Session: State Capitol, Room 24 Juneau, AK 99801-1182 Phone: (907) 465-2186 Fax: (907) 465-3818 Interim: 600 East Railroad Avenue Wasilla, AK 99654 Phone: (907) 373-1842 Fax: (907) 373-4729

Kohring Alternative Budget Plan

Objective:

Eliminate deficit; cut government by a third; no new taxes; no spending of the Permanent Fund; fund core essentials; develop private-sector economy.

Strategy:

1. Enact 10-Point Budget Proposal
   
   Immediately put in place spending reductions outlined in the "10-Point Budget Proposal" and continue until the deficit is zero by year ten. $500 million in cuts by year one, one billion by year five and approximately $1.5 billion (accumulative) by year seven from all funding sources.
   
   
2. Fund Constitutionally Mandated Essentials
   
   Fully fund core essentials required by Constitution including roads, schools, public safety and court system. Everything else is subject to elimination, with a select few exceptions.
   
   
3. Reactivate Existing Rainy Day Account
   
   Reactivate existing "Rainy Day Account" and draw upon each year to balance budget until deficit is zero by year ten. The funds will come from a combination of sources including CBR, land sales, program cuts, liquidating AIDEA and ASTF and sale of state-owned facilities including but not limited to railroad, office and commercial buildings and processing plants.
   
   
4. Major Oil and Gas Industry Expansion
   
   Develop private-sector economy emphasizing expansion of oil and gas industry, resulting in additional revenues to state treasury for funding core essentials and eliminating need for new taxes. A package of legislation will be advanced to: a) streamline permitting processes; b) reduce regulatory requirements; c) provide tax incentives; d) increase acreage for leasing. The desired result will be substantially increased exploration and development as well as construction of a gas pipeline.
   
   

10 Point Budget Proposal

1. Slash Spending; Limit Legislature: Cut spending by $500 million this year and $100 million in each of the next five years, totaling $1 billion (GF, Federal and "Other" sources). Have legislative sessions every other year, and restrict them to 60 days.
2. Reject New Taxes; Protect Permanent Fund; Contract Services; Eliminate Laws and Regulations: Place moratorium on new taxes, prohibit spending the Permanent Fund, cap spending and contract out numerous services including road maintenance and DMV functions. Eliminate half of all statutes enacted since statehood and 80% of all regulations.
3. Provide Land to the People; Incentives for Economic Growth: Release a third of the state's 100 million acres of land holdings to the public with fee simple title, and put in place tax incentives to spur private-sector, small-business growth.
4. Promote School Choice: Break up government-controlled public school monopoly, by giving parents tax credits for sending their children to the school of their choice, public or private. Consolidate school districts of 300 students or less.
5. Cut Government Workforce: Cut non-essential government work-force by 25% per year for four years, put in place a hiring freeze and cap salaries at $70,000.00
6. Merge and Eliminate Departments: Merge half of all agencies, including the Departments of Natural Resources, Environmental Conservation, Law, Labor, Economic Development and Fish & Game. Eliminate Department of Administration.
7. Cut Welfare and Funding to Cities: Cut welfare and public assistance by 50% and eliminate Municipal Revenue Sharing.
8. Re-Prioritize University Spending: Close money-losing rural campuses of the University not on the road system (excluding UASE, Juneau) and cut 25% of highly paid administrative positions. Redirect half of savings to classes and degree programs.
9. Close Office Buildings; Move Capital; Contract out Prisons: Close 50% of government office complexes throughout state, including Capitol and the State Office Building in Juneau. Relocate capitol into state-owned Atwood Building in Anchorage including all department headquarters. Close half of state's prison facilities by contracting out 50% of inmate population to less costly, out-of-state private prisons.
10. End Subsidies to Organizations: Eliminate public dollars to tourism, fisheries, agriculture, public TV and radio, the arts and close the governor's mansion. Turn mansion into museum as reminder of Alaska's big government past.

Additional information available upon request.

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