Juneau -- In a speech to the Anchorage Chamber of Commerce Monday, Senate President Drue Pearce (R-Anchorage) announced the Senate Republican Majority's goal to reduce state spending next year by $300 million.

"Every dollar we cut, is one less dollar we have to make up for in new revenue sources as we develop a plan to close our $1.2 billion fiscal gap," said Senator Pearce. "Republicans in the Senate remain committed to a smaller, smarter government as we work to develop a balanced budget solution."

The Senate Majority seeks to reduce the Governor's proposed fiscal year 2000 budget by $300 million in state discretionary spending. Discretionary funds are those that the legislature has control over when making budget decisions. These funds do not include revenue sources such as federal funds and the money that flows through the budget from Permanent Fund earnings. The Permanent Fund earnings are appropriated for inflation proofing and for Permanent Fund Dividends.

"Our $300 million reduction target includes a sustainable $40 million cut to actual general fund spending. This $40 million reduction keeps us on track with the Senate and House Majority's Five Year Budget Plan," said Senator Pearce.

Pearce explained sustainable cuts as those that will remain over the long term and do not creep back into the budget again in subsequent years.