The 23rd Alaska Legislature is quickly heading to the halfway point in its first session with a lot of work remaining before adjournment in May. Our major issue is the Fiscal Year '04 Operating Budget. Governor Murkowski's spending plan promises to make dramatic changes to the status quo of many state programs. This plan would eliminate about two dozen state programs for an estimated savings of $189 million. It would also raise about $113 million in new revenues through increased user fees and taxes. The governor hopes to make an actual overall cut in state spending of $55 million this year.

Among some of the program cuts are the elimination of the Alaska Science & Technology Foundation, which would put its endowment of $87 million into the General Fund for spending this year; the elimination by July 1st of this year, of the seniors' Longevity Bonus program, estimated to save about $47 million; and the elimination of the Alyeska Central School (saving $1.2 million), which provides distance education services throughout Alaska. Also in the education arena are the elimination of Community Schools funding (saving $500,000), and Charter Schools grants (saving $158,000), and a reduction in Pupil Transportation funding (saving $10.7 million).

Governor Murkowkski is proposing increased tax rates on charitable gaming pull tabs; a higher state highway fuel tax from 8 to 20 cents per gallon; increases to $50 for motor vehicle registration fees; tour bus fees would increase to $150 per year, and increases to business license fees from $25/year to $200/year. The governor has asked the Legislature to either consider a $15 wildlife conservation pass fee for tourists, a $100/year education head tax or a May-September seasonal state sales tax.

Last year, a group of legislators in the bipartisan Fiscal Policy Caucus examined various revenue-generating measures, including a statewide sales tax. Business owners and civic leaders in Kodiak were adamantly opposed to adding a sales tax to an already existing tax There was, however, strong support for the $100 education head tax bills both I and Senator Austerman introduced in the 22nd Alaska Legislature. With that, and Governor Murkowski's proposed budget in mind, I have reintroduced the head tax bill as SB 137. I encourage your thoughts and comments on this bill throughout the legislative process. Please contact me for information.

When elected, Governor Murkowski proposed a reduction to state spending, and his budget reflects that sentiment. While I support the governor, I, along with many of my colleagues in the House and Senate, am very concerned about the proposed cuts of $10 million in the Learning Opportunity Grants programs and the 20 percent reduction to the Pupil Transportation Budget. Asking the state's 53 school districts to absorb cuts of this magnitude at a time when they are facing new state and federal education standards is asking too much. I will be working diligently with fellow lawmakers to restore this critical funding.

Already, many of the governor's proposals are being considered in various legislative committees. As the Legislature continues through this process, it's important to hear the thoughts and concerns of our citizens during public testimony. Please contact the Legislative Information Office (LIO) in your community to find out how you can take part in the process.

(You can view the budget online by accessing the Office of Management & Budget's website at: www.gov.state.ak.us/omb/akomb.htm)

A number of my bills continue to work their way through the Legislature.

On Thursday, March 13th, the Senate State Affairs Committee passed out SB 83, which will name the state airport at Old Harbor in honor of Sven Haakanson Sr., who passed away last November. Sven spent 27 years as Old Harbor's mayor, and lobbied diligently for the airport's construction. SB 83 goes next to a Senate floor vote and will then move to the House for consideration.

HB 105 passed out of the House Special Committee on Fisheries Wednesday, March 12, 2003 and goes next to the House Resources Committee for consideration. This bill is a recommendation of the Legislative Salmon Industry Task Force, it allows the Division of Investments to loan harvesters up to $30,000 to satisfy their federal tax obligation. The measure also waives the ½ percent refinance fee for anybody who wants to take advantage of refinancing existing loans.

HB 26 remains in the House Special Committee on Education. This bill would increase by $118 the state's contribution to the per-pupil Foundation Formula (currently at $4,010). Alaska's schools sorely need this additional funding.

I have also introduced a companion measure in the Senate, SB 90; it awaits a hearing in the Senate Health, Education and Social Services Committee.

To track the status of any of my bills, please contact my office, the LIO in your community, or online at: http://www.legis.state.ak.us/basis/start.asp.

Constituent Teleconferences

Thanks to those who joined the Kenai-Kodiak Caucus for the March Constituent Teleconference. Our next teleconference will be April 3rd. You can also contact me anytime at 1-800-821-4925, or via e-mail at: .

Thanks also to the Homer, Seward and Kodiak LIOs for their help in facilitating these teleconferences. The LIOs offer a wide variety of services. Please stop by, or call the LIO for more information.

ComFish 2003

I will be in Kodiak March 21-23 for the Chamber of Commerce's ComFish trade show. When you're at the show, please make it point to stop by my booth. Also joining me in Kodiak at the time will be Senator Ben Stevens of Anchorage who will provide an update on the Legislative Salmon Industry Task Force's work to date.

I will also be holding an Open House at the Kodiak LIO from 3:30-5:00 p.m. on Friday, March 21. I look forward to seeing you there.

District Travel

I had the opportunity to visit Homer earlier this month and talked with numerous people about a variety of subjects. I plan to be in the Seward area in early April and will be visiting other District R communities throughout the remainder of the session and during the interim.

Visiting the Capitol

It's always great to see District R constituents in Juneau. If your travel plans include the capital city, please stop by my office in room 417 of the State Capitol.

E-mail Updates

Thanks to everybody who have provided me with their e-mail addresses. This has greatly enhanced my ability to pass along information to you. If you would like to receive my e-mail news updates and other legislative information, please give Doug Letch a call at my office, or e-mail him at: .

PFD Filing Deadline

The filing deadline for the 2003 Permanent Fund Dividend is March 31st. Please make sure to double check for accuracy all the information you provide and sign and return the form by the due date.

If you did not receive one in the mail, you can obtain an application booklet at the post office, or fill out the form on line at: http://www.pfd.state.ak.us/.

# # #