Legislature(1995 - 1996)

1996-10-16 Senate Journal

Full Journal pdf

1996-10-16                     Senate Journal                      Page 4434
SB 136                                                                       
Message of June 30 was received, stating:                                      
                                                                               
Dear President Pearce:                                                         
                                                                               
On this date I have signed Senate Bill 136 which includes the FY               
97 capital budget as well as several FY 97 operating items,                    
reappropriations and supplemental appropriations for FY 96. I have             
made certain line item vetoes in the bill. I am transmitting the               
engrossed and enrolled copies to the Lieutenant Governor for                   
permanent filing:                                                              
                                                                               
                                                                               

1996-10-16                     Senate Journal                      Page 4435
SB 136                                                                       
HOUSE CS FOR 2d CS FOR SENATE BILL NO.                                        
136(FIN)am H(brf sup maj fld H)(efd fld S)                                     
An Act making, amending, and repealing                                        
appropriations.                                                                
                                                                               
		Chapter No. 123, SLA 1996                                                    
		Effective Date: See Chapter                                                  
                                                                               
This capital budget is drawn primarily from the proposal I submitted           
to the legislature early in February. It clearly emphasizes the basics         
of transportation, education, health, public safety and economic               
development. It makes an important first deposit of $6 million into            
the Childrens Trust which was established several years ago to                 
prevent child abuse and neglect, but was never funded.                         
                                                                               
Last March, I presented a realistic six year capital budget plan to            
replace Alaskas boom and bust capital budget process with a plan               
for predictability and stability. The six year plan outlined how we            
can address basic needs. It would have given communities, school               
districts, the university and Alaska businesses much-needed guidance           
about anticipated state funding for capital construction and major             
maintenance. Unfortunately, the legislature held no hearings and took          
no action on that plan. I will submit an updated plan again next               
session and urge the legislature to do what most communities already           
do: plan their capital budgets more than one year at a time.                   
                                                                               
With several glaring exceptions relating to public safety, the FY 97           
capital budget is generally consistent with the first year of my long          
term capital plan. I believe it was irresponsible of the Republican            
majority not to expand the Johnson Youth Center to help relieve                
overcrowding of juvenile treatment facilities in Juneau, Anchorage,            
Fairbanks and Bethel. It was also unwise not to allow a public vote            
on bonds for a regional prison system since there can be no bond               
vote until November 1998, more than two years away. Also, by not               
funding the next phase of modernizing and connecting Alaskas                   
criminal justice computer systems, we hamper the efforts of our state          
and local law enforcement, prosecution and corrections officials.              
                                                                               
                                                                               

1996-10-16                     Senate Journal                      Page 4436
SB 136                                                                       
I have exercised my constitutional line item veto authority by                 
deleting the reappropriation in Section 73 because the particular oil          
and gas studies described there are not needed. I also vetoed the              
reappropriation in Section 23 which would take $25,000 away from               
a grant to the North Star Borough for the Badger flood control and             
drainage project and use it to buy two paintings of former U.S.                
Senators from a religious foundation in Fairbanks. Artwork with                
historical significance is usually purchased by the state museum               
which, by statute, cannot spend more than $5,000 for an item                   
without the written approval of the Museum Collections Advisory                
Committee, a five-member public board. In addition, borough Mayor              
Sampson requested the veto of the reappropriation and project scope            
change, noting that the legislature did not consult the borough on             
either change.                                                                 
                                                                               
Section 89 appropriated half a million dollars for a study of state            
employee salaries and benefits which I am vetoing because the                  
timing for such a study is not cost-effective. The recently approved           
contracts for most state workers extend to 1999, so a comparative              
study should be done closer to the time of contract negotiation rather         
than now. We have learned that the federal Bureau of Labor                     
Statistics is currently doing a study of private and public salaries in        
Alaska as part of its periodic review throughout the nation. If                
designed properly, information of this kind would also be extremely            
useful to states and local governments seeking to evaluate their own           
public wage and benefit packages. It makes no sense for state, local           
and federal governments to fund separate compensation studies in a             
state. To remedy this duplication, I will work with the National               
Governors Association to seek a partnership with the Bureau to                 
coordinate compensation studies between states and the federal                 
government. As part of our continuing work to control personnel                
costs, Department of Administration Commissioner Boyer is                      
examining ways to better manage health care and other employer                 
costs.                                                                         
                                                                               
Finally, I made a technical veto of Section 52 because the item was            
already listed with all other ratifications in Section 91. I vetoed            
several expressions of legislative intent whether or not I concur with         
their content to maintain the appropriate distinction between the              
legislatures  appropriation  responsibilities and the executive branchs        
                                                                               

1996-10-16                     Senate Journal                      Page 4437
SB 136                                                                       
policy and budget implementation responsibilities. I retained language         
expressing the legislatures intention to seek additional funding               
authority as needed.                                                           
                                                                               
I am letting stand Section 89 in which the legislature moved federal           
stripper well funds for energy conservation services to the                    
Department of Community and Regional Affairs and directed that the             
funds go to two organizations which have provided these services in            
the past. I am fully committed to the Alaska craftsman and energy              
rated homes programs; they meet important housing needs for                    
Alaskans statewide. However, the opportunity for the private sector            
to provide these services in partnership with the state should be              
determined through fair and open competition. Alaska Housing                   
Finance Corporation (AHFC) is the most appropriate agency to                   
manage the stripper well-funded programs. It is the lead agency for            
the federally funded State Energy Program and the state agency with            
primary responsibility for residential construction, energy conservation       
and financing. For these reasons, I will transfer the funds back to            
AHFC through an inter-agency service agreement and instruct AHFC               
to follow the process outlined in statute (below) to ensure appropriate        
opportunities for all interested parties in the private sector to respond      
to requests for proposals.                                                     
                                                                               
Sec. 37.05.316.  GRANTS TO NAMED RECIPIENTS.                                  
	(a) When an amount is appropriated or allocated to                           
a department as a grant for a named recipient that is not a                    
municipality, the department to which the appropriation or                     
allocation is made shall promptly notify the named recipient                   
of the availability of the grant and request the named                         
recipient to submit a proposal to provide the goods or                         
services specified in the appropriation act for which the                      
appropriation or allocation is made.  At the same time, the                    
department may issue a request for proposals from other                        
qualified persons to provide the same goods or services in                     
the same area.  The department shall award the grant to the                    
named recipient unless the Office of the Governor, with due                    
regard for the local expertise or experience of those making                   
proposals, determines that an award to a different party                       
would better serve the public interest. ªThe statute continues                 
with a description of the notification process.ß                               
                                                                               

1996-10-16                     Senate Journal                      Page 4438
SB 136                                                                       
I am bringing to your attention some non-vetoed items that deserve             
comment to prevent any misunderstanding by the public even though              
the legislature is well aware of their meaning. Three transportation           
projects added by the legislature have no practical effect in the FY           
97 budget: completion of the Chena Hot Springs Road rehabilitation,            
the Seward Highway exit ramp and Taylor Highway. As you are                    
aware, these legislative additions do not actually provide any                 
funding. The first project was already taken care of through existing          
administrative authority and the other two are not on the Statewide            
Transportation Improvement Program list for FY 97 which was                    
developed in a thorough public process. Their appearance in this bill          
does not in any way give them the jump on the normal public                    
process which will determine project priorities for next years budget.         
The Seward erosion/marine terminal project may help secure federal             
ferryboat discretionary funds but, as with the others, does not provide        
any funds this year.                                                           
                                                                               
						Sincerely,                                                               
						/s/                                                                      
						Tony Knowles                                                             
						Governor