2017-01-18                     Senate Journal                      Page 0031
SB 22                                                                                                                         
SENATE BILL NO. 22 BY THE SENATE RULES COMMITTEE                                                                                
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                

2017-01-18                     Senate Journal                      Page 0032
          "An Act making appropriations for the operating and                                                                   
          loan program expenses of state government and for                                                                     
          certain programs; capitalizing funds; amending                                                                        
          appropriations; repealing appropriations; making                                                                      
          supplemental appropriations and reappropriations,                                                                     
          and 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.                                                                  
                                                                                                                                
Governor's transmittal letter dated January 17:                                                                                 
                                                                                                                                
Dear President Kelly:                                                                                                           
                                                                                                                                
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) 2018.                                                                                               
                                                                                                                                
The FY 2018 budget shares many commonalities with the plan I                                                                    
submitted last year. The budget continues to reduce State spending for                                                          
operating agencies through program reductions, efficiency measures                                                              
such as the new Shared Services Division, provisions to increase                                                                
unrestricted general fund revenue through sustainable use of the                                                                
Permanent Fund Earnings Reserve, and tax increases.                                                                             
                                                                                                                                
This year's agency operating budget is $3.75 billion in unrestricted                                                            
general funds. This represents an unrestricted general fund reduction                                                           
of $123.0 million from FY 2017 and $747.7 million from FY 2015.                                                                 
While continuing to reduce total spending, the budget maintains key                                                             
services such as education and support to local communities. It                                                                 
maximizes federal funding opportunities to support Alaskans and the                                                             
Alaskan economy. The budget reduces the draw on the Constitutional                                                              
Budget Reserve by $2 billion, from the estimated $2.9 billion to $892                                                           
million.                                                                                                                        
                                                                                                                                
                                                                                                                                
                                                                                                                                
                                                                                                                                

2017-01-18                     Senate Journal                      Page 0033
My administration included language in the FY 2018 budget and is                                                                
introducing separate legislation for the Permanent Fund Protection Act                                                          
and motor fuels tax, and stands ready to assist the Legislature in                                                              
developing other broad based tax legislation in order to cover the cost                                                         
of necessary government services.                                                                                               
                                                                                                                                
My administration looks forward to working with the Legislature on                                                              
the FY 2018 budget and related revenue measures to provide a long                                                               
term balanced budget.                                                                                                           
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor