Juneau -- Senate Republican Majority Leaders announced plans Monday to cut the Governor's request for additional money from the Constitutional Budget Reserve (CBR), our state savings account, to cover the current year's budget shortfall.

"The administration has requested a blank check appropriation from the CBR to cover this year's $1.2 billion deficit," said Senator Sean Parnell (R-Anchorage), Co-Chair Senate Finance. "Instead, we want to use our savings account sparingly and will authorize a much lower amount."

According to Senator Parnell, a smaller authorization from the Constitutional Budget Reserve (CBR) will encourage accountability and limit state spending.

Governor Knowles recently announced a $6.2 million reduction to the fiscal year 1999 budget.

"While the Governor's announced cuts represent a great first step to address Alaska's $1.2 billion fiscal gap, we hope he will not stop there," said Senate President Drue Pearce (R-Anchorage). "The administration should continue working with the legislature to find additional belt tightening measures for fiscal year 1999 and 2000."

Senator Pearce noted that the Majority began calling for fiscal year 1999 spending reductions last fall as oil prices fell. "While some supplemental spending is inevitable, such as paying for actual fire fighting costs, we hope to offset those costs with reductions to general agency spending," said Pearce.

The Senate Finance Committee will work to pass the supplemental budget and CBR draw authorization before Monday.