Juneau -- As the 21st Alaska Legislature nears adjournment, a group of legislators are taking this opportunity to introduce a concept for a viable long-range revenue-producing fiscal plan for our state.

With estimated yearly revenue shortfalls ranging from $500 million to over $1 billion dollars by the year 2010, we are recommending the following actions:

1. Pass HB 411. This bill guarantees permanent fund dividends at or higher than current rates for the next ten years, inflation proofs the fund's balance and provides a limited ($350 to $450) million dollar contribution from the earnings reserve account to help fill the growing fiscal gap.
2. Pass new legislation requiring a broad-range tax contribution from all Alaskans, including non-resident workers, tourists, and corporate Alaska, that will produce approximately $350 million in new revenue dollars.
3. Fill the balance of the fiscal gap out of the interest of the Constitutional Budget Reserve fund.

These measures demand public and legislative involvement and require immediate action.

Continued raids on our savings account, the Constitutional Budget Reserve, will exhaust that account by the year 2004 or 2005. Once this savings account is gone, the next and only sizeable fund to balance Alaska's budget will be the Earnings Reserve of the Permanent Fund. The people's permanent fund dividend is at risk unless we stop funding our operating budget with direct appropriations from the Constitutional Budget Reserve.

Former Governor Jay Hammond, the "Father" of the Permanent Fund, recently endorsed our proposal with these comments:

"While combining such enhancements with Permanent Fund earnings not required for dividends could far less painfully span the budget gap than would have the Sept. 14 budget plan deep-sixed by voters, it would hardly open the floodgates to profligate spending."

Without a strong effort to implement this plan, the Davis/Mackie plan appears to be the only other option on the table at this time.

Spreadsheets and Charts:     (requires Adobe's Acrobat Reader)

• Percent of Market Value Accounting Method
• Dividends under HB 411 vs. Status Quo
• Alaska's Savings Accounts under HB 411
• Fiscal Gap under HB 411 vs. Status Quo

Broadcasters note: Audio comments are available on the Majority Actuality line, 1-800-478-6540
= Gail Phillips, 65 K = Alan Austerman, 42 K
= Lisa Murkowski, 76 K = Bill Hudson, 79 K
= Bill Hudson, 61 K = Andrew Halcro, 30 K

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| Representative Phillips' Page | Representative Austerman's Page |
| Representative Murkowski's Page | Representative Hudson's Page |
| Representative Halcro's Page |