Juneau -- Legislative leaders Wednesday night renewed their call for immediate responsible reductions in State spending following Governor Tony Knowles' State of the State speech to the Legislature.

"We appreciate that the governor has put his plan on the table as a starting point for discussions," said Senate President Drue Pearce (R-Anchorage). "We feel, however, if the Governor does not make reductions in spending now, and in his fiscal year 2000 budget, he is ignoring an essential component of any balanced budget plan."

"This situation is real, it is severe and it is immediate," said House Speaker Brian Porter (R-Anchorage). "We continue to call for recognition of our critical situation through actions including, but not limited to, a hiring freeze, a net zero supplemental request, further reductions of non-essential agency spending for fiscal year 1999, and no new initiatives or program expansions in the current year," said Porter.

Pearce noted that the most significant financial issue facing the state is that this year's anticipated general fund expenditures are nearly double projected general fund revenues.

"With this reality hanging over our heads, it amazes me that the Governor's plan doesn't include any real budget reductions, it adds 600 new state employees to the payroll, and it calls for about $100 million in additional state spending for fiscal year 2000," Pearce said.

"Any solution to the Fiscal Gap will not be adopted by this Legislature until we make further reductions to state spending," Pearce said.

"We will examine the Governor's plan and other ideas in the coming months as we debate options for a long-term financial solution," Pearce said.

"We are faced with virtually the same critical decisions faced by Governor Sheffield in 1986," said Porter. "Alaskans have to face some tough decisions on what kind of services they need, and which areas can be cut to balance the budget. The critical difference is that, this time around, we have advance notice, some time to work on the problem, and a consensus among Alaskans that we must start making the tough decisions and advance smoothly into the next millennium."

"The Legislative Majority stands ready to begin the process," Porter said.

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