CSSCR 23(STA): Relating to long range financial planning.
00CS 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 $433,000,000; 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 economy that will close the 13 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; 17 BE IT RESOLVED that the Nineteenth Alaska State Legislature will prepare a fiscal 18 plan to close the fiscal gap; and be it 19 FURTHER RESOLVED that the legislature, as part of the plan to ensure maximum 20 earnings from the permanent fund, will deposit $1,100,000,000 to the fund's principal; and be 21 it 22 FURTHER RESOLVED that the Nineteenth Alaska State Legislature will first reduce 23 the size and scope of state government to decrease the gap between recurring revenue and 24 recurring expenditures; and be it 25 FURTHER RESOLVED that the Nineteenth Alaska State Legislature will make 26 significant spending reductions through means such as: welfare reform, entitlement reform, 27 privatization of state services, and the institution of a Tier 3 state pension, wage, and benefit 28 package; and be it 29 FURTHER RESOLVED that the legislature pledges to work with all parties to 30 implement a long range financial plan that meets the needs and desires of the Alaskan people; 31 and be it
01 FURTHER RESOLVED that the Nineteenth Alaska State Legislature urges all Alaskans 02 to learn about Alaska's fiscal situation and to support actions necessary to close the fiscal gap; 03 and be it 04 FURTHER RESOLVED that the legislature thanks all members of the Long Range 05 Financial Planning Commission for their hard work and efforts to address the state's fiscal future 06 and assist the legislature in addressing the economic challenges we face as a state. 07 COPIES of this resolution shall be sent to the Honorable Tony Knowles, Governor of 08 Alaska; and to the members of the Long Range Financial Planning Commission.