Legislature(1997 - 1998)
1998-01-16 Senate Journal
Full Journal pdf1998-01-16 Senate Journal Page 2215 SB 231 SENATE BILL NO. 231 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: An Act making and amending capital appropriations and reappropriations and capitalizing funds; and providing for an effective date. was read the first time and referred to the Finance Committee. Governors transmittal letter received January 15, 1998: Dear President Miller: Our capital budget of $92.3 million in state general funds leverages a total capital budget of $871 million. It includes projects to create new jobs, ensure public health, provide for child and family safety, strengthen our transportation infrastructure, and maintain our university buildings. As part of our overall capital plan, I will be submitting separate legislation to fund all projects on the current school district maintenance and construction lists. I will also introduce a bill to implement the first phase of a regional construction plan to relieve dangerous prison overcrowding. We all know general fund capital budgets in recent years have not been adequate to meet the needs of Alaskan families, communities and businesses. To relieve some of this pressure, I again recommend to you that we invest the states $16 million dividend from the Alaska Industrial Development and Export Authority directly in economic development projects around the state. I also again recommend using $53 million of corporate receipts from the Alaska Housing Development Corporation for housing-related projects such as retiring honey buckets and fixing our Pioneer Homes. The public, the Legislature and my Administration all agree that we are seriously risking Alaskas investments in our capital facilities by neglecting their routine maintenance and regular repair. This capital budget and my plan to meet all identified school major maintenance needs within five years, are important steps toward fulfilling our responsibilities to preserve the value of our capital assets. I look 1998-01-16 Senate Journal Page 2216 SB 231 forward to working with the Legislature to develop a long-term, affordable plan to address all deferred maintenance needs and to prevent the problem from recurring in the future with adequate maintenance funding in the operating budget. However, deferred maintenance is just one of our capital needs. Given the magnitude of Alaskas requirement for new schools, prisons, water and sewer systems, economic development projects and transportation links, I hope the Legislature will take action this year to adopt a six-year capital plan as required by statute. We have proposed these plans each of the last two years, although they have not received legislative attention. Nevertheless, I believe a longer view of planning and funding our capital needs is essential for budget discipline. I will submit a plan to you shortly for fiscal years 1999-2004. I am pleased to be transmitting my proposed fiscal year 1999 capital appropriation bill at the same time as the operating budget, something that hasnt happened in many years. Although simultaneous transmittal was required by a statute change last session, it was logistically possible this year largely because the capital budget was prepared using our new automated capital budget system, developed by an in-house team from the Office of Management and Budget. It produced the capital bill, summary reports and easier-to-read project detail pages with a considerable savings of manual preparation time. We welcome your comments and suggestions on this new system. Alaska has a healthy economy. Our capital budget can help keep that momentum going with good construction jobs for Alaskans and improved facilities in our communities. Sincerely, /s/ Tony Knowles Governor