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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 |
Resolution Conforms Statute to Constitution and Provides Fiscal Tool
For Immediate Release: April 22, 1999
Contact: Representative Norman Rokeberg at (907) 465-4968.
Juneau -- The Alaska House of Representatives Thursday passed House Bill 96, which would change an Alaska statute concerning the percentage of funds deposited into the Alaska Permanent Fund. HB 96 passed 24-11.
The Alaska Constitution states that the Permanent Fund consists 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," Representative Norman Rokeberg (R-Anchorge) sponsor of HB 96 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.
"As the Prudhoe Bay and Kuparuk fields - which currently contribute to the General Fund at a 75 percent rate - diminish, we need to replace them with the new, smaller satellite fields contributing at the same rate," said Rokeberg. "Reverting the Fund contributions to the original 25 percent would generate approximately an extra $11 million in FY 2000 and average $16 million - plus bonus revenues - over the next fifteen years.
"This bill is a major building block in the Majority's effort to craft a long-term plan for the State's financial future," Rokeberg said. "As we continue to get our economic house in order, we can and should still make budget cuts, but we would be foolish to ignore this virtually painless revenue source. Prudent fiscal management requires this statutory change."
House Bill 96 now moves to the Senate.
Broadcasters note: Audio comments are available on the
Majority Actuality line, 1-800-478-6540
= Norman Rokeberg, 144 K