Legislature(1997 - 1998)
1997-03-05 House Journal
Full Journal pdf1997-03-05 House Journal Page 0540 HB 165 HOUSE BILL NO. 165 by the House Rules Committee by request of the Governor, entitled: An Act making and amending capital and other appropriations and to capitalize funds; and providing for an effective date. was read the first time and referred to the Finance Committee. The Governor's transmittal letter, dated February 27, 1997, appears below: Dear Speaker Phillips: My proposed fiscal year 1998 capital budget focuses squarely on creating new jobs, ensuring public health and safety, developing our transportation systems, and maintaining our schools and university. It directs approximately $100 million in state general funds plus federal and other monies for a total of $630 million to address our most pressing capital needs. This will provide jobs for Alaskans and increased safety, health, and housing in our communities. Nevertheless, significant needs remain in the areas of schools, prisons and deferred maintenance that require our immediate bipartisan attention. My proposed budget effectively leverages federal funds, including $27 million new dollars for safe drinking water projects. It increases our commitment to safe water and sanitation for Alaskas rural and urban communities with 5 million more state and 39 million more federal dollars than we have this year. It uses new federal funds to help relieve overcrowding in our prisons and to build National Guard and related facilities in four communities. Our general fund capital budgets have been severely limited for several years in a row. To relieve some of this pressure, my budget uses corporate receipts from the Alaska Industrial Development and Export Authority (AIDEA) and the Alaska Housing Development Corporation (AHFC) to fund projects in our communities and agencies which are 1997-03-05 House Journal Page 0541 HB 165 related to the economic development and housing missions of these valuable state corporations. The approach we took last year effectively utilized excess AHFC earnings while assuring its continued excellent bond ratings. This year, I am proposing we reinvest our $16 million AIDEA dividend in fisheries, timber, mining, oil and gas, tourism, and small business development projects which will leverage even more jobs and economic expansion for Alaskas communities. Even with these additional resources from our state corporations, after three years of general fund budget reductions, I believe the list of high priority unfunded projects is unacceptable. In recent years, Alaska has neglected some capital investment areas to the point where a single annual budget barely makes a dent in the needs statewide. Key among these are criminal justice and education. I have asked my Criminal Justice Cabinet to send you a letter outlining the most pressing capital needs for adult and youth correctional facilities. Education Commissioner Holloway will send you a letter describing what is required to provide adequate school facilities including modern technology so our children can develop essential work skills. Our existing state-owned facilities also demand our attention. We have shamefully ignored the national mandate to make our facilities accessible to Alaskans who experience disabilities. We are seriously risking public investments in our schools, university, roads, airports, harbors, prisons and other public facilities by neglecting their maintenance. I would note that as we tackle the deferred maintenance problem, we must do more than just fund it in the capital budget. We must restore responsible levels of annual operating funding for ongoing maintenance, renewal and replacement. Future generations will judge us harshly if we eliminate the current deferred maintenance project list but do nothing to prevent future backlogs. Last spring, I proposed a Six Year Capital Plan for Alaska. Many of our communities have six year plans, yet the state has no general guideline for its future capital investments. My Administrations proposed plan recommended funding allocations for K-12 and university education, economic development, public safety, transportation, and other major areas of the capital budget. It suggested an overall financing plan for them. 1997-03-05 House Journal Page 0542 HB 165 I believe we can - in fact, we must - implement a multi-year plan to address these and other critical areas of capital needs. It is irresponsible of us not to do so. We must come to agreement about an appropriate balance among the types of projects to be funded each year. We must decide on the most appropriate financing methods and ensure they fit into a responsible long-term financial plan. Unlike some states, we are not without any financial tools to tackle the job ahead. Our job is enormous but achievable. We will deliver an updated six year plan to you within the next few days for your consideration during the session. With delivery of this FY98 capital budget, I look forward to joining with you in developing a realistic, financially responsible solution to Alaskas capital needs for fiscal year 1998 as well as for the following five years. Sincerely, /s/ Tony Knowles Governor