January 21, 2004
"We said in the State of the State last week that we would support putting a constitutional spending limit on the November ballot, in conjunction with a proposal we anticipate to come from the Conference of Alaskans next month in Fairbanks," Murkowski said. "Here is a concept to limit spending that we think will work. Clearly, it is the business of the Legislature to consider constitutional amendments and pass them on to the voters. I have asked the sponsors of legislation now under consideration to review our proposal and work with us to pass it. I look forward to cooperating with them in passing this essential legislation."
The constitutional spending limit is a key element of the Governor's fiscal program. The constitutional spending limit is intended to assure Alaskans that the growth of state government will be kept in check.
The proposal has three main
goals. The first is to limit how much state government grows
from one year to the next, regardless of funding source. For
this reason, the limit applies to general funds as well as "other
state funds." The second is to narrow the number of appropriations
excluded from the limit, so as to minimize any incentive to redefine
spending. The third goal is to create an incentive to save surplus
revenue by putting it into the Permanent Fund or the Constitutional
Budget Reserve fund.
Source of News Release: