2006-02-01                     Senate Journal                      Page 2040
SB 263                                                                                            
SENATE BILL NO. 263 BY THE SENATE 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.                                      
                                                                                                    
An accompanying spreadsheet from the Office of Management and                                       
Budget was attached and is on file in the office of the Senate                                      
Secretary.                                                                                          
                                                                                                    
Governor's transmittal letter dated January 31:                                                     
                                                                                                    
Dear President Stevens:                                                                             
                                                                                                    
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                                 
               th                                                                                   
to the U.S. 9 District Appellate Court ruling against the state on the                              
FairShare program.  Also in this bill is $3.2 million in general funds                              
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.                                                               

2006-02-01                     Senate Journal                      Page 2041
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor