By Alaska Legislative Digest

The Palin administration on Jan. 30 introduced a request for $205.3 million in state general fund supplemental appropriations to the current fiscal year 2008. About $125 million of this will be needed to fund oil and gas exploration investment tax credits under the state oil and gas production tax. Another $18.5 million is to pay for supplemental seniors’ medical benefits enacted by the Legislature in 2007. Some $17.1 million is to offset Medicaid funds lost through reduced federal funding, and $13.3 million is needed to pay for bargaining unit agreements reached with public employee unions. In her transmittal letter Gov. Sarah Palin warned legislators that there would be additional requests for supplemental appropriations, mostly related to additional agreements with public employee groups.