Legislature(2007 - 2008)

2007-09-28 Senate Journal

Full Journal pdf

2007-09-28                     Senate Journal                      Page 1394
SB 53                                                                                                                         
Message dated June 29 was received, stating:                                                                                    
                                                                                                                                
Dear President Green:                                                                                                           
                                                                                                                                
I have signed the following bill [with line item vetoes on June 29]                                                             
which was passed by the first session of the Twenty-Fifth Alaska State                                                          
Legislature. I am transmitting the engrossed and enrolled documents to                                                          
the Lieutenant Governor's Office for permanent filing:                                                                          
                                                                                                                                
         HOUSE COMMITTEE SUBSTITUTE FOR CS                                                                                      
         FOR SENATE BILL NO. 53(FIN) am H "An Act                                                                               
         making and amending appropriations, including                                                                          
         capital appropriations, supplemental appropriations,                                                                   
         and appropriations to capitalize funds; ratifying                                                                      
         certain expenditures; and providing for an effective                                                                   
         date."                                                                                                                 
                                                                                                                                
                           Chapter 30, SLA 2007                                                                                
                       [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 and capital budgets presented for legislative                                                            
consideration this past session were designed to meet these goals.  I                                                           
appreciate the careful consideration and support from the Legislature                                                           
of these requests.                                                                                                              
                                                                                                                                

2007-09-28                     Senate Journal                      Page 1395
Senate Bill 53 as passed by the Legislature contained operating and                                                             
capital appropriations for Fiscal Year 2007 and FY2008, totaling $2.2                                                           
billion.  The capital budget totals nearly $1.8 billion, including $534                                                         
million in general fund which is almost $272 million higher than the                                                            
governor's amended request.  Through line-item vetoes, I have                                                                   
reduced the operating and capital appropriations in SB53 by $230                                                                
million of which $116.5 million is general fund.  Making these                                                                  
reductions now means that this revenue will be available for vital                                                              
services for Alaskans in the future.                                                                                            
                                                                                                                                
Our priorities for funding include basic government services for life,                                                          
health, public safety, transportation, infrastructure development, and                                                          
education.  We also looked carefully at projects with the ability to                                                            
maximize and leverage federal and other funds.  While this budget                                                               
enables the state to meet many of its basic responsibilities, I recognize                                                       
that there are many important projects that are not included.                                                                   
                                                                                                                                
The Legislature appropriated "discretionary" funds to local                                                                     
governments, state agencies and non-profit organizations for a wide                                                             
variety of purposes.  While I am certain that these funds would                                                                 
provide valuable support or services to specific constituencies, I am                                                           
concerned that the process does not provide an adequate opportunity                                                             
for the highest priorities of local communities and the state to receive                                                        
funding.                                                                                                                        
                                                                                                                                
I have consistently advocated that we save for the future so that as                                                            
revenues from oil production decline, we will be able to provide for                                                            
essential and basic needs of Alaskans.  Therefore, I have vetoed the                                                            
items on the enclosed spreadsheet.  The spreadsheet lists the                                                                   
appropriation cite, fund source, and the reason I have vetoed the                                                               
appropriation.  The reasons for veto fall into several categories:                                                              
                                                                                                                                
     1. Not a state responsibility                                                                                              
              There are many wonderful local organizations and                                                                  
              programs that provide services to communities.  The                                                               
              responsibility for these expenditures is primarily with the                                                       
              local community.                                                                                                  
                                                                                                                                
     2. Fund at reduced level                                                                                                   
              There are many services where the state has some                                                                  
              responsibility and has a proper role in providing some                                                            
              funding.                                                                                                          

2007-09-28                     Senate Journal                      Page 1396
     3. Lower priority category of funding                                                                                      
              The state provides funding for many responsibilities.                                                             
              There is a greater responsibility for certain programs and                                                        
              services depending upon the need for services,                                                                    
              constitutional mandates, and legal obligations.  In some                                                          
              cases, lower priority expenditures were vetoed to achieve                                                         
              savings for future costs of higher priority responsibilities.                                                     
              In some cases, proposals may be considered in future                                                              
              budgets for funding.                                                                                              
                                                                                                                                
     4. Will consider in future budget                                                                                          
              Some projects appear to have a lot of merit, but require                                                          
              some additional information or project definition.  For                                                           
              example, there may be a required feasibility study or                                                             
              comprehensive plan before funding should be made                                                                  
              available.                                                                                                        
                                                                                                                                
     5. Other funding options available                                                                                         
              There are numerous state programs and other sources of                                                            
              funding that make grants and other resources available.                                                           
              As one example, the state provides public education                                                               
              funding through the K-12 program for every school                                                                 
              district.                                                                                                         
     6. Legal concerns                                                                                                          
              The Department of Law provides a review of all                                                                    
              expenditures for compliance with state laws and                                                                   
              regulations.  Each appropriation must clearly be for                                                              
              services and programs that meet public funding                                                                    
              requirements.                                                                                                     
                                                                                                                                
     7. Duplicate funding                                                                                                       
              Funding for some projects and programs was provided                                                               
              through multiple appropriations and funding sources in                                                            
              different parts of the budget.  Reductions were made to                                                           
              more appropriately reflect total funding needs.                                                                  
                                                                                                                                
     8. Fund request was withdrawn                                                                                              
              Recipients of funding or their legislative sponsors                                                               
              provided indication that they no longer were requesting                                                           
              approval.                                                                                                         
                                                                                                                                

2007-09-28                     Senate Journal                      Page 1397
     9. Inadequate funding provided                                                                                             
              Some projects and programs were provided insufficient                                                             
              amounts of money in order to provide meaningful                                                                   
              achievement.                                                                                                      
                                                                                                                                
     10. Creation of new facilities and programs                                                                                
              Given current funding shortfalls for existing programs                                                            
              and the ongoing need to address a backlog of deferred                                                             
              maintenance of public facilities, new facilities, or                                                              
              expanded programs were not funded.                                                                                
                                                                                                                                
Our process for evaluating these projects attempted to review each                                                              
appropriation based on a policy applied consistently and even-                                                                  
handedly.  No one region, community, or legislative district was                                                                
singled out at any time.                                                                                                        
                                                                                                                                
By reducing the level of spending now, funding will be set aside and                                                            
available for the FY2009 budget.  I will work with the Legislature and                                                          
the public to implement a process that is accountable for the use of                                                            
public dollars.  For example, communities are in a better position to                                                           
determine priorities at the local level.  I will continue to advocate for                                                       
funding community revenue sharing to enhance the economic                                                                       
development and vitality of communities across the state.                                                                       
I have vetoed appropriations from the Railbelt Energy Fund.  These                                                              
five projects represent unique interests and needs for the individual                                                           
utilities and do not address the comprehensive plan that was                                                                    
envisioned when this fund was established.  In last year's capital                                                              
budget, $800,000 was appropriated to the Alaska Energy Authority to                                                             
work with the railbelt utilities to prepare a unified plan to serve all the                                                     
consumers in the region in a cost effective and efficient manner.  It is                                                        
premature to fund these distinct projects without the benefit of the                                                            
unified plan.  I understand the need to address aging infrastructure and                                                        
generation capacity across the region and believe that we can, and                                                              
must, do a better job of delivering these essential services.   I hope this                                                     
veto will encourage and accelerate the cooperation of all the railbelt                                                          
utilities in development of the unified plan.                                                                                   
                                                                                                                                
Education is a top priority for legislators and this administration.                                                            
Alaska's public schools will receive nearly $1 billion in FY2008.                                                               
SB53 contains $35 million in additional operating funds for schools in                                                          
addition to an extra $77.5 million in relief to school districts in HB95                                                        
for the cost of reducing the rates for the Teachers' Retirement System.                                                         

2007-09-28                     Senate Journal                      Page 1398
SB53 includes a number of legislative designated grants to schools and                                                          
education organizations in support of operating programs, books and                                                             
materials at local schools.  These projects typically did not go through                                                        
local school board or assembly budget processes and are not evenly                                                              
applied to all districts.  While I have let the majority of these                                                               
appropriations stand in the FY2008 budget, I am not expecting these                                                             
types of projects to be included in the FY2009 budget due to the                                                                
significant commitment for education funding.  I also intend to include                                                         
funding for school construction and major maintenance projects that                                                             
have gone through the Department of Education and Early                                                                         
Development's evaluation process for grants or reimbursement of                                                                 
voter approved debt for schools.                                                                                                
                                                                                                                                
The Legislature's Education Funding Task Force is in the process of                                                             
developing recommendations to provide additional resources through                                                              
the Public School Funding Formula so that funding is distributed                                                                
equitably across the state.  The important work of the task force and                                                           
the set aside of $1 billion in the Public Education Fund set the                                                                
framework for meeting my goal to provide early funding for                                                                      
education.  I will propose early funding for education in the FY2009                                                            
budget.                                                                                                                         
This budget focuses on the state's basic responsibilities, schools,                                                             
public safety, and needed transportation improvements that are                                                                  
essential to getting Alaska's infrastructure ready for the state's                                                              
economic future, especially the gas pipeline.                                                                                   
                                                                                                                                
There is more work to be done.  I am committed to working with the                                                              
Legislature to move Alaska forward.                                                                                             
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Sarah Palin                                                                                                                     
Governor