Questions on his energy borough proposal dominated a KYUK call-in show between Senator Lyman Hoffman and his constituents.
“What I am trying to accomplish here is to use the mechanisms of a borough to try to lower the energy costs in the Calista region,” said Hoffman during the live show.
Hoffman said the goal would be to create a more affordable place for people in the Delta to live by using the borough to allow the whole region to benefit economically from the proposed Donlin Gold mine, if it’s developed. He said residents would vote on whether or not to create a borough that would collect payments from the proposed mine to fund infrastructure like power or gas lines.
“It is for the people of the region to decide if they want a borough that just deals with energy issues," said Hoffman. "So they would have to decide the boundaries, decide the makeup of who would be sitting on this borough board, and all the powers and structures as it relates to energy.”
Hoffman said the borough he proposes would not have broad taxing powers.
“I would never propose any taxation in the YK Delta,” the Senator told one caller.
Callers also asked about Hoffman’s support of Senate Bill 70, the Senate’s plan for dealing with the state’s fiscal crisis. The bill would draw money from the Permanent Fund that would add to the state budget and allow for permanent fund dividends of $1,000 for three years. Hoffman said reducing the Permanent Fund Dividend is necessary to protect the PFD in the long-run and to fund state government.
“We only have one more year’s reserve, and if we cannot come up with a solution, we’re going to end up spending all of the earnings from the Permanent Fund on government," said Hoffman. "And I think that would be a disaster.”
Senator Hoffman did not see a state income tax as a priority.
On how the Legislature could address the state’s opioid epidemic, Hoffman suggested auditing the top ten opioid dispensaries and looking for irregularities.
The senator said he is trying to plan at least one trip back to the Delta during this legislative session.
Correction: The Senate Bill number for the Senate's proposed fiscal plan has been corrected.
