1993-01-15                     House Journal                      Page 0070
HB 56                                                                        
was read the first time and referred to the Finance Committee.                 
                                                                               
                                                                               
The Governor's transmittal letter, dated January 15, 1993, 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 1994.                                         
                                                                               
As last year, I am introducing two appropriations 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 the funding necessary for these formula programs.                
                                                                               
Formula programs represent 44 percent of the state's fiscal year 1994          
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 1994, however, my proposed budget finally puts a halt to           
this trend.  It is an increase of only 1.4 percent over this current fiscal    
year.                                                                          
                                                                               
This bill fully funds the needs of our K-12 educational system by              
providing nearly $18 million in increased funding for student                  
enrollment increases throughout the state.                                     
                                                                               
Over $22 million in increased funding is provided to meet the                  
projected increases in public assistance programs, many of which are           
services mandated by the federal government.  While this amount                
seems like a lot, it represents an $18 million dollar reduction from           
what would be necessary without reforms to our welfare system.  I am           
proposing to control growth of these programs and achieve this                 
reduction by legislation accompanying this appropriations bill.  This          
will require the commitment of the Legislature to make these important         
and necessary changes.  We must re-evaluate the current welfare                
system and do all we can to ensure the right incentives are in place.