Legislature(1995 - 1996)

1996-01-08 Senate Journal

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1996-01-08                     Senate Journal                      Page 2068
SB 208                                                                       
SENATE BILL NO. 208 BY THE SENATE RULES COMMITTEE                              
BY REQUEST OF THE GOVERNOR, entitled:                                          

1996-01-08                     Senate Journal                      Page 2069
SB 208                                                                       
An Act making a supplemental appropriation from                               
the general fund to cover shortfalls in federal                                
receipts caused by an impasse in enacting the 1996                             
federal budget; relieving conditions on the                                    
expenditure of general fund matching appropriations;                           
and providing for an effective date.                                           
                                                                               
was read the first time and referred to the Finance Committee.                 
                                                                               
Governors transmittal letter dated January 8:                                  
                                                                               
Dear President Pearce:                                                         
                                                                               
Under the authority of art. III, sec. 18 of the Alaska Constitution, I         
am transmitting a bill making a supplemental appropriation that                
would provide "bridge financing" from the general fund to operate              
certain federally-funded activities pending resolution of the federal          
budget impasse and making necessary changes related to conditions              
on certain fiscal year 1996 appropriations.                                    
                                                                               
The President and the Congress have been deadlocked over the                   
proposed enactment of several appropriation bills.  These bills                
contain amounts that would finance administrative costs and benefit            
payments for several programs providing essential assistance to                
Alaskans.  The most pressing concern is caused by the lack of                  
timely receipt of federal money to pay employees of the division of            
employment security in the Department of Labor.  This division is              
responsible for the payment of unemployment insurance benefits to              
over 19,000  families.  The administrative costs of this division are          
financed from the part of the federal budget that is in dispute                
between the President and Congress.  Federal money to pay the                  
salaries of employees engaged in operating the occupational safety             
and health programs of the state (OSHA) may also be unavailable                
during the impasse. Section 2 of the bill makes an appropriation               
from the general fund to provide the necessary "bridge financing."             
                                                                               
                                                                               

1996-01-08                     Senate Journal                      Page 2070
SB 208                                                                       
Other essential benefit programs administered by the Department of             
Health and Social Services are nearing the end of available federal            
money.  These programs include Medicaid, aid to families with                  
dependent children, and "meals on wheels".  Our ability to carry on            
with the provision of benefits is not immediately threatened because           
these programs also receive general fund matching money that could             
be expended on an accelerated basis to cover the immediate costs of            
benefits.                                                                      
                                                                               
Section 3 of the bill contains a provision that would authorize                
program managers to spend matching money without regard to any                 
requirement to also receive corresponding federal money.                       
                                                                               
All of the foregoing provisions would be made subject to the express           
intent that the Administration do whatever is necessary to recover             
full reimbursement from the federal government.  There has been no             
suggestion from the responsible federal agencies that reimbursement            
would be unavailable upon enactment of the federal budget.                     
Responsible state officials will be instructed to do whatever is               
necessary to preserve our limited general fund money.                          
                                                                               
The advice of the legislative budget and audit committee concerning            
this matter was sought during a special meeting held in Juneau on              
January 5, 1996.  Depending on recent developments in the                      
Congress, it may not be necessary to provide for immediate "bridge             
financing." However, as suggested by members of the legislative                
budget and audit committee, it is prudent to introduce this bill so            
that it may serve as the vehicle for addressing any other problems             
that may arise during the federal budget impasse.                              
                                                                               
I urge your favorable consideration of this bill.                              
                                                                               
						Sincerely,                                                               
						/s/                                                                      
						Tony Knowles                                                             
						Governor