Legislature(2005 - 2006)

2006-07-10 Senate Journal

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2006-07-10                     Senate Journal                      Page 3614
SB 231                                                                                            
Message dated June 30 was received stating:                                                         
                                                                                                    
Dear President Stevens:                                                                             
                                                                                                    
On this date I signed with line item vetoes the following bill passed by                            
the Second Session of the Twenty-fourth Alaska State Legislature and                                
am transmitting the engrossed and enrolled copies to the Lieutenant                                 
Governor's Office for permanent filing:                                                             
                                                                                                    
         HOUSE CS FOR CS FOR SENATE BILL NO.                                                        
         231(FIN) am H(brf sup maj pfld H) "An Act making                                           
         appropriations, including capital appropriations,                                          
         supplemental appropriations, reappropriations, and                                         
         appropriations to capitalize funds; making                                                 
         appropriations under art. IX, sec. 17(c), Constitution                                     
         of the State of Alaska, from the constitutional budget                                     
         reserve fund; and providing for an effective date."                                        
                                                                                                    
                           Chapter 82, SLA 2006                                                    
                       [Effective Date: See Chapter]                                               
                                                                                                    
Alaska's future awaits great opportunities.  The challenge of                                       
leadership is to make decisions today that will realize those                                       
opportunities tomorrow.                                                                             
                                                                                                    
The capital budget I have signed into law today enables the state to                                
meet many of its basic responsibilities - to our schools, to improving                              
local transportation, to taking care of deferred maintenance at parks                               

2006-07-10                     Senate Journal                      Page 3615
and state buildings that has been neglected for years, to getting                                   
Alaska's infrastructure ready for the state's economic future,                                      
especially the gas pipeline.  This capital budget also provides funding                             
that goes directly to communities to help meet their local priorities, as                           
well as to non profit organizations around the state that work every                                
day to make Alaska a better place to live.                                                          
                                                                                                    
One of the regrets regarding the capital budget is the Legislature's                                
failure to meet the contingency that triggers two appropriations - a                                
$182.7 million for the Power Cost Equalization (PCE) program and                                    
$73.1 million to construct three rural schools.  The deposit in the PCE                             
endowment would result in sufficient earnings to fully fund PCE each                                
year, as was originally intended when the endowment was created.                                    
This would then provide stable funding on which rural Alaska                                        
communities could depend and on which economic activity and jobs                                    
can be built.                                                                                       
                                                                                                    
The $73.1 million appropriation will fund the top three schools ranked                              
on the list of the Department of Education and Early Development's                                  
School Construction Grants:                                                                         
                                                                                                    
                Southwest Region - New Stuyahok K-12 School                                        
         Replacement - $27,231,626                                                                  
                                                                                                    
                Lower Kuskokwim - D.R. Kiunya Memorial K-12                                        
         Improvements - $19,382,855                                                                 
                                                                                                    
                   Northwest Arctic - Noatak K-12 School                                           
         Replacement - $26,501,174.                                                                 
                                                                                                    
The contingency on which funding for these projects rests is an                                     
increase in the state's petroleum production tax.  While it has not yet                             
been approved, it will continue to be considered by the Legislature                                 
during an upcoming special session.  As a result, these appropriations                              
can still be funded if the contingency is met by future legislative                                 
action.                                                                                             
                                                                                                    
There are several appropriations that while I did not veto them, I have                             
concerns.  These include:                                                                           
                                                                                                    

2006-07-10                     Senate Journal                      Page 3616
     · A $50,000 grant to the Alaska Moose Federation for a moose                                   
         safety and rebuilding task force.  While I have let the                                    
         appropriation stand, I want the organization to use these funds                            
         to conform with state requirements that govern management                                  
         of orphan moose calves, including compliance with the                                      
         Alaska Department of Fish and Game's policies.  These funds                                
         shall be used to transport orphan moose calves to rural areas                              
         as quickly as possible once such transport is approved by a                                
         veterinarian.  The funds are not to be used for administrative                             
         purposes.                                                                                  
                                                                                                    
     · Throughout the capital budget there are small grants to                                      
         selected schools for supplies and library books, all of which I                            
         am sure each school will greatly appreciate.  Unfortunately,                               
         the schools designated to receive these additional grants                                  
         appear to be the result from the way in which the budget is                                
         divided among legislators through its so-called                                            
         "discretionary" spending.  This process results in some                                    
         schools - often in neighborhoods and communities that are the                              
         least able to pay for these needs themselves - losing out,                                 
         which is unfair to those schools' children.  I urge the                                    
         Legislature to re-examine this process to correct for the                                  
          "have" and "have-nots" that result from such a process.                                  
                                                                                                    
