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1990-22 Requesting that the Senate Amend SRJ 5 and that the Legislature Provide for Protection, Equity and Fairness for Programs that Affect Municipalities and Local Taxpayers in Adopting a Spending Limit Resolution.By: Mayor Selby Introduced: 03/15/90 Adopted: 03/15/90 KODIAK ISLAND BOROUGH RESOLUTION NO. 90-22 A RESOLUTION REQUESTING THAT THE SENATE AMEND SJR 5 AND THAT THE LEGISLATURE PROVIDE FOR PROTECTION, EQUITY AND FAIRNESS FOR PROGRAMS THAT AFFECT MUNICIPALITIES AND LOCAL TAXPAYERS IN ADOPTING A SPENDING LIMIT RESOLUTION WHEREAS, the Senate, by a vote of 15-5, has passed SJR 5 calling for a public vote to amend the Constitution and impose a state spending limit of $2.3 billion in FY 92 and cuts of one percent per year in FY 93 through FY 96; and WHEREAS, SJR 5 is up for reconsideration on Tuesday, March 6, 1990; and WHEREAS, SJR 5 makes no provision for protecting programs which allow municipalities to provide services to Alaskans while holding down local tax increases; and WHEREAS, SJR 5 does not exclude priority school construction from the limit; and WHEREAS, HB 37 ended the state reimbursement program for new debt but requires adequate state funding to provide for education facilities in the future; and WHEREAS, SJR 5 proposes not only to limit spending but also to decrease spending by one percent a year for four years; and WHEREAS, SJR 5 has no provision for increases in population, inflation, new state programs, or new federal mandates on both the state and local governments resulting in additional pressure on current programs; and Resolution No. 90-22 Page 1 of 3 WHEREAS, the House of Representatives is considering legislation to also impose a constitutional spending limit; and WHEREAS, the proposed legislation provides no protection from insignificant cuts in any one year or continued disproportionate cuts to programs critical to municipalities and their taxpayers; and WHEREAS, the State is not projected to experience a financial emergency during the life of the limit; and WHEREAS, mechanisms are in place to adjust state expenditures and revenues including the constitutional prohibition on deficit spending for operations; the Legislature's power to appropriate; the Governor's ability to veto; a statutory spending limit under AS 37.05.540; and WHEREAS, municipalities are legitimate partners with the State in sharing public resource and other state revenues to provide services to Alaskans; and WHEREAS, the limit may require across the board or disproportionate cuts in state department programs critical to municipalities and their citizens; and WHEREAS, pass-through or reimbursement programs critical to municipalities such as municipal assistance, revenue sharing, mandated local property tax exemptions, and school debt reimbursement have received disproportionate cuts in the past without significant political repercussions to legislators; NOW, THEREFORE, BE IT RESOLVED that the AML Board of Directors in expressing its concern for the potential negative impacts on municipalities and local taxpayers urges the Senate to amend SJR 5 to: Resolution No. 90-22 Page 2 of 3 1. exclude school debt reimbursement and priority one and priority two schools from the spending limit; and 2. to amend SJR 5 to provide for an adjustment for increases in population and inflation. BE IT FURTHER RESOLVED that this resolution be sent to members of the Alaska State Senate, members of the Alaska House of Representatives and Governor Cowper. PASSED AND APPROVED THIS 15th DAY OF MARCH, 1990. ATTEST: KODIAK ISLAND BOROUGH BoS ugh Mayor, r siding Officer Resolution No. 90-22 Page 3 of 3