2004-03-24                     House Journal                      Page 3058
HB 541                                                                                            
HOUSE BILL NO. 541 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
    "An Act relating to consideration by the legislature of the                                     
    executive budget and other bills affecting appropriations; and                                  
    providing for an effective date."                                                               
                                                                                                    

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was read the first time and referred to the State Affairs Committee, the                            
House Special Committee on Ways & Means, and the Finance                                            
Committee.                                                                                          
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Indeterminate, Office of the Governor/All Depts.                                                
                                                                                                    
                                                                                                    
The Governor's transmittal letter dated March 22, 2004, follows:                                    
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill relating to consideration by the                             
Legislature of the executive budget and other bills affecting                                       
appropriations.                                                                                     
                                                                                                    
This bill was modeled on the "pay-as-you-go" provisions of the                                      
Congressional Budget and Impoundment Act, 2 U.S.C. 633(g).  The                                     
pay-as-you-go principle is now commonly referred to as the "Gramm-                                  
Rudman" process.  The purpose of the bill is to formalize the pay-as-                               
you-go concept within the state's Executive Budget Act, AS 37.07.  On                               
occasion, it has been the practice of the Legislature to require that                               
budget amendments be offset with cuts elsewhere in the budget or that                               
there be a corresponding measure to increase revenue.                                               
                                                                                                    
I strongly support the pay-as-you-go principle.  The reality of our                                 
budget situation makes fiscal restraint a necessity.  Under this bill, a                            
budget amendment that would result in an increased appropriation                                    
would not be in order before the Legislature unless there were other                                
measures available to offset the increased spending caused by the                                   
amendment.  The concept is simple and workable if the Legislature                                   
embraces it.                                                                                        
                                                                                                    
The bill also proposes changes in the fiscal note process to require the                            
proponent of a bill that would cause the increase of an appropriation to                            
also propose a cost savings or revenue enhancement measure to offset                                
the increase.                                                                                       
                                                                                                    

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I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                               Sincerely yours,                                                     
                               /s/                                                                  
                               Frank H. Murkowski                                                   
                               Governor"