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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 Page 1 of 1