2002-11 Long Range Fiscal Plan for All AlaskansA RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
SUPPORTING A LONG -RANGE FISCAL PLAN THAT ENSURES A STABLE FUTURE FOR ALL
ALASKANS BY PROMOTING AFFORDABLE STATE AND LOCAL TAX LEVELS AND
ADEQUATE STATE AND LOCAL SERVICES
WHEREAS, one dollar out of three spent this year in the State General Fund budget ($865 million
out of $2.4 billion) is projected to come from Alaska's savings; and
WHEREAS, according to the Alaska Department of Revenue, by mid -year 2004, the "fiscal gap"
is projected to be over $1 billion and Alaska's savings account (Constitutional Budget Reserve)
will be fully depleted if action is not taken this year; and
WHEREAS, if nothing is done and a $1 billion "fiscal gap" occurs in 2004, local taxpayers will
be forced to choose between severely reduced public services or massively increased taxes to
cover the cost of schools, roads and other state services. For example, in order to generate $1
billion, it would require:
• Cutting the equivalent of all funding for schools and the university, the largest state single
budget item;
• Ending the PFD program;
• Implementing a 14% state sales tax (food /medical exempted); and
WHEREAS, the state should continue to implement efficiencies and reasonable service reductions,
but also recognize that reductions alone cannot solve the magnitude of the projected fiscal gap.
In addition, certain services, such as deferred maintenance of state facilities, including schools
and roads, will require additional funding; and
WHEREAS, a long -range fiscal plan should have the following guiding principles:
1. The plan provides financial stability.
2. The plan is sustainable.
3. The plan advances financial investment policies that maximize returns of the state assets.
4. The plan is fair.
WHEREAS, if action is taken this year, Alaska can avoid depleting the Constitutional Budget
Reserve, and use this last saving account to act as a cushion for Alaska to avoid harsher cuts,
higher taxes, and /or greater use of Permanent Fund earnings to solve the fiscal gap;
NOW, THEREFORE, BE IT RESOLVED BY THE KODIAK ISLAND BOROUGH ASSEMBLY that all
citizens are encouraged to contact the Governor and their legislators and urge them to take action
this legislative session to adopt a fiscal plan that avoids a fiscal crisis in 2004.
ATTEST:
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS FOURTH DAY OF APRIL, 2002
u • It • . le sen, MC, : oroug er
KODIAK ISLAND BOROUGH
RESOLUTION NO. 2002 -1 1
KODIAK ISLAND BOROUGH
Introduced by Manager Carlson
Requested by: Manager Carlson
Drafted by: Manager Carlson
Introduced: 04/04/2002
Adopted: 04/04/2002
Gabrielle LeDoux, Borough Mayor
Kodiak Island Borough, Alaska Resolution No. 2002 -11
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