2019-04-12                     House Journal                      Page 0602
HB 130                                                                                                                        
HOUSE BILL NO. 130 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
                                                                                                                                

2019-04-12                     House Journal                      Page 0603
    "An Act relating to the community assistance fund and to                                                                    
    community assistance; repealing the civil legal services fund,                                                              
    power cost equalization endowment fund, power cost equalization                                                             
    and rural electric capitalization fund, curriculum improvement and                                                          
    best practices fund, and Alaska higher education investment fund;                                                           
    disposing of proceeds; and providing for an effective date."                                                                
                                                                                                                                
was read the first time and referred to the House Special Committee on                                                          
Energy and the Education, Community & Regional Affairs, Judiciary,                                                              
and Finance Committees.                                                                                                         
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1. Fiscal, Dept. of Commerce, Community, & Economic                                                                             
 Development                                                                                                                    
2. Fiscal, Dept. of Commerce, Community, & Economic                                                                             
 Development                                                                                                                    
3. Fiscal, Dept. of Education & Early Development                                                                               
4. Fiscal, Dept. of Education & Early Development                                                                               
5 Fiscal, Dept. of Education & Early Development/Fund                                                                           
 Capitalization                                                                                                                 
6. Fiscal, Office of the Governor/Fund Capitalization                                                                           
7. Fiscal, Office of the Governor/Fund Transfer                                                                                 
8. Fiscal, Office of the Governor/Fund Transfer                                                                                 
9. Fiscal, Dept. of Revenue                                                                                                     
                                                                                                                                
The Governor's transmittal letter dated April 11 follows:                                                                       
                                                                                                                                
"Dear Speaker Edgmon:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill repealing multiple funds in the                                                          
state's general fund.                                                                                                           
                                                                                                                                
This bill would repeal various funds in the general fund, specifically,                                                         
the civil legal services fund, the power cost equalization endowment                                                            
fund, the power cost equalization and rural electric capitalization fund,                                                       
the curriculum improvement and best practices fund, and the Alaska                                                              
higher education investment fund. The community assistance fund                                                                 
statute would be repealed and reenacted to remove the fund                                                                      

2019-04-12                     House Journal                      Page 0604
designation, but still allow legislative appropriations for community                                                           
assistance.                                                                                                                     
                                                                                                                                
Next, the bill would provide for funds received by gift, bequest, or                                                            
donation to be returned to the original donors, while the remainder of                                                          
the fund balances would be deposited into the general fund on the bill's                                                        
effective date of July 1, 2019. The proliferation of designated funds                                                           
over the years causes complexities in budgeting, and failure to apply a                                                         
fresh look at state spending. Removing these funds will contribute to a                                                         
more transparent annual budget analysis.                                                                                        
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Michael J. Dunleavy                                                                                                             
Governor"