The Alaska Citizen's Guide to the Budget

GENERIC FISCAL PLAN [2002 VERSION 1]
TIMETABLE
ACTION EFFECTIVE FOR BUDGET YEAR

SES-
SION
LEGISLATIVE ACTION EXISTING BILL (RE-
QUIRING
RE-
VISIONS)
3 4 5 6 7 8 9 0 EFFECT WHATS NEW WITH THE BUDGET THIS YEAR SOURCE FOR BALANC-
ING BUDGET THIS YEAR

2002

1

PASS SPENDING CAP WITH A SUNSET CLAUSE--CAPS FY 2003, 2004, 2005, 2006 BUDGETS SJR 23 X X X X         HOLD GF BUDGET GROWTH TO HALF OF INFLATION FOR 4 YEARS   CBR
 2 PASS 5% ENDOWMENT TO TAKE EFFECT WITH FY 2007 BUDGET HB 35         X X X X STABILIZE REVENUES FROM FINANCIAL ASSETS    
 3 INSTITUTE BROAD BASED TAX--PERSONAL INCOME TAX SIMILAR TO KNOWLES PROPOSAL EFFECTIVE CY 2003 WITH 5 YEAR PHASE-IN ($ 90 MILLION PER CY STEP UP TO $450 MILLION IN CY 2007) [HB 10 OR HB 199 ARE ALTERNATIVE INCOME TAX MEASURES, HB 303 IS A SEASONAL SALES TAX] HB 413 X X X X X X X X PIT EFFECTIVE JAN 1, 2003 WITH 5 YEAR RAMP UP TO FULL EFFECT    
 4 REALIGN PF CONTRIBUTION RATE TO 25% HB 3 X X X X X X X X ABOUT $30 MILLION MORE TO GF AND LESS TO PF EACH YEAR STARTING FY 2003    
SUSPEND (BORROW) PF INFLATION PROOFING FOR 3 YEARS (UNTIL IT BECOMES AUTOMATIC WITH ENDOWMENT RULE WITH FY 2007 BUDGET) NEW X X X           BUILD UP EARNINGS RESERVE BALANCE    
BALANCE FY 2003 BUDGET WITH APPROPRIATION FROM CBR NEW X                    
                           
2003                       GF SPENDING GROWTH CAPPED REVENUES FROM PIT BEGIN ADDITIONAL GF REVENUES FROM OIL FINANCIAL RESERVES ACCUMULATE IN ER CBR DRAW DOWN CBR
INCREASE ALCOHOL TAX BY 10 CENTS PER OUNCE OR TO 8 TIMES CURRENT LEVEL (SB 8) HB 225 OR SB 8   X X X X X X X BRING AK IN LINE WITH OTHER STATES--ABOUT $30 MILLION TO GF    
INCREASE GAS TAX BY 10 CENTS/GALLON HB 401   X X X X X X X BRING AK IN LINE WITH OTHER STATES--ABOUT $30 MILLION TO GF    
CRUISE SHIP TAX--$30 PER PASSENGER HB 412 OR SB290                 ABOUT $20 MILLION TO GF    
IMPOSE HEAD TAX $100 PER WORKER HB 229 OR SB 165                 ABOUT $40 MILLION TO GF    
ABOLISH CBR AND USE BALANCE TO CREATE OIL REVENUE SHOCK ABSORBER--APPROPRIATE EARNINGS AND USE PRINCIPAL ONLY WHEN OIL REVENUES FALL BELOW THE LONG TERM TREND NEW   X X X X X X X FORGIVE LOAN TO GF, APPROPRIATE ONLY EARNINGS, USE BALANCE ONLY FOR OIL REVENUE FLUCTUATIONS BELOW TREND ADDITIONAL GF REVENUES AUTOMA-
TICALLY FLOW TO GF FROM THE ANNUAL EARNINGS OF THE NEW SHOCK ABSORBER FUND CREATED FROM THE CBR
 
 6 AMEND DIVIDEND FORMULA TO NET ESTIMATED PIT COLLECTIONS OUT OF DIVIDEND ACCOUNT FOR 3 YEARS NEW   X X X         DIVIDEND CUT BY ESTIMATED AMOUNT OF INCOME TAX COLLECTIONS DURING FY 2003 DIVIDEND CUT BY ESTIMATED AMOUNT OF INCOME TAX  
BALANCE FY 2004 BUDGET WITH APPROPRIATION FROM CBR BEFORE CONVERSION TO SHOCK ABSORBER NEW   X                  
                           
2004                       ADDITIONAL REVENUES FROM EXCISE TAX INCREASE CBR
1
BALANCE FY 2005 BUDGET WITH FIRST APPROPRIATION FROM ER NEW     X                
                           

2005

1

BALANCE FY 2006 BUDGET WITH APPROPRIATION FROM ER NEW       X             ER
                           
2006                       ENDOWMENT RULE TAKES EFFECT THIS SESSION ER
                        SPENDING CAP SUNSETS THIS LEG SESSION  
                        DIVIDEND DETERMINED BY ALLOCATION OF PF EARNINGS  
1 BALANCE FY 2007 BUDGET AND DETERMINE THE SIZE OF THE DIVIDEND A SPLIT OF THE ANNUAL EARNINGS OF THE PERMANENT FUND (% ALLOCATION) NEW         X       ALLOCATE PF EARNINGS BETWEEN GF AND DIVIDEND FOR FY2007 BUDGET    
                           

2007

1

SWEEP ER BALANCE INTO THE PERMANENT FUND TO REPAY SUSPENSION (BORROWING) NEW                     PER-MANENT FUND EARNINGS SPLIT
2
BALANCE FY 2008 BUDGET AND DETERMINE THE SIZE OF THE DIVIDEND A SPLIT OF THE ANNUAL EARNINGS OF THE PERMANENT FUND (% ALLOCATION) NEW           X     ALLOCATE PF EARNINGS BETWEEN GF AND DIVIDEND FOR FY2008 BUDGET    
                           
                        FULL EFFECT OF PERSONAL INCOME TAX REACHED WITH FY 2008 BUDGET PERMANENT FUND EARNINGS SPLIT

2008

1

BALANCE FY 2009 BUDGET AND DETERMINE THE SIZE OF THE DIVIDEND A SPLIT OF THE ANNUAL EARNINGS OF THE PERMANENT FUND (% ALLOCATION) NEW             X   ALLOCATE PF EARNINGS BETWEEN GF AND DIVIDEND FOR 2009 BUDGET    
                           

2009

1

BALANCE FY 2010 BUDGET AND DETERMINE THE SIZE OF THE DIVIDEND A SPLIT OF THE ANNUAL EARNINGS OF THE PERMANENT FUND (% ALLOCATION) NEW               X ALLOCATE PF EARNINGS BETWEEN GF AND DIVIDEND FOR 2010 BUDGET   PERMANENT FUND EARNINGS SPLIT
                           

2010

1

BALANCE FY 2011 BUDGET AND DETERMINE THE SIZE OF THE DIVIDEND A SPLIT OF THE ANNUAL EARNINGS OF THE PERMANENT FUND (% ALLOCATION) NEW                 ALLOCATE PF EARNINGS BETWEEN GF AND DIVIDEND   PERMANENT FUND EARNINGS SPLIT
                           

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