Legislature(2001 - 2002)

2002-08-14 Senate Journal

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2002-08-14                     Senate Journal                      Page 3832
SB 2006                                                                                           
Message dated and received June 28, stating:                                                        
                                                                                                    
Dear President Halford:                                                                             
                                                                                                    
On this date I have signed with line item vetoes the following bill                                 
passed by the second special session of the Twenty-second Alaska                                    
State Legislature and am transmitting the engrossed and enrolled                                    
copies to the Lieutenant Governor's Office for permanent filing:                                    
                                                                                                    
           HOUSE CS FOR CS FOR SENATE BILL NO.                                                      
           2006(FIN) am H "An Act making and amending                                               
           appropriations and reappropriations; 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."                                      
                                                                                                    
                            Chapter 1, SSSLA 2002                                                  
                         Effective Date: See Chapter                                               
                                                                                                    
Throughout the session, there were many claims from members of the                                  
legislative majority that various programs had to be cut, the state could                           
not afford my proposed investments in education and child protection,                               
and certain projects in my capital budget could not be funded because                               

2002-08-14                     Senate Journal                      Page 3833
there was not enough money. From those statements, Alaskans might                                   
have expected a very lean state-funded capital budget. In fact, the                                 
combined costs of this capital budget bill, the two general obligation                              
bond bills, and the debt reimbursement bill result in one of the largest                            
obligations of state funds for capital construction in many years.                                  
                                                                                                    
The irony is that despite this capital "largesse", only a token level of                            
funding was provided for one of the most basic elements of my                                       
proposed infrastructure program: deferred maintenance. Whereas I                                    
proposed issuing $137 million of debt to repair, and in some cases                                  
replace, aging state facilities from Pioneers Homes to prisons, the                                 
legislature provided only $10 million toward a nearly billion dollar                                
problem. The legislature itself recognized the magnitude of deferred                                
maintenance needs facing our state just a few years ago when it                                     
appointed a task force to focus on this problem.                                                    
                                                                                                    
In this capital budget bill alone, legislators added some $23 million                               
dollars for projects in their districts. Alaskans will undoubtedly                                  
disagree about the necessity of many of these legislative capital budget                            
add-ons, especially at a time when the legislature claimed funds were                               
so scarce that they had to cut public safety, roads and state parks.                                
Nevertheless, many of these add-ons have worthwhile purposes such                                   
as school repair, programs for seniors and children, and local road                                 
improvements. A few are for projects that most Alaskans would agree                                 
are state responsibilities. But the level is much higher than in recent                             
years and that flies in the face of fiscal restraint and legislative claims                         
of insufficient funds for basic services.                                                           
                                                                                                    
I believe most Alaskans would agree that some of these projects are                                 
unwarranted under present circumstances. I have vetoed them for the                                 
reasons outlined below.                                                                             
                                                                                                    
The first three vetoes total $220,000 which is nearly the amount the                                
legislature could have used to restore winter maintenance on the                                    
Steese Highway. While recognizing the abundance of mosquitoes in                                    
Alaska, asking the state to pay for "mosquito magnets" cannot be                                    
justified. That's why I have vetoed the $20,000 grant to Larsen Bay to                              
purchase them (page 6, line 32). Nor does the state have an obligation                              
to provide $150,000 in operating funds for the private non-profit                                   
Alaska Aviation Heritage Museum (page 20, line 9), especially when                                  

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the group has claimed for years that it could be self-supporting and we                             
don't even have enough funds to operate all our state-owned parks.                                  
The production of another video on how to trap wolves is unnecessary                                
because an adequate video is available to the public through the                                    
Alaska Department of Fish and Game. So I have vetoed $50,000 to the                                 
Alaska Trappers Association to produce another video (page 20, line                                 
26).                                                                                                
                                                                                                    
Several larger appropriations for things that are not typically state                               
responsibilities surfaced very late in the legislative process and                                  
received virtually no public discussion. The legislature added                                      
$100,000 to study the feasibility of constructing a new World Trade                                 
Center office building in Anchorage (page 99, line 8). I vetoed it                                  
because there is no evidence that this building is needed by state                                  
agencies or that the private sector is unable to provide adequate                                   
commercial space in Anchorage.                                                                      
                                                                                                    
I vetoed a grant for $500,000 directed to the Alaska Geospacial                                     
Information Coalition (page 138, line 22) which includes a private                                  
sector mapping company. This constitutes a sole-source grant without                                
competitive public bid. Further, questions have been raised regarding                               
the amount of information generated with this grant that will be                                    
available in the public domain. This grant would just be the first                                  
installment of a multi-year multi-million dollar state commitment. It is                            
imperative that geomapping be pursued in strict compliance with state                               
procurement rules and that we know in advance precisely how the                                     
public needs and interests will be met. There are excellent reasons to                              
pursue private-public partnerships for detailed mapping of the state. I                             
will direct state agencies to develop a plan outlining an appropriate                               
process for moving the state forward to determine how the public and                                
private sectors can work together to achieve the laudable goals of                                  
improved, widely accessible mapping data.                                                           
                                                                                                    
