Legislature(2001 - 2002)
2001-02-06 Senate Journal
Full Journal pdf2001-02-06 Senate Journal Page 0288 SB 73 SENATE BILL NO. 73 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: 2001-02-06 Senate Journal Page 0289 "An Act making supplemental appropriations and making and amending other appropriations; and providing for an effective date." was read the first time and referred to the Finance Committee. Supplemental Request Summary from the Office of the Governor was attached and is on file in the Office of the Secretary of the Senate. Governor's transmittal letter dated February 6: Dear President Halford: I am transmitting to you today two supplemental appropriation bills for Fiscal Year 2001. Issues which require attention on an expedited basis are a separate "fast track" bill. This bill includes supplemental needs with less critical 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 and must again this year address the inevitable consequences of the actions which reduced the general fund budget number in May. Examples include using low case projections for formula programs, not funding fire suppression and core emergency services costs until the supplemental budget, and not fully funding commitments such as private sector leases. Fire suppression alone accounts for $4.8 million of this supplemental request; full payment of leases is another $1.7 million. The $16.5 million general fund placeholder amount for supplementals in the budget plan approved last May is clearly not sufficient to cover known supplemental funding requirements of this magnitude. In some instances shortfalls in one area can be covered with excess appropriations in related areas. For instance, based on current estimates of general funds needed for the foundation formula, $1.9 million can be transferred to cover most of the $2.1 million needed for pupil transportation. Transfers were not available for other formula programs budgeted at the low case scenario such as Medicaid or the Longevity Bonus. 2001-02-06 Senate Journal Page 0290 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 basic services. The increased workload in Child in Need of Aid and guardian ad litem cases, for instance, has significantly exceeded even last year's trends. Pioneer Home revenues were not sufficient to fund the major share of the emergency heating and ventilation system repairs to the Anchorage home as originally anticipated. Some of the supplemental requests will allow us to take advantage of increased federal aid in areas ranging from child care to special education pass-throughs to local school districts. Where the additional federal funds need to be committed soon (such as for winter home heating assistance and fisheries research and stock assessment work during the upcoming field season), we included the requests in the fast track bill. So far this year, the average oil price has exceeded the spring forecast by several dollars - very good news for our state budget because it reduces the need for Constitutional Budget Reserve funds. However, it also means higher costs to heat the Pioneer Homes, fill the tanks of trooper cars, operate highway and airport equipment, run the ferries, etc. State agencies need approximately $2.3 million in general funds and $460,000 in airport revenue funds to pay these higher fuel prices. In the big picture, this is a small price to pay for circumstances that greatly benefit Alaska overall. As we work together on the FY2002 budget, the appropriations requested in this bill and its companion "fast track" supplemental can provide some helpful reference points for determining realistic budget levels for the coming year. Sincerely, /s/ Tony Knowles Governor