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Senate to Consider Revenue Package
Senator Austerman reacts to House Vote

(JUNEAU)- Senator Alan Austerman (R-Kodiak/SE Islands) gives high praise to the House of Representatives for taking the initiative to pass a landmark revenue package May 2nd.

"When fully implemented in fiscal year 2004, the four bills that passed the House would provide approximately $900 million toward filling the state's projected $963 million budget gap," said Austerman. "The action will preserve our savings account, the Constitutional Budget Reserve, as a $2 billion budget shock-absorber."

The bills fill a budget gap projected to be $963 million next year alone. The package includes a $250 million personal income tax with a sliding scale of rates depending on income. Another bill increases the alcohol tax, which hasn't been increased since 1983, by 10 cents a drink to raise $20 million. After inflation proofing and paying the Dividend, the Permanent Fund earnings amounting to $650 million would fund state government, and $59 million of the Permanent Fund earnings would go to local governments.

Alaskans feel a strong attachment to the Permanent Fund and its dividend program. The Permanent Fund was established specifically to invest a portion of our oil and gas resource income. The original intent of the Permanent Fund was that the interest earnings would pay for state government when oil revenue could no longer meet the cost.

"I agree with Representative Hudson who said that we in Alaska have been blessed both by rich mineral wealth that has provided us with government services at no personal cost for twenty years," Austerman said. "And also by wise leaders who invested some of the wealth so it could multiply. Now is the time for us to be leaders, use wisdom and not lose the momentum that has brought us to this point."

"I have invested a considerable amount of time and energy on the Fiscal Policy Caucus," said Senator Austerman, who was the lone Republican Senator member of that group. "This revenue package of bills is the fruit of the labor of many concerned and dedicated legislators."

Senator Austerman does not, however, have much hope that the Senate will pass this package. He intends to support these bills and work through the process so that intent of the House is preserved.

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