2003-05-15                     House Journal                      Page 1688
Separate accounting has the effect of segregating these receipts from                               
other amounts in the general fund.  It also tends to place artificial                               
restrictions on the ability to expend from the general fund and is                                  
contrary to the spirit of the Alaska Constitution's prohibition against                             
dedicated funds.  The legislature retains the power to appropriate these                            
receipts for any public purpose and it is this power that distinguishes                             
the practice of designating program receipts from a legal dedication                                
for a specific purpose.  However, the designations made by law                                      
operate in the same manner as earmarking.  It is inefficient fiscal                                 
policy and I hope that this bill will serve as a basis for reconsidering                            
the treatment of these valuable state assets.                                                       
                                                                                                    
Finally, eliminating program receipts as a funding source in the                                    
various major appropriation bills would lead to a more easily                                       
understood and transparent budget.  Designated program receipts are                                 
general fund assets.  However, these receipts currently are declared to                             
be a funding source apart from the general fund for budgeting                                       
purposes.  By use of this device, funding sources in the budget bills                               
have shifted from the general fund to program receipts. If this practice                            
is eliminated, the public would have a full accounting of all the state's                           
revenue that is earned by the state and appropriated for public                                     
purposes.                                                                                           
                                                                                                    
To avoid disrupting the process for the fiscal year 2004 budgets, the                               
changes made by the bill would not take effect until July 1, 2004.                                  
                                                                                                    
I urge your favorable consideration of this bill.                                                   
                                                                                                    
                                Sincerely,                                                         
                                /s/                                                                 
                                Frank H. Murkowski                                                  
                                 Governor"                                                         
                                                                                                    
                    CONSIDERATION OF THE DAILY CALENDAR                                          
                                                                                                    
                       SECOND READING OF HOUSE BILLS                                             
                                                                                                    
HB 211                                                                                            
The following was read the second time: