HB 52: "An Act relating to adoption and revision of a comprehensive long-range fiscal plan for the State of Alaska."

00 HOUSE BILL NO. 52 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 constitutionally required state mandates, including 09 providing for 10 (i) the public health and welfare; 11 (ii) public education, including kindergarten through grade 12 12 and the state university system; and 13 (iii) the use, development, and conservation of natural 14 resources;

01 (B) meeting other responsibilities, including providing for 02 (i) public safety; 03 (ii) the construction and maintenance of public facilities and 04 transportation infrastructure to promote economic growth and prosperity; and 05 (iii) protection of the environment; 06 (2) in order to carry out these responsibilities, the legislature must budget a 07 reasonable level of expenditures to finance the operations of state government; 08 (3) there is a significant disparity between the revenue sources that are 09 currently being used and the expenditures necessary to maintain a reasonable level of state 10 services; 11 (4) for several years, the legislature has addressed the disparity between state 12 revenue and expenditures by drawing against the balance of the budget reserve fund (art. IX, 13 sec. 17, Constitution of the State of Alaska); 14 (5) the budget reserve fund is rapidly declining to a level that requires the 15 immediate development of a sound fiscal plan to address current budgetary needs as well as 16 future state revenue and expenditures; 17 (6) there is not a simple solution to the state's current fiscal dilemma; a 18 combination of fiscal measures will be required to achieve a fiscal plan that is balanced and 19 fair to all Alaskans; 20 (7) a comprehensive long-range fiscal plan will encourage the discipline 21 necessary to ensure that the state budget remains balanced and properly planned in the future; 22 (8) the implementation of a comprehensive long-range fiscal plan will help 23 stabilize the state's economy and level out its historical pattern of boom and bust cycles. 24 * Sec. 2. AS 37.07 is amended by adding a new section to read: 25 Sec. 37.07.012. Long-range fiscal plan. (a) The legislature shall adopt and 26 annually revise a comprehensive long-range fiscal plan to balance state revenue and 27 expenditures for the current fiscal year and the next four fiscal years. The plan must 28 set out projected available revenue and anticipated expenditures for the operation of 29 state government for each fiscal year addressed in the plan. For fiscal years in which 30 projected expenditures exceed projected available revenue, the plan must include 31 specific proposals to balance revenue and expenditures.

01 (b) The fiscal plan must include all of the following: 02 (1) ways to foster a state economy that encourages real economic 03 growth and stability, to maintain a high quality of life, to develop the natural resources 04 of the state, to provide education for the children of the state, and to maintain public 05 health and safety; 06 (2) procedures to ensure that state government provides services as 07 efficiently as practicable and reduces state expenditures where possible; 08 (3) policies that protect the principal of the Alaska permanent fund 09 (art. IX, sec. 15, Constitution of the State of Alaska) over time while using the 10 earnings of the fund to 11 (A) provide inflation-proofing for the principal of the fund; 12 (B) maintain a strong dividend program; and 13 (C) retain the legislature's flexibility to determine the 14 appropriate use of the remaining earnings of the fund; 15 (4) ways to raise revenue for the operation of state government while 16 maintaining a stable tax environment; and 17 (5) provisions to maintain the integrity of the budget reserve fund 18 established under art. IX, sec. 17, Constitution of the State of Alaska, to ensure that 19 the budget reserve fund remains available to provide funding for emergencies and to 20 maintain a prudent minimum balance in the fund.