The Alaska Senate has said "no" to everything the Conference of Alaskans recommended to fix the state's cash problems.

Already deadlocked over a spending cap and a plan to use a portion of the permanent fund, the Senate in quick order Sunday rejected both an income tax and a sales tax.

Both taxes were offered by Senate Majority Leader Ben Stevens, who served on the conference when it met in Fairbanks during February to mull the state's chronic budget woes.

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The Anchorage Republican angered Democrats by recycling a 1999 proposal floated by then-Democratic Gov. Tony Knowles and then chiding them for not embracing it.

"In essence, it was a joke and a partisan jab that really makes it hard for us to work together," said Senate Minority Leader Johnny Ellis, D-Anchorage. "It went down like the Hindenburg."

The income tax, which would have been 31 percent of someone's federal tax bill and raised $350 million, had no legislative hearings during the session. Stevens offered it as a floor amendment on Sunday.

The Senate rejected the income tax by a 4-14 vote. Stevens cast the only Republican vote in favor along with Democratic Sens. Kim Elton of Juneau, Georgianna Lincoln of Rampart and Lyman Hoffman of Bethel.

Stevens, who has been opposed to income taxes, said his amendment was not a political ploy, but an attempt to float another option to lawmakers who are slated to adjourn on Tuesday.

"We've constantly been told by members of the public by various avenues to address all options," said Stevens. "And it was a last ditch effort."

The conference recommended using permanent fund earnings for government and putting in place protections guaranteeing dividends be paid each year.

In addition, the panel of 55 Alaskans convened by Gov. Frank Murkowski, also recommended keeping a minimum balance in the reserve fund the state currently relies on to balance spending.

Murkowski endorsed only using permanent fund earnings for government along with a spending cap and has said he would ensure $1 billion is left in the Constitutional Budget Reserve.

"I think he felt like it was a good place to start. I would have to say, this is not a good place to end," said Murkowski spokesman John Manly.

After voting down the income tax, the Senate rejected Stevens' sales tax proposal by a 4-15 vote. Stevens voted for it along with Republican Sens. Con Bunde of Anchorage, John Cowdery of Anchorage, Gary Stevens of Kodiak and Gary Wilken of Fairbanks.

Already, the Senate was gridlocked over a proposal from Murkowski to ask voters' permission to use a portion of permanent fund earnings.

Dubbed the "percent of market value" amendment, the proposal would limit annual withdrawals to 5 percent of the permanent fund's 5-year average value. That would make about $1.3 billion available each year.

Murkowski wants the Senate to approve a bill that divides the money between dividends to eligible Alaskans and government if the voters approve the constitutional amendment.

Earlier this session, the House approved a version of that bill, which earmarks about $573 million for state government and $64 million for local governments.