The Majority's Five Year Financial Plan Seeks to Downsize Government

By Representative Vic Kohring

I'm renewing the pledge my constituents asked of me; to reduce the size and scope of government. I will be working in my capacity as a member of the House Finance Committee to achieve $60 million in budget reductions this year. I believe Government's responsibility should be limited to just basic essentials; therefore much of our state's budget can still realistically be cut.

Last session, the Republican-lead Majority Coalition was successful in reducing government spending by $70 million as part of Year-One of our plan to eliminate the fiscal gap. We've renewed our commitment to eliminate the deficit by the year 2001, as the result of a total of $250 million in total spending reductions. This goal is part of the Majority's Five-Year plan to achieve a smaller, more spend-thrift government. We will be enacting the second year of our plan during this first session of the 20th Legislature.

The Coalition's Five-Year Plan, already implemented, includes a strategy that does not tax income, cap or reduce permanent fund dividends (including relying on the Permanent Fund to pay for government in any way), or deplete the Constitutional Budget Reserve Fund. The intent is to cut and conserve, rather than spend.

A major element of the plan is significant spending reductions through responsible budget cuts--not just cutting across the board. This includes continuing to fund essential functions that we are constitutionally mandated to perform, such as public safety, roads and education. Non-essential items should be sharply curtailed or even eliminated, while encouraging more private-sector involvement in meeting our community's needs.

Another avenue for reducing the budget is through regulatory reform. Repealing and rewriting statutes that unnecessarily complicate functions of government will work hand-in-hand with spending reductions to achieve our budget reduction goals. We must no longer simply cut the budget. We must also explore ways to help government function more efficiently, since we are funding them at ever- decreasing levels.

The Majority's budget proposals also place a continued strong emphasis on economic development. This includes being more responsive to business in the private sector, through regulatory reform as well as holding the line on taxation.

You, my constituents continue to ask for a smaller, leaner government, which will continue to be my primary focus as your representative. Less government spending, less small business regulation and less taxation will be the centerpiece of this effort. I believe the Majority's Five-Year Plan will put us on course to achieve this objective, and help us secure a strong and growing economy for Alaska's future.