SCR 102: Relating to an advisory vote and a state fiscal plan.
00SENATE CONCURRENT RESOLUTION NO. 102 01 Relating to an advisory vote and a state fiscal plan. 02 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 WHEREAS declining oil production, low oil prices, inflation, and an increasing 04 population create continuing annual budget deficits of approximately $1,000,000,000 ($1 05 billion); and 06 WHEREAS the original intent and purpose of Alaska's Permanent Fund was to save 07 a portion of Alaska's revenue from its petroleum resources, invest that revenue, and use the 08 earnings from those investments to help provide essential public services in the future when 09 Alaska's revenue from its petroleum resources declined; and 10 WHEREAS the Constitutional Budget Reserve account that has filled the budget gap 11 in recent years is projected to be depleted by 2003; and 12 WHEREAS financial projections predict the depletion of this savings account will 13 jeopardize the continuation of the dividend program; and 14 WHEREAS, in 1976, Alaskans foresaw the inevitable decline in Alaska's oil
01 production and created the permanent fund; and 02 WHEREAS the legislature and the governor recognize that Alaskans place a high 03 value on preserving and protecting the permanent fund; and 04 WHEREAS the legislature and the governor recognize the public's desire to be 05 involved in any decisions involving the permanent fund's direction; 06 BE IT RESOLVED that if, in an advisory vote, voters approve the question of 07 whether a portion of the permanent fund earnings should be used to fund essential services, 08 the legislature and the governor intend to implement a state fiscal plan that would include the 09 following: 10 (1) Permanent Fund Protection: The principal of the Alaska Permanent Fund 11 remains constitutionally protected and not subject to appropriation; additionally, the fund is 12 inflation-proofed to protect its value for all Alaskans, including future generations; 13 (2) Dividend Preservation: After accounting for inflation-proofing, dividend 14 payments to Alaskans are projected to grow with the market value of the permanent fund over 15 time; permanent fund dividends will be guaranteed to be at least $1,700 in 1999 and 2000, and 16 beginning in 2001, the dividend will be based on 50 percent of the annual payment of the 17 accounts that are combined to a new Alaska Income Account; 18 (3) Spending Reductions: Continue state general fund budget reductions and 19 commit to a long-term budget discipline and efficiencies; 20 (4) Deposits to Permanent Fund: Provide for deposits into the principal of the 21 Alaska Permanent Fund whenever the balance of the Alaska Income Account exceeds 40 22 percent of the combined total of the principal of the Alaska Permanent Fund and the Alaska 23 Income Account; 24 (5) Calculation of Dividends and Funding for Essential Public Services: A 25 new fund known as the Alaska Income Account would be established within the permanent 26 fund; the Constitutional Budget Reserve Fund and the Earnings Reserve Fund would be 27 combined to create the Alaska Income Account; dividends and the amount available to fund 28 essential services are calculated after accounting for inflation-proofing of the permanent fund 29 principal by multiplying the average market value of the Alaska Income Account and the 30 Alaska Permanent Fund by 5.88 percent; this amount would be divided equally between 31 dividends and essential public services;
01 (6) Accountability: Expenditures related to distributions from the Alaska 02 Income Account will be disclosed with every Alaskan's permanent fund dividend application; 03 and 04 (7) Income Tax: No personal income tax is enacted as part of this plan. 05 SCR _______ is read and approved this _______ day of ____________________, 1999. 06 ____________________________________________ 07 Tony Knowles 08 Governor, State of Alaska