I vetoed another late-breaking appropriation which was a $1 million                                 
no-interest loan to the community of Delta Junction for payment of its                              
settlement agreement in litigation over the unsuccessful private prison                             
proposal there (page 121, line 26). The loan would be converted to a                                
grant if the community joined a borough. The state was not a party to                               
this litigation and there is no public purpose for state expenditures in                            
legal settlements in which the state has no interest. The state should                              

2002-08-14                     Senate Journal                      Page 3835
not be viewed as the deep pocket by private parties dealing with local                              
governments.                                                                                        
                                                                                                    
I have vetoed a grant to the Matanuska Electric Association (MEA) for                               
$10 million (page 131, lines 13 and 24) and reduced another MEA                                     
grant (page 131, lines 13 and 22) from $6 million down to the                                       
$500,000 amount which was in HB 175, a package of Railbelt Energy                                   
Fund projects. Unlike other projects funded in the capital budget from                              
the Railbelt Energy Fund, the $10 million item appeared only at the                                 
last minute and no project justification or back-up was provided. The                               
increase from a $500,000 to a $6 million project was also made at the                               
last minute with no justification or back-up.                                                       
                                                                                                    
As detailed in my operating budget transmittal, the legislature                                     
appropriated more money to the debt retirement fund than will be                                    
needed next year, even as it claimed there was not enough money to                                  
maintain basic services. This was partly due to a particularly                                      
disingenuous accounting method of setting the date for the $20 million                              
general fund appropriation so it takes effect in the current fiscal year                            
rather than FY2003. This is clearly a maneuver to mislead the public                                
concerning legislative spending levels. I am reducing the                                           
"supplemental" appropriation in this bill (page 130, line 18) by                                    
$8,468,300 so the amount funded for debt service in the two bills                                   
equals the anticipated need for next year.                                                          
                                                                                                    
Despite written notification from both the Legislative Finance                                      
Division and my Office of Management and Budget, the legislature                                    
over-appropriated the maximum allowable dividend from the Alaska                                    
Industrial Development and Export Authority (AIDEA) by $1 million.                                  
I do not think it is appropriate to fix this error by reducing the long-                            
standing community capital matching grants program or eliminating                                   
state funding for subsistence activities in the Department of Fish and                              
Game. (I do think it is imperative that the legislature switch                                      
subsistence funding back to general funds next year.) Therefore, I took                             
the only viable alternative which is to correct the over-appropriation                              
by reducing the amount of AIDEA dividends used for Federal Aid                                      
Highway State Match (page 49, lines 11 and 19-20). If more matching                                 
funds are needed once final congressional action is known, the next                                 
legislature can correct this year's error with a supplemental                                       
appropriation.                                                                                      

2002-08-14                     Senate Journal                      Page 3836
The legislature appropriated money to itself for two studies which                                  
could have been partially funded with federal funds if the                                          
appropriations had been made to the Department of Health and Social                                 
Services (HSS). The first appropriation for one study is to Legislative                             
Budget and Audit to develop a state health facilities plan (page 100,                               
line 6) with the second appropriation of federal funds for that study                               
going to HSS (page 100, line 31). Although the study appropriations                                 
call for about half state and half federal funds, the federal funds will                            
not be available and the $31,300 in reappropriated state funds will not                             
be adequate to do the work so I am vetoing both parts. The other is a                               
study of welfare and Medicaid recipients funded with $200,000 in                                    
general funds (page 108, line 16) even though HSS officials told                                    
legislators Medicaid could pay half of that if the appropriation went to                            
HSS instead. I have also vetoed these two appropriations because                                    
studies of this kind are more appropriately conducted by the executive                              
branch and, in the case of the latter study, because of the bad                                     
precedent of having funds go to the appropriate executive branch                                    
agency via a contract with a legislative body.                                                      
                                                                                                    
As I noted in my operating budget transmittal letter, my administration                             
started the session hopeful of developing the coming year's budget                                  
within the framework of a long-range fiscal plan. As in past years, we                              
were also hopeful of working on the budget with the legislature in an                               
open process with full disclosure of the true financial impacts of                                  
providing services. I think the public shared these hopes, but they were                            
not fulfilled in this session. Alaskans deserve more than the                                       
shortsighted approach used by recent legislatures. I hope future                                    
legislatures will recognize that it is not acceptable to spend billions of                          
public dollars providing services on which Alaskans depend without                                  
the context of a long-range fiscal plan.                                                            
                                                                                                    
Sincerely,                                                                                          
/s/                                                                                                 
Tony Knowles                                                                                        
Governor