ADMINISTRATIVE ORDER NO. 91
OFFICE OF THE GOVERNOR
December 8, 1986
Under the authority vested in me by Art. III, Secs. 1 and
24 of the Alaska Constitution and AS 37.07.080(f) and (g), I
have determined that estimated revenues and unrestricted surpluses
in the state treasury available for expenditure for the fiscal
year ending June 30, 1987 will be insufficient to provide for
existing appropriations. I have made this determination after
reviewing the December 1986 forecast of state revenues anticipated
for the fiscal year ending June 30, 1987, which estimates a fiscal
year 1987 shortfall of approximately $950 million.
On August 22, 1986, Governor Sheffield made a similar finding
and issued Administrative Order 90, which withheld from obligation
various percentages of certain appropriations. In particular,
the commissioner of administration was directed to withhold from
obligation 10 percent of the appropriation to school debt retirement.
The fiscal year 1987 authorized general fund appropriation for
school debt retirement was $144,263,700. The 10 percent restriction
would have meant that obligation would be allowed at a 90 percent
level, which, if left in force for the entire fiscal year, would
mean that $129,837,300 would be obligated by the end of the fiscal
The actual total for school debt retirement for fiscal year
1987 has turned out to be $128,716,800. Consequently, the purported
withholding of 10 percent of the appropriation from obligation
by Administrative Order 90 would have had no impact on school
debt retirement. An actual 10 percent restriction on that program
would have required withholding an additional $13,992,300, or
approximately a 19.7 percent restriction from obligating the
original appropriation of $144,263,700.
I conclude that it is in the best interests of the state to
further withhold expenditure authority for school debt retirement
in a manner that meets the original intention of Administrative
Order 90. This reservation of spending authority is necessary
to prevent deficit spending which is prohibited unless authorized
by law and ratified by the voters pursuant to art. IX, sec. 8
of the Alaska Constitution.
NOW, THEREFORE, IT IS ORDERED:
The Commissioner of Administration is directed to withhold
from obligation $28,418,700 of the original appropriation of
$144,263,700 to school debt retirement.
This Order takes effect immediately.
Dated this 8th day of December, 1986.
Governor of the State of Alaska