2014-01-21                     House Journal                      Page 1406
HB 266                                                                                                                        
HOUSE BILL NO. 266 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
                                                                                                                                
     "An Act making appropriations for the operating and loan                                                                   
     program expenses of state government and for certain programs,                                                             
     capitalizing funds, and making reappropriations; making                                                                    
     appropriations under art. IX, sec. 17(c), Constitution of the State                                                        
     of Alaska, from the constitutional budget reserve fund."                                                                   
                                                                                                                                
was read the first time and referred to the Finance Committee.                                                                  
                                                                                                                                
The Governor's transmittal letter dated January 17, 2014, follows:                                                              
                                                                                                                                
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill relating to the State's operating                                                        
budget for Fiscal Year 2015 (FY 2015).                                                                                          
                                                                                                                                
Leaving a strong, vibrant Alaska for our children and grandchildren                                                             
requires living within our means and prioritizing spending for                                                                  
Alaskans' future. My operating budget for FY 2015 proposes to pay                                                               
down State debt and significantly reduce State government spending.                                                             
Even at this reduced level, the budget represents my continued                                                                  
commitment to Alaska's constitutional priorities including resource                                                             
development, public safety, education, transportation, and                                                                      
infrastructure.                                                                                                                 
                                                                                                                                

2014-01-21                     House Journal                      Page 1407
The operating budget also proposes a solution to address Alaska's                                                               
single largest cost driver - unfunded pension liabilities. I am                                                                 
recommending a transfer of $3 billion from the Constitutional Budget                                                            
Reserve fund into the State's retirement trust funds. The effect is to                                                          
pay down debt, resulting in lower fixed annual payments for the State.                                                          
Your approval of this plan will significantly reduce our annual                                                                 
operating costs instead of pushing it off to future generations.                                                                
                                                                                                                                
With a responsible budget plan, and the increased jobs and economic                                                             
activity being generated by the More Alaska Production Act, our state                                                           
will continue to be prosperous and full of opportunity. I look forward                                                          
to working with the Legislature to finalize the operating budget for the                                                        
upcoming fiscal year.                                                                                                           
                                                                                                                                
Thank you for your consideration of this bill.                                                                                  
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Sean Parnell                                                                                                                    
Governor"