00SENATE CONCURRENT RESOLUTION NO. 101                                                                                  
01 Relating to 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 have resulted in a yearly budget deficit 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 then use                           
08 the earnings from those investments to help provide government services in the future when                              
09 Alaska's revenue from its petroleum resources declined; and                                                             
10  WHEREAS the savings account that has filled this gap in recent years is projected to                                 
11 be depleted by 2003; and                                                                                                
12  WHEREAS, in 1976, Alaskans foresaw the inevitable decline in Alaska's oil                                            
13 production and created the Alaska permanent fund; and                                                                   
14  WHEREAS the legislature recognizes that Alaskans place a high value on preserving                                    

01 and protecting the Alaska permanent fund; and                                                                           
02  WHEREAS the legislature and the governor recognize the public's desire to be                                         
03 involved in any decisions involving the Alaska permanent fund's direction;                                              
04  BE IT RESOLVED that if, in an advisory vote, voters approve the question of                                          
05 whether a portion of the permanent fund earnings should be used to fund state government,                               
06 the legislature and the governor intend to implement a state fiscal plan that would include the                         
07 following:                                                                                                              
08   (1)  Protect the Permanent Fund:  The principal of the Alaska permanent fund                                          
09 will remain protected, and the Alaska permanent fund will be inflation-proofed first to protect                         
10 its value for all Alaskans, including future generations;                                                               
11   (2)  Preserve the Dividend:  Dividend payments to qualified Alaskans will be                                          
12 continued, and the dividend will be allowed to grow with the market over time; a permanent                              
13 fund dividend will be guaranteed to be at least $1,700 in 1999 and 2000; beginning in 2001,                             
14 dividends will be paid after inflation-proofing the Alaska permanent fund at a rate projected                           
15 to be equivalent to $1,348 or higher; the dividend pool would be calculated at approximately                            
16 2.94 percent of the average value of the Alaska permanent fund;                                                         
17   (3)  Spending Reductions:  State general fund spending for fiscal years 2000                                          
18 and 2001 will be reduced, and a meaningful constitutional spending limit will be implemented;                           
19   (4)  Spending Restrictions:  After first inflation-proofing the Alaska permanent                                      
20 fund and paying for dividends and management, the remaining earnings will be prioritized to                             
21 fund public services in education, public safety, and transportation;                                                   
22   (5)  Income Tax:  No personal income tax is enacted by this plan;                                                     
23   (6)  Accountability:  Expenditures related to distributions from the earnings                                         
24 reserve account will be disclosed with every Alaskan's permanent fund dividend check.