Sponsor Statement for HJR 58

House Joint Resolution 58 would place a constitutional amendment on the ballot that would designate 40% of all revenues from ANWR lease sales and royalties to fund education. Currently, 25% of all such proceeds are constitutionally designated to the Permanent Fund and another 25% are assigned to the Permanent Fund in statute.

The intent of HJR 58 is twofold. First, it is in the best interests of Alaska that our natural resources be developed reasonably and responsibly. The current status of the Arctic National Wildlife Refuge is contrary to the well-being of Alaska’s economy and consequently Alaska’s ability to fund vital educational services. HJR 58 forges the link between ANWR’s economic future and Alaska’s educational future. It weds the interests of the ANWR development with those of Alaska’s educational program development. This link is an economic imperative; HJR 58 will bring this fact forward in the public conscious.

Finally, the current politicizing of educational funding and resulting instability are detrimental to the health of educational progress in Alaska. As administrations come and go, Alaska’s educational support experiences considerable uncertainty. HJR 58 would provide a stable, predictable portion for education.

Just how much is 40%? Prior to actual exploration and development, the numbers available are mere projections. The Department of Revenue has constructed "An Illustration of Potential State ANWR Revenues." Under this model, Alaska’s income from ANWR royalties would peak at $84 million. Income from the actual land leases would occur on a year by year bid basis, dollar amounts are unpredictable.

While 40% of these revenues is not a significant proportion of Alaska’s education budget, the establishment of an Education Fund is the critical first step toward long-term funding stability. Indeed, history will show that the creation of a constitutional education fund is of more lasting importance than the potential dollars involved. The future of ANWR and the future needs education in Alaska are unknown. Coming legislatures will be better equipped to determine the future needs of education in Alaska and may make statutory designations as they see fit — once the fund is established.

Please feel free to call or write with questions or concerns.