04/19/2001 08:04 AM House STA

HJR 14-CONST. AM: ALASKA HERITAGE FUND                                                                                        
                                                                                                                                
CHAIR COGHILL  announced that the  final order of  business would                                                               
be HOUSE  JOINT RESOLUTION  NO. 14,  Proposing amendments  to the                                                               
Constitution  of  the State  of  Alaska  relating to  the  budget                                                               
reserve fund and  to the Alaska heritage fund;  and providing for                                                               
an effective date for the amendments.                                                                                           
                                                                                                                                
REPRESENTATIVE CRAWFORD,  Alaska State Legislature,  testified as                                                               
the sponsor  of HJR 14.   Representative Crawford  explained that                                                               
HJR 14 is a simple  and straightforward constitutional amendment.                                                               
However,  it will  result in  many consequences.   Representative                                                               
Crawford  said, "I  believe that  it's  incumbent on  us to  look                                                               
forward and see  that we have a disaster waiting  for us and that                                                               
we   need  to   act."     This   resolution   would  change   the                                                               
Constitutional Budget  Reserve Fund to the  Alaska Heritage Fund,                                                               
which  is a  percent  of  market value  fund.    With the  Alaska                                                               
Heritage Fund "we"  would never spend more than 5  percent of the                                                               
market  value of  the  fund.   Therefore,  the  savings would  be                                                               
protected from "us"  and thus would hopefully  provide an impetus                                                               
to move  forward on  a long-term  fiscal policy.   Representative                                                               
Crawford  said that  he couldn't  see any  other choices  in this                                                               
matter.  He  pointed out, "We don't know  when the constitutional                                                               
budget reserve is going to run out.   But if we do nothing, we do                                                               
know it's going to run out."   Therefore, he believes that HJR 14                                                               
would provide the necessary tools  to establish a growing fund to                                                               
use for the budget gap, which would eliminate the need to tax.                                                                  
                                                                                                                                
CHAIR COGHILL announced that HJR  14 would probably be brought up                                                               
again on Tuesday.