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

Senate Votes to Balance Spending with Savings

Halford Floor Amendment Puts $661 Million into Permanent Fund

For Immediate Release: May 7, 1997 Contact: Senator Rick Halford 907/465-4958

Juneau -- During last night’s Senate capital budget debate, Senator Rick Halford (R-Chugiak) sponsored a floor amendment placing $661 million of this year’s record investment earnings into the principal of the Alaska Permanent Fund. Halford’s amendment to SB 107 passed the Senate with unanimous support.

"It’s the right thing to do," said Halford. "Growing the principal of the Alaska Permanent Fund benefits all Alaskans."

A combination of sound investments and solid markets have made this a record earning year for the Permanent Fund. According to projections provided by the Alaska Permanent Fund Corporation, after paying out record dividends and fully inflation proofing the fund, there will be a surplus of over three quarters of a billion dollars in the earnings reserve account.

"This amendment is completely consistent with the common sense, conservative fiscal approach of the Republican-led legislature," said Halford. "Balancing your budget and bolstering your savings are basic elements of a solid financial foundation."

During his remarks on the Senate floor, Halford noted the additional $60 million dollars of recurring annual revenue this deposit would generate and the nearly three billion dollar balance in the Constitutional Budget Reserve which is available in case of an unexpected emergency.

SB 107, the state’s capital budget bill, is scheduled for final passage in the Senate today.

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