Capital Budgets With Questionable Funding Sources

First of all, let's see what the public wants.  This is followed by an examination of how the legislature acted or failed to act. 

(Q)  Are you concerned that the state legislature failed to develop a plan that would balance the budget?  (692 responses)

 

(A)   Yes:  84%                No:  11%                Don’t Know:  5%

 

(Q)  How would you balance the state budget? (You may circle more than one answer)  (1078 responses)

 

(A)

a.  State Income Tax:  14% 

b.  Cut state government spending:  40%  

c.  State Sales Tax:  14%  

d.  Using a portion of your Permanent Fund Dividend:  9% 

e.  Modify or eliminate the economic limit factor (ELF) on oil royalties paid the  state:  18%

f.  Miscellaneous New State Taxes or user fees:  5%

84% of survey responders are concerned the legislature failed to develop a plan to balance the budget.  Of the 1078 responses, 40% said CUT state government spending.  In the last four years the capital budget alone has INCREASED by over $300,000,000!  Follow the hyperlink then click on journal pages to see what action was taken or how legislators actually voted.  

SB 29 Capital Budget for fiscal year 2002.  Total cost to taxpayers: $1,310,263,133 ($1.3 BILLION DOLLARS!)  Introduced by request of Governor Knowles, this bill contributed to the deficit budget.  See how your legislator voted by going to the Watchdog page (22nd Legislature).

 

SB 2006 Capital Budget for fiscal year 2003.  Total cost to taxpayers:  $1,290,378,015. ($1.2 BILLION DOLLARS!)  Introduced by request of Governor Knowles, this bill contributed to the deficit budget.  See how your legislator voted by going to the Watchdog page (22nd Legislature).

 

 

SB 100, Capital budget for fiscal year 2004.  Total cost to taxpayers:  $1,361,960,570 ($1.3 BILLION DOLLARS!)  Introduced by request of Governor Murkowski, this bill contributed to the deficit budget.  See how your legislator voted by going to the Watchdog page (23rd Legislature).

 

SB 283  Capital budget for fiscal year 2005.  Total cost to taxpayers:  $1,632,206,808. (1.6 BILLION DOLLARS!)  Introduced by request of Governor Murkowski, this bill contributed to the deficit budget.  See how your legislator voted by going to the Watchdog page (23rd Legislature).

Deficit budgets have given the legislature an excuse to "borrow" from the Constitutional Budget Reserve Fund (CBR) with no plan for repayment; which is against the intent language in Article 9; Section 17 of the Alaska Constitution.

Another "creative" funding source was to have the Alaska Housing Finance Corporation (AHFC) and the Alaska Student Loan Corporation assume additional debt to partially fund the FY 2005 capital budget.  To follow the money trail, see section 3 (funding source).  This clearly circumvents the Alaska State Constitution; Article 9; Section 8 which prohibits the legislature from bonding without authorization by voters.

Only 9% of respondents said use a portion of the Permanent Fund to balance the budget.  Let's see what happened in Juneau: 56 bills/measures were introduced during the 23rd. Legislature and 31 bills/measures were introduced during the 22nd. Legislature that would make changes to the Permanent Fund!  Some of the more significant ones are listed below:

HB 11, reduced certain royalties from mineral leases, rentals, net profit shares, and bonuses paid to the Permanent Fund from 50% to 25%, with the remaining 75% going directly to the legislature!  This bill PASSED the 23rd. legislature.  See how your legislator voted by going to the Watchdog page.

 

HJR 31 would have allowed a public vote on whether to cashed out the Permanent Fund and ended PFD program forever.  This measure died in the House.

 

HJR 37 would have allowed a public vote on whether to divert natural gas revenues from the Permanent Fund and place them in a new POMV type fund with earning going to legislature and specifically NOT to the public as a PFD.  This died in the House Judiciary Committee.

 

SJR 18 would have allowed a public vote on whether to change management of the Permanent Fund to a Percent of Market Value (POMV) plan into the state constitution.  Governor Murkowski and the Alaska Municipal League (AML) have been promoting this plan as a way to distribute the permanent fund to state and local governments.  This measure failed in the Senate, but is sure to reappear in the 24th legislature.

 

HB 20 would have given aid to municipalities and others using the Earnings Reserve Account (source of PFD's!) of the Permanent Fund as the funding source.  This passed the House, but died in the Senate.  See how your legislator voted by going to the Watchdog page (22nd Legislature).

 

HB 304 would allow withdrawals from the earnings reserve account of the permanent fund for general state spending.  This passed the House, but died in the Senate.  See how your legislator voted by going to the Watchdog page (22nd Legislature).

 

HB 398 would allow withdrawals from Permanent Fund earnings to keep the Constitutional Budget Reserve (legislators "rainy day account") Fund at $1.5 billion.  With this plan, there would be no incentive to cut spending.  This bill died in the House.

18% said the legislature should consider modifying or completely eliminate the economic limit factor (ELF) on oil royalties paid the  state.  This change could allow a more fair severance tax on the oil owned by ALL Alaskans.  Let's see what did the legislature actually did about this important issue:

HB 300 would eliminate the economic limit factor (ELF).  Assigned to four committees and under pressure, withdrawn by sponsor.

 

HB 441  Would make modest changes to the severance tax paid by oil companies, but died in the first committee of referral.  The House Ways & Means Committee is co-chaired by Republican Representative Mike Hawker of Anchorage and Republican Representative Bruce Weyhrauch of Juneau.  See “hot button issue” for complete details. 

 

SB 321 Would make modest changes to the severance tax paid by oil companies to the benefit of ALL Alaskans, but died in the first committee of referral.  The Senate Resources Committee was chaired by Republican Senator Scott Ogan of Palmer.  See “hot button issue” for complete details.  

Votes for these and other major bills that passed either the House or Senate are recorded on the Watchdog page for all to see. 

Why do candidates often say one thing to get elected and then vote the opposite when in Juneau?  A lot of this mystery can be solved by visiting the APOC web site.  The Alaska Public Offices Commission post campaign finance records for each legislator that shows where the money comes from.  When comparing survey results, voting records, and campaign finance, with legislation passed (or not passed), a vivid picture of the incumbent emerges for all to see.   

Incumbent legislators that went against the public's wishes will soon be asking for your vote.  The decision to retain them is entirely up to YOU!  Make an informed choice and do what's right for Alaska's future at each election!  A list of all legislators sorted by community and election schedules has been provided for Alaska Voters convenience.  

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