1999-02-10                     Senate Journal                      Page 0207
SB 65                                                                        
SENATE BILL NO. 65 BY THE SENATE RULES COMMITTEE                               
BY REQUEST OF THE GOVERNOR, entitled:                                          
                                                                               
An Act authorizing an advisory vote on the use of                             
the Alaska permanent fund earnings reserve account;                            
relating to certain procedures for the special                                 
election; and providing for an effective date.                                 
                                                                               
was read the first time and referred to the Finance Committee.                 
                                                                               
Fiscal notes published today from Office of the Governor (2).                  

1999-02-10                     Senate Journal                      Page 0208
SB 65                                                                        
Governors transmittal letter dated February 9:                                 
                                                                               
Dear President Pearce:                                                         
                                                                               
This bill is a key part of the Alaska Balanced Budget Plan I am                
submitting today. It calls for an advisory vote to be held June 1 of           
this year on the question of whether the legislature should                    
appropriate $4 billion dollars from the Earnings Reserve Account               
(ERA) of the Permanent Fund to the Constitutional Budget Reserve               
(CBR).                                                                         
                                                                               
I have also introduced a bill to appropriate $4 billion dollars to             
provide sustainable revenue for a balanced budget. The effective date          
of that bill is tied to approval of the transfer in a statewide advisory       
vote.                                                                          
                                                                               
I have long stated that no changes in the Permanent Fund should                
occur without a vote of the people. A one-time transfer from the               
ERA, although not affecting the principal of the Permanent Fund,               
would impact future earnings of the Fund. Dividends would decrease             
modestly over the next five years before rising again. Therefore, I            
believe this proposal should be reviewed and voted on by the public.           
                                                                               
We must hold this special election prior to the next fiscal year if we         
are to take advantage of the booming stock market and help achieve             
a balanced budget within 18 months. It is imperative the legislature           
authorize this election expeditiously to ensure sufficient lead-time for       
the election review by the United States Department of Justice and             
setting up the election structure. I urge your prompt consideration.           
                                                                               
					Sincerely,                                                                
					/s/                                                                       
					Tony Knowles                                                              
					Governor