1994-02-18                     Senate Journal                      Page 2887
SB 331                                                                       
SENATE BILL NO. 331 BY THE SENATE 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 Finance Committee.                 
                                                                               
Governor's transmittal letter dated February 16:                               
                                                                               
Dear Mr. President:                                                            
                                                                               
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     

1994-02-18                     Senate Journal                      Page 2888
SB 331                                                                       
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.            
                                                                               
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