2006-02-03                     House Journal                      Page 2423
HB 422                                                                                            
HOUSE BILL NO. 422 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
    "An Act making supplemental appropriations, capital                                             
    appropriations, 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.                                      
                                                                                                    
The Governor's transmittal letter dated January 31, 2006, follows:                                  
                                                                                                    
"Dear Speaker Harris:                                                                               
                                                                                                    
I am transmitting to you today two supplemental appropriation bills                                 
for Fiscal Year 2006.  Issues requiring attention on an expedited basis                             
are in a separate "fast track" bill.  The enclosed "regular" supplemental                           
bill, however, includes supplemental needs with less immediate timing                               
requirements.  We are submitting a combined package (both "fast                                     
track" and "regular") that totals $113.4 million in general funds.  This                            
reflects necessary program cost increases for the remainder of Fiscal                               
Year 2006.                                                                                          
                                                                                                    
The largest item in the "regular" supplemental bill is $78.9 million in                             
general funds for the Medicaid program, $44 million of which is due                                 
to the U.S. 9th District Appellate Court ruling against the state on the                            
FairShare program.  Also in this bill is $3.2 million in general funds                              

2006-02-03                     House Journal                      Page 2424
for the Department of Corrections, due in large part to the increase in                             
the number of prisoners.  This bill totals $99.9 million in general                                 
funds.                                                                                              
                                                                                                    
The overall total of supplemental spending is above what the                                        
administration had planned.  Much of the requested funding is to cover                              
increases due to events that were not anticipated last session-from                                 
unprecedented fuel cost increases, a record number of prisoners, to the                             
court's disapproval of the Medicaid FairShare program that was started                              
prior to this administration.                                                                       
                                                                                                    
                               Sincerely yours,                                                     
                               /s/                                                                  
                               Frank H. Murkowski                                                   
                                Governor"                                                          
                                                                                                    
An accompanying spreadsheet from the Office of Management and                                       
Budget was attached and is on file in the Chief Clerk's office.