Legislature(1999 - 2000)
1999-01-21 Senate Journal
Full Journal pdf1999-01-21 Senate Journal Page 0044 SB 30 SENATE BILL NO. 30 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; 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. Governors transmittal letter dated January 20: Dear President Pearce: The reality of current record-low oil prices dictates decisive action to balance Alaska's budget. But we learned from the oil price crash of the mid-1980s that it is also essential to maintain economic stability. I believe a responsible FY 2000 budget must: 1999-01-21 Senate Journal Page 0045 SB 30 Strengthen, build and diversify our economy; Reduce costs through efficiencies, consolidations, new technology, user pay, and, where appropriate, service reductions; and Continue progress in improving our schools and the well being of our children. My proposed $2.3 billion FY2000 budget cuts $13.5 million from FY1999 -- absorbing critical increases such as $23.6 million for schools and the University, $15 million for corrections and public safety, and millions in inflation costs. The operating budget uses welfare reform savings and a new, sustainable source of revenue to continue commitments we jointly made last year in child health and protection. The recent settlement with the tobacco industry will bring in $22 million next year and $23-28 million each year until at least 2025, avoiding an additional draw on the Constitutional Budget Reserve. In the long term, these initiatives will help balance Alaska's budget by strengthening our economy and averting costly social problems. It is therefore consistent with my proposal for Alaskas Balanced Budget Plan. As we look at ways to reduce state spending, it's important to remember that even with a $1,500 dividend, spending in FY2000 would be $186 less per person than in FY1979. And according to figures released last month by the National Association of State Budget Officers, Alaska is alone in all the states in cutting its general fund budget over the past four years. In fact, the average four-year increase among the states is 21.7%, while we cut our budget 2.8%. 1999-01-21 Senate Journal Page 0046 SB 30 We must ensure the FY2000 budget is consistent with a plan that balances the general fund budget before our Constitutional Budget Reserve is depleted. I pledge to work cooperatively with you and local government officials to involve the public in the hard decisions ahead. Sincerely, /s/ Tony Knowles Governor