2017-01-18                     Senate Journal                      Page 0033
SB 23                                                                                                                         
SENATE BILL NO. 23 BY THE SENATE 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.                                                                  
                                                                                                                                
Governor's transmittal letter dated January 17:                                                                                 
                                                                                                                                
Dear President Kelly:                                                                                                           
                                                                                                                                
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 (FY) 2018.                                                                                               
                                                                                                                                
The proposed capital bill totals $1.4 billion, of which $1.2 billion will                                                       
be supported by federal funds, and $106.1 million with unrestricted                                                             
general funds. The budget meets minimum capital funding needs                                                                   
including housing support and matching funds for transportation,                                                                
water, and sewer.                                                                                                               
                                                                                                                                
                                                                                                                                

2017-01-18                     Senate Journal                      Page 0034
The largest component of the capital budget is the State's                                                                      
transportation program, totaling $1.2 billion, including $22 million of                                                         
savings from the vessel replacement fund to match $222.0 million in                                                             
federal receipts to replace the Alaska Marine Highway System's oldest                                                           
vessel, the M/V Tustumena. Outside of the transportation program, this                                                          
budget includes only minimal matching funds for energy, sewer, and                                                              
water projects, limited deferred maintenance, mostly through re-                                                                
appropriations, and limited named recipient's grants, including the                                                             
Alaska Travel Industry Association for tourism marketing. Without a                                                             
full fiscal plan, the capital budget will remain unsustainably low,                                                             
running the risk of allowing our public assets such as schools, ports,                                                          
and roads to deteriorate.                                                                                                       
                                                                                                                                
My administration looks forward to working with the Legislature to                                                              
finalize a capital budget and is interested in collectively looking at a                                                        
disciplined approach to using General Obligation Bonds for existing                                                             
capital requirements.                                                                                                           
                                                                                                                                
Thank you for your consideration of this bill.                                                                                  
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor