1994-07-15                     House Journal                      Page 4513
HB 370                                                                       
The following letter dated June 15, 1994, was received:                        
                                                                               
                                                                               
"Dear Speaker Barnes:                                                          
                                                                               
On this date I have signed the following bill with line item vetoes and        
reductions, and am transmitting the engrossed and enrolled copies to           
the Lieutenant Governor's Office for permanent filing:                         
                                                                               
CONFERENCE CS FOR HOUSE BILL NO. 370                                          
"An Act making appropriations for the operating and loan program              
expenses of state government and to capitalize funds; 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."                                              
                                                                               
Chapter No. 3, FSSLA 1994                                                     
[Effective Date:  July 1, 1994]                                               
                                                                               
                                                                               
I have worked with my budget team, the entire cabinet, and the                 
Legislature to assure budget reductions that bring this budget below           
1994 spending levels.  Alaska's fiscal policy-makers have tackled              
difficult questions that will continue to face not only the Legislature        
in the years to come, but each Alaskan as well.                                
                                                                               

1994-07-15                     House Journal                      Page 4514
HB 370                                                                       
The Legislature seriously examined the varied programs and services            
state government provides its citizens and made some tough decisions.          
For example, significant reductions in medicaid funding will result in         
less medical services being provided to those most in need.  Also, cuts        
to Corrections will continue serious overcrowding of our prison                
system.  I remain committed to doing all I can in administering state          
government within these funding levels while maintaining necessary             
services to the people of this state.                                          
                                                                               
                                                                               
I have reduced some areas where I feel that legislative additions may          
have been inappropriate in light of reductions made to other programs.         
The Alaska Tourism Marketing Council is reduced by $500,000.  This             
is still an increase of $500,000 over my original request.  It is my hope      
that the visitors industry will continue to seek means of supporting           
these marketing efforts.  Another reduction is $400,000 added to the           
Legislature's budget for increased per diem.  I find it difficult to           
support raises for the Legislature when cuts are being made to Alaska's        
most needy programs.                                                           
                                                                               
                                                                               
The challenge of state agencies will be to continue providing Alaskans         
with the quality and level of services they have come to expect--but           
with less dollars there will be noticeable changes to those services.          
This continues the trend I began when I came into office when I                
sought a gradual, responsible reduction in spending for government             
operations.                                                                    
                                                                               
                                                                               
The fiscal issues we have faced this year will not go away.  We must           
continue to work together to strengthen our state's financial backbone         
not just through reductions in spending, but through new economic              
development initiatives and improvement of state revenues.  We need            
the support of all Alaskans.                                                   
                                                                               
                                                                               
									Sincerely,                                                            
									/s/                                                                   
									Walter J. Hickel                                                      
									Governor"