1994-01-14                     House Journal                      Page 2064
HB 371                                                                       
HOUSE BILL NO. 371 by the House Rules Committee by request of                  
the Governor, entitled:                                                        
                                                                               
"An Act making appropriations for operating expenses for certain              
programs for which the costs are derived from mandated formulas                
or criteria, and for expenses for certain leases and contracts for             
state services and operations; and providing for an effective date."           
                                                                               
was read the first time and referred to the Finance Committee.                 
                                                                               
The Governor's transmittal letter, dated January 14, 1994, appears             
below:                                                                         
                                                                               
"Dear Speaker Barnes:                                                          
                                                                               
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am     
transmitting legislation making appropriations for formula-funded              
program expenses for fiscal year 1995.                                         
                                                                               
As in past years, I am introducing two appropriation bills:  one for the       
"agency operations" part of government, and one that appropriates the          
funding necessary to meet the costs of formula-funded programs.  This          
bill provides funding for these formula programs.                              
                                                                               
Formula programs represent 47 percent of the state's fiscal year 1995          
general fund operating budget.  Due to the demands of uncontrollable           
increases in the number of participants in these programs, these               
programs have experienced tremendous increases in recent years.  For           
fiscal year 1995, however, my proposed budget finally puts a halt to           
this trend.  It is a decrease of 2.5 percent from this current fiscal year.    
                                                                               
This bill maintains funds for our K-12 educational system at the FY94          
level of $675,234,600.                                                         
                                                                               
Over $34.8 million in increased general funds is provided to meet the          
projected increases in medicaid and public assistance programs, many           
of which are services mandated by the federal government.  While               
these increases have slowed as a result of legislation enacted last            
session, we must continue to make certain Alaskans currently on                
welfare can get off that merry-go-round.  We must provide them with            
                                                                               

1994-01-14                     House Journal                      Page 2065
HB 371                                                                       
the training that will prepare them for productive jobs, and then make         
certain we have a healthy economy so jobs are available to them.               
Another area of significant reduction is in the municipal assistance and       
revenue-sharing programs.  I understand this reduction will capture the        
attention of just about every community throughout the state, but my           
goal is simple: to encourage local governments with a tax base to pay          
for local services.                                                            
                                                                               
The programs included in this appropriations bill represent the fastest        
growing area of state government.  Controlling their costs continues to        
be a high priority for my Administration.  I look forward to working           
with the Legislature on achieving this goal.                                   
                                                                               
                                                                               
Additional information pertaining to the appropriations requested in           
this bill are being furnished to the Legislature by my Office of               
Management and Budget.                                                         
                                                                               
With best regards.                                                             
                                                                               
												Sincerely,                                                         
                                                                               
												/s/                                                                
                                                                               
												Walter J. Hickel                                                   
												Governor"