Session: State Capitol, Room 508 Juneau, AK 99801-1182 Phone: (907) 465-3892 Fax: (907) 465-6595 Interim: 716 W 4th Avenue, Suite 400 Anchorage, AK 99501-2133 Phone: (907) 269-0234 Fax: (907) 269-0238

Former Governor Jay Hammond Joins Other Alaskans
to Sound Off on Long Range Fiscal Planning Before the Senate Finance Committee

(ANCHORAGE) - Former Governor Jay Hammond joined other Alaskans who braved the first big snow storm Saturday to file into the Legislative Information Offices in Anchorage and other area around the state to participate in the Senate Finance Committees public hearings on a new Long Range Fiscal Plan for Alaska.

Sen. Dave Donley (R-Anchorage), who is the Co-Chairman of the Senate Finance Committee kept his promise to hold public hearings to find out what the people of Alaska felt should be done concerning the growing fiscal problem in the State. Donley felt it was important to give people an opportunity to speak their minds in front of the Senate Committee that the actual jurisdiction over fiscal issues.

Donley hopes to narrow the fiscal gap, which is projected to top $500 million this year. He plans to do this by passing seven bills and two constitutional amendments, all with the aim of establishing a more streamlined, efficient and fiscally responsible government, while maintaining and improving state services.

Donley says to handle the projected $500 million dollar fiscal gap the State needs action not just rhetoric. Donley's approach to the problem, involves a systematic step-by-step method, a plan that drew support from those in attendance Saturday, including Gov. Hammond.

Hammond said he preferred Donley's step-by-step approach to responsible fiscal planning, rather than an all inclusive concept, like the 1999 plan (rejected by 84-percent of voters) that is still being pushed by some members of the Legislative Fiscal Policy Caucus. Hammond warned the committee that if they wanted the support of the public the government would need to address fiscal issues a piece at a time. In other words curb spending before talk about initiating taxes and explore tax revenue options before even considering touching the Permanent Fund.

"The public does not feel they are listened too," Hammond said. "We can not look at using dividend dollars before tax dollars."

Saturday however, the people were listened too. And the Senate Finance Committee heard them say don't look at tax dollars either if you don't first cut spending.

"We need a cap on government spending," said Linda Reynolds a Kenai voter. " We need to look at layers of bureaucracy and make cuts."

Chuck Achberger of Anchorage took the need for fiscal responsibility up a notch by pointing fingers at the worst spender in the government. "The Governor's approach to spending is like a teenage kid with daddy's Visa Gold Card," Achberger said. "Before we introduce random acts of taxation, we must get spending under control."

Thus was the sentiment of public testimony from Wrangell to Fairbanks. And Donley along with the Senate Finance Committee seemed poised to heed the advice given Saturday by concentrating first on controlling spending and making the Government work within its means.

Arrangements can be made to interview Sen. Donley on this and other issues by calling his Anchorage office at 269-0234. All efforts will be made to accommodate individual deadlines.

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