Legislature(1997 - 1998)
1998-07-15 Senate Journal
Full Journal pdf1998-07-15 Senate Journal Page 4317 SB 231 Message dated June 30 and received July 1, stating: Dear President Miller: On this date I have signed the following bill with certain line item vetoes and am transmitting the engrossed and enrolled copies to the Lieutenant Governor's Office for permanent filing: HOUSE CS FOR CS FOR SENATE BILL NO. 231(FIN) am H(brf sup maj pfld S) An Act making and amending capital, supplemental, and other appropriations; making appropriations to capitalize funds; 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. Chapter 139, SLA 1998 Effective Date: See Chapter I am pleased to transmit the Fiscal Year 1999 capital budget to you. Along with the school debt reimbursement bill I signed earlier this month, it funds most of the projects I proposed last December. The new capital budget adds jobs with upgrades to the Anchorage and Fairbanks International Airports, roads and harbors. It improves public health by investing in rural water and sewer systems. It addresses sorely needed deferred maintenance at public schools and 1998-07-15 Senate Journal Page 4318 SB 231 state facilities, including the University of Alaska and Pioneers Homes. And it improves Alaska's transportation infrastructure which is so key to our economic well-being. The capital budget shows my Administration and the Legislature have similar views about where Alaska needs to invest its public capital dollars, although there are differences in some of the financing arrangements used for these projects. Even with the large dollar amounts committed in this bill and the new school debt reimbursement program, we still have a long way to go to bring all our schools and state facilities into good working order and meet the need for new classrooms. I commend the Legislatures Deferred Maintenance Task Force for its work to bring the problem to the forefront of public attention. A few issues raised in this budget require mention. I have followed a long-standing practice of Alaska governors by vetoing the intent language on pages 42, 48 and a separate letter of intent inserted in the bill. Whether they agree with the content or not, governors have routinely vetoed intent language because it is not consistent with the limitations our state Constitution places on appropriations bills. Some federal demonstration projects were also added even though only a small percentage of the funds for them will be available in the states Fiscal Year 1999 budget and the match requirements have not been fully funded. Again, this raises expectations in the communities which cannot be met in this budget year. Many have wondered if the budget approved by the Legislature will require more than the $700 million from the Constitutional Budget Reserve Fund (CBR), which was the limit established in this bill. The budget was based on the Department of Revenue Spring Revenue Forecast price of $15.32 per barrel and the Administration and Legislature agreed the public would be ill served by making major decisions based on changing week-to-week prices. One of the reasons Alaskans voted to establish the CBR was to save money in years of high oil prices so public services can continue without undue disruption when prices are low. We have already accomplished 1998-07-15 Senate Journal Page 4319 SB 231 the savings side of the equation, building our CBR up to $3.47 billion over the past three years. If prices remain low and more than $700 million in reserves would be needed to complete next fiscal year, the Legislature will have to reevaluate the limit in January. That will also be the time to provide supplemental funding from the CBR or the general fund to fix critical, time-sensitive Year 2000 problems. In summary, this Fiscal Year 1999 capital budget will be good for Alaskans, good for Alaskan businesses and good for Alaska's economy. Sincerely, /s/ Tony Knowles Governor Attachment Fiscal Year 1999 Capital Budget Bill Vetoes of language which is inconsistent with constitutional limitations on appropriation bills HCS CSSB 231(FIN) am H(brf sup maj pfld S) Intent Page 42, lines 13-21 Page 48, lines 26-30 Letter of Intent Adopted by the House 5/11/98