Legislature(1993 - 1994)
1993-07-22 Senate Journal
Full Journal pdf1993-07-22 Senate Journal Page 2396 SB 183 Governor's transmittal letter dated June 28: Dear Mr. President: 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: HOUSE CS FOR CS FOR SENATE BILL NO. 183(FIN) 1993-07-22 Senate Journal Page 2397 SB 183 "An Act making special appropriations for restoration projects relating to the Exxon Valdez oil spill and for oil spill response projects; making appropriations for capital project matching grant funds; making appropriations for capital projects; making an appropriation to pay judgment, interest, and attorney fees for Frontier Flying Service v. Turpin; and providing for an effective date." Chapter No. 79, SLA 1993 Effective Date: See Chapter The Fiscal Year 1994 capital budget passed by the Legislature funds many diverse projects important in the everyday lives of Alaskans. These range from providing safe water and sewer systems and building infrastructure important in the economic future of communities, to improving local senior centers. After a careful review of these projects, I have vetoed $10,185,200; of this amount, $8,185,200 are general funds. Of special note is the $20 million in funding for the first year of the capital matching grants program, one of my administration's highest priorities. I have always believed people at the local level know best what projects and programs their community needs. This is the underlying principle on which the capital matching grants program is based. The ability to get state funds to meet local needs should not hinge on whether a community's legislator is in a powerful position. My first year as Governor I pledged to change this process and we have come a long way. When it comes to political spending in the capital budget, it is no longer business as usual: my first year the Legislature spent $160 million in "discretionary" funding; my second year $100 million; and this year it will be $80 million. Next year my goal is to build on this progress and get the capital budget process even further away from one governed by political rewards. Instead, I will do all I can to put more dollars into the capital matching grants program so local communities can make these important decisions. 1993-07-22 Senate Journal Page 2398 SB 183 The following addresses several of the vetoes and reductions I have made in the capital budget: Business Industrial Development Corporation Capitalization (BIDCO) Funding was reduced to $1 million from $3 million in Science and Technology Endowment earnings. This action does not reflect my lack of support for the BIDCO program. Instead, it is the result of a careful review of projected earnings which shows insufficient earnings to support the original appropriation level. For the Fiscal Year 1995 capital budget, I will reassess projected earnings and appropriations and consider a request for further funding for the BIDCO program. Mineral Lease Appraisal, Goodnews Bay $100,000 This appropriation may be viewed as the first step toward encouraging a state buy-out of offshore prospecting permits issued for exploration of tracts of submerged land in the area adjacent to Goodnews Bay. Because the concept of buying out properly granted prospecting rights is not good public policy, and is not in the state's interest, I vetoed this item. Lower Kuskokwim School District, Subsurface Water Treatment $4,716,000 Given the priority this Administration places on meeting the water and sewer needs of rural Alaska, this veto was a difficult decision. Many water and sewer appropriations for projects in smaller communities are the responsibility of the Department of Environmental Conservation (DEC). DEC has done a commendable job in developing systems that not only meet a community's needs, but systems the residents can afford to operate and maintain. Often this involves a delicate process of balancing the needs of all users in a community--whether it be the residents, businesses or a school district. 1993-07-22 Senate Journal Page 2399 SB 183 This last point was of special concern with this appropriation. The funds were appropriated to the school district and not DEC. I was concerned this balance of user needs would not take place, and as a result, I made the difficult decision to veto the funds. I have asked DEC to continue to work closely with these communities and the school district in the hope of ensuring coordinated solutions. Mental Health Beneficiaries Grants I vetoed a series of appropriations and allocations the Legislature designated to specific programs that provide services to beneficiaries of the mental health trust. Once again, this action was not due to a lack of support for these projects or the good work these programs do. Instead, it reflects my continued belief that whenever possible, funding decisions should be the result of a selection criteria based on a project's merit, and not a process based on politics (I made a similar veto in last year's capital budget). The Fiscal Year 1994 capital budget includes over $5.5 million for competitively awarded grants to programs for projects such as those vetoed. A systematic grant process is a better process, and I anticipate many of these same projects will meet the program's criteria and will ultimately be funded. Yakutat Wastewater and Water System Design and Construction $899,800 I have reduced funding for this project by 50 percent, to $499,900. Yakutat formed a home rule borough in September 1992. As a result, the community's new status makes it ineligible for a grant under the statutory criteria of the Village Safe Water program. Instead, water and sewer project funding is subject to the provisions of the Department of Environmental Conservation's 50 percent municipal matching grants program. Accordingly, I reduced this appropriation to the 50 percent level. 1993-07-22 Senate Journal Page 2400 SB 183 Section 21 of the legislation appropriated the $80 million in the Legislature's discretionary spending. In reviewing these projects, I was pleased with the increased emphasis communities and organizations have placed on sharing in a project's cost. In spite of this trend, I found a few projects to be lower in priority for state dollars or that other programs exist through which funding is likely to be made available. O'Malley Golf Course Pathway Construction and Preventive Maintenance $70,100 While I appreciate the enjoyment playing golf may bring, I had to draw the line at what is a state responsibility--paths for golf carts is not one of them. Mid-Town Recreation Center Design $250,000 In reviewing projects such as this, I looked to the probability construction dollars would be available after the project was designed. While a neighborhood recreation center may be popular with local residents, I found no indication the community would be able to provide construction funding. In addition, another recreation center is within blocks of the new center's proposed location. University of Alaska, Fairbanks, Develop Virus Free Potatoes for Export $151,600 Over the years the capital budget has financed many good ideas and this project may certainly be another one which merits state support. However, more recently the Legislature has established an endowment to provide funding to support research such as this which has marketing potential. With many needs competing for limited state dollars, it is important the capital budget process not be used to circumvent programs designed to ensure a return on the state's investment. Valdez Fisheries Development Association, Salmon Behavior Studies $90,000 As with the above project, it is important to first maximize other fund sources that may be available. 1993-07-22 Senate Journal Page 2401 SB 183 It is my understanding this project is similar in nature to work the Trustee Council funds from the Exxon Valdez civil settlement, and I encourage the organization to apply to the council. Sincerely, /s/ Walter J. Hickel Governor