1993-01-22                     Senate Journal                      Page 0124
SB 58                                                                        
SENATE BILL NO. 58 by the Senate Rules Committee by request                    
of the Governor, entitled:                                                     
                                                                               
"An Act relating to the longevity bonus program."                             
                                                                               
                                                                               

1993-01-22                     Senate Journal                      Page 0125
SB 58                                                                        
was read the first time and referred to the Health, Education and              
Social Services Committee, the Judiciary Committee and the Finance             
Committee.                                                                     
                                                                               
Fiscal notes published from Department of Administration (2).                  
                                                                               
Governor's transmittal letter dated January 22:                                
                                                                               
Dear Mr. President:                                                            
                                                                               
Under the authority of art. III, sec. 18, of the Alaska Constitution,          
I am transmitting a bill that phases out the longevity bonus program           
over a several-year period.                                                    
                                                                               
This bill is necessary because the ever-increasing number of senior            
citizens in Alaska, coupled with the projected decline in state                
revenue, makes it clear that the state will not be able to afford the          
longevity bonus program over the long term.  It is becoming                    
increasingly necessary to shift state resources from non-need-based            
programs to programs for those truly in need.  The bill protects               
current bonus recipients, and those future recipients who turn 65              
before January1, 1994, by providing that they will receive $250 a              
month for the remainder of their lives (as long as the eligibility             
requirements are met).  The bill phases out the program by reducing            
to $200 the monthly bonus for those turning 65 in 1994, by reducing            
to $150 the monthly bonus for those turning 65 in 1995, by reducing            
to $100 the monthly bonus for those turning 65 in 1996, and by                 
eliminating the bonus altogether for those turning 65 in 1997 and              
later.                                                                         
                                                                               
I am proposing this phased elimination because many Alaskans who               
will be reaching age 65 in the next four years have counted on the             
bonus in planning for their retirement, and an abrupt termination of           
the program would not be fair to them.                                         
                                                                               
                                                                               

1993-01-22                     Senate Journal                      Page 0126
SB 58                                                                        
I urge your prompt consideration and passage of this bill.                     
                                                                               
      Sincerely,                                                               
      /s/                                                                      
      Walter J. Hickel                                                         
      Governor