Legislature(1995 - 1996)

1996-10-21 House Journal

Full Journal pdf

1996-10-21                     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