2001-01-12                     House Journal                      Page 0066
HB 45                                                                                             
HOUSE BILL NO. 45 by the House Rules Committee by request of                                        
the Governor, entitled:                                                                             

2001-01-12                     House Journal                      Page 0067
                                                                                                    
    "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.                                      
                                                                                                    
The Governor's transmittal letter dated January 10, 2001, appears                                   
below:                                                                                              
                                                                                                    
"Dear Speaker Porter:                                                                               
                                                                                                    
The Fiscal Year 2002 operating budget I am transmitting today is                                    
known as my "Jobs and Families Budget."  It addresses three key                                     
goals: maintains the existing level of vital public services Alaskans                               
need; makes additional strategic investments for Alaska families in                                 
education, early childhood development, public health and public                                    
safety; and it helps create and protect jobs for Alaska families.                                   
                                                                                                    
The total budget includes a $145 million general fund increase over                                 
the current fiscal year.  Yet it is $140 million less than in Fiscal '95                            
and nearly 1,700 inflation-adjusted dollars less per Alaskan than in                                
Fiscal 1979, the last pre-oil boom year.                                                            
                                                                                                    
Some $80 million of the proposed increase is necessary just to                                      
maintain existing services.  Recent legislatures have approved, and                                 
now we must operate, a new Anchorage jail, new health lab and                                       
additional juvenile correctional centers in Ketchikan, Juneau and                                   
Anchorage.  We have higher caseloads for such vital services as health                              
care for the elderly and disabled.  We must fund legislatively-                                     
approved labor contracts.  Paying the interest on bonds for new                                     
schools approved in recent years will cost $28 million.  And the                                    
number of Alaskans to whom we must provide services has grown 14                                    
percent in the past decade.                                                                         
                                                                                                    
In addition I have incorporated funds to improve education from child                               
care through K-12 and the university; for our public health initiative to                           
fight TB, hepatitis C, arctic contaminants, food borne illness and other                            

2001-01-12                     House Journal                      Page 0068
serious public health problems; and to protect the public's safety by                               
providing funds for more law enforcement personnel, child and senior                                
protection, emergency services, and alcohol enforcement and                                         
treatment.                                                                                          
                                                                                                    
The general fund deficit for the coming year is projected to be more                                
than $500 million.  Based on the fall forecast, our Constitutional                                  
Budget Reserve would be depleted in less than 5 years.  We need to                                  
work together to develop a long-term budget plan during this session                                
to ensure the state's financial integrity.                                                          
                                                                                                    
                                                                                                    
I stand ready to work with you to make responsible choices to benefit                               
all Alaskans.                                                                                       
                                                                                                    
                               Sincerely,                                                           
                               /s/                                                                  
                              Tony Knowles                                                         
                               Governor"