1995-06-26                     Senate Journal                      Page 1967
SB 135                                                                       
Message of June 16 was received, stating:                                      
                                                                               
Dear President Pearce:                                                         
                                                                               
Under the authority of art. II, sec. 15 of the Alaska Constitution, I          
have vetoed the following bill:                                                
                                                                               
HOUSE CS FOR SENATE BILL NO. 135(FIN) am                                      
H(efd fld S)                                                                   
"An Act relating to permanent fund dividend                                   
program notice requirements, to the ineligibility for                          
dividends of individuals convicted of felonies or                              
incarcerated for misdemeanors, and to the                                      
determination of the number and identity of certain                            
ineligible individuals."                                                       
                                                                               
Senate Bill 135 raises several substantial problems which have                 
caused me to veto this legislation.  The first is its treatment of             
Permanent Fund Dividend monies.  Currently dividends are not paid              
to incarcerated felons.  The money that would have been paid them              
is appropriated by the Legislature to programs such as the Violent             
Crimes Compensation Program which directs monies to people who                 
are impacted by criminal behavior.  SB 135 would have added non-               
incarcerated felons and incarcerated, third-time misdemeanants to the          
list of those denied dividends.  While I have no problem with this             
action in itself, the bill would move up the timing of the action to           
"double dip" and make an "extra" year's withholding available for              
FY 96.  This "double dip" would have the effect of denying                     
approximately five dollars from each Alaskans' dividend checks next            
fall.  Additionally, the bill provides an exception from having to             
disclose the use of these "extra" dividend funds on Alaskans' check            
stubs.  I cannot be a party to this deception.                                 
                                                                               

1995-06-26                     Senate Journal                      Page 1968
SB 135                                                                       
The "double dipping" provided  $2.7 million for the Department of              
Corrections which has been identified in this year's operating budget,         
HB 100.  These funds were not supplemental to the Department's                 
budget, but rather supplanted general fund monies. While the                   
Department could sorely use this money,  I can not go along with               
this form of off-line, one-time budgeting.  Next year the budget               
needs will not go away, but the one-time monies will have to be                
replaced with increased general funds.                                         
                                                                               
Additionally, some of the PFDs currently going to non-incarcerated             
felons and third-time misdemeanants, perhaps hundreds of thousands             
of dollars, are already going to state agencies.  Currently DHSS               
alcohol rehabilitation programs, the Child Support Enforcement                 
Agency and other state agencies are garnishing these lawbreakers               
PFDs to pay for services provided them.  Directing their denied                
dividend monies to some state agencies and programs but not others             
may create serious shortfalls in the funding of some programs.                 
                                                                               
Although this bill is badly flawed, I do think there are ways to               
restructure the bill which can achieve the primary purpose of taking           
PFD monies from those in our society to help pay for the significant           
expenditures of public monies their actions cause.  I stand ready to           
work next year toward that end.                                                
                                                                               
						Sincerely,                                                               
						/s/                                                                      
						Tony Knowles                                                             
						Governor