April 29, 2004
Thursday

Juneau, AK - Alaska Governor Frank Murkowski, who was in the Mat-Su speaking in support of a long term fiscal plan Wednesday, said the Alaska House of Representatives has taken an historic step in passing HB 298. On Monday night, the House passed HJR 26, which uses the endowment concept and limits the payout from Permanent Fund earnings to 5 percent of the fund's market value. Legislative use of the Permanent Fund's earnings is currently unlimited.

HB 298 designates how funds from the endowment revenue stream would be used. The bill establishes a 50-45-05 percent split between dividends, public education (K-12 and the university), and local communities, respectively.

"House bill 298 is a crucial part of the package that includes the constitutional spending limit and HJR 26, the endowment method of managing the Permanent Fund," Murkowski said. "The House has made a wise choice in putting the split in statute, where, for the first time, the percentage is spelled out and protected.

"I also appreciate that the House has used an effective date that is tied directly to passage of the endowment amendment to the constitution. There should be no doubt in any voter's mind as to what percentages the Legislature would apply to the use of the revenue generated from the Permanent Fund income. This bill provides that assurance. I am very pleased by the effort put forth on this bill, and the excellent progress being made on the package as a whole."

In addition to HB 298, the endowment proposed in HJR 26, and the spending limit proposed in HJR 9, Murkowski said another important component of the package will be an appropriation to take an in-depth look at oil taxes between now and next January.

Source of News Release:

Office of the Governor
Web Site

 

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