1997-01-16                     Senate Journal                      Page 0061
SB 47                                                                        
SENATE BILL NO. 47 BY THE SENATE RULES COMMITTEE                               
BY REQUEST OF THE GOVERNOR, entitled:                                          
                                                                               
An Act making appropriations for the operating                                
and loan program expenses of state government, for                             
certain programs, and to capitalize funds; and                                 
providing for an effective date.                                               
                                                                               
was read the first time and referred to the Finance Committee.                 
                                                                               
Governor's transmittal letter dated January 16:                                
                                                                               
Dear President Miller:                                                         
                                                                               
I am transmitting today my proposed operating and loans budget for             
fiscal year 1998.  It brings us almost 90% of the way to the level             
of budget cuts I proposed last spring as part of a long range                  
financial plan for Alaska: $100 million over three years.  In fact,            
budget reductions since fiscal year 1995 now total more than $138              
million and in todays dollars, per capita general fund spending is             
$340 less than in 1979, even counting Permanent Fund dividends.                
                                                                               

1997-01-16                     Senate Journal                      Page 0062
SB 47                                                                        
Oil prices have remained high much longer than we anticipated when             
setting our $100 million goal for budget cuts.  This is very good              
news but it is not cause for increased spending.  While it means we            
do not expect a budget gap this year, cuts are still an important part         
of a responsible long range plan.  However, the positive news of the           
past several months does reinforce my belief that we do not need to            
make drastic cuts to budgets and state services next year.  Already,           
my budget has absorbed more than $40 million of increases such as              
education and other formula programs and additional employer costs.            
Cuts in the tens of millions on top of that will result in substantial         
program impacts.                                                               
                                                                               
Although my bottom line is a reduced budget, I did make room for               
some increased investments for jobs and childrens services.  For               
instance, the budget includes new test fisheries and increased                 
permitting for oil and mining development.  These would be paid for            
by those who will benefit from the new economic activity.  I am                
also proposing to increase our commercial fisheries enforcement                
efforts using criminal fines and forfeitures from those who violate            
the laws that protect our valuable public resources.                           
                                                                               
My budget fully funds education enrollment increases and pupil                 
transportation with $15 million more than this years general fund              
level.  To address the rising problem of juvenile crime and                    
implement some key recommendations of the Youth and Justice                    
Conference, I am proposing $2.7 million for new or expanded                    
prevention, intervention and youth offender programs.  I am also               
proposing a $200,000 increase in domestic violence funding, funds              
to add ten Village Public Safety Officers for villages which currently         
have no public safety personnel, and Medicaid eyeglasses, hearing              
aids, acute dental care and rehabilitative therapy for Alaskas poorest         
seniors and other adults.                                                      
                                                                               
This bill opens the door for discussion of next years budget.  I am            
looking forward to working on it  in a spirit of cooperation with the          
legislature and the public.  I also stand ready to work with you in            
the  development  of,  and  commitment  to, a responsible long-term            
                                                                               
                                                                               

1997-01-16                     Senate Journal                      Page 0063
SB 47                                                                        
financial plan which will keep Alaska ready and open for business              
with a strong economy, well-educated citizens and safe, healthy                
communities.                                                                   
                                                                               
						Sincerely,                                                               
						/s/                                                                      
						Tony Knowles                                                             
						Governor