Juneau -- Saturday, March 13, 1999, the first of what is hoped to be many community forums on Alaska's economy and the fiscal gap was held in Kenai. "Alaska's Economy - Planning for the Future", was hosted by Kenai Borough Mayor Mike Navarre, Soldotna Mayor Ken Lancaster, Kenai Mayor John Williams, and the local district legislative delegation: Representatives Gail Phillips, Gary Davis, and Hal Smalley. The event was co-sponsored by the Alaska Municipal League, the Fiscal Policy Institute of Alaska, and the Governor's Office.

Two things made this a very unique event in our progress in resolving the fiscal gap. First, the active participation of over seventy individuals, who rolled up their sleeves and completed a realistic "fix the gap" exercise; and second, the high level of cooperation between the Governor's Office, Legislators, and the Alaska Municipal League in agreeing on one set of fiscal facts to use as a base for this exercise.

The morning session included a revenue outlook by Revenue Commissioner Wilson Condon, an employment overview by Brigitta Windisch - Cole with the Department of Labor, and an economic overview by Scott Goldsmith of the Institute of Social and Economic Research, University of Alaska. Kenai Mayor Mike Navarre led the event with a detailed explanation of our fiscal situation and how we got where we are today.

In the afternoon, peninsula residents broke down into eight groups and equipped with the morning's information, drafted vision statements depicting how they wanted Alaska to look in twenty years. Next they reviewed budget cuts and various revenue measures necessary to fill a one billion-dollar gap. Representatives Phillips, Davis, and Smalley assisted the groups by providing information on various budget reductions and revenue options.

In filling the gap, several common themes emerged. Most of the groups agreed to use the existing earnings of the Constitutional Budget Reserve, a capped dividend amount, and the Governor's plan for transferring Permanent Fund unrealized earnings to the CBR. Only one group chose to implement a state income tax. The amount to be made up by budget reductions and efficiencies ranged from zero to a high of $100 million.

Finally, all participants were asked to complete a critique of the day's events to be used by the sponsors to fine-tune the elements of this forum, prior to bringing this forum to other communities throughout the state.