News from the Senate Majority

Alaska State Legislature

Wendy Lindskoog, Senate Majority Press Secretary
State Capitol
Juneau, AK 99801-1182
Phone: 907/465-4582
http://www.akrepublicans.org
Broadcast Actualities: 800/478-6540

Governor Rejects Privatization

Vetoes Creation of Privatization Task Force

For Immediate Release: June 12, 1997 Contact: Senator Jerry Ward 907/258-8183

ANCHORAGE -- Legislation passed by the Legislature which would have established a task force to examine privatization of state government functions as a means of saving the state money and providing higher quality services was vetoed by the Governor Wednesday. Senator Jerry Ward, sponsor of SB 68, expressed disappointment about the veto.

"Privatization would allow the State to look at options for the future that will make government work smarter while getting smaller, said Senator Jerry Ward, sponsor of Senate Bill 68. "We wanted to establish a task force to take a look at what government functions made sense to privatize."

From Railroads to prisons, last legislative session lawmakers expressed a desire to privatize certain state functions. Senator Ward noted that the task force was going to be a means for looking at all possibilities within the states $2.1 billion dollar budget.

"Privatization is an opportunity for the Legislature to reduce state spending without reducing government services," said Ward. "By vetoing this legislation, the Governor is sending a strong message he does not support looking at cutting the cost of state government services."

The task force would have been made up of members of the public, the Legislature and appointees of the Governor which included labor union representatives.

Alaska State Chamber of Commerce President Pamela LaBolle said the chamber was disappointed with Governor Knowles veto of SB 68. LaBolle said privatization is one of the State Chamber's top priorities.

"Private enterprise provides the financial support for the entire state government of Alaska. In the last several years, government has grown faster than the private sector," said LaBolle.

"Unless action is taken to transfer back to the private sector some of the services that government has taken unto itself, the state is in danger of losing its financial base and the entire system collapsing like a house of cards. This legislation provided a means for government and citizens to work together to develop a plan for strengthening the private enterprise system and insuring a more secure economic future for the state," said LaBolle.

###

Broadcast Note: An audio actuality is available by calling 1-800-478-6540.