Legislature(1995 - 1996)
1996-10-21 House Journal
Full Journal pdf1996-10-21 House Journal Page 4823 HB 412 The following letter, dated June 28, 1996, was received: Dear Speaker Phillips: Today I signed House Bill 412 which contains much of the FY 97 operating and loans budget, and made certain line item vetoes in the bill. I am transmitting the engrossed and enrolled copies to the Lieutenant Governor for permanent filing: CONFERENCE CS FOR HOUSE BILL NO. 412(brf fld H/S)(efd fld S) An Act making appropriations for the operating and loan program expenses of state government, for certain programs, and to capitalize funds. Chapter No. 117, SLA 1996 ªEffective Date: July 1, 1996ß I have also today signed three other bills from the regular and special legislative sessions which make appropriations for FY96 and FY97 and fund negotiated labor contracts: HB 413, HB 1001 and SB 1005. I also signed SB 1003 which implements several employer cost reduction measures and authorizes salary adjustments for non- represented employees. Since these five bills are interrelated, this letter discusses them together and explains my vetoes in HB 412. 1996-10-21 House Journal Page 4824 HB 412 The coming years operating budget (HB 412) and related measures include some provisions which begin to move Alaska toward fiscal responsibility: cut the budget, protect and grow Alaskas savings accounts and provide for many important public services. We also took several important steps to create and preserve jobs for Alaskan families. Unfortunately, the budget lacks important provisions upon which Alaskans must rely for a safe economic landing. The Republican-led Legislature failed to adopt a responsible long-range budget plan which uses a variety of tools to close Alaskas budget gap. In fact, legislators stripped from the budget in the final hours provisions committing to a long-range plan. The Legislature failed to take any steps to diversify Alaskas revenue base. Most notably, the House leadership refused to allow a simple up or down vote on increasing Alaskas tobacco tax, which has the critical public health benefit of reducing tobacco use by our young people. The Legislature failed to provide vital services to some of the Alaskans who most need them. For example, it denied basic dental and medical care to elderly and poor Alaskans, under-funded foster care for abused Alaskan children and failed to adequately fund fish and game management at a time of increased federal control over Alaskas fish and wildlife resources. Despite these budget failures, legislators found the money to increase their own living allowances by 7 percent. While making significant cuts to virtually every other department in state government, the Legislature reduced its own budget by barely one percent. I was tempted to exercise my veto authority to rectify that disparity, but I am leaving it to the Republican majority to explain their actions to Alaskan voters. I did exercise my line item veto authority to reduce the transfer of unrestricted cash from the Alaska Industrial Development and Export Authority to the state general fund by $1.7 million. This will bring the AIDEA distribution to $15 million, the amount expected to be approved by AIDEA's board of directors at its meeting next month. (Under the new AIDEA dividend statute, in future years we will have 1996-10-21 House Journal Page 4825 HB 412 the board's dividend recommendation before the Legislature takes final action on the budget.) I also reduced the fiscal note appropriation for printing election ballots since there will be fewer ballot issues this year. During the special session, new information allowed for a $1.6 million reduction in the amount needed for FY97 debt service obligations. For ease of future reference, I reduced the debt service appropriation in HB 412 by $1.6 million and vetoed as redundant the amending provision in SB 1005. As have governors before me, I have vetoed most of the legislative intent language in HB 412 and 413 and in SB 1005, regardless of whether I concur with its content. This is to maintain the appropriate distinction between the Legislature's appropriation responsibilities and the Executive branch's policy and budget implementation responsibilities. I retained language expressing the Legislature's intention to use supplemental appropriations to complete full-year funding or directing the Administration to seek additional receipt authority from the Legislative Budget and Audit Committee, as needed. Sincerely, /s/ Tony Knowles Governor