Legislature(1997 - 1998)
1997-07-10 House Journal
Full Journal pdf1997-07-10 House Journal Page 1991 HB 75 The following letter, dated June 30, 1997, was received at 8:17 p.m.: "Dear Speaker Phillips: On this date I have signed the following bill ªwith line item vetoesß and am transmitting the engrossed and enrolled copies to the Lieutenant Governor's Office for permanent filing: 1997-07-10 House Journal Page 1992 HB 75 CONFERENCE CS FOR HOUSE BILL NO. 75 "An Act making appropriations for the operating and loan program expenses of state government, for certain programs, and to capitalize funds; making appropriations under art. IX, sec. 17(c), Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date." Chapter No. 98, SLA 1997 ªEffective Date: See Chapterß The single largest appropriation in this FY98 operating budget is a deposit of approximately $700 million in Permanent Fund earnings to the fund's principal. By protecting our seed corn--the Permanent Fund, Alaska Housing Finance Corporation (AHFC), and Alaska Industrial Development and Export Authority (AIDEA)--we help turn today's budget discipline into a benefit for future Alaskans. My original budget proposed some difficult cuts; my Administration worked with you on further cuts. In the coming year, our agencies will work to provide essential public services within significantly reduced budgets in areas such as fisheries management, transportation, and corrections. However, we recognize that additional large budget cuts may not allow us to adequately provide the services on which Alaskans depend. Some of the more severe legislatively proposed cuts were averted through joint efforts of the Administration, Legislature, and constituency groups to find other ways of funding or delivering service to the public. Key programs such as solid waste, tourism, and trade can therefore continue at what we hope will be a reasonable level. In areas such as public safety and child protection, budget cuts have prevented services from keeping pace with the needs of a growing population. Luckily, Alaskans were spared even deeper cuts in services by two external events that took place late in the session: a reduced Public Employees Retirement System retirement contribution requirement of $16 million--a benefit of the excellent investment market--and an Investment Loss Trust Fund settlement of $11 million. 1997-07-10 House Journal Page 1993 HB 75 The Administration and Legislature have worked together on numerous budget discipline improvements such as staying within the very modest supplemental budget target for FY97, implementing a reserves policy, and broadening our view of the budget to include all fund sources. However, the cuts in the FY98 general fund budget are based in part on using one-time funds for ongoing commitments such as $5 million in Investment Loss Trust Funds for the cost of living provisions of our negotiated labor contracts. We cannot count on receiving annual windfalls to meet these annual commitments. Some very important operating budget challenges remain for next session. It is essential we develop a funding plan for education that links quality education and state aid to schools. We must not allow arbitrary budget cut targets to prevent us from protecting public safety, developing our economy, and ensuring the well-being of our children. We have a lot of work ahead to manage the massive changes in welfare reform and Medicaid. These challenges must be part of our deliberations next session. In taking final action on the FY98 operating budget, I followed a long- standing gubernatorial tradition of vetoing intent language because it is not appropriate in an appropriations bill. I have done this whether I agree with the underlying concept or not. The exceptions to this veto policy are when the intent indicates the full year's appropriation should be completed through the supplemental budget or Legislative Budget and Audit processes. Some of the Legislature's intent language asks the Administration to provide the same service levels despite significant cuts, although we both know there is a relationship between funding and level of service. I have vetoed this type of intent language so the public does not have unrealizable expectations in areas such as road and airport maintenance, seafood inspection, and the Kenai Healthy Families program. Several vetoes are technical. The provisions in Section 12 relating to insurance and bond claims are not needed. Sections 30 and 31 for the Alaska Railroad are not necessary because the railroad is not subject to the Executive Budget Act; the veto has no impact on its ability to 1997-07-10 House Journal Page 1994 HB 75 use its corporate receipts or federal funds. Operating budget provisions relating to AHFC and the Alaska Seafood Marketing Institute (ASMI) were later modified in the capital bill. I incorporated those adjustments in this bill for easier reference in the future and made the corresponding vetoes in the capital bill. (For instance, I reduced the AHFC dividend in section 2(a) to the correct $70 million amount.) I also vetoed language which purported to make the appropriation for ASMI conditional on having no upper level employees located outside the state because it violates the constitutional limits placed on appropriation bills. To prevent any unnecessary impediment to marketing efforts Outside during the current salmon crisis, fish processors, fishers, and the ASMI board urged me to veto this as a prudent exception to the general rule of having state jobs located in Alaska. I hope we will have a cooperative, open, and responsible budget process next year. Budget cuts have been an important tool for Alaska's healthy financial future. However, I believe good budget discipline is a balance of financial cost and the values of important public services. I pledge my efforts to help ensure the public is well served by both the budget process and the final results. Sincerely, /s/ Tony Knowles Governor"