Official Election Pamphlet --
Special Advisory Vote - Legislative Affairs Agency Summary

This measure asks the people to vote on a budget plan for the state government. The preamble states that the Alaska Permanent Fund was created to save and invest part of the state's petroleum revenue for the future. The purpose was to use the earnings for state government when petroleum revenue fell. That revenue has declined substantially and is expected to decline more. It cannot go on sustaining the state budget system. The Legislature and the Governor suggest a Balanced Budget Plan. The Plan consists of seven points. The Plan includes the following items.

(1) Continue to reduce spending from the state general fund and commit to long-term budget discipline and efficiencies.

(2) Guarantee that the principal in the Alaska Permanent Fund remains untouched. Also, the Permanent Fund would be increased to keep pace with rates of inflation.

(3) Promise a dividend of at least $1,700 in 1999 and in 2000. After that, the dividend will be about $1,340 a year and will grow as the value of the Permanent Fund grows.

(4) After the inflation-proofing and payment of dividends from the Permanent Fund, set a priority to use the yearly earnings for essential public services.

(5) Make full disclosure of spending from the earnings each year when the dividend is paid.

(6) Set up a Citizens' Balanced Budget Task Force. The task force would present choices about how to further reduce state spending and to identify future sources of revenue for the state.

(7) The plan does not enact a personal income tax.

The question says that first the permanent fund earnings would be used to pay yearly dividends and to inflation proof the fund. The question then asks the voters to say yes or no to using part of the earnings of the permanent fund to help balance the state budget.

Click here for the ballot language
Click here for the full text of the bill

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