SCS CSHB 1001(FIN): "An Act relating to income of the Alaska Permanent Fund and authorizing an advisory vote on a long-term financial plan for the state; and providing for an effective date."
00SENATE CS FOR CS FOR HOUSE BILL NO. 1001(FIN) 01 "An Act relating to income of the Alaska Permanent Fund and authorizing an 02 advisory vote on a long-term financial plan for the state; and providing for an 03 effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. ADVISORY VOTE. At a special election to be held on September 14, 1999, 06 in substantial compliance with the election laws of the state, including absentee voting and the 07 preparation, publication, and mailing of an election pamphlet under AS 15.58.010 - 15.58.090, 08 the lieutenant governor shall place before the qualified voters of the state a question advisory 09 to the legislature and the governor. The election pamphlet for the special election must 10 comply with AS 15.58.020(6), including the requirement that it contain statements that 11 advocate voter approval or rejection of the question. Notwithstanding AS 15.60.005 and other 12 laws relating to preparation of the ballot proposition, the question shall appear on the ballot 13 in the following form: 14 Q U E S T I O N
01 Preamble: The people of Alaska created the Alaska Permanent Fund to save 02 a portion of Alaska's petroleum revenue for the future. After investing those 03 savings, the original intent and purpose was to then use the earnings from those 04 investments when Alaska's petroleum revenues declined. Petroleum revenues 05 have now declined substantially and are forecast to continue to decline. Our 06 reliance on declining oil production and volatile oil prices constitutes an 07 unsustainable budget system. The governor and the legislature seek the public's 08 judgment in adopting a stable and sustainable long-term balanced budget plan. 09 Balanced Budget Plan: This will preserve the permanent fund dividend, 10 inflation-proof the Alaska Permanent Fund, support public services, and 11 establish a Citizens' Balanced Budget Task Force. Please mark "yes" or "no" 12 on this plan. The Balanced Budget Plan will 13 (1)Spending Reductions: Continue state general fund budget reductions to 14 a combined total of at least $60,000,000 for fiscal years 2000 and 2001. 15 Submit a proposed constitutional amendment to the voters that would 16 reduce the base amount of annual appropriations in art. IX, sec. 16, 17 Constitution of the State of Alaska, and make other changes to establish 18 a meaningful appropriation limit. 19 (2)Permanent Fund Protection: Guarantee the Alaska Permanent Fund 20 principal is untouched. The principal of the fund is inflation-proofed 21 to protect its value for all Alaskans, including future generations. 22 (3)Permanent Fund Dividends: Guarantee a dividend is paid to qualified 23 Alaska residents at a minimum of $1,700 in 1999 and $1,700 in 2000 24 and, thereafter, approximately $1,348 and higher. Beginning in 2001, 25 the Constitutional Budget Reserve and the Permanent Fund Earnings 26 Reserve will be combined. In determining the market value for the 27 calculation of the dividend, this new account will be joined with the 28 principal of the Alaska Permanent Fund. After accounting for inflation- 29 proofing, the dividend will be based on 50 percent of the annual earnings payment of these 30 combined accounts. 31 (4)Earnings Reserve Usage for Public Purposes: After payment of
01 permanent fund dividends and inflation-proofing the fund, the remaining 02 annual earnings payment will be prioritized for usage for education, 03 public safety, and transportation. 04 (5)Accountability: Expenditures from the combined account will be fully 05 disclosed on each annual permanent fund dividend check. 06 (6)Balanced Budget Task Force: Establish a Citizens' Balanced Budget 07 Task Force to present options to further reduce state spending and 08 identify appropriate future revenue sources. 09 (7)Income Tax: No income tax on individuals will be required as part of 10 this plan. 11 After paying annual dividends to residents and inflation-proofing the Alaska 12 Permanent Fund, should a portion of permanent fund investment earnings be 13 used to help balance the state budget? 14 Yes [ ] No [ ] 15 * Sec. 2. This Act takes effect immediately under AS 01.10.070(c).