1994-02-16                     House Journal                      Page 2415
HB 505                                                                       
HOUSE BILL NO. 505 by the House Rules Committee by request of                  
the Governor, entitled:                                                        
                                                                               
"An Act making appropriations to and from the constitutional                  
budget reserve fund under art. IX, sec. 17(c), Constitution of the             
State of Alaska, for operating and capital expenses of state                   
government for fiscal year 1994; and providing for an effective                
date."                                                                         
                                                                               
was read the first time and referred to the Judiciary and Finance              
Committees.                                                                    
                                                                               
                                                                               
The Governor's transmittal letter, dated February 16, 1994, appears            
below:                                                                         
                                                                               
"Dear Speaker Barnes:                                                          
                                                                               
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am     
transmitting a bill necessary for the state to comply with the January         
27, 1994, order of the Alaska Supreme Court in Hickel v. Halford, the      
litigation concerning the constitutional budget reserve fund.  This bill     
appropriates money from the general fund to fully restore the                  
constitutional budget reserve fund as required by the court's order.  In       
addition, it appropriates money from the constitutional budget reserve         
fund to the general fund to provide valid funding sources for fiscal           
year 1994 appropriations.  The enactment of this bill is essential for         
two reasons:  it ensures that the state is in compliance with the order        
of the Alaska Supreme Court, and it provides finality with regard to           
the validity of fiscal year 1994 appropriations.                              
                                                                               
The bill sets out findings concerning the constitutional budget reserve       
fund and the litigation on this issue.  That litigation resulted in an         
order of the Alaska Supreme Court that the governor restore the                
constitutional budget reserve fund, with interest.  The amount required        
to restore that fund consistent with the court's interpretation is             
$945,636,778.27, plus income that would have been earned upon                  
investment of this money, calculated from the date of receipt by the           
state.  The bill makes appropriations necessary to accomplish this.            
                                                                               
                                                                               

1994-02-16                     House Journal                      Page 2416
HB 505                                                                       
The enactment of this bill is essential to the State of Alaska.  If            
enacted into law, the bill will bring the state into compliance with the       
order of the Alaska Supreme Court.  By making appropriations from              
the constitutional budget reserve fund, the bill provides valid funding        
sources for fiscal year 1994 appropriations.                                   
                                                                               
                                                                               
This bill accomplishes these goals in a manner that provides finality.         
For these reasons, I strongly urge your support for this bill.                 
                                                                               
						Sincerely,                                                               
                                                                               
						/s/                                                                      
                                                                               
						Walter J. Hickel                                                         
						Governor"