1997-07-10                     Senate Journal                      Page 2076
SB 55                                                                        
Message dated and received May 30, stating:                                    
                                                                               
Dear President Miller:                                                         
                                                                               
On this date I have signed the following bill and am transmitting the          
engrossed and enrolled copies to the Lieutenant Governor's Office for          
permanent filing:                                                              
                                                                               
                                                                               

1997-07-10                     Senate Journal                      Page 2077
SB 55                                                                        
HOUSE CS FOR CS FOR SENATE BILL NO.                                           
55(FIN)                                                                        
An Act relating to the definition of certain state                            
receipts, to state fiscal procedures, to the state                             
budget, to agency performance reports, and to                                  
appropriation bills, eliminating the authority of a                            
department to award a grant to a recipient other                               
than the one named in the appropriation or                                     
allocation for the grant; and providing for an                                 
effective date.                                                                
                                                                               
		Chapter 59, SLA 1997                                                         
		Effective Date: See Chapter                                                  
                                                                               
Because its worthwhile provisions for designated program receipts              
(the original subject of the bill) should not be tossed out along with         
a legislative add-on that prohibits an administration from opening the         
grants process up to competition when it is in the best interest of the        
state.                                                                         
                                                                               
I proposed the original designated program receipts bill last year to          
address a budgetary catch-22 that does not recognize the difference            
between activities that are self-supporting and those that are not.            
This bill does not include all my recommendations for what should              
be considered designated program receipts but it does move in the              
right direction.  I would hope we could pursue further designations            
in the future if the Legislature agrees that this treatment of program         
receipts is consistent with good budget discipline.                            
                                                                               
Current law allows the administration to solicit bids from other               
potential providers in lieu of a grantee named in a budget bill if a           
competitive process is deemed in the public interest.  A provision in          
this bill bars competitive bids if monies are not granted to the               
designated recipient.                                                          
                                                                               
                                                                               

1997-07-10                     Senate Journal                      Page 2078
SB 55                                                                        
In recent years, the Legislature and administrations have worked               
diligently and appropriately to reduce the proliferation of named              
grant recipients that occurred in the states boom years.  The                  
governors authority to put named grants out for competition under              
AS 37.05.316 has been exercised very rarely.  While the bill allows            
the governor to impound funds rather than issue a grant to a named             
recipient, this will not be an acceptable alternative if essential             
services must be provided.  I will introduce a bill next session to            
maximize the opportunities for competitive grants when services are            
to be provided with public funds.                                              
                                                                               
						Sincerely,                                                               
						/s/                                                                      
						Tony Knowles                                                             
						Governor