(Juneau) - The House Majority Republicans responded to Governor Frank Murkowski's State of the Budget address late this evening.

"The House is going to have to take the Governor's budget proposal and the FY06 budget and look at the new programs and the funding increases suggested. Everything is on the table and we may or may not be able to live with the Governor's proposals, but we will look at each program and spending project and evaluate them based on the House Majority's priorities for the state and our goal of a sustainable budget for Alaska," said Speaker John Harris (R-Valdez).

"The House believes we need to save a substantial amount of the surplus. We have been very clear that this is a fundamental priority of the caucus and we will be looking at this budget with that goal in mind," said Representative Mike Chenault (R-Nikiski). He went on to say, "With the uncertainty of oil prices, we have to establish a budget that allows us to live within our means. It is the Finance Committee's job to scrutinize each and every new program and spending increase with the same scrutiny that they examine their own personal budget. The House Majority Caucus is determined to fund those programs essential to Alaskans."

The Governor has suggested increased revenue sharing to relieve some of the stress on smaller communities. House Finance Co-Chair Kevin Meyer (R-Anchorage) pointed out that the Legislature currently supports a number of programs that share revenue with local governments. Representative Meyer stated, "PERS/TRS, the Power Cost Equalization program, the 70/30 school bond debt reimbursement and the 50/50 local roads and maintenance projects have consistently been funded by the legislature. We agree with the Governor that revenue sharing is a good idea, if it can be part of a sustainable budget."

In regard to the Governor's capital budget, Representative Meyer said, "The dollar amount proposed by the governor appears about right, but we don't agree on all of the projects. That's where the legislative process comes in."

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