2004-02-11                     Senate Journal                      Page 2138
SB 314                                                                                            
SENATE BILL NO. 314 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
          "An Act making supplemental and other                                                     
          appropriations; amending and repealing                                                    
          appropriations; making appropriations to capitalize                                       
          funds; and providing for an effective date."                                              

2004-02-11                     Senate Journal                      Page 2139
was read the first time and referred to the Finance Committee.                                      
                                                                                                    
Governor's transmittal letter dated February 9:                                                     
                                                                                                    
Dear President Therriault:                                                                          
                                                                                                    
I am transmitting to you today two supplemental appropriation bills                                 
for Fiscal Year 2004. Issues requiring attention on an expedited basis                              
are in a separate "fast track" bill. This bill includes supplemental needs                          
with less immediate timing requirements.                                                            
                                                                                                    
We are submitting a combined package (both "fast track" and regular)                                
that totals $5.4 million in general funds. This reflects our                                        
administration's commitment to doing all we can to manage programs                                  
within the budget approved by the Legislature.                                                      
                                                                                                    
There are, however, always circumstances beyond our management                                      
control such as inmate health care costs for critically ill inmates and                             
caseload growth in several programs. This bill totals $820 thousand in                              
general funds.                                                                                      
                                                                                                    
In some instances, we have been able to cover shortfalls in one area by                             
excess appropriations in another. For instance, based on current                                    
estimates of general funds needed for the foundation formula, $3.6                                  
million can be transferred to cover other supplemental needs. The                                   
general fund capitalization of the debt retirement fund may also be                                 
reduced for two reasons: 1) the amount available for school debt                                    
reimbursement from the public school fund is higher than anticipated,                               
and 2) the actual amount of school debt reimbursement is lower than                                 
anticipated.                                                                                        
                                                                                                    
The administration's goal is to do all we can to limit supplemental                                 
requests. To that end, we look forward to working with you on the                                   
funding levels for the Fiscal Year 2005 operating budget.                                           
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor