1996-06-03                     House Journal                      Page 4663
HB 1010                                                                      
HOUSE BILL NO. 1010 by the House Rules Committee by request of                 
the Governor, entitled:                                                        
                                                                               
An Act making, amending, and repealing appropriations; making                 
appropriations under art. IX, sec. 17(c), Constitution of the State            
of Alaska, from the constitutional budget reserve fund; and                    
providing for an effective date.                                               
                                                                               
was read the first time and referred to the Finance Committee.                 
                                                                               
The Governor's transmittal letter, dated June 3, 1996, appears below:          
                                                                               
Dear Speaker Phillips:                                                         

1996-06-03                     House Journal                      Page 4664
HB 1010                                                                      
At the start of the special session, I introduced a budget bill to             
complete the work left undone in the operating and capital budget bills        
passed in the regular session.  As I indicated at the time, the bill           
represented all our issues of concern after the Conference Committee           
completed its report.  I remained willing to work through a                    
compromise package with you to complete a balanced budget for                  
FY97.                                                                          
                                                                               
                                                                               
As you return to finish the special session, I am transmitting to you a        
pared down version of my earlier request. This reduced budget package          
balances the budget and meets your goal of cutting $70 million from            
the current year.  It does so while fully funding the employee contracts       
and non-represented employee wage adjustments so we can avert a                
government shutdown next month.                                                
                                                                               
                                                                               
The budget you passed on May 7 left some critical holes in programs            
and capital projects for Alaskan families and jobs.  I believe this is         
unwise and, in some cases, unsafe.  I continue to believe that a few of        
the legislatures budget cuts should be restored. Most of these can be          
funded with reappropriations from completed capital projects or                
anticipated left-over FY96 funds from formula programs which will              
cost less than projected a year ago.                                           
                                                                               
                                                                               
Despite characterizations of my proposals as a budget addition, it is          
not an increase over FY96.  Some legislators have flatly rejected our          
proposals to use prior year funds to meet critical FY97 needs.                 
However, I would point out that the budget you passed on May 7                 
already includes the legislatures own proposals for more than $6.4             
million in capital reappropriations and $3.2 million in anticipated            
lapsed school foundation funds.                                                
                                                                               
                                                                               
I have been discussing our current budget situation with people around         
the state over the past two weeks.  I find them to be incredulous that         
we would allow government services to come to a standstill over such           
a small difference in a $2.4 billion budget. The public understands that       
we will have more cuts to make and public service challenges to meet.          

1996-06-03                     House Journal                      Page 4665
HB 1010                                                                      
They want us to complete a balanced budget without further delay and           
know that it will require compromise on both sides to achieve this.          
                                                                               
							Sincerely,                                                              
							/s/                                                                     
							Tony Knowles                                                            
							Governor