1993-07-21                     House Journal                      Page 1972
HB 55                                                                        
The following letter dated June 23, 1993, was received:                        
                                                                               
"Dear Speaker Barnes:                                                          
                                                                               
On this date I have signed the following bill and am transmitting the          
engrossed and enrolled copies to the Lieutenant Governor's Office for          
permanent filing:                                                              
                                                                               
CONFERENCE CS FOR HOUSE BILL NO. 55                                           
"An Act making appropriations for the operating and loan program              
expenses of state government and to capitalize funds; and                      
providing for an effective date."                                              
                                                                               
	Chapter No. 65, SLA 1993                                                      
	Effective Date:  July 1, 1993                                                 
                                                                               
The Fiscal Year 1994 operating budget has been signed into law                 
without veto or reduction of the appropriations, other than vetoes that        
were necessary because the underlying bills will not become law as a           
result of the 1993 session.  While some Alaskans will be disappointed          
I did not exercise the Governor's power to further reduce the budget,          
it is important to note:                                                       
                                                                               
*The Fiscal Year 1994 general fund budget for agency                         
operations has been reduced 4.2 percent.  When you add                         
inflation to the cost of providing services, agencies have been                
reduced nearly 8 percent.                                                      

1993-07-21                     House Journal                      Page 1973
HB 55                                                                        
*The growth in the Fiscal Year 1994 budget for formula-driven                
programs has been held to 3.7 percent.                                         
                                                                               
The challenge to state agencies will be to continue providing Alaskans         
with the quality and level of services they have come to expect--but           
with less dollars to pay for them.  At the same time, it is important          
Alaskans realize less is being spent on government.  This continues the        
trend I began when I came into office.  From Fiscal Year 1991 to               
Fiscal Year 1994, the operating budget has been reduced nearly 13              
percent in real dollars.                                                       
                                                                               
One of the greatest contributions of this legislative session is slowing       
the runaway growth of the operating budget's formula-driven                    
programs.  For too long, these programs have been considered off               
limits and little effort has been made to control these automatic year-        
to-year increases.  But this session, the Legislature stepped up to the        
plate.  It made tough choices.  It made the kind of landmark decisions         
in passing legislation I introduced that will have tremendous long-term        
impact.  I applaud them for their courage.                                     
                                                                               
										Sincerely,                                                           
										/s/                                                                  
										Walter J. Hickel                                                     
										Governor"