Legislature(1995 - 1996)
1996-03-11 House Journal
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Full Journal pdf1996-03-11 House Journal Page 3064 HB 541 I have purposefully chosen general obligation bonds as the primary vehicle to finance expansion for two reasons. First, with revenue declining, it is more feasible to pay for these projects over a long term than it would be to fund them with direct capital appropriations. Second, the Alaska Constitution requires general obligation bonds to be submitted to the voters of the state for ratification and I strongly believe that such a substantial financial commitment deserves to be subjected to a vote of the people. I have taken the additional step of including the costs of the first full year of operations once all of the projects in the ballot proposition are completed. We expect an estimated average annual debt service payment of $13,423,000 through 2013 if the bonds are sold at par. The Department of Corrections estimates that the operating costs for the first full year after all these projects are completed will be approximately $28,000,000. Cost reductions made possible by the projects, such as closure of the 6th Avenue jail in Anchorage and the return of 206 prisoners from a contract facility in Arizona, are expected to produce a net operating cost of $18,700,000 for these facilities in the first year that all of them are in use. If approved by the voters, this commitment will then become an integral part of the state's long-range financial plan. I urge your support for this bill. Sincerely, /s/ Tony Knowles Governor CONSIDERATION OF THE DAILY CALENDAR SECOND READING OF HOUSE BILLS HB 478 The following was read the second time: