2002-02-13                     House Journal                      Page 2240
HB 415                                                                                            
HOUSE BILL NO. 415 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act making supplemental and other appropriations; amending                                 
     appropriations; making appropriations to capitalize funds; and                                 
     providing for an effective date."                                                              
                                                                                                    
was read the first time and referred to the Finance Committee.                                      
                                                                                                    
A supplemental request summary from the Office of the Governor was                                  
attached and is on file in the Chief Clerk's office.                                                
                                                                                                    
The Governor's transmittal letter dated February 12, 2002, appears                                  
below:                                                                                              
                                                                                                    

2002-02-13                     House Journal                      Page 2241
"Dear Speaker Porter:                                                                               
                                                                                                    
I am transmitting to you today two supplemental appropriation bills                                 
for Fiscal Year 2002.  Issues requiring attention on an expedited basis                             
are in a separate "fast track" bill.  This bill includes supplemental                               
needs with less immediate timing requirements.                                                      
                                                                                                    
The Administration and Legislature made considerable progress                                       
reforming the supplemental budget process several years ago.                                        
Unfortunately, we have lost some of that progress.  Again this year we                              
address the inevitable consequences of actions which supposedly                                     
reduced the general fund budget in May, but which actually just split                               
the budget into two parts.  Examples include going even below low-                                  
case projections for formula programs, not funding fire suppression                                 
and core emergency services, and not fully funding commitments such                                 
as private sector leases.  Fire suppression alone accounts for $7.2                                 
million of this supplemental request; full payment of leases is another                             
$1.3 million. The $16.5 million general fund placeholder amount for                                 
supplementals in the budget plan is clearly not sufficient to cover                                 
known supplemental funding requirements of this magnitude.                                          
                                                                                                    
Some of the shortfalls can be covered with excess appropriations in                                 
other areas.  For instance, based on current estimates of general funds                             
needed for the foundation formula, $1.9 million can be transferred to                               
cover supplemental needs.  Wherever possible, departments have                                      
made internal adjustments to keep within current appropriation levels.                              
Nevertheless, supplemental requests are required when increased costs                               
are beyond an agency's ability to adjust without detrimental effects on                             
services the Legislature already approved in the budget.                                            
                                                                                                    
Some of the supplemental requests will allow us to take advantage of                                
increased federal aid in areas ranging from coastal impact assistance to                            
satellite communication, geological projects, power projects and                                    
education grants to be passed on to local school districts.                                         
                                                                                                    
As we work together on the FY2003 budget, the appropriations                                        
requested in this bill and its companion "fast track" supplemental                                  
should be used as reference points for determining realistic budget                                 
levels for the coming year.  It is not appropriate to give the public the                           

2002-02-13                     House Journal                      Page 2242
impression that May budget levels are realistic when we know for                                    
certain they simply push part of the budget off until the following                                 
year.                                                                                               
                                                                                                    
                                Sincerely,                                                         
                                /s/                                                                 
                                Tony Knowles                                                        
                                Governor"