Dear Neighbor:

The Twenty-first Alaska State Legislature has begun. First, I would like to compliment you. District 18 had the highest voter turnout in November's general election in the state. I also want to thank you for re-electing me to serve you, and I promise to do my best to honor the trust you have placed in me.

As part of my commitment to keep you and your neighbors in District 18 informed about what is happening down here in Juneau, I am writing to share the news with you, and to seek your input. The enclosed survey asks your opinion about the state's budget problem and the several solutions that have been proposed. Please take a moment to fill it out and return it to me.

This year, my committee assignments have changed. I am now serving as Vice-Chair of the House Finance Committee. I look forward to this assignment, because the billion dollar budget deficit that we are facing is a serious challenge and would like to do what I can to help us find a solution that is fair to all. I am also a member of the House Legislative Budget and Audit Committee, which has the responsibility to oversee state functions and encourage efficiency.

As always, I can best represent you if you will let me know your concerns. You can contact me through any of these channels, and I will be glad to respond:

Savings in General Fund Dollars Begins:

I've begun to contribute to the reduction in state spending by cutting $430,000 from the Child Support Enforcement Division's (CSED) Supplemental Budget Request. I required CSED to use available federal funds for computer upgrades, thus saving state General Funds. This change in the source of funding reduced the impact on the state budget without reducing state services.

Legislation I'm Working on for District 18:

HJR 3: Natural Resources Initiatives Constitutional Amendment would allow initiatives that pass to truly reflect the will of the majority of Alaskans. HB 115: UAA Funding Bill would provide fair and equitable treatment to UAA students in university funding.

HB 117: AK Science and Technology Foundation Grants Bill would allow the Science and Technology fund to recapture funds from the sale of equipment purchased with grant money if a grant recipient goes out of business.

HB 121: Dental Patients' Rights Bill sets out the rights of dentists and their patients when dealing with an insurance company.

HB 133: The Municipal Service Areas Bill is very important to District 18. If passed, it will strengthen local control of service areas by prohibiting a borough or municipality from absorbing or abolishing a service area without first requiring a vote of the people covered by the service area. HB 133 has moved out of its first committee, and is now heading to House Finance.

Legislature on TV:

"Gavel to Gavel" is again broadcasting coverage of legislative activities on GCI Cable Cannel 46 in Anchorage. Tune in and watch what is happening!

Be Aware of New Telephone Scams:

It has come to my attention that there are new phone scams out there. An individual identifying himself as a telephone service technician or Census Bureau official calls and asks the recipient to dial some numbers and then hang up. The telephone company has informed me that by doing this, you give the requesting individual full access to your telephone line, which allows them to place long distance calls billed to your number. Do not dial any numbers given to you by a stranger!

Constituent Fares to Juneau:

Alaska Airlines has new "Constituent Fares" available -- a $199 round-trip ticket to Juneau. Call Alaska Airlines at 1-800-654-5669. Of course, there are terms and conditions, so be sure to ask for the details.

The Budget Dilemma:

Of course, our most important problem this session is the $1,104,500 budget deficit. Unless major changes are made to state spending, taxes, or both, the state will be broke in three years. The good news, however, is that there are several options that could be combined to help us meet our current obligations and our obligations to future generations of Alaskans.

From my point of view as a 30-plus year Alaskan, your neighbor, your representative, and one who has studied this problem for the past six years, I think that the most likely solution will include: continued reduction in state spending; using the Earnings Reserve Account of the Permanent Fund (those funds left after paying the PFD and inflation proofing the Permanent Fund) for necessary services; an increase in user fees; and some form of personal tax. Whether that will be a sales or income tax will depend in large measure on input from the public.

I am very interested in your views on this subject. I look forward to reading your comments on the survey on page 3. If you would like to discuss the challenge of the budget or any other issue, I will call you if you will include your name and phone number on the survey form.

Again, I would appreciate your taking a moment to fill out and return the enclosed survey. And thank you once more for allowing me to represent you.

Sincerely,

Representative Con Bunde

If you would like to discuss these or any other issues, please print your name, telephone number and/or e-mail address here, and I will get back in touch with you.

Name:

Phone:

E-mail:

Thank you once again for giving me the information I need to represent you better.

District 18 Survey

1. Which of the following options do you favor as a solution to the state's budget deficit?



1. Wait for higher oil prices, a new oil discovery, or construction of a natural gas pipeline to bail us out.
2. Cut state services.
3. Establish a state sales tax.
4. Reestablish a personal income tax.
5. Reduce or eliminate the permanent fund dividend (PFD).
6. Use the Earnings Reserve Account of the Permanent Fund. The Earnings Reserve Account holds those funds left after paying the PFD and inflation proofing the Permanent Fund.
7. begin to withdraw some of the principal of the Permanent Fund.
8. A combination of Options (Please list option numbers.)
9. Other (please state briefly)



2. If you believe that some state services should be cut, which ones that you use or have had contact with, would you suggest, and why?
3. Why do you support a state sales or income tax?