1994-03-09                     Senate Journal                      Page 3106
SB 344                                                                       
was read the first time and referred to the Labor and Commerce,                
Judiciary and Finance Committees.                                              
                                                                               
Fiscal notes published today from Department of Labor, Department              
of Revenue, Department of Commerce and Economic Development,                   
Department of Administration.  Zero fiscal notes published today               
from Department of Administration, Department of Law, Department               
of Environmental Conservation, Department of Military and Veterans             
Affairs, Department of Natural Resources, Department of                        
Transportation and Public Facilities, Department of Public Safety,             
Department of Corrections, Department of Health and Social                     
Services, Department of Community and Regional Affairs.                        
                                                                               
Governor's transmittal letter dated March 7:                                   
                                                                               
Dear Mr. President:                                                            
                                                                               
Under the authority of art. III, sec. 18, of the Alaska Constitution,          
I am transmitting a bill instituting an employment tax of $100 per             
year on individuals working in Alaska.                                         
                                                                               
This employment tax bill is one of several relatively modest revenue           
proposals I am offering this session to help offset the large revenue          
shortfalls that Alaska is facing in fiscal year 1995 and will be facing        
in the years to follow.  Tax proposals are never popular, but it is            
time for Alaska's leaders to face the reality that with lower oil              
revenue, Alaska can no longer afford to provide necessary state                
services without a larger contribution from both Alaska residents and          
non-resident workers.                                                          
                                                                               
Budget cuts alone cannot fill the revenue shortfalls without causing           
a major impact on the state economy.  Some use of the state's                  
reserve funds will undoubtedly be necessary to help balance the                
budget, but relying solely on reserves to make ends meet will                  
deplete these funds rapidly and leave the state in a more serious              
fiscal situation two to three years from now.