1996-05-08                     Senate Journal                      Page 4200
SB 1005                                                                      
SENATE BILL NO. 1005 BY THE SENATE 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 Labor and Commerce,                
State Affairs, Judiciary and Finance Committees.                               
                                                                               
Governor's transmittal letter dated May 8:                                     
                                                                               
Dear President Pearce:                                                         
                                                                               
As you know, the two budget bills that passed the Senate and House             
last night do not constitute a balanced budget for FY97 as required            
by the state constitution.  There was no legislation passed to approve         
the labor contracts negotiated in good faith with public employee              
bargaining units or to approve adjustments to the salaries of non-             
covered employees in the executive and legislative branches,                   
university and court system.  The tobacco tax increase, which passed           
the Senate by a vote of 17-3, was not brought up for a vote in the             
House.                                                                         
                                                                               
                                                                               

1996-05-08                     Senate Journal                      Page 4201
SB 1005                                                                      
I believe these important budget-related issues could have been                
successfully completed if time had not run out last night.  I am               
limiting the agenda for this special session so the most essential             
work will be completed first.  If these items are successfully                 
completed in the next two days, we could consider completion of                
other unfinished business, particularly several bills that were simply         
awaiting concurrence by the other body.                                        
                                                                               
In an effort to focus the budget work ahead of us, I have prepared             
identical bills which address all remaining FY96 supplementals,                
FY97 operating and capital appropriations, reappropriation, fiscal             
notes, and budget intent language.  They also amend the budget bills           
passed last night (HB412 and SB136) to add effective dates and                 
authorization for use of the Constitutional Budget Reserve.                    
                                                                               
My administration stands ready to work with you as much as                     
necessary to complete the state's budget in a responsible, timely              
manner.                                                                        
                                                                               
					Sincerely,                                                                
					/s/                                                                       
					Tony Knowles                                                              
					Governor