1996-06-03                     Senate Journal                      Page 4249
SB 1012                                                                      
SENATE BILL NO. 1012 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 Finance Committee.                 
                                                                               
Governor's transmittal letter dated June 3:                                    
                                                                               
Dear President Pearce:                                                         
                                                                               
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.                       
                                                                               
                                                                               

1996-06-03                     Senate Journal                      Page 4250
SB 1012                                                                      
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. 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