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Session: State Capitol, Room 24 Juneau, AK 99801-1182 Toll Free: (800) 773-4968 Phone: (907) 465-4968 Fax: (907) 465-2040 Send E-Mail Interim: 716 W 4th, Suite 640 Anchorage, AK 99501-2133 Phone: (907) 269-0117 Fax: (907) 269-0119 |
"Painless" Revenue Source
HB 96 Conforms Statutes to Constitution
For Immediate Release: February 17, 1999
Contact: Representative Norman Rokeberg at (907) 465-4968.
Juneau -- Representative Norman Rokeberg (R-Anchorage) Wednesday introduced House Bill 96, which would change an Alaska statute concerning the percentage of funds deposited into the Alaska Permanent Fund.
The Alaska Constitution states that the Permanent Fund consist of 25 percent of all mineral lease rentals, royalties, royalty sale proceeds, federal mineral revenue sharing payments and bonuses received by the State. In 1980 the Legislature enacted a statute which kept the level at 25 percent for all mineral income from leases issued on or by December 1, 1979, and for all bonuses from mineral leases issued on or before February 15, 1980. But the Legislature increased the percentage to 50 percent for all new leases established after December 1, 1979, and for all bonuses from leases issued after February 15, 1980.
"In 1980, the Legislature realized they had excess revenues and wisely decided to raise the amount of revenues deposited into the Permanent Fund," Rokeberg said. "Now that revenues have dwindled, it is time for us to redirect those deposits to the General Fund."
House Bill 96 would revert the percentage of royalties on new leases established on or after July 1, 1999, to the constitutionally mandated 25 percent.
"Alaska is now in a time of economic trouble, which is exactly what the Permanent Fund was established to help with in the first place," said Rokeberg. "Reverting the Fund contributions to the original 25 percent would generate approximately an extra $5.5 million in FY 99 and average $16 million - plus bonus revenues - over the next fifteen years.
"As we continue to get our economic house in order, we can and should still make budget cuts," Rokeberg said. "But this is a virtually painless revenue source in what is proving to be a critical time for Alaska. It would not have a significant impact on the dividend program and we would be foolish to ignore it."
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= Norman Rokeberg, 90 K