2000-02-08                     Senate Journal                      Page 2220
SB 250                                                                       
SENATE BILL NO. 250 BY THE SENATE RULES COMMITTEE                              
BY REQUEST OF THE GOVERNOR, entitled:                                          
                                                                               
An Act making and amending capital,                                           
supplemental, and other appropriations and                                     
reappropriations; making a reappropriation under art.                          
IX, sec. 17(c), Constitution of the State of Alaska,                           
from the constitutional budget reserve fund; making                            
appropriations to capitalize funds; ratifying certain                          
expenditures; and providing for an effective date.                             
                                                                               
was read the first time and referred to the Finance Committee.                 
                                                                               
Sectional Analysis from the Office of the Governor was attached and            
is on file in the Office of the Secretary of the Senate.                       
                                                                               
Governors transmittal letter dated February 7:                                 
                                                                               
Dear President Pearce:                                                         
                                                                               
Today I transmit to you the FY2000 supplemental appropriation bill.            
As you know, several formula programs such as the Longevity                    
Bonus, Foster Care and Medicaid were significantly underfunded in              
the budget passed by the legislature last May. Since these are                 
statutory obligations, we must fulfill them in this supplemental. I            
want to express my concern that the legislature is returning to a              
pattern of initially underfunding certain state obligations such as            
formula programs and lease payments, and not providing any up-                 
front deposits to the fire suppression and disaster relief funds. Over         
the past few years, we made considerable progress together toward              
more complete budgeting up front and less reliance on supplementals.           
I regret seeing the return to old habits.                                      
                                                                               
Despite the need to fully fund these obligations, the general fund             
amount in this bill is within the $16.5 million supplemental place             
holder. This is in part due to a sizeable reduction in the general             
fund needed to meet the statutory commitment for full funding of the           
K-12 foundation formula and use of excess Y2K funds.                           
                                                                               

2000-02-08                     Senate Journal                      Page 2221
SB 250                                                                       
This supplemental bill includes a section for the ongoing Central              
Gulf Coast storm disaster even though, as I noted in my transmittal            
of the disaster declaration, we do not yet have an idea of how much            
will be required to address it. Since I am optimistic that a federal           
disaster will be declared, federal financial support is included in that       
section. As soon as we have disaster cost estimates, we will forward           
them to you immediately.                                                       
                                                                               
					Sincerely,                                                                
					/s/                                                                       
					Tony Knowles                                                              
					Governor