Legislature(1997 - 1998)
1998-01-16 Senate Journal
Full Journal pdf1998-01-16 Senate Journal Page 2212 SB 229 SENATE BILL NO. 229 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: 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. was read the first time and referred to the Finance Committee. Governors transmittal letter received January 15: Dear President Miller: I am transmitting my proposed operating and loans budget for fiscal year 1999 to you today. Even with the investments I have proposed for Quality Education and Smart Start for Alaskas Children, this budget is a $150 million reduction since fiscal year 1995. In todays dollars, per capita general fund spending would be $1,470 less than in 1979. Last year, my transmittal letter stated: Oil prices have remained high much longer than we anticipated when setting our $100 million goal for budget cuts. This is very good news but it is not cause for increased spending. Administration and Legislature alike can be commended for not taking higher oil prices as license to spend. We wisely let the funds remain in the Constitutional Budget Reserve knowing at some point we'll have periods of low oil prices. My proposed budget would maintain a Constitutional Budget Reserve Fund of well over $2 billion, a healthy level, even if oil prices were to remain at $15 for the rest of this year and all of FY99. 1998-01-16 Senate Journal Page 2213 SB 229 My budget proposes investing in our children in two ways: improving their education and protecting them from harm with our Quality Schools and Smart Start initiatives. We should do both simply on the basis of being responsible leaders and parents. But they are also cost-effective in the long term. Can better education cut costs? The average prisoner in Alaska has a seventh grade education. Can the crime prevention programs in Smart Start make a difference? Keeping one youngster in a juvenile detention facility for one year costs $60,000. These investments make good budget sense and they make sense for keeping Alaskas families strong and our childrens futures bright. I look forward to working cooperatively with you on crafting the budget this session, (and, at your suggestion, to the possibility of doing our budgets every two years!). We have much to be grateful for in Alaska with our growing economy, healthy reserves, and low debt. Lets realize our opportunity and accept our responsibility to make these relatively modest but effective investments in our children and more good jobs for Alaskans. Sincerely, /s/ Tony Knowles Governor