Legislature(1997 - 1998)
1997-02-03 Senate Journal
Full Journal pdf1997-02-03 Senate Journal Page 0208 SB 74 SENATE BILL NO. 74 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: An Act extending lapse dates for certain prior year appropriations; making supplemental, capital, and special appropriations; and providing for an effective date. was read the first time and referred to the Finance Committee. Governors transmittal letter dated February 3: Dear President Miller: Last February my transmittal letter for the FY96 supplemental budget bill began: In the first two weeks of my administration, I made a public commitment not to play the supplemental game. The FY96 supplemental request I am submitting to you now makes good on that promise. It falls within the $20 million level anticipated in the FY96 budget plan... This is the lowest supplemental request in nearly ten years, a far cry from the $37 million to $168 million requests of recent years. I am pleased to report even further progress on budget discipline with this years supplemental request of just under $16 million in general funds. It is well under the amount set aside in the budget plan approved by the Legislature last June. 1997-02-03 Senate Journal Page 0209 SB 74 There are three major categories of supplemental needs. The first is for programs that were acknowledged in the last session to require supplemental appropriations in order to fulfill state responsibilities. Examples are disaster relief, fire suppression, leasing, and adult public assistance. These total just under $8.6 million of the attached supplemental bill. A second category is judgments and claims which have traditionally been handled in the supplemental budget. So far this year, these total $2.8 million, of which $2.3 million is the estimated cumulative total through the end of FY97 for court-ordered fines under the final order in Cleary. Rather than simply appropriate that amount from the operating budget to the general fund, I propose that it be held aside in a capital appropriation as part of the states overall funding for the construction of new prison beds. Since the fines are for prison overcrowding, construction of new beds would directly address the underlying problem. We particularly need to provide space for women because there are inequities between facilities now available for men and women. As we all know, prisons are a critical part of the work ahead of us to repair and build essential state facilities. The third category is unanticipated shortfalls or problems that have arisen since the budget was passed last June. Due to strong agency management of their budgets, only $4.5 million is in this category. The needs range from emergency deferred maintenance to coping with severe overcrowding and security dangers at our juvenile detention facilities to statehood defense. In cooperation with the legislative leadership, I am requesting an appropriation of $485,000 to the Department of Law for the states appeal to the United States Supreme Count in the Venetie Indian country case, including related advocacy before the federal courts, Congress, and federal agencies. We must ensure state authority over taxation, fish and game management, and environmental regulation. I suggest appropriating these funds with a lapse date of June 30, 1998, to make it very clear the state is committed to the entire process of appeal to the U.S. Supreme Court, not just to the preliminary phase taking place in the current fiscal year. (An alternative approach would be to make this a capital appropriation.) 1997-02-03 Senate Journal Page 0210 SB 74 Another request could immediately improve the earnings of the Constitutional Budget Reserve Fund (CBR). Revenue Commissioner Condon recently presented to the Senate Finance Committee a proposal to diversify the CBR investment allocation. Investment of the CBR for higher returns was encouraged last year in legislation authorizing the commissioner to determine if financial management by the Permanent Fund Corporation would be advantageous to the state. Although he has determined this would not be the most beneficial arrangement to the CBR or the Permanent Fund, he is recommending the state invest a portion of the CBR in equities. Since it would not be wise to change the allocation policy after only five months, this supplemental should be funded with the intention of annualizing the management fees in the FY98 budget. Some costs of providing a few basic state services have been much higher than anticipated last spring. More youths have been sent to detention facilities than predicted last year and there have been drive- by shootings and other security breaches. We must increase staffing immediately to handle the overcrowding safely. We do not think it wise to wait until passage of the FY98 budget to begin the procurement process for fences and other security protections. I urge you to appropriate $2 million in operating and capital supplementals to deal with these critical juvenile crime problems. Other emergency maintenance items are replacing the Fairbanks correctional facility boiler which is no longer safe, demolishing the Old Eagle school so contaminated soils can be cleaned up with Oil and Hazardous Response Funds (this will help resolve pending litigation), and replacing badly outdated emergency communications equipment. Finally, a young man died tragically this winter on the Perseverance Trail, one of the states most heavily used by Alaskans and visitors alike. Heavy rains washed out portions of the trail beside a deadly ravine. Since it is virtually impossible to blockade the trail, repairs must be done within the next few months, before the heavy spring/summer use begins again. These emergency maintenance needs total $1.2 million. 1997-02-03 Senate Journal Page 0211 SB 74 Budget discipline includes taking action on supplemental budget requests early in the session so agencies know up front whether they have the necessary expenditure authority. I urge you to take action as soon as possible. Sincerely, /s/ Tony Knowles Governor