Legislature(2021 - 2022)
2021-06-23 Senate Journal
Full Journal pdf2021-06-23 Senate Journal Page 1302 SB 2001 SENATE BILL NO. 2001 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; amending appropriations; making capital appropriations, supplemental appropriations, and reappropriations; making appropriations under 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 June 22: Dear President Micciche: Under the authority of Article III, Section 18, of the Alaska Constitution, I am transmitting a bill relating to State operating and capital appropriations for Fiscal Year 2022, making an appropriation from the Permanent Fund Earnings Reserve Account for the payment of Permanent Fund dividends for Fiscal Year 2022, making supplemental appropriations for Fiscal Year 2021, and providing for effective dates. Absent a valid appropriation bill to fund operating expenses by July 1, 2021, most state government programs will be forced either to cease operations or make unauthorized expenditures under Article IX, Section 13, of the Alaska Constitution. This appropriation bill funds government operations, including strategic investments in public safety and emergency management, and funds K-12 education per the statutory formula, and does so starting July 1, if passed with the appropriate effective date. 2021-06-23 Senate Journal Page 1303 This appropriation bill contains budget measures that passed the legislative bodies during the first regular legislative session of the Thirty-Second Legislature. Exceptions in this bill include changes to the fund source for items that were funded from the Constitutional Budget Reserve and Statutory Budget Reserve accounts, and changes to the Fiscal Year 2022 Permanent Fund Dividend (PFD). The PFD amount has been adjusted to reflect 50 percent of the five percent Permanent Fund percent of market value (POMV), and has been appropriated from the Earnings Reserve account. This dividend amount is an attempt to reconcile the existing tension between the PFD statute and the POMV statute while the legislature and my administration continue to work on a long-term structural solution this year. While this appropriation bill does not use the Constitutional Budget Reserve as a funding source, it does contain “reverse sweep” language for Fiscal Year 2021 should the legislature achieve the three-quarter vote necessary to pass that provision. Finally, once the legislature has passed and transmitted the Fiscal Year 2022 operating and capital appropriations bills, I will conduct a thorough analysis and veto review. Sincerely, /s/ Mike Dunleavy Governor