2008-01-16                     Senate Journal                      Page 1591
SB 220                                                                                                                        
SENATE BILL NO. 220 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
          "An Act making appropriations for the operating and                                                                   
          loan program expenses of state government, for                                                                        
          certain programs, and to capitalize funds; making                                                                     
          supplemental appropriations; and making                                                                               
          appropriations under art. IX, sec. 17(c), Constitution                                                                
          of the State of Alaska; and providing for an effective                                                                
          date."                                                                                                                

2008-01-16                     Senate Journal                      Page 1592
was read the first time and referred to the Finance Committee.                                                                  
                                                                                                                                
Governor's transmittal letter dated January 15:                                                                                 
                                                                                                                                
Dear President Green:                                                                                                           
                                                                                                                                
Today I am transmitting to you my Fiscal Year 2009 operating budget                                                             
bill.  As I mentioned when I released the budget bills on December 10,                                                          
2007, this operating budget represents just a 1.1 percent general fund                                                          
increase over FY2008.  My cabinet has made a strong effort to slow                                                              
the growth of government while providing funding to meet the needs                                                              
of Alaskans.                                                                                                                    
                                                                                                                                
Just as importantly, the budget contains significant savings and                                                                
investments from both the expected FY2008 and FY2009 general fund                                                               
surpluses.  Nearly $2.6 billion will be deposited into the public                                                               
education fund to pre-fund the foundation and pupil transportation                                                              
programs through FY2011, including proposed increases to the                                                                    
programs.  In addition, $450 million from the FY2008 surplus is                                                                 
appropriated to the Teachers Retirement System (TRS) to reduce the                                                              
unfunded liability.  That appropriation, in turn, results in savings of                                                         
$46.6 million in the FY2009 appropriation to TRS.  Other substantial                                                            
savings are the deposits totaling $379 million into the constitutional                                                          
budget reserve fund.  I have also included the state's investment of the                                                        
estimated $200 million in oil and gas tax credits.                                                                              
                                                                                                                                
I look forward to working with the Legislature to finalize the operating                                                        
budget for the upcoming fiscal year.                                                                                            
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Sarah Palin                                                                                                                     
Governor