Legislature(2005 - 2006)
2006-04-28 Senate Journal
Full Journal pdf2006-04-28 Senate Journal Page 2996 SB 232 Message dated and received April 27 was read, stating the Governor signed the following bill and transmitted the engrossed and enrolled copies to the Lieutenant Governor's Office for permanent filing: CONFERENCE CS FOR SENATE BILL NO. 232 "An Act making appropriations, supplemental appropriations, and capital appropriations; amending appropriations and funding sources; making appropriations to capitalize funds; and providing for an effective date." Chapter 13, SLA 2006 Effective Date: See Chapter This legislation, known as the "fast track" supplemental, addressed a number of the unanticipated needs of state programs. One major area of assistance is additional funds to pay the increased cost of fuel and utilities as a result of record oil prices. The Legislature's approval of this funding will enable state services to continue without interruption, as well as provide assistance to rural Alaskans through increased funding of the Power Cost Equalization program. To my regret, the Legislature did not approve my requests for funding to assist small municipalities with increased utility and fuel costs, as well as supplemental heating assistance for low-income households. Due to these same record oil prices, however, the State of Alaska also is receiving the benefit of higher than anticipated revenue in Fiscal Year 2006. I proposed that half of this windfall go toward funding K- 12 education next fiscal year and I'm pleased that the Legislature is poised to do this. In this legislation, another $300 million is saved to fund K-12 in Fiscal Year 2008. 2006-04-28 Senate Journal Page 2997 I also proposed that we save $400 million of the current year's windfall for investment in the gas pipeline. Senate Bill 232 makes a substantial step toward this goal by saving $300 million for investment in future infrastructure projects. Another administration proposal was to invest $86 million in needed transportation improvements and $44 million to address the deferred maintenance backlog of state facilities. I am pleased the Legislature is incorporating these priorities in its work on the Fiscal Year 2007 capital budget. One policy issue of a more technical nature is the Legislature's treatment of proceeds from the Vehicle Rental Tax that was enacted into law in 2003. That legislation directed that these tax proceeds be deposited in a special account in the general fund. (AS 43.52.080(b)). In the expenditure of these tax revenues this session, the Legislature is now considering them as a non-general fund source. This, however, is contrary to AS 37.05.146(c) that defines revenues as non-general fund. As a result, expenditure of the Vehicle Rental Tax receipts will continue to be categorized as general fund spending as it has been in the past. Sincerely yours, /s/ Frank H. Murkowski Governor