2017-01-18                     Senate Journal                      Page 0034
SB 24                                                                                                                         
SENATE BILL NO. 24 BY THE SENATE RULES COMMITTEE                                                                                
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
          "An Act making appropriations for the operating and                                                                   
          capital expenses of the state's integrated                                                                            
          comprehensive mental health program; and providing                                                                    
          for an effective date."                                                                                               
                                                                                                                                
was read the first time and referred to the Finance Committee.                                                                  
                                                                                                                                
In accordance with AS 37.14.003(b) a report of the differences                                                                  
between the Governor's proposed budget and the recommendations of                                                               
the Alaska Mental Health Trust Authority was transmitted.                                                                       
                                                                                                                                

2017-01-18                     Senate Journal                      Page 0035
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                                                                  
comprehensive mental health program for Fiscal Year (FY) 2018. As                                                               
required by statute, it includes both operating and capital                                                                     
appropriations. Also as required, the enclosed report outlines the                                                              
differences between the recommendations of the Alaska Mental Health                                                             
Trust Authority (Trust) and my proposed budget.                                                                                 
                                                                                                                                
The total FY 2018 mental health budget of $229.4 million represents a                                                           
$9.1 million reduction from FY 2017. The FY 2018 budget includes                                                                
$16.7 million of the Trust's $16.9 million operating budget                                                                     
recommendations and $12.1 million of the Trust's $15.2 million                                                                  
capital budget recommendations. These amounts are in addition to                                                                
$200.6 million of annual base funding. The mental health operating                                                              
budget reflects reductions to grant programs, reform to the Medicaid                                                            
program, increases to criminal justice recidivism reduction programs,                                                           
and salary and health benefit adjustments. Reports comparing Trust                                                              
recommendations to those included in the FY 2018 Governor's                                                                     
operating    and    capital    mental    health   budgets   are   available at                                                  
https: / / www.omb.alaska.gov / ombfiles / 18_budget / PDFs/ Mental_                                                            
Health_Budget_Reports_01-10-17.pdf.                                                                                             
                                                                                                                                
The State's fiscal situation requires that all areas of government                                                              
maximize efficiencies. The Trust's encouragement and support of                                                                 
Medicaid and criminal justice reform have had a positive impact on                                                              
the State. Moving forward, a comprehensive fiscal plan to address                                                               
State revenue will help ensure the sustainability of programs to                                                                
support Alaska's mental health beneficiaries. We look forward to                                                                
working with the Legislature on the FY 2018 budget bills and revenue                                                            
solutions.                                                                                                                      
                                                                                                                                
Thank you for your consideration of this bill.                                                                                  
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor