2004-03-24                     Senate Journal                      Page 2627
SB 375                                                                                            
SENATE BILL NO. 375 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
                                                                                                    

2004-03-24                     Senate Journal                      Page 2628
                 "An Act relating to consideration by the legislature of                           
                      the executive budget and other bills affecting                               
            appropriations; and providing for an effective date."                                   
                                                                                                    
was read the first time and referred to the State Affairs and Finance                               
Committees.                                                                                         
                                                                                                    
The following fiscal information was published today:                                               
             Fiscal Note No. 1, indeterminate, Office of the Governor                               
                                                                                                    
Governor's transmittal letter dated March 22:                                                       
                                                                                                    
Dear President Therriault:                                                                          
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill relating to consideration by the                             
Legislature of the executive budget and other bills affecting                                       
appropriations.                                                                                     
                                                                                                    
This bill was modeled on the "pay-as-you-go" provisions of the                                      
Congressional Budget and Impoundment Act, 2 U.S.C. 633(g). The                                      
pay-as-you-go principle is now commonly referred to as the "Gramm-                                  
Rudman" process. The purpose of the bill is to formalize the pay-as-                                
you-go concept within the state's Executive Budget Act, AS 37.07.                                   
On occasion, it has been the practice of the Legislature to require that                            
budget amendments be offset with cuts elsewhere in the budget or that                               
there be a corresponding measure to increase revenue.                                               
                                                                                                    
I strongly support the pay-as-you-go principle. The reality of our                                  
budget situation makes fiscal restraint a necessity. Under this bill, a                             
budget amendment that would result in an increased appropriation                                    
would not be in order before the Legislature unless there were other                                
measures available to offset the increased spending caused by the                                   
amendment. The concept is simple and workable if the Legislature                                    
embraces it.                                                                                        
                                                                                                    
The bill also proposes changes in the fiscal note process to require the                            
proponent of a bill that would cause the increase of an appropriation to                            
also propose a cost savings or revenue enhancement measure to offset                                
the increase.                                                                                       
                                                                                                    

2004-03-24                     Senate Journal                      Page 2629
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor