2003-29 Comprehensive Long Range Fiscal Plan for State of AKKODIAK ISLAND BOROUGH
RESOLUTION NO. 2003 -29
Introduced by: Assemblymember Stevens
Requested by: Assemblymember Stevens
Drafted by: Assemblymember Stevens
Introduced: 11/06/2003
Adopted: 11/06/2003
A HESOLU ION 01- HL KODIAK ISLANU BUHOUGH ASSLMBLY
URGING THE GOVERNOR AND LEGISLATURE TO PROVIDE THE LEADERSHIP
NECESSARY DURING THE UPCOMING LEGISLATIVE SESSION TO DEVELOP A
COMPREHENSIVE, LONG -RANGE FISCAL PLAN FOR THE STATE OF ALASKA
WHEREAS, the Kodiak Island Borough recognizes that the ultimate decision regarding
Alaska's revenues and expenditures rest with the Legislature and Governor
Murkowski's administration; and
WHEREAS, the Kodiak Island Borough is committed to fully participating in the
debate, and we pledge to help resolve this issue in a manner that will do the most
good for the greatest number of Alaskans over the long term; and
WHEREAS, details of any prospective plan will no doubt be both practically and
politically difficult to develop; and
WHEREAS, the fiscal challenges facing Alaska are not new and the tools available to
address the problem have been well- defined; and
WHEREAS, with every passing year, the lack of a sound fiscal management plan poses
a growing risk to the state's economic health; and
WHEREAS, in fact, uncertainty regarding Alaska's fiscal regime has been mentioned
as a primary disincentive to private investment in the state; and
WHEREAS, Alaska has a wide array of potential options to address this challenge; and
WHEREAS, each of the steps outlined below encompasses a multitude of variations;
and
WHEREAS, in creating a fiscal package, we encourage the Legislature and the
Administration to incorporate elements from all three general recommendations
beginning with spending controls, moving to new uses of the Permanent Fund earnings
and finishing with a new broad -based tax, if necessary; and
WHEREAS, we are eager to support a responsible, committed effort to address this
issue during the next legislative session; and
Kodiak Island Borough Alaska Resolution No. 2003 -29
Page 1 of 2
WHEREAS, we believe the following general steps must be taken:
1: Budget Discipline. Alaska must adjust to the reality of lower revenues just as a
family or business would —by controlling spending. Additional spending controls
should be incorporated into any Tong -term fiscal plan. However, our organization
does not believe it possible or wise to correct the entire fiscal imbalance through
budget cuts alone.
2: New Uses of Permanent Fund Earnings. We believe appropriating a portion of the
earnings from the Permanent Fund to help support state services is a legitimate
use of those funds. Furthermore, we strongly support the creation of a "percent
of market value" structure for the Permanent Fund. Using some of the
Permanent Fund earnings for state government should not preclude the Alaska
Permanent Fund Dividend program from continuing and growing.
3: Institution of a Broad -Based Tax. Spending controls and new uses of Permanent
Fund earnings may not be enough to close the state's fiscal gap over time. In
light of this fact, we believe it is appropriate for the administration and Legislature
to consider the implementation of a broad - based, statewide tax. Any discussion
of statewide taxes should include a thorough, public analysis of an income tax,
a sales tax, and any other broad -based taxes. Any discussion of sales tax should
provide for mechanisms that holds harmless those communities that already have
a sales tax in place.
NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH that the assembly urges the Governor and Legislature to exhibit strong
leadership and courage, to develop a Tong -term fiscal plan for Alaska.
NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE ASSEMBLY OF THE KODIAK
ISLAND BOROUGH that it is recognized that the challenge of addressing Alaska's
fiscal imbalance is daunting, but the successful creation of a sound management plan
will provide long -term economic benefits to Alaska.
NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE ASSEMBLY OF THE KODIAK
ISLAND BOROUGH that failure to address this challenge now risks irreparable harm
to future generations of Alaskans.
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS SIXTH DAY OF NOVEMBER, 2003
ATTEST: Gabrielle Le
a a ( -2��
udith A. Nielsen, cec, Borough Clerk
KO I IAK ISLAND OROUGH
oux, orough Mayor
Kodiak Island Borough Alaska Resolution No. 2003 -29
Page 2 of 2