The second session of the Twenty-Fourth Alaska State Legislature is off to the races. The upbeat pace in the Capitol building is a sign of good things to come. If we continue this pace until sine die, we will have accomplished a number of important changes for Alaskans. Top on our list is a responsible, sustainable state budget for FY07 - we must live within our means.

A few weeks ago, the Governor made his State of the Budget speech. Legislators in both the House and Senate, Democrat and Republican listened intently to the direction the Governor wants the state to go.

I can tell you with confidence, the House Majority Caucus is committed to saving some of the projected surplus and dedicated to passing a sustainable budget for Alaska - one which we can maintain in future years, which ensures that Alaskans receive the support they need from the state, and one that future Legislatures can look to as a benchmark of conservative, thoughtful spending. It's a significant goal, but one that I am confident we will achieve.

In the House, it is our intention to carefully compare the Governor's proposed FY07 budget and the FY06 budget. We need to look at the new programs and the funding they will require, as well as the funding increases suggested for existing state programs. Each program and spending project needs to be evaluated and it will be determined whether they meet the priorities of the state and will help us meet our goal of a sustainable budget.

The most important thing to remember as we enter into this process is that oil prices are always uncertain. Many of us in the Legislature remember $9 a barrel oil and while we hope never to be there again, we cannot be certain that prices will stay at these record prices. An essential part of a sustainable budget is anticipating a fluctuation in prices and not spending every nickel, but saving some for a rainy day.

When we begin prioritizing new programs in the proposed budget and looking at ones from FY06, our focus will be on those that encourage economic growth in Alaska. We have an opportunity to use state funds to support resource development projects that benefit the state by providing jobs for Alaskans and revenue to our state coffers. We need to encourage investment in Alaska by smaller, independent companies as well as major ones that already have a foothold in Alaska. And we must advance thoughtful, responsible development that protects the environment that we, as Alaskans, rely on for life, work and play.

Another area of the budget that the House Majority Caucus intends to focus on is municipal assistance revenue sharing. First, I believe it is essential that communities understand that the Legislature already participates in a number of revenue sharing programs where the state contributes funds to programs that help local government offset their spending. PERS/TRS, the Power Cost Equalization program, the 70/30 school bond debt reimbursement and the 50/50 local roads and maintenance projects have consistently been funded by the Legislature. In this budget, we want revenue sharing to focus on helping municipalities lower property taxes and offset energy costs.

Lastly, I assure you the House Majority Caucus is determined to fund those programs essential to Alaskans. I guarantee you that we will do so with an eye on our goal of sustainability. We want to leave Alaska in a better position than it was when we began serving in this honored body.

John Harris represents House District 12 and serves as House Speaker

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