2002-02-13                     House Journal                      Page 2238
averaging $400 million per year for three years, we will reach the goal                             
of $1.2 billion in new annual revenue.                                                              
                                                                                                    
An important feature of this bill is a provision to reduce the tax rate                             
when reserves are sufficient.  The bill includes a trigger to lower the                             
tax rate to 10 percent when the state's reserves in the Constitutional                              
Budget Reserve Fund climb above $2 billion and a further reduction to                               
5 percent when the fund reaches $2.5 billion.  Any excess general fund                              
income from a major development, such as a natural gas pipeline or                                  
the implementation of responsible revenue measures, will increase the                               
balance in the budget reserve fund.  The state should maintain at least                             
$1.5 billion in the reserve to avoid an emergency caused by a sudden                                
drop in oil and gas prices.  Once reserves reach $2 billion, however,                               
we could lower the tax rate on our citizens.                                                        
                                                                                                    
I urge your prompt and favorable consideration of this legislation.                                 
                                                                                                    
                                Sincerely,                                                         
                                /s/                                                                 
                                Tony Knowles                                                        
                                Governor"                                                          
                                                                                                    
HB 414                                                                                            
HOUSE BILL NO. 414 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act making supplemental and other appropriations; amending                                 
     appropriations; and providing for an effective date."                                          
                                                                                                    
was read the first time and referred to the Finance Committee.                                      
                                                                                                    
                                                                                                    
The Governor's transmittal letter dated February 12, 2002, appears                                  
below:                                                                                              
                                                                                                    
"Dear Speaker Porter:                                                                               
                                                                                                    
Today I am transmitting two supplemental appropriation bills for                                    
FY2002 which pay for emergency and unanticipated expenses and                                       
those the Legislature short-funded during last year's regular session.