1994-03-18                     House Journal                      Page 2868
HB 535                                                                       
HOUSE BILL NO. 535 by the House Rules Committee by request of                  
the Governor, entitled:                                                        

1994-03-18                     House Journal                      Page 2869
HB 535                                                                       
"An Act making appropriations for capital project matching grant              
funds and for capital projects; and providing for an effective date."          
                                                                               
was read the first time and referred to the Finance Committee.                 
                                                                               
The Governor's transmittal letter, dated March 18, 1994, appears               
below:                                                                         
                                                                               
"Dear Speaker Barnes:                                                          
                                                                               
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am     
transmitting a bill making appropriations for capital projects for fiscal      
year 1995.                                                                     
                                                                               
As with my proposed operating budget, the capital budget focuses on            
government meeting its basic and traditional responsibilities to its           
citizens.  To this end, my capital budget provides over $23.6 million          
for water and sewer projects throughout Alaska.  For the first time,           
these state appropriations will help bring in federal funds to assist in       
rural water and sewer needs.  This could provide up to $25 million in          
additional federal funds.  We must continue to build upon this                 
administration's financial commitment to protecting the health of              
Alaskans.                                                                      
                                                                               
Another area of emphasis is protecting our state's assets.  For too long       
our buildings, roads and facilities have been left without repair.  We         
must continue to meet our responsibilities and provide some of the             
funding necessary to get this job done.  I have already introduced             
legislation that further meets this responsibility by providing funding        
for the University of Alaska.                                                  
                                                                               
In an effort to reduce the need for new funds, this legislation uses           
$5,400,00 in highway match and $1,000,000 in airport match from                
previous years' appropriations.  The language to access these funds is         
found in sections 6 and 7 of this bill.  Also, the Department of               
Transportation and Public Facilities has completed a long range capital        
improvement plan entitled "Six Year Transportation Needs and                   
Priorities in Alaska" dated January 1994.  This plan is in accord with         
the Federal-Aid Highway Act of 1991 and the Federal-Aid Aviation               
Act of 1992.                                                                   
                                                                               

1994-03-18                     House Journal                      Page 2870
HB 535                                                                       
The capital needs of this state far exceed the level of funding I have         
proposed.  Many projects traditionally funded in the capital budget,           
such as Pioneer Homes maintenance, are not funded in this proposal.            
While taking care of the state's deferred maintenance problem is a high        
priority, the state's revenue picture required some hard choices be            
made.  As a result, departments have been directed to maximize and             
prioritize the use of the maintenance funding they have received in the        
past in order to meet current-day needs.  I am hopeful that this bill          
provides a map of how we can continue to make progress in meeting              
our responsibilities to the state and Alaskans.  Toward this end, I look       
forward to working with the Legislature.                                       
                                                                               
Additional information pertaining to the appropriations requested in           
this bill are being furnished to the Legislature by my Office of               
Management and Budget.                                                         
                                                                               
										Sincerely,                                                           
										/s/                                                                  
										Walter J. Hickel                                                     
										Governor"