UPCOMING LEGISLATIVE ISSUES
By Senator Randy Phillips
December 30, 2000

The 22nd Alaska Legislature begins its session on January 8. The Senate has chosen Republican leadership positions and committee chairmanships as follows:

Senator Rick Halford, Senate President
Senator Loren Leman, Senate Majority Leader
Senator Pete Kelly and Dave Donley, co-chairs
Senator Robin Taylor, Judiciary
Senator John Torgerson, Resources
Senator Lyda Green, Health, Education and Social Services
Senator Randy Phillips, Labor and Commerce
Senator-elect Gene Therriault, Senate State Affairs
Senator-elect John Cowdery, Senate Transportation
Senator-elect Gene Therriault, Legislative Budget and Audit

Other Republican members of the Senate Finance Committee are Senator Jerry Ward, Senator Alan Austerman, Senator Lyda Green, Senator Loren Leman, and Senator Gary Wilken. Membership of other committees will be determined at a later date.

The state's operating budget will once again be the subject of careful scrutiny. Recent forecasts predict that North Slope oil prices will remain high for the next four years, when they are expected to stay at under $20 a barrel.

Revenue Commissioner Will Condon released the Fall Revenue Sources Book on December 13, 2000. The Department of Revenue estimates a budget surplus of $120 million, with oil prices to average $30.17 a barrel for Fiscal Year 2001. The year to date average for North Slope oil is $30.36, but is predicted to average $24.28 a barrel in Fiscal Year 2002.

Because of the expected drop in oil prices, it is projected that it will be necessary to draw $515.5 million from the Constitutional Budget Reserve in 2002, and $716.8 million in 2003. At this rate the CBR will run out of money in five years. Projects such as the proposed gas pipeline may help bring more revenue into the state, but we must still find ways to cut spending and find additional revenue for long term solutions.

The Fall Revenue Sources Book is available on-line at www.tax.state.ak.us/ The proposed pipeline routes to deliver Alaska's natural gas to the lower '48 will be the subject of discussion during the next session. There are two proposed pipeline routes. They are:

1. The Prudhoe Delta-MacKenzie Route, from Prudhoe Bay North of ANWR and through the Northwest Territories to British Columbia.

2. The Alaska Highway Route, which follows the Trans-Alaska pipeline to Fairbanks, then follows the Alaska Highway through Whitehorse and on to British Columbia and points south.

The legislature may take another look at the high school exit exams. Currently every Alaskan student will be required to pass these exams before receiving a high school diploma. Students who do not pass would receive a certificate of completion but not a diploma. Last spring when the test was given many students did not pass. The legislature will consider whether to delay the exams for another two years or more.

During the summer the Municipality of Anchorage's DUI Task Force met and considered ways to curb our growing problem with drunk driving in Anchorage and surrounding areas. Many of the task force recommendations will be incorporated into legislation that will be introduced in January. These include lowering the legal blood alcohol limit from .10 to .08, changing the legal designation from DWI (driving while intoxicated) to DUI (driving under the influence), encouraging tougher enforcement of current alcohol-related statutes, and increasing penalties for underage drinking.

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