     · The Legislature included $9 million for an Anchorage                                         
         Regional Fire Training Facility.  I understand the current                                 
         facility needs to relocate due to a road construction project                              
         and related land exchange.  The documentation submitted in                                 
         support of the project indicates that the Municipality of                                  
         Anchorage is looking to the state and federal governments to                               
         pay 100 percent of the project's $25.5 million cost.  At the                               
         same time there is an excellent - but underused - fire training                            
         facility on the Kenai Peninsula.  Before proceeding with this                              
         project, I ask that the Municipality of Anchorage work with                                
         the Alaska Department of Public Safety to examine how the                                  
         Kenai facility can meet the fire training needs of Anchorage                               
         and other communities and that any new facility does not                                   
         duplicate the training available at Kenai.                                                 
                                                                                                    
                                                                                                    

2006-07-10                     Senate Journal                      Page 3617
     · Funds are included in the capital budget to begin construction                               
         of a new city dock in Gustavus.  I continue to believe that the                            
         new dock should be built in Bartlett Cove where it will be                                 
         much safer and in protected waters.  Unfortunately the                                     
         National Park Service has not yet agreed.  I have directed the                             
         Alaska Department of Transportation and Public Facilities to                               
         continue to work with the Park Service to reach agreement on                               
         the dock's location.                                                                       
                                                                                                    
I have vetoed or reduced the following appropriations for the reasons                               
explained:                                                                                          
                                                                                                    
Railbelt Energy Fund - $73,500,000 Railbelt energy funds                                            
I have vetoed the eight appropriations that the Legislature made from                               
the Railbelt Energy Fund to utilities around the state.  I let stand the                            
$800,000 to the Alaska Energy Authority.                                                            
                                                                                                    
Reason for veto: It is extremely important that Alaska's utilities work                             
together to expand the state's generating capacity to meet the demands                              
of the future.  While I understand that each utility has an interest in                             
meeting the needs of their ratepayers, it is now time that they assume a                            
collective responsibility to address the state's future energy demands.                             
The projects funded in this section of the capital budget did little to                             
meet this need.                                                                                     
                                                                                                    
Some have suggested that relief from a shortage of natural gas likely                               
will come from the potential closure of the Liquified Natural Gas                                   
(LNG), urea and ammonia facilities on the Kenai Peninsula should the                                
contract not be renewed, or if Agrium is unable to continue because of                              
an inability to obtain a year-round gas supply.  It is unacceptable for                             
such alternatives to be viewed as "relief."  It also is imperative that the                         
utilities pursue every available avenue to keep these two facilities open                           
because they are a vital component in justifying a lateral line from the                            
proposed gas pipeline.  Such a line would originate in Fairbanks and                                
go Delta-Glennallen-Mat-Su Valley-Anchorage-Kenai, where it will                                    
meet up with these potential major users.                                                           
                                                                                                    
I have approved the $800,000 included in this section that provides for                             
a study on the creation of the Railbelt Electrical Grid Authority as an                             
independent system operator to manage and dispatch electric power on                                
the Railbelt grid.  I believe this can be the mechanism by which the                                

2006-07-10                     Senate Journal                      Page 3618
state and utilities work together to expand the generating capacity of                              
Alaska's utilities - something that is vital to meeting the economic                                
opportunities that the future holds.                                                                
                                                                                                    
City of Wasilla - Nanotechnology Development in the Matanuska-                                    
Susitna Borough - $100,000 general funds                                                          
Reason for veto: This project was not identified as a priority of the                               
City of Wasilla.  While there may be potential for such an industry in                              
Alaska, it will require the commitment and participation of the local                               
community.                                                                                          
City of Kake - Facelift for World's Tallest Totem Pole - $200,000                                   
general funds                                                                                       
Reason for veto: This is an obligation of the local community.                                      
                                                                                                    
Alaska Siberian Research Center - Alaska Siberia WWII  Lend-                                      
Lease Memorial Park Construction and Statue Installation - $50,000                                
general funds                                                                                       
Reason for veto: I have reduced this appropriation in half.  The                                    
amount remaining is to support the memorial and I have removed the                                  
funds for the guidebook, which is outside the scope of the original                                 
project.                                                                                            
                                                                                                    
This capital budget reflects my administration's commitment to                                      
ensuring each Alaskan has the opportunity to fully participate in                                   
Alaska's bright future.  I am pleased with the Legislature's support of                             
the direction in which we are taking the state.  Much has been                                      
accomplished -and we look forward to delivering even greater results                                
for Alaskans.                                                                                       
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor