2019-02-13                     Senate Journal                      Page 0278
SB 59                                                                                                                         
SENATE BILL NO. 59 BY THE SENATE RULES COMMITTEE                                                                                
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
          "An Act repealing statutes providing for                                                                              
          reimbursement for costs of University of Alaska                                                                       
          capital projects, municipal capital projects, and                                                                     
          power projects; and providing for an effective date."                                                                 
                                                                                                                                
was read the first time and referred to the Finance Committee.                                                                  
                                                                                                                                
The following fiscal information was published today:                                                                           
         Fiscal Note No. 1, zero, Department of Commerce, Community,                                                           
          and Economic Development                                                                                              
 Fiscal Note No. 2, zero, Department of Revenue                                                                                 
 Fiscal Note No. 3, zero, Department of Transportation and Public                                                               
          Facilities                                                                                                            
                                                                                                                                
Governor's transmittal letter dated February 12:                                                                                
                                                                                                                                
Dear President Giessel:                                                                                                         
                                                                                                                                
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill that repeals three statutes which                                                        
provide for annual reimbursement by the state for debt and financing                                                            
costs associated with certain capital construction projects.                                                                    
                                                                                                                                
The statutes I propose for repeal are AS 14.40.257 Reimbursement of                                                             
Capital Costs for University of Alaska Projects; AS 29.60.700                                                                   
Reimbursement of Capital Costs for Municipal Projects; and AS                                                                   
42.45.065 Reimbursement of Capital Costs for Costs of Power                                                                     
Projects.                                                                                                                       
                                                                                                                                
To bring forth a budget that builds on core functions that impact a                                                             
majority of Alaskans, each program offered by the state was examined                                                            
for its value in building a sustainable, predictable, and affordable                                                            
budget. Each statute that is proposed for repeal in this bill provided for                                                      
reimbursement “subject to appropriations,” and it is apparent that                                                              
continued appropriations for these projects are not sustainable by the                                                          
state. For transparency and budget planning by municipalities, and the                                                          
University of Alaska, the better course is to repeal these statutes                                                             
effective July 1, 2019.