2003-03-06                     Senate Journal                      Page 0414
SB 124                                                                                            
SENATE BILL NO. 124 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
              "An Act relating to grants for alcoholism and drug                                   
            abuse programs; and providing for an effective date."                                  
                                                                                                    
was read the first time and referred to the Health, Education and Social                            
Services and Finance Committees.                                                                    
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 1, Department of Health and Social Services                                        
 Fiscal Note No. 2, Department of Health and Social Services                                        
 Fiscal Note No. 3, Department of Health and Social Services                                        
 Fiscal Note No. 4, Department of Health and Social Services                                        

2003-03-06                     Senate Journal                      Page 0415
Governor's transmittal letter dated March 5:                                                        
                                                                                                    
 Dear President Therriault:                                                                         
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill that would change the grant in                               
aid ratio required for grantees of alcohol and drug abuse grants from                               
10 percent to 25 percent.                                                                           
                                                                                                    
The Department of Health and Social Services requires a local match                                 
for most grants it issues in support of community-based programs.  In                               
most instances the local match requirement is twenty-five percent.                                  
Grants issued by the department in support of local substance abuse                                 
treatment programs are an anomaly in that only a ten percent local                                  
match is required. Local match requirements are designed to foster                                  
collaboration and support for health and social services at the                                     
community level.                                                                                    
                                                                                                    
My Administration's commitment to substance abuse treatment is                                      
reflected in my amended fiscal year 2004 budget which makes                                         
significant new investments in treatment programs using some of the                                 
proceeds from the recently enacted increase in the alcohol excise tax.                              
Given the widespread recognition throughout Alaska of the need to                                   
address the problem of alcohol and substance abuse, I am confident                                  
that Alaska's communities too will rise to the challenge of providing a                             
modest increase in local support for substance abuse treatment                                      
services.                                                                                           
                                                                                                    
The Department will retain the ability to waive all or part of the local                            
match if the Department finds that community funding is unavailable                                 
and the waiver is in the best interest of the state.                                                
                                                                                                    
Enactment of this legislation will result in a reduction $1,611,700 in                              
the state budget. Services at the community level should be unaffected,                             
however, as local communities step forward to increase their local                                  
contributions.                                                                                      
                                                                                                    
I urge your prompt consideration of this legislation.                                               
                                                                                                    
                                                                                                    

2003-03-06                     Senate Journal                      Page 0416
Sincerely,                                                                                          
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor