2006-04-28                     Senate Journal                      Page 2996
SB 232                                                                                            
Message dated and received April 27 was read, stating the Governor                                  
signed the following bill and transmitted the engrossed and enrolled                                
copies to the Lieutenant Governor's Office for permanent filing:                                    
                                                                                                    
          CONFERENCE CS FOR SENATE BILL NO. 232                                                     
          "An Act making appropriations, supplemental                                               
          appropriations, and capital appropriations; amending                                      
          appropriations and funding sources; making                                                
          appropriations to capitalize funds; and providing for                                     
          an effective date."                                                                       
                                                                                                    
                             Chapter 13, SLA 2006                                                  
                         Effective Date: See Chapter                                               
                                                                                                    
This legislation, known as the "fast track" supplemental, addressed a                               
number of the unanticipated needs of state programs.  One major area                                
of assistance is additional funds to pay the increased cost of fuel and                             
utilities as a result of record oil prices.  The Legislature's approval of                          
this funding will enable state services to continue without interruption,                           
as well as provide assistance to rural Alaskans through increased                                   
funding of the Power Cost Equalization program.  To my regret, the                                  
Legislature did not approve my requests for funding to assist small                                 
municipalities with increased utility and fuel costs, as well as                                    
supplemental heating assistance for low-income households.                                          
                                                                                                    
Due to these same record oil prices, however, the State of Alaska also                              
is receiving the benefit of higher than anticipated revenue in Fiscal                               
Year 2006.  I proposed that half of this windfall go toward funding K-                              
12 education next fiscal year and I'm pleased that the Legislature is                               
poised to do this.  In this legislation, another $300 million is saved to                           
fund K-12 in Fiscal Year 2008.                                                                      

2006-04-28                     Senate Journal                      Page 2997
I also proposed that we save $400 million of the current year's                                     
windfall for investment in the gas pipeline.  Senate Bill 232 makes a                               
substantial step toward this goal by saving $300 million for investment                             
in future infrastructure projects.  Another administration proposal was                             
to invest $86 million in needed transportation improvements and $44                                 
million to address the deferred maintenance backlog of state facilities.                            
I am pleased the Legislature is incorporating these priorities in its                               
work on the Fiscal Year 2007 capital budget.                                                        
                                                                                                    
One policy issue of a more technical nature is the Legislature's                                    
treatment of proceeds from the Vehicle Rental Tax that was enacted                                  
into law in 2003.  That legislation directed that these tax proceeds be                             
deposited in a special account in the general fund. (AS 43.52.080(b)).                              
In the expenditure of these tax revenues this session, the Legislature is                           
now considering them as a non-general fund source.  This, however, is                               
contrary to AS 37.05.146(c) that defines revenues as non-general fund.                              
As a result, expenditure of the Vehicle Rental Tax receipts will                                    
continue to be categorized as general fund spending as it has been in                               
the past.                                                                                           
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor