2018-01-16                     House Journal                      Page 2189
HB 286                                                                                                                        
HOUSE BILL NO. 286 by the House 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; amending appropriations; making                                                                        
     supplemental appropriations; making appropriations under art. IX,                                                          
     sec. 17(c), Constitution of the State of Alaska, from the                                                                  
     constitutional budget reserve fund; and providing for an effective                                                         
     date."                                                                                                                     
                                                                                                                                
was read the first time and referred to the Finance Committee.                                                                  
                                                                                                                                
The Governor's transmittal letter dated January 15 follows:                                                                     
                                                                                                                                
                                                                                                                                

2018-01-16                     House Journal                      Page 2190
"Dear Speaker Edgmon:                                                                                                           
                                                                                                                                
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 (FY) 2019.                                                                                               
                                                                                                                                
The Walker Administration's FY 2019 operating budget, capital                                                                   
budget, and related legislation are designed to fix broken processes,                                                           
invest in our future, and put Alaska on a path to stability and                                                                 
prosperity.                                                                                                                     
                                                                                                                                
Our proposed operating budget is up less than one percent compared                                                              
to FY 2018. It does not include cost-of-living wage increases, and                                                              
continues to reduce the government workforce. The budget includes                                                               
$50 million in specific cost saving and efficiency measures which                                                               
offset some inflation growth and reduces the real size of government.                                                           
                                                                                                                                
This year's transparent agency operating budget is $4.0 billion. This                                                           
represents an increase of $22.5 million from FY 2018 and a decrease                                                             
of $475.4 million from FY 2015. The budget maintains key services                                                               
such as public safety, education, and support to local communities. It                                                          
maximizes federal funding opportunities to support Alaskans and the                                                             
Alaska economy.                                                                                                                 
                                                                                                                                
The budget includes revenue language consistent with the legislation                                                            
passed in both chambers to provide funding from the earnings reserve                                                            
to the general fund. It also provides for a Permanent Fund Dividend                                                             
estimated to be $1,216 per person. While we stand ready to assist the                                                           
Legislature in adopting a broad-based tax to completely close the                                                               
fiscal gap, this budget requires continued withdrawals from reserves                                                            
and aggressive containment of upward cost pressures.                                                                            
                                                                                                                                
My administration looks forward to working with the Legislature on                                                              
the FY 2019 budget and related revenue measures to provide a long                                                               
term balanced budget.                                                                                                           
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor"