Rep. Geran Tarr Calls on Gov. Dunleavy to Direct DHSS to Amend State's Medicaid Plan
JUNEAU – Rep. Geran Tarr (D-Anchorage) introduced two pieces of legislation that are part of a seven-part fiscal plan that she proposed on June 14, 2021. This legislation includes a modest increase of the minimum tax on oil and gas production from 4% to 6% and a 2% sales tax which exempts many essential items such as groceries, medication, feminine hygiene products, and heating oil.
“These parts of my fiscal plan are not necessarily my first choice, but they take into consideration what is politically possible given the makeup of the legislature and the priorities of the Governor. Given our small population, we need to ask the 20% of workers who come from out-of-state and the more than 2.2 million visitors (according to 2019 numbers) to help support the services they enjoy while in Alaska,” said Rep. Tarr. “I would prefer an income tax, but there have been two income tax bills introduced since the beginning of session which have seen little to no movement at all. Now that we are in late August (and at the halfway point of our 30-day special session), it’s time to consider other options. I can support a 2% sales tax, given that it is coupled with a 50/50 dividend payout and important exemptions for essential purchases, like food, medicine, and heating oil. This will ensure that no Alaskan is disproportionately burdened by these policies.”
Rep. Tarr’s seven-part plan includes:
REVENUE GENERATION:
HJR 7: The constitutional amendment protecting the Permanent Fund by changing to the percent of market value (POMV) management, limiting the annual draw to 5%, and saying there shall be a dividend as provided by law (introduced by Governor Dunleavy on February 18, 2021).
HB 73: Legislation that establishes a 50/50 split between government expenditures and dividends for the annual draw (introduced by Governor Dunleavy on February 18, 2021).
HB 104: Legislation that increases the base tax rate per gallon for four separate motor fuels (8 cents for highway, 5 cents for marine, 4.7 cents for aviation, and 3.2 cents for jet, introduced by Representative Josephson on February 19, 2021).
HB 130: Legislation that closes tax loopholes in Alaska’s corporate income tax structure (introduced by Representative Wool on March 10, 2021).
NEW LEGISLATION:
HB 3005: Legislation that increases the minimum tax on oil and gas from 4% to 6%, suspends all other components of the oil and gas tax until December 31, 2024, (introduced by Representative Tarr on August 30, 2021).
HB 3006: Legislation establishing a sales tax that exempts food for groceries, heating oil, health care services (including services at a health care facility, drugs, durable medical equipment, mobility enhancing equipment, and prosthetic devices, childcare services, feminine hygiene products), among other exemptions (introduced by Representative Tarr on August 30, 2021).
BUDGET REDUCTIONS:
Rep. Tarr believes that significant budget reductions can be made by stemming the negative externalities of certain public health issues – a start to this process could be accomplished through a Medicaid waiver request.
“We must address the five major public health and public safety crises of child abuse, sexual assault, domestic violence, substance misuse, and untreated mental health. The first step is to ask Governor Dunleavy to seek a waiver to our state Medicaid Plan to allow Medicaid to cover family planning services, and I have done that today,” said Rep. Tarr.
“I call on Governor Dunleavy to take action today and seek a waiver from the federal government so that our Medicaid program can begin to cover family planning services. Our children and families will be healthier when we can support them from the start. This commonsense change can help families plan and serve as an early intervention for many other health care needs including substance misuse, mental health, and family violence.”
Hearing requests for these bills have been submitted and are awaiting consideration in committee.
Rep. Tarr's letter to Governor Dunleavy can be found below.
