22nd Alaska State Legislature
Information from Representative Vic Kohring

Click image for large 5'' x 7'' picture, 91.34k Session:
State Capitol, Room 24
Juneau, AK 99801-1182
Phone: (907) 465-2186
Fax: (907) 465-3818

600 East Railroad Avenue
Wasilla, AK 99654
Phone: (907) 373-1842
Fax: (907) 373-4729

Sponsor Statement for HB 440
Agency Alternative Operating Budgets

"An Act relating to alternative operating budgets for agencies."
Released: March 18, 2002
Contact: Mike Krieber, Legislative Aide to Rep. Kohring, at (907) 465-4858

Many Alaskans are begging for a plan that substantially cuts the budget.

HB 440 will require significant reductions in all State spending categories. This bill requires every State agency to submit an "alternative operating budget" in addition to the "standard operating budget" that is currently submitted by the Governor by December 15th each year. The bill requires that the alternative operating budget be five percent lower than the prior year's approved budget.

The bill will require the agencies to prioritize spending. The alternative budget must include:

  • Identification of where reductions would be made,
  • Explanations of why the particular cuts were selected,
  • Explanations of the effect of the cuts on programs and functions of the agency, and,
  • Descriptions of the services that would be provided by the agency

At the end of the first five years that this bill will be in effect, General Fund expenditures will be reduced by over $500 million compared to this year's budget. Overall, the budget will be reduced by over $1 billion annually compared to this year's budget.

This bill provides a pathway to State fiscal responsibility.

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