2018-01-16                     House Journal                      Page 2187
HB 284                                                                                                                        
HOUSE BILL NO. 284 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
                                                                                                                                
     "An Act making appropriations, including capital appropriations,                                                           
     supplemental appropriations, reappropriations, and other                                                                   
     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 15 follows:                                                                     
                                                                                                                                
"Dear Speaker Edgmon:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to the State's capital                                                          
budget for Fiscal Year 2019 (FY 2019).                                                                                          
                                                                                                                                
The proposed capital bill totals $1.3 billion, of which $1.0 billion will                                                       
be supported by federal funds and $150.1 million with unrestricted                                                              
general funds, with the remaining amount from designated general                                                                
funds and other funds. The budget prioritizes annual federal match                                                              
programs, housing, energy, maintenance, and information technology                                                              
investment.                                                                                                                     
                                                                                                                                
This minimal capital budget will be the norm until a comprehensive                                                              
fiscal plan is adopted. The largest component of the capital budget is                                                          
the State's transportation program, totaling $909.7 million, which is                                                           
largely federally funded. Earnings on the Power Cost Equalization                                                               
Fund provide resources for renewable energy projects. Key                                                                       
information technology upgrades include retirement and benefits, and                                                            
the State's primary enterprise information system. Health and social                                                            
services eligibility systems are included, supported primarily by                                                               
federal and other funding sources.                                                                                              
                                                                                                                                
The Walker Administration looks forward to working with the                                                                     
Legislature to finalize a FY 2019 capital budget.