Juneau -- The Alaska House of Representatives Tuesday passed House Bill 50, the House Finance Committee version of the State Operating Budget. The measure was approved along strictly Majority-Minority lines, 27-13.

"This budget reflects the vision of the Republican-led Majority, first set down several years ago. We called it our 'Commitment to Alaska,' and we have remained true to that commitment to this day," said Representative Eldon Mulder (R-Anchorage), Co-Chair of the House Finance Committee. "That vision was - and is - that Alaska would begin to live within its means, and that entails making the tough choices embodied within this operating budget.

"To my knowledge, no private groups or public agencies came to us during the budget process and begged for a budget cut,'" said Speaker of the House Brian Porter (R-Anchorage). "The fact is, this budget spreads the inevitable pain, so that no one group or agency must bear the full brunt of the effects of declining revenues."

The budget passed by the House appropriates some $2.1 billion for the operations of State government in Fiscal Year 2000, which runs from July 1, 1999, through June 30, 2000.

"Over the first three years of our Commitment to Alaska, the Majority has managed to trim over $190 million in State spending," said Representative Gene Therriault (R-Fairbanks), Co-Chair of the House Finance Committee. "Imagine where we would be at this point of declining oil revenues had we just continued to conduct business-as-usual. Now, with revenues in decline and with a $1.2 billion deficit, is not the time to turn our backs on that commitment."

"This budget recognizes and begins the inevitable scale-back in the number of State subsidies which Alaska provides," said Mulder. "Alaska subsidizes timber, tourism, local government, and a myriad of other constituencies which no other state subsidizes. This budget recognizes that we simply do not have the resources to continue these subsidies at our current rate."

A Notice of Reconsideration has been filed, meaning that the House will vote again on the Operating Budget before passing it on to the Senate.

Broadcasters note: Audio comments are available on the Majority Actuality line, 1-800-478-6540
= Eldon Mulder, 101 K = Bill Hudson, 60 K
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