2014-01-22                     Senate Journal                      Page 1402
SB 120                                                                                                                        
SENATE BILL NO. 120 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 and for                                                                     
          certain programs, capitalizing funds, and making                                                                      
          reappropriations; making appropriations under art.                                                                    
          IX, sec. 17(c), Constitution of the State of Alaska,                                                                  
          from the constitutional budget reserve fund."                                                                         
                                                                                                                                
was read the first time and referred to the Finance Committee.                                                                  
                                                                                                                                
Governor's transmittal letter dated January 17:                                                                                 
                                                                                                                                
Dear President Huggins,                                                                                                         
                                                                                                                                
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill relating to the State's operating                                                        
budget for Fiscal Year 2015 (FY 2015).                                                                                          
                                                                                                                                
Leaving a strong, vibrant Alaska for our children and grandchildren                                                             
requires living within our means and prioritizing spending for                                                                  
Alaskans' future. My operating budget for FY 2015 proposes to pay                                                               
down State debt and significantly reduce State government spending.                                                             
Even at this reduced level, the budget represents my continued                                                                  
commitment to Alaska's constitutional priorities including resource                                                             
development, public safety, education, transportation, and                                                                      
infrastructure.                                                                                                                 
                                                                                                                                
The operating budget also proposes a solution to address Alaska's                                                               
single largest cost driver - unfunded pension liabilities. I am                                                                 
recommending a transfer of $3 billion from the Constitutional Budget                                                            
Reserve fund into the State's retirement trust funds. The effect is to                                                          
pay down debt, resulting in lower fixed annual payments for the State.                                                          
Your approval of this plan will significantly reduce our annual                                                                 
operating costs instead of pushing it off to future generations.                                                                
                                                                                                                                
                                                                                                                                
                                                                                                                                

2014-01-22                     Senate Journal                      Page 1403
With a responsible budget plan, and the increased jobs and economic                                                             
activity being generated by the More Alaska Production Act, our state                                                           
will continue to be prosperous and full of opportunity. I look forward                                                          
to working with the Legislature to finalize the operating budget for the                                                        
upcoming fiscal year.                                                                                                           
                                                                                                                                
Thank you for your consideration of this bill.                                                                                  
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Sean Parnell                                                                                                                    
Governor