2013-01-30                     House Journal                      Page 0158
HB 91                                                                                                                         
HOUSE BILL NO. 91 by the House Rules Committee by request of                                                                    
the Governor, entitled:                                                                                                         
                                                                                                                                
    "An Act making supplemental appropriations, capital                                                                         
    appropriations, and other appropriations; amending                                                                          
    appropriations; repealing appropriations; making appropriations to                                                          
    capitalize funds; and providing for an effective date."                                                                     
                                                                                                                                
was read the first time and referred to the Finance Committee.                                                                  
                                                                                                                                
The Governor's transmittal letter dated January 28, 2013, follows:                                                              
                                                                                                                                
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill relating to supplemental                                                                 
appropriations for the State's operating and capital budgets for Fiscal                                                         
Year 2013 (FY 2013). In this legislation, we exercise fiscal restraint                                                          
by requesting a net decrease to our Administration's FY 2013                                                                    
operating budget across all fund categories, over $11 million alone in                                                          
general fund reductions to agency operating budgets.                                                                            
                                                                                                                                
The supplemental budget reflects my direction to State agencies to                                                              
manage programs within the existing budget. Accordingly, we bring                                                               
forward a limited number of requests based on changes in the cost of                                                            
delivering State services and programs that were not anticipated when                                                           

2013-01-30                     House Journal                      Page 0159
the FY 2013 budget was considered during the 2012 legislative                                                                   
session. The supplemental bill totals $24.5 million attributable to                                                             
increases in "other funds" and "federal fund" categories.                                                                       
                                                                                                                                
The operating supplemental request includes a $25 million decrease in                                                           
the Medicaid program, based in large part on the success of certain                                                             
cost containment measures implemented upon the recommendation of                                                                
the Medicaid Task Force. The Department of Health and Social                                                                    
Services will continue to review costs and utilization for potential                                                            
additional savings in the current year budget. The supplemental                                                                 
request also includes reductions in debt service, while requesting                                                              
funding for fire suppression, disaster relief, and specific settlements                                                         
that resolve outstanding litigation.                                                                                            
                                                                                                                                
Thank you for your consideration of this bill.                                                                                  
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Sean Parnell                                                                                                                    
Governor"