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CSHB 52(W&M): "An Act relating to adoption and revision of a comprehensive long-range fiscal plan for the State of Alaska."

00 CS FOR HOUSE BILL NO. 52(W&M) 01 "An Act relating to adoption and revision of a comprehensive long-range fiscal plan for 02 the State of Alaska." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 05 to read: 06 FINDINGS. The Alaska State Legislature finds that 07 (1) the legislature and the governor are responsible for 08 (A) fulfilling constitutional mandates, 09 (i) providing for the public health, safety, and welfare; 10 (ii) funding public education, including kindergarten through 11 grade 12 and the state university system; and 12 (iii) ensuring the use, development, and conservation of natural 13 resources; 14 (B) meeting other responsibilities, including

01 (i) constructing and maintaining public facilities and 02 transportation infrastructure; and 03 (ii) protecting the environment; 04 (2) to fulfill these responsibilities, the legislature must budget and finance the 05 operations of state government; 06 (3) there are often significant disparities between available revenue sources 07 and the expenditures necessary to maintain a reasonable level of state services; 08 (4) the legislature has addressed the disparity between state revenues and 09 expenditures by drawing against the balance of the budget reserve fund (art. IX, sec. 17, 10 Constitution of the State of Alaska); 11 (5) the budget reserve fund could become entirely depleted, which would 12 require the use of other revenue sources to meet state needs; 13 (6) a combination of revenue sources will be required to achieve a fiscal plan 14 that is balanced and fair to all Alaskans; 15 (7) a comprehensive long-range fiscal plan will encourage the discipline 16 necessary to ensure that the state budget remains balanced and properly planned in the future; 17 (8) the implementation of a comprehensive long-range fiscal plan will help 18 stabilize the state's economy. 19 * Sec. 2. AS 37.07 is amended by adding a new section to read: 20 Sec. 37.07.012. Long-range fiscal plan. (a) The legislature shall adopt and 21 annually revise a comprehensive long-range fiscal plan that ensures state revenues 22 meet expenditures for the current fiscal year and the next four fiscal years. The plan 23 must set out projected available revenues and anticipated expenditures for the 24 operation of state government for each fiscal year addressed in the plan. For fiscal 25 years in which projected expenditures exceed projected available revenues, the plan 26 must include specific proposals to balance revenues and expenditures. 27 (b) The fiscal plan may include 28 (1) ways to foster a state economy that encourages economic growth 29 and stability, maintenance of a high quality of life, development of the state's natural 30 resources, education for the children of the state, and maintenance of the public health, 31 safety, and welfare;

01 (2) procedures to ensure that state government provides services as 02 efficiently as practicable and reduces state expenditures where possible; 03 (3) policies that protect the principal of the Alaska permanent fund 04 (art. IX, sec. 15, Constitution of the State of Alaska) over time while using the 05 earnings of the fund to 06 (A) provide inflation-proofing for the principal of the fund; 07 (B) maintain a strong dividend program; and 08 (C) retain the legislature's flexibility to determine the 09 appropriate use of the remaining earnings of the fund; 10 (4) ways to raise revenue for the operation of state government while 11 maintaining a stable tax environment; and 12 (5) provisions ensuring that the budget reserve fund remains available 13 to provide funding for the state's budget needs.