News from the Senate Majority

Alaska State Legislature

Wendy Lindskoog, Senate Majority Press Secretary
State Capitol
Juneau, AK 99801-1182
Phone: 907/465-4582
http://www.akrepublicans.org
Broadcast Actualities: 800/478-6540

For Immediate Release: March 12, 1997 Contact: Senator Drue Pearce, 465-4993 Senator Bert Sharp, 465-3004

Senate Asks Administration To Kick The "Late Budget Habit"

Bill Introduced To Reaffirm Governor’s Responsibility to Submit

A Complete Budget on December 15

Juneau -- The Senate Finance Committee Wednesday introduced Senate Bill 136 to clarify current law, making it explicit that the Governor is required to present all three of his necessary budget bills on December 15 of each year -- an operating budget bill, a capital budget bill, and a mental health program budget bill.

"Although Alaska law requires the Governor to submit his entire budget on December 15, over the years the executive branch has fallen into a bad habit of delaying release of a capital budget for up to several weeks after the beginning of the legislative session," said Senator Bert Sharp, Senate Finance Co-Chair.

"Delaying the release of the capital budget hinders the public’s ability to review the Governor’s proposal and provide input to the Legislature. It also greatly reduces the time the Legislature has to consider the Governor’s budget and complete it’s work within a 120 day session," said Sharp.

"Piecemealing the budget has also led to deceptive budget tactics," said Senator Drue Pearce, Co-Chair Senate Finance.

Pearce and Sharp noted that on December 16, 1996, Governor Knowles did not submit a capital budget bill but said his cap on general fund spending for capital projects would be $100 million. When the bill was finally submitted on February 27, six weeks after the start of session, it reflected general fund capital expenses of $112.9 million. It also proposed spending a $16 million Alaska Industrial Development and Export Authority (AIDEA) dividend on capital projects instead of depositing the money into the general fund as the Governor originally proposed.

"These provisions alone, in Governor Knowles’ capital budget, would increase the fiscal gap by nearly $29 million," said Pearce.

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