KENAI PENINSULA BOROUGH ASSEMBLY

Pete Sprague, President Gary Superman, Vice President

144 North Binkley Street

Soldotna, Alaska 99669

M E M O R A N D U M

TO: Pete Sprague, Assembly President

Members of the Borough Assembly

FROM: Betty Glick, Assembly Member

DATE: January 9, 2004

SUBJECT: Resolution 2004-006, Opposing SJR 18

I am submitting this resolution on behalf of the constituents who have contacted me with their concerns.

Even though there may be some support for the POMV by some Borough residents, I believe the majority do not. Therefore, we should oppose SJR 18 at this time until we, the people, have a clear explanation as to exactly how the POMV would be implemented.

As it stands now, the Permanent Fund Trustees support it for the following reasons:

�Inflation proofing would be automatic.
�There is less volatility in the payout when it is based on Total Market Value which is a much larger number than earnings.
�A Market Value strategy eliminates the temptation to take profits prematurely.
�A payout would be possible even without earnings.

However, the Governor's Administration continues to imply that the POMV by itself achieves other policy objectives such as a way to bridge the fiscal gap, extend the life of the Constitutional Budget Reserve and guarantees dividends while apparently it would do none of these things.

The Trustees never advocate how the payout of the fund should be spent and so we have to have a clear understanding as to how the Governor and the Legislature would spend the money.