CSSB 76(FIN): "An Act authorizing an advisory vote on balanced budget plans; and providing for an effective date."
00CS FOR SENATE BILL NO. 76(FIN) 01 "An Act authorizing an advisory vote on balanced budget plans; and providing 02 for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. At a special election to be held on September 14, 1999, in substantial 05 compliance with the election laws of the state, including absentee voting, the lieutenant 06 governor shall place before the qualified voters of the state a question advisory to the 07 legislature and the governor. The question shall appear on the ballot in the following form: 08 Q U E S T I O N 09 Preamble: The state treasury's reliance upon declining Alaska oil production 10 and volatile oil prices constitutes an unsustainable state budget system. The 11 legislature and governor seek the public's input in choosing a long-term budget 12 plan. Please mark "yes" or "no" beside one or both plans that you believe the 13 legislature and governor should proceed to implement as a balanced budget 14 plan.
01 "Plan A" Description 02 Summary of Plan A: Plan A has further spending reductions. Dividends are 03 a percentage of the value of the Alaska permanent fund. This plan has no 04 personal income tax. 05 (1)Spending Reductions/Spending Limits: Continue state general fund 06 budget reductions of at least $70,000,000 over the next two fiscal 07 years. 08 (2)Permanent Fund: Guarantee the Alaska permanent fund is inflation- 09 proofed to protect the value of the principal of the fund for all Alaskans, including future 10 generations. 11 (3)Permanent Fund Dividends: Guarantee a dividend is paid to qualified 12 Alaska residents at a minimum of $1,700 in 1999 and $1,700 in 2000. 13 Thereafter, the annual dividend is based on a rate of 2.75 percent of the 14 market value of the Alaska permanent fund, including the Alaska 15 permanent fund earnings reserve account. 16 (4)Permanent Fund Earnings Reserve: Guarantee inflation-proofing the 17 Alaska permanent fund and payment of permanent fund dividends, then 18 prioritize remaining funds in the Alaska permanent fund earnings 19 reserve account for education, public safety, and transportation. 20 (5)No Income Tax: Use at least $100,000,000 in new revenues instead of 21 implementing new broad-based taxes. 22 Plan A Yes [ ] Plan A No [ ] 23 "Plan B" Description 24 Summary of Plan: Plan B has no further state spending reductions. Dividends 25 from the Alaska permanent fund are calculated under the current method. This 26 plan includes a personal income tax. 27 (1)Spending Reductions: No further reductions to state spending. 28 (2)Permanent Fund: Guarantee the Alaska permanent fund is inflation- 29 proofed to protect the value of the principal of the fund for all Alaskans, including future 30 generations. 31 (3)Permanent Fund Dividends: Dividends will not be changed from the
01 current formula and method of calculation. 02 (4)Permanent Fund Earnings Reserve: Immediately transfer 03 $4,000,000,000 from the permanent fund earnings to the constitutional 04 budget reserve fund, with an additional $4,000,000,000 in 2011, and 05 $4,000,000,000 in 2020. Spend the constitutional budget reserve fund 06 earnings for state government services. 07 (5)Income Tax: Impose a personal income tax on all wage earners 08 projected to be 31 percent of a person's federal income tax, collecting 09 $350,000,000. 10 Plan B Yes [ ] Plan B No [ ] 11 * Sec. 2. This Act takes effect immediately under AS 01.10.070(c).