Legislature(2009 - 2010)

2010-02-03 House Journal

Full Journal pdf

2010-02-03                     House Journal                      Page 1405
HB 326                                                                                                                        
HOUSE BILL NO. 326 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
     "An Act making supplemental appropriations, capital                                                                        
     appropriations, and other appropriations; amending                                                                         
     appropriations; repealing 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 February 1, 2010, follows:                                                             

2010-02-03                     House Journal                      Page 1406
"Dear Speaker Chenault:                                                                                                         
Under the authority of Art. III, Sec. 18, of the Alaska Constitution, I                                                         
am transmitting a bill relating to supplemental appropriations for the                                                          
State's operating and capital budgets for Fiscal Year 2010 (FY2010).                                                            
My guiding principles for the budget include maintaining budget                                                                 
discipline by limiting State agency growth, focusing on results for                                                             
Alaskans, and promoting economic opportunities for our families.                                                                
Supplemental appropriations are intended to respond to unanticipated                                                            
increases in the current year budget, and provide the opportunity to put                                                        
more money into savings for future needs.                                                                                       
With the upward trend of oil prices, I asked the Department of                                                                  
Revenue to prepare an interim forecast to update the projection from                                                            
December 2009. The interim forecast projects a FY2010 surplus of                                                                
over $2.2 billion, rather than the original forecasted surplus of $1.5                                                          
Given the projected surplus for FY2010, the supplemental bill I am                                                              
submitting today includes a deposit of $1,116,986,600 into the Public                                                           
Education Fund for the purpose of funding K-12 education and pupil                                                              
transportation in the next fiscal year. Putting this money into savings                                                         
for the next fiscal year and continuing to forward fund a significant                                                           
component of our annual general fund budget when surplus revenue is                                                             
available, will keep our reserve accounts healthy and available for                                                             
those times when the revenue declines.                                                                                          
I am also requesting an appropriation necessary to repay the                                                                    
Constitutional Budget Reserve (CBR), estimated at $402 million. This                                                            
request is consistent with the Legislature's and my administration's                                                            
goals to fully repay the CBR, build up reserves, and forward fund                                                               
when appropriate. Combined with the Public Education Fund deposit,                                                              
the supplemental bill sets aside over $1.5 billion into savings.                                                                
Consistent with achieving the objective of fully repaying the CBR, I                                                            
have proposed repealing section 43(c) of Ch. 15, SLA 2009, which, if                                                            
left intact, would result in unnecessary general fund borrowing from                                                            
the CBR.                                                                                                                        

2010-02-03                     House Journal                      Page 1407
The supplemental request also covers unanticipated increased costs in                                                           
fire suppression activities and replenishes the disaster relief fund,                                                           
given the draws on that fund during this fiscal year in response to                                                             
flooding and other emergencies. State funds of approximately $45                                                                
million and federal funds of $45 million are requested for formula                                                              
program costs, particularly in the area of Medicaid, given the increases                                                        
in enrollments, utilization, and cost of Medicaid services in the current                                                       
year. Additionally, $58.3 million are requested for emergency repairs,                                                          
mitigation, and unanticipated increases. Finally, unanticipated State                                                           
agency costs due to caseload and other factors are included at $32                                                              
Thank you for your consideration of this bill.                                                                                  
Sean Parnell