Legislature(1997 - 1998)
1997-07-10 Senate Journal
Full Journal pdf1997-07-10 Senate Journal Page 2113 SB 107 Message dated and received June 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: HOUSE CS FOR CS FOR SENATE BILL NO. 107(FIN) am H An Act making, amending, and repealing capital and other appropriations; making appropriations to capitalize funds; and providing for an effective date. 1997-07-10 Senate Journal Page 2114 SB 107 Chapter 100, SLA 1997 with line item vetos Effective Date: See Chapter There are many successes in this capital budget. Overall, it continues budget discipline by appropriating funds primarily on the basis of open, statewide processes which result in priority lists for key areas such as schools, water and sewer projects, roads, and rural airports. By putting some $560 million into Alaska's economy--an amount similar to the past two years--it steers us away from the boom and bust cycles of the capital budgets of the 80s and early 90s. I look forward to working with you next year to filling needs in some critical areas and making further budget process improvements. Top on the list of unmet needs are our schools--the needs statewide are great for both major maintenance and new construction. We must follow through on building youth facilities that will be planned and designed with funds appropriated this year, and we must seriously address adult prison overcrowding. Jobs and a healthy growing economy are my Administrations number one priority and high on your list, too. Unfortunately, many economic development projects were left unfunded, even though they were not dependent on general fund dollars. This hampers our efforts to put more Alaskans to work in new or expanded industries, particularly in rural Alaska where unemployment is high. I will be working with the Legislature next year to make progress on these projects. My line item vetoes to the capital budget are few and mostly technical. I followed a long-standing gubernatorial tradition of vetoing intent language because it is not appropriate in an appropriations bill. I have done this whether I agree with the underlying concept or not. The capital bill amended portions of the operating budget bill relating to the Alaska Housing Finance Corporation (AHFC) and the Alaska Seafood Marketing Institute (ASMI). I incorporated those amendments into the operating budget 1997-07-10 Senate Journal Page 2115 SB 107 for easier reference in the future and made the corresponding vetoes in the capital bill. For instance, I vetoed Section 75 here and reduced the AHFC dividend in the operating budget to the correct $70 million amount. Section 17(b) virtually duplicates the reappropriation in Section 9, the version we retained as requested by the Municipality of Anchorage. Technical vetoes of capital matching grants were required for Scammon Bay (it did not have funds available for reappropriation) and the City of Kenai (it did not request two projects which are not even located within the city limits). Part of the reappropriation of funds for the Badger flood control project were vetoed because the North Star Borough will need most of its original appropriation to complete its work this summer. A reappropriation of funds from the Department of Health and Social Services (DHSS) to the City of Ketchikan to plan a juvenile detention facility in Ketchikan was not necessary since the funds are already available for that same purpose. Keeping them in the department will maintain consistency since DHSS has the responsibility for youth facilities statewide and another section of this bill appropriates funds to the department for youth facilities in Ketchikan and four other communities. The Legislature appropriated $600,000 in federal funds to AHFC for home energy conservation services. Contracts for these services would be awarded to the private sector through an open competitive process. The capital bill also directs two $300,000 grants to particular grantees. Since this would be more funds than necessary, I have vetoed the designated grants in favor of an open competitive process for awarding contracts for the services. An open competitive process would also be in the best interests of the public for AHFC senior housing. It will help ensure that state-funded projects meet federal HUD guidelines, do not over- or under-build for the needs in various parts of the state, and leverage federal and other funds most effectively. By naming certain grantees outside this competitive award practice, the Legislature would deny other communities any opportunity to build senior housing projects with these funds. Although I have left the appropriation intact, it is not my intention to proceed with any grants which are not put to competitive bid this year. 1997-07-10 Senate Journal Page 2116 SB 107 The capital budget has many good projects for Alaska. We will be working hard to put them out on the street for the maximum benefit of our citizens statewide. Sincerely, /s/ Tony Knowles Governor