As the co-chairmen of the House Finance Committee, we are proud of the investments the Legislature has made for the 2009 fiscal year. Operating and capital budgets are more than just numbers; they are expressions of policy and priorities. The Legislature's final budgets show our commitment to saving the surplus, minimizing growth to the operating budget, supporting our communities and investing in infrastructure.
The $5 billion the Legislature appropriated directly to savings actually understates our commitment to savings.
The 2009 operating and capital budgets are balanced on a per barrel oil price of $82. With oil above $100 per barrel, we are in effect saving by not spending surplus revenue. The Legislature left money on the table that will be saved in the future. In 2009, the Legislature will have completely repaid the past withdrawals made from the Constitutional Budget Reserve.
The governor's proposed operating budget, which reflects the growth of government, was reduced by $102.6 million by House and Senate finance committees. The administration and the finance committees had significant debate regarding the growth rates of the operating budget and how the budget is presented. That discussion offered open, clear and transparent information to the public. We were successful in presenting the budget in a format that shows the actual cost of state government.
The Legislature amended the school funding formula to send additional resources to rural schools, while increasing aid to meet the challenges in urban Alaska. These changes were funded in the 2009 budget and we saved additional money in the Public Education Fund to prefund one future year of education. The Legislature also reauthorized the school bond debt reimbursement program, which reduces the cost of new school construction for taxpayers.
A long-term community revenue sharing program was established in lieu of the one-time program the governor proposed. In rural Alaska, revenue sharing payments can mean the difference between a solvent community and the shutdown of vital services. In urban Alaska, revenue sharing payments may be used to offset property taxes and bring relief to taxpayers.
The Legislature also reformed the state's public and teachers retirement systems by sharing retirement costs with communities. Passage of SB 125 provided stability, predictability and fairness to communities. By sharing the costs, the Legislature has put the brakes on one of the biggest drivers in the increasing cost of municipal government and school districts.
Each year, the Legislature makes significant one-time appropriations to municipalities and school districts in the capital budget. While not traditionally considered revenue sharing, these investments, when made by the state, relieve local taxpayers.
The cost of energy in Alaska is the most critical issue facing our state. A renewable energy fund was established to make resources available for investment in renewable energy infrastructure.
Additionally, $300 million was dedicated for state energy efficiency and programs. Renewable energy projects will reduce power costs in the future and the state's energy efficiency programs will aid Alaskans in improving their homes today in order to reduce the costs of heating their homes tomorrow.
As co-chairs of the House Finance Committee, we have brought more transparency to the budget process and improved the public's access to information under consideration in the committee.
For many years, budget information has been available online and is updated as the budget bills move through the legislative process. For the first time, backup documentation for legislative capital projects was made available on the Web. We are proud of our efforts to make up-to-date and relevant information available to Alaskans.
With the investments we have made in savings, infrastructure and our communities, we are showing our commitment to re-enforcing a strong foundation, so that future legislatures may continue to build our great state.
Rep. Mike Chenault, R-Kenai, and Rep. Kevin Meyer, R-Anchorage, are co-chairmen of the House Finance Committee.
By REPS. MIKE CHENAULT and KEVIN MEYER