HCS CSSCR 23(STA): Relating to long range financial planning.
00HOUSE CS FOR CS FOR SENATE CONCURRENT RESOLUTION NO. 23(STA) 01 Relating to long range financial planning. 02 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 WHEREAS the members of the Long Range Financial Planning Commission (LRFPC) 04 were jointly appointed by the governor and the legislature and conducted hearings across the 05 state, raising the awareness of and educating Alaskans about the fiscal gap; and 06 WHEREAS the state has spent more than it has collected in revenue during six of the 07 past nine fiscal years; and 08 WHEREAS the state's fiscal year 1996 fiscal gap between revenue and expenditures is 09 estimated to be $313,000,000; and 10 WHEREAS petroleum revenue currently accounts for about 80 percent of unrestricted 11 general funds and Alaska's petroleum production is projected to decline by one-third during the 12 next 10 years; and 13 WHEREAS the fiscal gap is projected to grow steadily if the state does not effectively 14 address revenue and expenditures; and
01 WHEREAS, without changes in projected revenue and expenditures, current reserves in 02 the constitutional budget reserve fund may be depleted by fiscal year 2000; and 03 WHEREAS, in various fiscal policy forums around the state, the conclusion has been 04 that no single fiscal tool is sufficient to address the fiscal gap, and that several tools must be 05 used in combination to bring about state economic stability; and 06 WHEREAS the members of the Long Range Financial Planning Commission (LRFPC) 07 were charged with developing 3-, 5-, and 10-year financial plans for balancing revenue and 08 expenditures; and 09 WHEREAS the permanent fund is a cornerstone of the state's economic future that will 10 continue to grow as well as provide reliable dividends to the general public; and 11 WHEREAS the financial plan adopted by the legislature should contain a combination 12 of spending reductions and new revenue resulting from an expanded private sector economy that 13 will close the fiscal gap by fiscal year 2001; and 14 WHEREAS the combination of fiscal policies adopted by the legislature should put the 15 state on firm fiscal ground and strike a balance between current needs and protection of the 16 permanent fund for future generations; and 17 WHEREAS the Nineteenth Alaska State Legislature has prepared a fiscal plan to close 18 the fiscal gap which incorporates the following: 19 (1) as part of the plan to ensure maximum earnings from the permanent fund, 20 the legislature has deposited $1,100,000,000 to the fund's principal; 21 (2) significant spending reductions through reasonable and responsible budget 22 cuts; 23 (3) tax levels that are less than those proposed in other plans; and 24 (4) protection for the permanent fund and constitutional budget reserve fund; 25 BE IT RESOLVED that the Nineteenth Alaska State Legislature will first reduce the 26 size and scope of state government to decrease the gap between recurring revenue and recurring 27 expenditures; and be it 28 FURTHER RESOLVED that the Nineteenth Alaska State Legislature in closing the 29 fiscal gap and developing a long range plan shall prioritize expenditures by taking into account 30 our constitutional responsibilities and the needs of our children, the elderly, and our needy 31 citizens; and be it
01 FURTHER RESOLVED that the Nineteenth Alaska State Legislature will make 02 significant spending reductions through means such as: welfare reform, entitlement reform, 03 privatization of state services, and the institution of procedural changes to state employees' 04 pension, wage, and benefit package; and be it 05 FURTHER RESOLVED that the legislature pledges to work with all parties to 06 implement this long range financial plan and meet the needs and desires of the Alaskan people; 07 and be it 08 FURTHER RESOLVED that the Nineteenth Alaska State Legislature urges all Alaskans 09 to learn about Alaska's fiscal situation and to support actions necessary to close the fiscal gap; 10 and be it 11 FURTHER RESOLVED that the legislature thanks all members of the Long Range 12 Financial Planning Commission for their hard work and efforts to address the state's fiscal future 13 and assist the legislature in addressing the economic challenges we face as a state. 14 COPIES of this resolution shall be sent to the Honorable Tony Knowles, Governor of 15 Alaska; and to the members of the Long Range Financial Planning Commission.