Alaska State Legislature

News From The Senate and House Majorities

Ken Freeman (907) 258-8164
Wendy Lindskoog (907) 258-8187
Anchorage LIO
Anchorage, AK 99501
web site: www.akrepublicans.org
Actuality line: 1-800-478-6540

Budget Signed Into Law

Second Year of Legislative Leadership's Five-Year Fiscal Plan Implemented

For Immediate Release: July 1, 1997 Contact: Ken Freeman at (907) 258-8164 or Wendy Lindskoog at (907) 258-8184

ANCHORAGE - Legislative Leaders are pleased the state's operating and capital budgets were signed into law Tuesday, approving the Legislature's $710 million deposit to the Permanent Fund. The budget bills marked the second successful year of the Republican-led Legislature’s Five-Year plan to close Alaska's fiscal gap.

"This legislative majority has consistently delivered on its promises: responsibly reducing the size and scope of state government and protecting the Permanent Fund," said House Speaker Gail Phillips. "This year we were successful in reducing the state budget by over $60 million, and adding more money to the permanent fund."

"In just two years, the Republican-led Legislature has responsibly reduced the budget by $130 million. Our Five-Year plan calls for an additional $120 million in cuts over the next three years. Combined with new revenues, these reductions will help get our deficit down to zero for Alaska’s long term fiscal health," said Senate President Mike Miller.

"Only two years ago, Governor Knowles vetoed a half a billion dollar deposit to the Permanent Fund, stating that the Permanent Fund Earnings Reserve might be needed for spending. Today, the governor has switched his position and is trying to take credit for the Legislature’s $710 million deposit," said Miller.

Senator Rick Halford, long-time advocate of the Fund, said with this deposit, special legislative appropriations now account for the greatest source of Permanent Fund capital. "Since 1981, the Legislature has deposited more than $6.5 billion. Today’s deposit will ensure an additional $60 to $70 million of recurring annual revenue," Halford said.

House Finance Co-Chair Mark Hanley noted that the Governor's first proposed budget for fiscal year 1998 increased spending over fiscal year 1997. Hanley noted that the Legislature worked hard to bring in the reductions they had promised in their Five-Year Plan.

"Up to the very last day of session, the governor fought us tooth and nail on each proposed spending reduction," said Senate Finance Co-Chair Drue Pearce. "His signature on the budget bills in no way should result in credit to him for any of the accomplishments in the budget."

"The Governor was not happy with our actions on the budget, and despite his comments to the media he is still not happy because we denied his repeated requests for increased spending," said Senator Pearce.

"We question the governor's vetoes of Legislative intent language," said Phillips. "We are discussing the constitutionality of the governor's line-item vetoes of conditional appropriation language."

"The most disturbing veto regarded the legislative condition of money appropriated to ASMI. The Legislature wanted marketing efforts to be based in Alaska and the governor insists that those high paying jobs go to people in the Lower 48," Miller said.

Miller and Phillips noted that without the current Republican-led Majority, the Governor's proposed budget would have increased spending, widened the fiscal gap, and made no extra deposits to the Permanent Fund.

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