing of the season, passed both houses.

The fisheries issues that remain on the back burner to be taken up again in their current committees next January are: HB 104, which would allow the Commercial Fisheries Entry Commission (CFEC) to impose a moratorium on a stressed fishery and on vessels or participants without going through the existing time consuming process, is stalled in Senate Resources because Senator Halford, of Chugiak, has a problem with the transferability of limited-entry permits as it now stands.

HJR 39, my bill that would send surplus salmon to aid the Balkans, was also stalled in the Senate State Affairs Committee, chaired by Senator Jerry Ward, of Anchorage. SJR 18, urging Exxon to pay up on damage claims from the oil spill, stalled in Senate Rules, despite our best efforts to move it over to the House for a vote.

Other fisheries bills that didn't pass this session are: HB 160, length of salmon seine vessels; HB 142, education credit for fishery taxes; SB 139, seafood labeling; and SB 13, discrete salmon stock management and assessment.

Newly Introduced Fisheries Legislation

I have introduced HB 237, which would create a vessel limited-entry system in fisheries such as Hair Crab and Weathervane Scallops, in order for the CFEC to better manage these fisheries. Representative Mary Kapsner, of Bethel, introduced HB 238, relating to reinstituting a commercial fishing loan program for federal income taxes to Alaska residents facing seizure of their commercial fishing permits by the IRS. Senator Drue Pearce, of Anchorage, offered SB 183, a measure that would restructure the Alaska Board of Fisheries and create the Fisheries Commission of Alaska. This full time commission would be composed of five commissioners, none of which shall have a vested economic interest in a commercial, sport, or processing business relating to our fishery resources. By the way, on the present Board of Fish, all three of the Governor's appointees were reconfirmed in the Joint House and Senate floor session.

Kodiak LIO

As a wrap up to the end of the first regular session, I would like to again thank Lorna Steelman and Mary Lund at the Kodiak Legislative Information Office in Kodiak for their assistance to my office in Juneau. Their dedication and willingness only exceed their enthusiasm and diligence to help the people of Kodiak.

Office Numbers

My number in Kodiak will remain the same at 486-8872. This number will be activated June 1st. Cliff Stone will once again staff the local office, with Joanie Waller arriving in July. If you need to talk with someone before then, please call my Juneau office at the toll free number 1-800-865-2487. My office in Kodiak is located within the Legislative Offices at 112 Mill Bay Road, just up the street from Subway. If you would like to leave me a message before the 1st of June, please call Lorna at the LIO. Her number is 486-8116. My email address remains the same. Representative_Alan_Austerman@Legis.state.ak.us My website is http://www.akrepublicans.org/pastlegs/Austerman.htm. In addition to providing access to all current and past legislation; I have provided several links on this site to Kodiak information and our congressional delegation in Washington, D.C.

Thanks to the Kodiak Daily Mirror for allowing me the space to talk with all of you. I appreciate the flexibility Asa Cole provided in allowing me to communicate how important a long-range financial plan is to Kodiak and Alaska and its future generations.

Thanks again for your many letters, calls, faxes, POM's and emails. Your correspondence does make a difference! Remember - my door is always open.