1993-01-22                     House Journal                      Page 0130
HB 81                                                                        
HOUSE BILL NO. 81 by the House Rules Committee by request of                   
the Governor, entitled:                                                        
                                                                               
"An Act relating to the longevity bonus program."                             
                                                                               
was read the first time and referred to the State Affairs, Judiciary and       
Finance Committees.                                                            
                                                                               
                                                                               
The following fiscal notes apply:                                              
                                                                               
Fiscal notes (2), Dept. of Administration, 1/22/93                             
                                                                               
                                                                               
The Governor's transmittal letter, dated January 22, 1993, appears             
below:                                                                         

1993-01-22                     House Journal                      Page 0131
HB 81                                                                        
"Dear Speaker Barnes:                                                          
                                                                               
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am     
transmitting a bill that phases out the longevity bonus program over a         
several-year period.                                                           
                                                                               
This bill is necessary because the ever-increasing number of senior            
citizens in Alaska, coupled with the projected decline in state revenue,       
makes it clear that the state will not be able to afford the longevity         
bonus program over the long term.  It is becoming increasingly                 
necessary to shift state resources from non-need-based programs to             
programs for those truly in need.  The bill protects current bonus             
recipients, and those future recipients who turn 65 before January1,           
1994, by providing that they will receive $250 a month for the                 
remainder of their lives (as long as the eligibility requirements are          
met).  The bill phases out the program by reducing to $200 the                 
monthly bonus for those turning 65 in 1994, by reducing to $150 the            
monthly bonus for those turning 65 in 1995, by reducing to $100 the            
monthly bonus for those turning 65 in 1996, and by eliminating the             
bonus altogether for those turning 65 in 1997 and later.                       
                                                                               
I am proposing this phased elimination because many Alaskans who               
will be reaching age 65 in the next four years have counted on the             
bonus in planning for their retirement, and an abrupt termination of the       
program would not be fair to them.                                             
                                                                               
I urge your prompt consideration and passage of this bill.                     
                                                                               
                                                                               
      Sincerely,                                                               
                                                                               
      /s/                                                                      
                                                                               
      Walter J. Hickel                                                         
      Governor"