I would like to take this opportunity to explain the importance of an upcoming election issue, and how it may affect CIRI shareholders.

On September 14, Alaskan voters will be asked to go to the polls during a special election to answer the following question: After paying annual dividends to residents and inflation-proofing the Permanent Fund, should a portion of the Permanent Fund earnings (not the principal of the Permanent Fund) be used to balance the state's budget?

Here are the economic factors that can help you analyze this election question.

Oil revenues alone can no longer support Alaska. North Slope production is half what it was 10 years ago, and continues to decline every day. Oil prices could double and Alaska would not have enough money to provide essential government services to its residents.

Whether or not you believe the state government is totally efficient, remember that no government-state, local, or national ­ will ever be totally efficient. However, the government will always be an essential provider of services, and even if it becomes more efficient, efficiency alone will not be enough to bridge the gap.

In fact, three years of successive budget reductions totaling $235 million, Alaska still faces a $1 billion budget deficit. It's a deficit that will

continue to grow each year as production declines.

We are certainly not able reduce the state's budget by a billion dollars without throwing Alaska into a recession. This is where every shareholder has an interest, both our shareholders living in Alaska and those living outside the state. A recession similar in proportion to what occurred in Alaska in 1987, when oil prices plummeted, would mean a loss of jobs, the reduction of real estate values, and a corresponding negative effect on service industries such as tourism, construction, and equipment sales. Unlike 1987, we certainly can't expect and would not want another Exxon Valdez type disaster to save us from a recession. An economic downturn of that magnitude would negatively affect CIRI's financial health and, in turn, eventually affect all shareholders as a result.

Fortunately, Alaskans had the foresight to plan for the day when oil revenues could no longer fully fund state government. We ­ the people of Alaska ­ created the Alaska Permanent Fund almost 25 years ago. The Fund has allowed Alaskans to personally share our oil riches through the dividend program, and also put enough money away so Fund earnings could help fill in when oil revenues began to decline.

I believe the day has arrived. A "yes" vote on the September 14 ballot proposition would set in motion the following elements for Alaska's future:

* This balanced budget plan would ensure Alaskans continue to receive healthy Permanent Fund dividends. Dividends under this plan would be at the $1,700 level over the next two years then decrease to $1,340 in the third year,

but could grow again as the fund continues to grow.

* Protect and grow the Permanent Fund's principal ­ the part that's truly permanent.

* Inflation-proof the Fund's principal.

* Provide a steady, predictable flow of revenues to pay for essential state services such as education, public safety and road repairs.

* Continue to reduce the cost of state government.

* Institute new revenue sources.

* Defer for the present a personal income or sales tax in Alaska.

* Balance the budget.

* Help avoid a recession that undue cuts in the state budget would trigger.

This important decision is taking place at the end of the twentieth century. How this state enters the next millennium will be, in no small measure, decided by Alaskans on September 14th. It's an important choice for Alaskans to make. Accordingly, I hope all CIRI shareholders and other Alaska Natives who are eligible to vote will take the time to participate in this election.

CIRI intern Hallie Bissett is spending her summer researching information for an Alaska Native history calendar aimed at promoting cultural pride and educating people about important historical events.

The goal for the calendar ­ 365 Days of Alaska Native History ­ is to find an event in Native history for every day of the year with representation from as many Native groups and organizations as possible. So far, events have been identified for more than 200 days of the year.

Bissett is entering the information she gathers into a database designed by Steven Warner, CIRI computer support technician, that includes fields for the date, year, event and information source. Other fields include person's name, ethnicity, village and corporation. The hope is that the calendar will become a living document that can be changed as historical events are added.

The calendar eventually will be published and made available to schools, radio stations and others to foster discussion of events for that day. In addition, it possibly could be marketed as a separate publication. Unlike a timeline, which lists events in chronological order by year, the calendar will include information for

each day of the year. Because the information will be stored in a database, information eventually could be accessed in specific categories. For example, all dates relating to CIRI could be printed separately.

If you or your organization have suggestions for events to include in the calendar, please contact Bissett at (907) 263-4525. What could be included? A Native leader's birthday, the date an organization was formed or became officially incorporated, the day of an important meeting. A few examples for August include:

August 1 ­ Fifty-seven presidents of villages from the Yukon and Kuskokwim areas vote in 1969 to create the Association of Village Council Presidents. (Source: U.S. House of Representatives hearings, August 2-6, 1969.)

August 10 ­ Howard Sikvoan Weyahok Rock born near Tigara (Point Hope) in 1911. He was the fifth child of Weyahok (Sam Rock) and Keshorna (Emma). (Source: Art and Eskimo Power, by Lael Morgan.)

August 16 ­ In 1896, George Washington Carmack, a Californian and a carryover from the Juneau gold discovery, and his two Tlingit in-laws, Skookum Jim and Tagish Charlie, find

some coarse gold in the gravel of Rabbit Creek. It was renamed Bonanza Creek by Carmack. (Source: Building Alaska with the United States Army, published by the Information Office, Headquarters, U.S. Army, Alaska, October 1, 1965.)

August 17 ­ On this date in 1979, Sealaska Corp. receives the first Alaska Native Claims Settlement Act land from the federal government. (Source: Sealaska Corp.)

August 24 ­ Cook Inlet Tribal Council established in 1983. (Source: CIRI Calendar.)

Chief Leschi School

Saturday, September 25, 1999

Romig Middle School

Saturday, October 2, 1999