News from the Senate Majority
Alaska State Legislature

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

Senate Approves Results-Based Budget

Emphasizes Children -- Advances Majority’s Five Year Plan

For Immediate Release: April 28, 1998 Contact: Senator Drue Pearce at (907) 465-4993.

Juneau – On Tuesday, the Senate passed its results-based operating budget (HB 325 and HB 326) meeting the Republican-led Majority’s Five Year Plan to reduce state general fund spending $180 million over three years while adding millions to better protect Alaska’s children. The operating budget, that passed by a vote of 15 to 5, delivers on the Majority’s promise to spend less, tax less and narrow the state’s fiscal gap

"With low oil prices and a fiscal gap of nearly $700 million, it’s essential for every state dollar we spend to contribute to a more efficient and effective government that delivers results for Alaskans," said Senator Drue Pearce, Co-Chair of the Senate Finance Committee. The House and Senate worked with state agencies to develop mission statements that will serve as performance benchmarks in the next budget cycle. By focusing on performance, the Legislature will be able to measure the success or failure of programs and ensure accountability within the bureaucracy.

The FY 99 budget supports the Republican-led Majority’s priorities of education, child protection and public safety. "We added new money for new K-12 students and increased funding for the University of Alaska," said Pearce.

"Upholding our ‘Commitment to Alaska’ to keep Alaska’s children safe and healthy, we added millions to child protection programs. There is money for more foster parents, more for adoption programs, more front line social workers, and the necessary training for both. New money for legal services will help children transition more quickly from foster care to permanent adoption. Money was added for infant learning programs. We increased the Developmentally Disabled children’s program by $1.5 million and additional state troopers were funded who will assist in child abuse investigations," Pearce said.

"This year we will spend $39 million for child care programs which is a 69 percent increase in just six years," Pearce said.

Nearly $8 million was added to the Corrections budget to provide beds for prisoners. By funding additional prison beds, we remove the state from a recent court order and better protect prison staff, said Pearce.

"While this budget protects children and funds essential services, it was created with the state’s looming fiscal. gap in mind," said Pearce. "It will take nearly a third of the Legislature’s savings account, the Constitutional Budget Reserve, to balance the FY 98 and FY 99 budgets because oil prices have dropped to levels we’ve not seen since December 1993, when the average price for the month was $10.29."

Pearce noted that the Senate Minority Democrats, through the budget hearing process in the finance subcommittees, the full Senate Finance Committee, and the Senate floor debate, not once offered any reductions to the budget – they only offered spending requests. She also noted that in his state of the budget address, the governor said he would reevaluate his budget proposal if oil prices remained low.

"Considering our state’s financial dilemma, it amazes me that Governor Knowles and the Minority Democrats continue to push the Knowles’ agenda to spend $110 million more than the Majority budgeted," said Pearce. "Now more than ever, we need to narrow the fiscal gap by remaining committed to our Five Year Plan to reduce state general fund spending. Fortunately, for the sake of Alaska’s children, we have a rational plan that spends less, taxes less, closes the fiscal gap and protects our savings accounts. Our plan doesn’t require an income tax. Nor does it affect the Permanent Fund or the dividends."

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Broadcast Note: Radio Actualities are available by calling (800) 478-6540.
= Drue Pearce, 81 K = Drue Pearce, 145 K
audio quality is poor for both clips