News from the Senate Majority

Alaska State Legislature

Wendy Lindskoog, Senate Majority Press Secretary
State Capitol
Juneau, AK 99801-1182
Phone: 907/465-4582
web site: http://www.akrepublicans.org
Broadcast Actualities: 800/478-6540

For Immediate Release: April 18, 1997 Contact: Senator Drue Pearce,907/465-4993

Senate Passes State Operating Budget To Reduce Spending

Senate Minority Proposed 36 Amendments to Fuel State Bureaucracy

Juneau -- The Alaska State Senate passed the state’s operating budget 14 to 5 upon a reconsideration vote Friday. The budget will now be reviewed and amended by a joint Senate and House conference committee.

"The Senate’s operating budget fulfills our promise to the people. We spend less, we have fewer taxes and we protect Alaska’s savings accounts -- both the Permanent Fund and the people’s dividends and also the Constitutional Budget Reserve Fund," Senator Drue Pearce (R-Anchorage), Co-Chair Senate Finance.

"We promised Alaskans when they elected us in November that we would continue the Republican-led Majority’s Five-Year plan to reduce government spending and close Alaska’s fiscal gap," said Senator Pearce. "Our Senate operating budget reduces approximately $25 million from the Governor’s requested operating budget and keeps us on track to reach our goal to cut state spending this year by $60 million."

Pearce said these reductions, combined with debt service spending reductions of nearly $20 million, keep the Senate on target to reach the Senate and House Majority $60 million reduction goal for fiscal year 1998.

During floor debate, 36 amendments were proposed by the Senate Minority to add back much of the governor’s amended FY 98 request.

"Majority members held true to their goal saying ‘no’ to more government and ‘no’ to fueling an overgrown state bureaucracy," said Pearce. "We said ‘yes’ to education, ‘yes’ to public safety, ‘yes’ to the maintenance of Alaska’s roads and airports and ‘yes’ to those things important to Alaskans - their families and communities."

"Alaskans will hear a large dose of 'sky-is-falling rhetoric' from the Governor’s office as the House and Senate work to agree on a joint version of the operating budget," said Pearce. "The Governor claims that state government will collapse from the majority’s proposed budget cuts. If that were true, why did the Governor take credit for reductions that the Republican-led Majority made last year -- reductions he objected to and called a special session to overturn?"

"Since the Legislature started to reduce spending four years ago, Alaska’s economy has grown stronger and healthier," Pearce said. "Alaska’s per capita income has increased and the poverty rate has decreased. Even Governor Knowles acknowledged in his State of the State Address that in the past two years, 4,600 jobs were created and more than 600 new businesses started in our state."

"Although we are faced with many tough decisions, members of the House and Senate will work as a team to create Alaska’s fiscal year 1998 state operating budget. Our challenge and unwavering goal is to reign in state spending by cutting $60 million this year in conjunction with our Five-Year strategy to close the fiscal gap," said Hanley.

Pearce noted that when all is said and done, we, the members of the Republican-led Majority intend to keep our "Commitment to Alaska": To create a smaller and smarter government through responsible reductions. To make government more efficient and effective by implementing our Five-Year plan. To close Alaska’s fiscal gap by 2001. To increase revenues through continued economic and responsible resource development. And most of all, to protect our state’s savings accounts -- the Permanent Fund and Constitutional Budget Reserve.

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Broadcast Note: Radio actualities will be available by calling 800/478-6540.
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