SB 88-POLICY ON GENERAL FUND REVENUE SHORTFALL  CHAIR GENE THERRIAULT announced SB 88 to be up for consideration. He asked Senator Wilken to come forward. He noted that the sponsor had asked that the committee forward the bill to the Finance Committee. 3:41:37 PM SENATOR GARY WILKEN, sponsor, said he wanted to restate certain aspects of the chart that he explained during the previous hearing. He clarified that if you were to take $250 million from the earnings reserve every year for ten years, the cumulative impact on the Permanent Fund Dividend would be $436. SENATOR KIM ELTON commented that this is a fairly dramatic proposal and he was interested in whether the sponsor would consider amending the proposal to make a draw from the Permanent Fund Earnings Reserve account contingent upon a vote of the people. SENATOR WILKEN replied he didn't like the idea of putting the issue to a public vote in 1999 and he likes it less today. Legislators are elected to make this sort of decision and to understand the ramifications of using the state's assets. Furthermore, he said, the governor misspoke when he talked about using the earnings. 3:46:10 PM SENATOR ELTON asked whether this might not be ultimately unsuccessful since the governor has veto powers. SENATOR WILKEN said he hadn't discussed the bill with the governor, but he has worked with his staff to ensure that the numbers are accurate. He reminded members that this is policy and it could be ignored if the circumstances warranted. He suggested that this fiscal plan works and the one offered last year didn't. He argued that by the time this policy becomes statute, the governor and others will understand the merit of using the earnings and the Constitutional Budget Reserve until the state's natural resources are developed. CHAIR THERRIAULT suggested that adding a requirement for a vote of the people is meaningless because legislators can exercise the constitutional power to use the Permanent Fund earnings anytime. In fact, that point also applies to this proposal; it's simply a restatement of that constitutional authority. 3:49:30 PM SENATOR WILKEN offered the opinion that this is an effort to educate as much as it is legislation. SENATOR CHARLIE HUGGINS said he views this as a conversation starter. 3:52:55 PM CHAIR THERRIAULT noted he has heard about the issue from a number of people so the conversation is starting. 3:53:26 PM SENATOR WAGNER motioned to report SB 88 and attached fiscal zero note from committee with individual recommendations. SENATOR ELTON objected. Speaking to his objection he said he does appreciate the idea of continuing the conversation, but when he votes no it is because he is a proponent of the income tax to fill the gap. He favors that because it is based on a person's ability to pay. 3:54:30 PM SENATOR HUGGINS announced he wants to go on record as not supporting any tax. 3:55:27 PM CHAIR THERRIAULT asked for a roll call vote. The motion to report SB 88 from committee passed with Senators Wagoner, Huggins, Davis and Chair Therriault voting yea and Senator Elton voting nay.