Juneau -- Speaking on the House floor Friday, North Pole Representative Jeannette James called for elimination of the Constitutional Budget Reserve. Rep. James' words followed the introduction of HJR 30, which proposes an amendment to the constitution to cancel the CBR and transfer its contents into the general fund.

HJR 30 will be taken up by the House Judiciary and House Finance committees.

The CBR contains approximately $3.8 billion.

"The purpose for the CBR has ended," said Rep. James. "It's usefulness is over. When it was drafted, the legislature recognized there was a tendency to spend as much money as was available." At the time Alaska was receiving cash windfalls in the form of tax settlements with oil companies, so the legislature wanted to keep those funds off the table.

"Those large cash settlements have now all been collected," Rep. James said.

"Now, we must begin the process of long-term planning for Alaska's financial future. When you have all these different pots of money - each with their own restrictions - it just doesn't translate into good budgeting," Rep. James said.

Funds from the CBR could be placed in the earnings reserve of the Permanent Fund, the general fund or placed in a statutory budget reserve account. "Where we put these funds will be determined by the committee process," Rep. James said.

"The budget process needs to be simple and staightforward - not confusing," Rep. James said. "We need a long-term plan that will work for the state for the next 15 years. Repealing the CBR is a first step."