Juneau -- The Alaska House of Representatives, in a bipartisan 27-12 vote, Saturday approved House Bill 231, which establishes the Healthy Alaska Plan, the House Majority Caucus's long-term budget solution.

The amended version of HB 231 includes a public advisory vote to be held September 14, 1999. The measure was amended to state that the Healthy Alaska Plan could not go into effect until after the September 14 election.

"This is not a step any of us particularly wants to take," said Representative Eldon Mulder (R-Anchorage), Co-Chair of the House Finance Committee. "Rather, it is a step we must take. Doing nothing is not a responsible option."

The Healthy Alaska Plan consolidates the State's savings accounts into one sustainable, long-term source of revenue, the Alaska Income Account, which HB 231 establishes. The plan anticipates an average return over the next twenty years of 8.10% annually. The amount above 5.25% of these earnings are earmarked for inflation-proofing. The plan allocates 42% of the remaining revenues to endow the Permanent Fund Dividend Program, with the remainder to go into the State's General Fund.

The Healthy Alaska Plan is designed to achieve several essential goals. The plan:

1. closes the fiscal gap;
2. preserves, protects, and increases the value of the Permanent Fund;
3. protects the dividend program for today and for future generations by endowing the Dividend;
4. limits the growth of government but provides for a sustainable budget;
5. carries no imperative for new statewide taxes;
6. sustains a healthy statewide economy and a stable business environment;
7. demonstrates the Legislature's continued commitment to the Permanent Fund.

HB 231 now moves to the Senate.

Broadcasters note: Audio comments are available on the Majority Actuality line, 1-800-478-6540
= Eldon Mulder, 86 K = Eldon Mulder, 69 K
= Gary Davis, 149 K = Ramona Barnes, 57 K
= Ramona Barnes, 93 K = Ramona Barnes, 117 K