Legislature(2003 - 2004)
04/02/2004 09:05 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR SENATE JOINT RESOLUTION NO. 3(JUD)
Proposing an amendment to the Constitution of the State of
Alaska relating to an appropriation limit and a spending
limit.
This was the eighth hearing for this bill in the Senate Finance
Committee.
Amendment #11: This amendment deletes Section 16 (c)(4) from
Section 1 on page 2, lines 17 and 18 of committee substitute
Version "C" and inserts new language to read as follows:
(4) of State general obligation bond and revenue
bond proceeds;
Senator Dyson moved for adoption.
Co-Chair Wilken objected for an explanation.
Senator Dyson explained that this amendment would remove
certificates of participation (COP) proceeds as an exclusion from
the calculation of an appropriation limit.
Co-Chair Wilken clarified that the amendment would remove the
exemption of COP proceeds.
Senator Dyson affirmed.
Without objection the amendment was ADOPTED.
Amendment #12: This amendment deletes Section 16(c)(7) from Section
1 on page 2, line 21 and inserts new language to read as follows.
(7) of money received by the University of Alaska as
tuition, fees, or contract receipts, or from other non-general
fund sources
Senator Dyson moved for adoption.
Co-Chair Wilken objected for an explanation.
Senator Dyson explained this amendment would allow the University
to receive an exemption for these funds from the calculation of the
appropriation limit. The University operates much like an
enterprise and exampled locker fees and bookstore income as
exempted revenues under this provision.
Co-Chair Wilken noted that Pat Pitney of the University of Alaska
provided information titled, "Examples of Revenue included in
University Receipts and the unintended impact on a Spending Limit"
[copy on file.]
JOE BEEDLE, Vice President of Finance, University of Alaska,
testified via teleconference from an offnet location in support of
the amendment.
Senator Dyson wanted confirmation that Ms. Frasca did not oppose
this amendment.
CHERYL FRASCA, Director, Office of Management and Budget, Office of
the Governor, implored that the Committee consider the impact of
this amendment. All State agencies would compete for the finite
amount of funding available under a spending limit system. This
amendment would address the University at a "higher standard" than
other State agencies because other agencies operate somewhat like a
corporation and generate revenue, yet their revenues are not
exempted from the spending limit. She stated that adoption of this
amendment would be a policy decision.
SFC 04 # 68, Side A 10:44 AM
Ms. Frasca continued that the University currently has "significant
excess authority" for expending University receipts without further
legislative authorization. She explained that because of this,
University appropriations would reach the appropriation limit at a
slower rate than other agencies. This exemption is an "accounting
issue" for the University, but it is a "significant policy
decision" for the Executive Branch.
Co-Chair Wilken removed his objection to the adoption of the
amendment.
Co-Chair Green objected.
A roll call was taken on the motion.
IN FAVOR: Senator Olson, Senator Bunde, Senator Dyson and Co-Chair
Wilken
OPPOSED: Senator B. Stevens and Co-Chair Green
ABSENT: Senator Hoffman
The motion PASSED (4-2-1)
The amendment was ADOPTED.
Co-Chair Wilken ordered the bill HELD in Committee.
ADJOURNMENT
Co-Chair Wilken adjourned the meeting at 10:46 AM
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