Legislature(1999 - 2000)
1999-01-21 Senate Journal
Full Journal pdf1999-01-21 Senate Journal Page 0047 SB 32 SENATE BILL NO. 32 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: An Act making and amending capital appropriations and reappropriations and capitalizing funds; and providing for an effective date. was read the first time and referred to the Finance Committee. Governors transmittal letter dated January 20: 1999-01-21 Senate Journal Page 0048 SB 32 Dear President Pearce: Whether oil prices are high or low, Alaska has very basic capital construction needs which cannot be ignored. In fact, we have every reason to ensure that our states economy is strengthened with wise investments in our public infrastructure. The capital budget I am proposing for FY2000 focuses on transportation, public safety, education, economic development, and health. Fortunately for us in these times of low oil prices, $641 million of the total $921 million proposal would be paid with federal funds, a $55 million increase over what we are receiving this year. In acknowledgement of our current fiscal situation, I reduced the general fund portion of the budget from $85.4 million to $81.5 million. Alaska Housing Finance Corporation's (AHFCs) share of the capital budget remains at $52 million. Last year, the Legislature appropriated AHFCs dividend to the education formula and bond debt. Similarly, I recommend that we use Alaska Industrial Development and Export Authority's FY2000 dividend of $18.8 million to fund the community capital matching grants program and economic development projects such as matching federal funds for harbor improvements. Alaska's good fortune in getting significantly higher federal funding for highways can be secured only if the required state matching funds are raised. I have already announced my proposal for an aggressive investment in transportation to be funded with a moderate increase in the highway motor fuel tax. Even with the increase, Alaska's tax rate (which has remained 8 cents since 1961) would still be lower than in forty-five other states. Although considerable progress was made last session in funding deferred maintenance and K-12 construction and major maintenance projects with AHFC bonds, we still need to fund the remaining projects on the statewide priority lists. We could consider another bond package to accomplish this if, and only if, we are able to implement a balanced budget plan that will assure ourselves and bond investors our state finances are on solid ground. 1999-01-21 Senate Journal Page 0049 SB 32 I look forward to working with you on a capital program for FY2000 that is fiscally responsible and works toward further economic growth throughout Alaska. Sincerely, /s/ Tony Knowles Governor