Legislature(2003 - 2004)
2003-05-15 Senate Journal
Full Journal pdf2003-05-15 Senate Journal Page 1429 SB 226 SENATE BILL NO. 226 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: "An Act relating to receipts of certain state agencies and the accounting for and disposition of those receipts; and providing for an effective date." was read the first time and referred to the Finance Committee. The following fiscal information was published today: Fiscal Note No. 1, zero, Office of the Governor Governor's transmittal letter dated May 14: Dear President Therriault: Under the authority of art. III, sec. 18, of the Alaska Constitution, I am transmitting a bill relating to the receipts of certain state agencies and accounting for those receipts. The bill would eliminate authority for 2003-05-15 Senate Journal Page 1430 the segregation of and separate accounting for program receipts. These receipts are collected principally under AS 37.10.050 in the form of fees, licenses, taxes, or other money generated by state agency activities. If these receipts were not statutorily designated as "program receipts", they would be considered assets of the unrestricted general fund. Under provisions of existing law, these receipts keep their identity even though they are deposited in the general fund of the state. Separate accounts are kept within the general fund from which the legislature appropriates for purposes usually related to sources from which the receipts are derived. This bill would repeal the authority for the separate accounting of program receipts. The bill also would amend parts of the enabling statutes of state agencies that authorize separate accounting of specific receipts. Separate accounting has the effect of segregating these receipts from other amounts in the general fund. It also tends to place artificial restrictions on the ability to expend from the general fund and is contrary to the spirit of the Alaska Constitution's prohibition against dedicated funds. The legislature retains the power to appropriate these receipts for any public purpose and it is this power that distinguishes the practice of designating program receipts from a legal dedication for a specific purpose. However, the designations made by law operate in the same manner as earmarking. It is inefficient fiscal policy and I hope that this bill will serve as a basis for reconsidering the treatment of these valuable state assets. Finally, eliminating program receipts as a funding source in the various major appropriation bills would lead to a more easily understood and transparent budget. Designated program receipts are general fund assets. However, these receipts currently are declared to be a funding source apart from the general fund for budgeting purposes. By use of this device, funding sources in the budget bills have shifted from the general fund to program receipts. If this practice is eliminated, the public would have a full accounting of all the state's revenue that is earned by the state and appropriated for public purposes. 2003-05-15 Senate Journal Page 1431 To avoid disrupting the process for the fiscal year 2004 budgets, the changes made by the bill would not take effect until July 1, 2004. I urge your favorable consideration of this bill. Sincerely, /s/ Frank H. Murkowski Governor