1994-03-18                     Senate Journal                      Page 3269
SB 363                                                                       
SENATE BILL NO. 363 BY THE SENATE RULES COMMITTEE                              
BY REQUEST OF THE GOVERNOR, entitled:                                          
                                                                               
"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.                 
                                                                               
Governor's transmittal letter dated March 18:                                  
                                                                               
Dear Mr. President:                                                            
                                                                               
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.                                                                      

1994-03-18                     Senate Journal                      Page 3270
SB 363                                                                       
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.                                                          
                                                                               
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