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.