Legislature(1995 - 1996)
1996-10-16 Senate Journal
Full Journal pdf1996-10-16 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