Alaska State Legislature

News From The Senate and House Majorities

House Majority Press Secretary Ken Freeman (907) 465-3804
Senate Majority Press Secretary Wendy Lindskoog (907) 465-4582
Actuality line: 1-800-478-6540
For Immediate Release: January 16, 1997 Contact: Senator Drue Pearce (907) 465-4993 Rep. Mark Hanley (907) 465-4939

REPUBLICAN MAJORITY'S SPENDING PLAN CLOSES FISCAL GAP

Governor's plan spends more, increases gap

JUNEAU - Continuing their pledge to make government smaller and smarter, Finance leaders from the Senate and House Thursday outlined differences between the Republican-led Majority's five-year plan to close the fiscal gap and downsize government and the Governor's budget to increase state spending.

Following the Governor's State of the Budget presentation, Senate Finance Co-Chair Drue Pearce and House Finance Co-Chair Mark Hanley expressed concern about spending increases in the Governor's proposed budget.

"Increasing spending does not help close the fiscal gap," said Finance Co-Chair Mark Hanley. "Our plan is to spend less and tax less."

"I am concerned that we don't have all the pieces to the puzzle," said Senate Finance Co-Chair Drue Pearce. "The Governor did not submit his capital budget today as required by statute, so we cannot predict how much more he might increase spending."

"The Legislature is also waiting for fiscal notes that will accompany many of the Governor's proposed initiatives. These are likely to increase spending even more -- as much as $12 million in education programs alone," said Pearce. "The bottom line is we haven't seen the Governor's final budgetary plan."

"The Governor talks about budget discipline. Can increased spending really be called budget discipline? The public gave us a clear message, 'Cut the budget'," said Hanley.

"Legislators were understandably scornful of the 'Governor's budget discipline' because he fought us every step of the way last year and is now trying to take credit for the cuts we achieved," Pearce said. "He brought us back to special session to spend more money. He wanted an additional $52 million in spending even after we put a $70 million cut on the table. That's not what I call discipline!"

"I hope the Governor doesn't think the State's financial troubles are erased by the momentary increase in oil prices. Oil revenues go up and down so the Governor should not rely on this sudden increase when planning for Alaska's financial future," said Hanley.

Pearce and Hanley said that because they know oil prices are not stable and reliable, the Republican-led Majority will continue to implement its five-year fiscal plan to bring about a smaller, smarter government.

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