2009-01-22                     Senate Journal                      Page 0051
SB 75                                                                                                                         
SENATE BILL NO. 75 BY THE SENATE RULES COMMITTEE                                                                                
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
          "An Act making and amending appropriations,                                                                           
          including capital appropriations, supplemental                                                                        
          appropriations, and appropriations to capitalize                                                                      
          funds; and providing for an effective date."                                                                          
                                                                                                                                
was read the first time and referred to the Finance Committee.                                                                  
                                                                                                                                

2009-01-22                     Senate Journal                      Page 0052
Governor's transmittal letter dated January 21:                                                                                 
                                                                                                                                
Dear President Stevens:                                                                                                         
                                                                                                                                
Today I am transmitting to you the FY2010 capital budget bill.  The                                                             
capital budget represents a significant investment in Alaska's                                                                  
infrastructure including surface transportation, airport improvements,                                                          
water and wastewater projects, schools and state facilities                                                                     
maintenance.                                                                                                                    
                                                                                                                                
When the budget was released on December 15, 2008, our revenue                                                                  
forecast indicated that we would have a FY2010 budget surplus of                                                                
nearly $390 million that would flow into the constitutional budget                                                              
reserve fund at the end of the fiscal year based upon a per barrel oil                                                          
price of $74.41.  We all know that oil prices currently are well below                                                          
that price.  We will continue to closely monitor oil price and                                                                  
production and will be providing updated revenue information for                                                                
your consideration.                                                                                                             
                                                                                                                                
The good news is that Alaska has tools in place to address these                                                                
challenges; fiscal discipline and prudent use of reserves to stabilize                                                          
Alaska's economy, keep Alaskans employed, and industry moving.                                                                  
                                                                                                                                
I believe that this capital budget is a responsible approach to                                                                 
addressing the needs of Alaskans.  I look forward to working with the                                                           
Legislature to secure passage of this bill.                                                                                     
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Sarah Palin                                                                                                                     
Governor