The commission thought municipalities should take on some services which are now paid for by the state. While we are fully funding the education of students, we're asking local communities to pick up a small share of the cost of getting them to school. Overall, the reduction in state aid to communities is only 1.2 percent. Number four of the budget plan is raising additional revenues. This budget incorporates the financial commission's recommendations for three tax increases.
Studies show price increases are the main deterrent to children using cigarettes.
This budget also calls for an increase in Alaska's gasoline tax, now the lowest in the nation. Alaskans deserve a safe and reliable public transportation system. So I urge the Legislature to consider a constitutional dedication of the revenues from a gasoline tax to maintaining our roads and other public transportation facilities. I know many in this room have been at the forefront of this initiative in the past and I look forward to working with you on it. The fifth, final and most important element of our budget plan is enlarging and protecting the Permanent Fund.