The Alaska Legislature has been criticized in the media and by some Alaskans for not doing its job this year. I would like to strongly disagree. I am proud of my colleagues in the House for their accomplishments and some truly historic acts in the First Session of the 23rd Legislature. It was the most difficult and arduous session that I have experienced. The Legislature, together with our new Governor, worked long and hard to make many tough decisions to change the direction of our state.

The most notable was the passage of a budget with a record-setting $59.7 million decrease in general fund spending. The general fund spending, excluding federal dollars and Permanent Fund expenses, for FY '03 came in at $2496.7 billion and was reduced to $2436.0 billion under the Legislature's budget. This included a $240 million increase in formula programs, entitlements, and debt service that had to be accommodated. A majority of Alaskans have asked that our state government be reduced in size and the cost addressed. The Legislature did this. What the Legislature did not do was pass a general statewide sales and use tax the Governor wanted - a $315 million 3% sales and use tax to minimize the draw on the Constitutional Budget Reserve (CBR) to the $400 million level and thus help close the fiscal gap. The House took up consideration of the sales and use tax issue with only 21 days left in the session. Because of the complexity and controversy surrounding this proposal, we did not take any final action during the 2003 session. The Administration offered to reduce spending further with budget vetoes if a tax was not passed. The Legislature took them up on their offer rather than enact an incomplete and complicated bill in the closing days of the session - one that would impact every Alaskan.

I believe we did the right thing. After a lot of hard work, late and long hours in the pressure cooker, we were then criticized for not passing the tax. We chose to go home and listen to the people in our neighborhoods and communities and see what they thought about this major step in solving our continuing fiscal gap.

The Governor did follow through on his veto threats by reducing general fund expenditures by an additional $138.2 million state general funds which then yielded a state general fund budget of $2,297.8 billion for FY 04. The Governor has also indicated that he wants to reduce the budget further. The questions before the public are:

1. how do we address the fiscal gap, which in spite of our efforts to reduce spending persists because of lower oil production (which means less money to the state); and
2. what level of services do the citizens of Alaska want when they have to actually dig into their pockets and start paying some state taxes?

I agree with the Governor that we need to emphasis natural resource development and increase revenues from those sources. I am very pleased with the legislation that we passed this year to meet that goal. We have and we can continue to make substantial progress in that area with cooperation between the Governor and the Legislature. However, I am concerned that in spite of our best efforts to reduce the draw on the CBS that we cannot continue to meet our constitutionally required responsibilities and avoid harming the economy without the development of a long range fiscal plan supported by a majority of Alaskans.

The Legislative majority and minority have to work together with the administration in developing a long range fiscal plan that does the least harm to the economy and stimulates economic development and puts us on a balanced budget footing for the good of all Alaskans.

Let me know your ideas: by mail: Representative Norman Rokeberg, 716 West Fourth Avenue, Suite 300, Anchorage 99501; by telephone: (907) 269-0117; by fax: (907) 269-0119; or

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