Legislature(2019 - 2020)
2019-10-23 House Journal
Full Journal pdf2019-10-23 House Journal Page 1373 HB 2001 The following letter dated August 19 was received at 10:04 a.m.: "Dear Speaker Edgmon: On this date, I have signed, with line-item vetoes, the following bill passed during the Second Special Session of the Thirty-first Alaska State Legislature, and am transmitting the engrossed and enrolled copies to the Lieutenant Governor's Office for permanent filing: SENATE CS FOR CS FOR HOUSE BILL NO. 2001(FIN) am S "An Act making appropriations for the operating and loan program expenses of state government and for certain programs; capitalizing funds; making supplemental appropriations, reappropriations, and other appropriations; making appropriations for the operating and capital expenses of the state's integrated comprehensive mental health program; and providing for an effective date." 2019-10-23 House Journal Page 1374 Chapter No. 2, SSSLA 2019 [Effective Date: See Chapter] The budget goals and priorities for my administration have been very clear: Alaska needs a budget that is sustainable, predictable, and affordable. Cuts are difficult and have a real impact on Alaskans, but if expenditures continue to exceed existing revenues, all Alaskans will be faced with taxes or much more dramatic core service impacts once all savings reserves are exhausted. Keeping this in mind, my administration worked to make a number of difficult, but necessary, decisions. This budget was thoroughly evaluated, and my policies were applied consistently across the board. It is critical that we get our fiscal house in order and provide a secure and stable future for Alaskans. House Bill (HB) 2001 as passed by the legislature, added $375 million to the FY 2020 operating budget, which represents an unsustainable level of spending. Through line-item vetoes to HB 2001, I have reduced the spending by $220 million. With these vetoes, the FY 2020 operating and mental health budget, including previously enacted legislation, is $4,193,039,800 Unrestricted General funds (UGF), $883,622,700 Designated General funds (DGF), $702,100,200 Other State funds, and $2,700,205,600 Federal funds. Attached are reports that summarize the line-item vetoes. The line-item vetoes in this bill include: the elimination of unconstitutional commitments of future year funding; the elimination of optional Medicaid services to ensure adequate funding for federally-required Medicaid programs; and the elimination of debt payments on behalf of other entities, which are not a core function of the State. The State's fiscal reality dictates a reduction in expenditures across all agencies. My administration also worked with key stakeholders to identify critical items in HB 2001 to retain including: early learning programs, the senior benefits program, funding to assist victims of sexual assault and domestic violence, and funding to the Department of Fish and Game that is necessary to leverage Federal funds. 2019-10-23 House Journal Page 1375 This budget focuses on the State's basic responsibilities, in light of our fiscal constraints. This is one step in the right direction – setting Alaska on the path to fiscal stability while acknowledging additional actions, over multiple years, are needed. This includes working closely with the University of Alaska and the Board of Regents on a step- down approach to reduce their general fund spending by $70 million over three years starting in FY 2020. More work will need to be done in the months ahead and during the next legislative session. Finally, this bill appropriates $1 billion from the Earnings Reserve Account and funds an estimated $1,600 Permanent Fund Dividend. Again, this is one step in the right direction, and I look forward to working with the Legislature to ensure Alaskans receive a full statutory dividend. I am committed to working with the Legislature to address state spending, to eliminate our deficit over time, and to put Alaska on a path to a long-term sustainable, predictable, and affordable fiscal plan. Sincerely, /s/ Michael J. Dunleavy Governor" A spreadsheet from the Office of the Governor, Office of Management and Budget, pertaining to budget vetoes accompanied the letter and is on file in the Chief Clerk's office.