2008-05-30                     House Journal                      Page 3035
HB 310                                                                                                                        
The following letter dated May 22, 2008, was received:                                                                          
                                                                                                                                
"Dear Speaker Harris:                                                                                                           
                                                                                                                                
On this date I signed the following bill passed by the second regular                                                           
session of the Twenty-Fifth Alaska State Legislature and am                                                                     
transmitting the engrossed and enrolled copies to the Lieutenant                                                                
Governor's Office for permanent filing:                                                                                         
                                                                                                                                

2008-05-30                     House Journal                      Page 3036
     CONFERENCE CS FOR HOUSE BILL NO. 310                                                                                       
     "An Act making appropriations for the operating and loan                                                                   
     program expenses of state government, for certain programs, and                                                            
     to capitalize funds; making appropriations under art. IX, sec.                                                             
     17(c), Constitution of the State of Alaska; and providing for an                                                           
     effective date."                                                                                                           
                                                                                                                                
     Chapter No. 27, SLA 2008                                                                                                   
     [Effective Date:  See Chapter]                                                                                             
                                                                                                                                
The budget goals for this administration have been very clear:  to slow                                                         
the growth of government, live within our means, and save for the                                                               
future.  The operating budget presented for legislative consideration                                                           
this past session was designed to meet these goals.  I appreciate the                                                           
careful consideration and support from the Legislature of this request.                                                         
                                                                                                                                
House Bill 310 as passed by the Legislature contained appropriations                                                            
for Fiscal Year 2009 totaling $11.1 billion, of which $5.3 billion is                                                           
general fund.  The budget includes a $1 billion deposit into the                                                                
Constitutional Budget Reserve, over $1 billion to the public education                                                          
fund for the public school funding formula and pupil transportation                                                             
costs in FY2010, special appropriations for tax credits, revenue                                                                
sharing, and direct deposits to the retirement system costs, and                                                                
includes funding for public education, the university, public health and                                                        
safety, transportation, resource development, and funding for state                                                             
government programs, services, and grants.                                                                                      
                                                                                                                                
I appreciate that the Legislature shares the administration's concern                                                           
about the size and growth of the budget, particularly the operating                                                             
budget.  Through line-item vetoes, I have reduced the appropriations                                                            
in HB 310 by $2.6 million general fund.  The enclosed spreadsheet                                                               
lists the appropriation cite, fund source, and the reason I have vetoed                                                         
the appropriation.                                                                                                              
                                                                                                                                
In addition to signing the bill, I have committed to saving at least $20                                                        
million in state agencies' operating budgets in FY2009.  I have                                                                 
instructed my commissioners to develop strategies to achieve this                                                               
savings target within the FY2009 budget that begins on July 1.                                                                  
Savings achieved during the fiscal year will roll into the Constitutional                                                       
Budget Reserve fund at the end of FY2009.                                                                                       

2008-05-30                     House Journal                      Page 3037
The reductions we achieve in the FY2009 operating budget will be the                                                            
starting point for our efforts to slow the growth of government in the                                                          
FY2010 budget.  I appreciate your support in crafting responsible                                                               
budgets for the state of Alaska.                                                                                                
                                                                                                                                
                                Sincerely,                                                                                     
                                /s/                                                                                             
                                Sarah Palin                                                                                    
                                 Governor"                                                                                     
                                                                                                                                
A spreadsheet from the Office of the Governor, Office of Management                                                             
and Budget, pertaining to budget vetoes accompanied the letter and is                                                           
on file in the Chief Clerk's office.