Legislature(2015 - 2016)

2016-01-19 Senate Journal

Full Journal pdf

2016-01-19                     Senate Journal                      Page 1606
SB 139                                                                                                                        
SENATE BILL NO. 139 BY THE SENATE 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, making                                                                          
          reappropriations, making supplemental                                                                                 
          appropriations, and making appropriations under                                                                       

2016-01-19                     Senate Journal                      Page 1607
              art. IX, sec. 17(c), Constitution of the State of                                                                
             Alaska, from the constitutional budget reserve fund;                                                              
          and providing for an effective date."                                                                                 
                                                                                                                                
was read the first time and referred to the Finance Committee.                                                                  
                                                                                                                                
Governor's transmittal letter dated January 15:                                                                                 
                                                                                                                                
Dear President Meyer:                                                                                                           
                                                                                                                                
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 2017 (FY 2017).                                                                                          
                                                                                                                                
The FY 2017 operating budget contains major components of the New                                                               
Sustainable Alaska Plan. The multi-year plan provides for a balanced                                                            
and long-term sustainable State budget by FY 2019. The FY 2017                                                                  
budget includes reductions in State spending for operating agencies,                                                            
appropriation language for implementing the Alaska Permanent Fund                                                               
Protection Act (APFPA), and debt financing for current and future                                                               
required pension payments.                                                                                                      
                                                                                                                                
This year's State operating budget is $4,559.9 billion in unrestricted                                                          
general funds. Of that total, $3,997.9 billion is for agency operating                                                          
budgets, while the remaining is for debt, retirement, and oil and gas                                                           
tax credits. The proposed FY 2017 State funding for agencies has a net                                                          
reduction of $114 million from FY 2016 and over $500 million from                                                               
FY 2015 after key investments of $38.3 million for continued progress                                                           
on the gasline project and $1.3 million for the Department of Military                                                          
and Veterans Affairs' Rural Initiative.                                                                                         
                                                                                                                                
My administration looks forward to working with the Legislature on a                                                            
FY 2017 budget and the New Sustainable Alaska Plan. The plan                                                                    
includes the FY 2017 operating and capital budgets, an oil and gas tax                                                          
credit reform bill, and several revenue bills. It is a comprehensive                                                            
package to reach a long-term sustainable budget. I respectfully request                                                         
                                                                                                                                
                                                                                                                                
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1608
full legislative deliberation on all provisions of the plan, and in turn, I                                                     
will fully consider alternatives to improve the plan and ensure a long-                                                         
term sustainable budget for Alaska.                                                                                             
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor