BLM Scoping Report

There are several issues that concern me with this budget.  Number one, it requires a CBR draw and secondly, we are increasing spending, when we should be decreasing. This budget relies on two primary things to balance, a $2500 reduction to the Permanent Fund Dividend and a draw from our Constitutional Budget Reserve. There have been no other meaningful reductions that have been supported by the majority.

We increased spending in all phases of the budget process. $41 million dollars was added to the budget by the Finance Subcommittees.The House Finance Committee added over $200 million to the budget including a BSA increase of $1,000 dollars which has a price tag of $253 million. 

Fortunately, only $4 million dollars was added to the budget by House Floor Amendments. However, through this process it has been add, add, add.

The minority has offered millions in cuts and proposed increases in areas that aim to pay for themselves. However, whenever there was an opportunity for the majority to show their willingness to work with us to balance this budget, the vote was 19 – 21. It is not just about cutting, it is in investing and paying for the things that make sense and that can be sustained 

This budget contains an unallocated reduction of $78.5 million dollars that our legal department has told us is risky and unconstitutional.  By doing so, we have abrogated our legislative responsibility and power and are asking the Executive Branch to do our job. We are passing our powers over to the Executive Branch.

It is totally irresponsible to pass a budget that contains a BSA increase of $1,000 when the Governor has publicly stated he going to veto HB 69 which contain a $1,000 BSA increase.

Everyone in this body realizes that there must be an increase to the BSA, however, we just can’t afford a $1,000 increase. 

It is difficult to determine precisely what the CBR draw will because there are several outstanding items. We have not received all the contracts for salary or cost of living increases for GGU employes, confidential union employees or three Alaska Marine Highway contracts. These are anticipated to cost at least $40 million dollars. We aren’t sure what the capital budget will be.

Finally, our budget is based on an oil price of $68 dollars per barrel, and currently oil prices are at $63 dollars per barrel. This is a $164 million dollar reduction in projected revenues.