04/16/1997 08:11 AM Senate FIN

       SB 55  AMEND DEFINITION OF "PROGRAM RECEIPTS"                           
                                                                               
       COCHAIR  PEARCE  MOVED  for  adoption  of a  draft  CS.                 
       SENATOR ADAMS  objected, then  withdrew his  objection.                 
       Without further  objection,  CSSB 55(FIN) was  adopted.                 
       SENATOR  PHILLIPS MOVED for  adoption of  Amendment #1.                 
       COCHAIR  PEARCE objected.    Testimony  was heard  from                 
       ALISON ELGEE, RANDY WELKER and  MIKE GREANY.  Amendment                 
       offered.    COCHAIR  PEARCE  MOVED  CSSB  55(FIN)  from                 
       committee  with  individual   recommendations  and   an                 
       updated fiscal note.   Without objection, CSSB  55(FIN)                 
       was  REPORTED OUT  with  a zero  fiscal  note from  the                 
       Senate Finance Committee.                                               
  SENATE BILL NO. 55                                                           
  "An  Act  relating  to  the   definition  of  certain  state                 
  receipts; and providing for an effective date."                              
                                                                               
  COCHAIR PEARCE MOVED for adoption of  a draft CS, version B.                 
  SENATOR ADAMS objected  for the  purpose of an  explanation.                 
  COCHAIR PEARCE noted the changes on  page 2, lines 3-6 using                 
  language from a similar bill passed  last year, and a change                 
  on page 3,  lines 9-13 that  added specific entities to  the                 
  list of  fund receipts,  those being  the children's  trust,                 
  commercial fisheries test fishing operations, and the public                 
  utilities  commission.     Contracting  language  from   the                 
  governor's bill was moved up to page 2, line 6.                              
                                                                               
  SENATOR  ADAMS withdrew  his  objection.    Without  further                 
  objection, CSSB 55(FIN) was adopted.                                         
                                                                               
  SENATOR PHILLIPS MOVED  for adoption  of Amendment  #1.   He                 
  requested the drafter insert the language in the appropriate                 
  sections.  It would  add rental receipts to  page 2, line  3                 
  and cover  Pioneer Homes,  Public Safety  and Fish and  Game                 
  employees, and Foreign Trade Offices.  It had been a concern                 
  brought up  by the  department and  he offered  it on  their                 
  behalf.                                                                      
                                                                               
  COCHAIR PEARCE objected.                                                     
                                                                               
  ALISON   ELGEE,   Deputy    Commissioner,   Department    of                 
  Administration,  testified  that  they  were  interested  in                 
  recognizing the rents  that Pioneer  Home residents pay  for                 
  residing there as something other  than general fund program                 
  receipts.  The  revenues would  continue to be  appropriated                 
  and subject to the same scrutiny,  but as rents were raised,                 
  they  would  get   some  credit  toward  the   general  fund                 
  expenditures by recognizing  them as  being specific to  the                 
  Pioneer Home programs.                                                       
                                                                               
  There was discussion  between SENATOR PARNELL and  MS. ELGEE                 
  about where the language should appear in the bill.                          
                                                                               
  COCHAIR PEARCE  invited  Mr. Welker  and Mr.  Greany to  the                 
  table to comment on their recommendations.                                   
                                                                               
  In response to a question  from SENATOR TORGERSON, MS. ELGEE                 
  discussed employee  housing rental receipts and  noted there                 
  was not lease agreement.                                                     
                                                                               
                                                                               
  MIKE   GREANY,   Director,  Legislative   Finance  Division,                 
  described the  bill and the  columns of appropriations.   He                 
  informed the committee  that SB  55 would move  some of  the                 
  general fund appropriations  to the  other funds column  and                 
  they  would no longer be counted as  general fund.  It would                 
  move  about  $55  million of  designated  receipts  from the                 
  general  fund  and  move  them  off budget.    He  expressed                 
  concerns about  moving closer to  a form  of dedication  and                 
  away from the notion that the majority of receipts the state                 
  takes  in  were   not  dedicated   were  available  to   the                 
  legislature  for appropriation.    He explained  in  further                 
  detail.                                                                      
                                                                               
  RANDY WELKER,  Legislative Auditor, Division  of Legislative                 
  Audit,  testified  that  the  bill  represented  strictly  a                 
  budgetary  consideration  of  which  column  you   want  the                 
  receipts to show  up in.  He  said it didn't matter  from an                 
  accounting perspective  because there were  still mechanisms                 
  to track the  receipts.   The bill was  drafted to  narrowly                 
  define what  receipts were  moving out  of the  general fund                 
  category into other funds so that  only those things where a                 
  third party  had a significant influence over  how the funds                 
  must be spent would be moved.                                                
                                                                               
  In response to  a question  from COCHAIR  SHARP, MR.  GREANY                 
  responded that  there would be  less than  $500 thousand  of                 
  receipts for Fish and Game, Foreign Trade offices and Public                 
  Safety.                                                                      
                                                                               
  Additional discussion  ensued among COCHAIR  PEARCE, SENATOR                 
  PHILLIPS and MS. ELGEE about keeping a narrow definition and                 
  housing receipts.                                                            
                                                                               
  A roll call vote was taken on  the MOTION to adopt Amendment                 
  IN FAVOR: Adams, Phillips                                                    
  OPPOSED: Torgerson, Parnell, Pearce, Sharp                                   
  Amendment #1 FAILED by a 2 to 4 vote.                                        
                                                                               
  Amendment #2 was not offered.                                                
                                                                               
  COCHAIR  PEARCE  MOVED  CSSB  55(FIN)  from  committee  with                 
  individual  recommendations  and  an  updated  fiscal  note.                 
  Without objection, CSSB 55(FIN) was REPORTED OUT with a zero                 
  fiscal note from the Senate Finance Committee.