Senate Minority Supportive of Budget Vetoes
Caucus Applauds Governor’S Efforts To “Live Within Our Means”

Juneau – Members of the Senate Republican Caucus reacted favorably today to Gov. Sarah Palin’s reduction of Senate Bill 53, the state capital budget, by more than $230 million.

“The budget grew despite cautions from the administration, and consequently the governor had to exercise her power to bring it more in line with revenues,” said Senate Minority Leader Gene Therriault, R-North Pole. “While our individual members are still going through the vetoes, we are supportive of the Governor’s efforts to control spending.”

“Although we are still digesting the details to make sure the criteria were applied consistently and equitably throughout all regions, we appreciate the administration’s deliberative process to fairly evaluate projects based on what is affordable and a legitimate state function,” Sen. Therriault said.

“The most consistent comment we have heard from voters is that there is too much state spending. The governor was elected with a huge approval rating, and I think this is what the people have asked her to do. The budget is unsustainable. We’ll be in a deficit in a couple of years and it’s better to make cuts now,” said Sen. Con Bunde, R-Anchorage.

Because of concerns regarding the level of overall state funding, all five members of the Senate Republican Caucus voted against Senate Bill 53 when it was on the senate floor. On May 22, the caucus sent a letter to Gov. Palin encouraging her to identify areas where spending could be reduced and judiciously exercise her line-item veto authority. The letter is attached.

Caucus letter sent to Governor Palin
http://www.aksenateminority.com/pdfs/25/veto_letter20070522.pdf

Public School Funding Under Scrutiny
Education Funding Task Force Concludes First Meeting

Anchorage – Sen. Gary Wilken, R-Fairbanks, commented today on progress of the task force appointed to report back on the State’s current system for funding public education.

“I appreciate the attitude and hard work of the task force as we work toward a meaningful resolution to the complex problem of providing equitable public school funding. It’s a daunting assignment, but we are all focused on what we have been charged to do,” Sen. Wilken said of the 11-member Joint Legislative Education Funding Task Force created in the final hours of the session to examine the distribution of state aid for education.

Sen. Wilken stressed the importance of pursuing a comprehensive approach to addressing district cost factors, a means to compensate for the variable costs of paying for schools in different parts of the state. However, the task force instead suggested funding district cost factors next year based on a 2004 study by the Institute for Social and Economic Research.

“We need a long-term, enduring solution to this problem, not a temporary fix based on a flawed study that will require further attention down the road,” Sen. Wilken said.

The task force also examined how much local governments should contribute to education, agreeing to postpone a recommendation pending further information and public testimony. Sen. Wilken defended a provision of the foundation formula that requires the state to pay 50 percent of the increase in a district’s required local contribution since 1999.

“The question is whether we want the general fund to help people who help themselves. If your community grows, the State picks up part of the growth, and keeps that money in the tax payers’ pocket. It’s about tax relief, plain and simple,” Sen. Wilken said.

The task force is required to submit a report of its findings and proposed legislative changes to the governor by Sept. 1, 2007. The next meeting is scheduled for July 11 and 12, 2007.

Contact: Sheila Peterson, 465-3709