05/15/2003 08:45 AM Senate JUD

         SJR  3-CONST AM: APPROPRIATION/SPENDING LIMIT                                                                      
                                                                                                                                
CHAIR  RALPH   SEEKINS  called  the  Senate   Judiciary  Standing                                                             
Committee meeting  to order  at 8:50  a.m. Present  were Senators                                                               
Ogan  and French.  Senator  Therriault  arrived momentarily.  The                                                               
first order of business to come before the committee was SJR 3.                                                                 
                                                                                                                                
SENATOR FRENCH moved to adopt CSSJR 3(JUD), version H.                                                                          
                                                                                                                                
SENATOR OGAN objected for purposes of discussion.                                                                               
                                                                                                                                
SENATOR  DYSON, sponsor  of  SJR  3, said  this  version was  the                                                               
result  of  recommendations from  the  Office  of Management  and                                                               
Budget. There  is a  list of  things that  are excluded  and they                                                               
deleted the one  about program receipts. The  escalator would now                                                               
be  the CPI  plus one  quarter of  the change  in population  and                                                               
divides by two for the average.  The growth that would be allowed                                                               
would be  something less than the  CPI. Any growth in  the budget                                                               
above that requires a three quarter vote of the Legislature.                                                                    
                                                                                                                                
One of  his constituents  asked him  what the  penalty was  for a                                                               
government  that   ignored  this.   He  said   he  was   open  to                                                               
suggestions.                                                                                                                    
                                                                                                                                
CHAIR SEEKINS  said both Finance  Committee chairs  consider this                                                               
to be  a very serious matter.  They said their intent,  once they                                                               
receive  the  bill,  would  be  to hold  public  hearings  on  it                                                               
throughout the interim and bring  a constitutional amendment back                                                               
next  session  that would  take  into  consideration all  of  the                                                               
different economic factors, which he thought was a wise plan.                                                                   
                                                                                                                                
SENATOR  OGAN commented  that if  you change  the vote  to a  7/8                                                               
majority, you  essentially empower  two or  three members  of the                                                               
Senate as a mini-minority to hold everyone else hostage.                                                                        
                                                                                                                                
SENATOR DYSON countered  with the argument that it  gives a small                                                               
number of  people the power to  stop more spending and  that is a                                                               
powerful tool.                                                                                                                  
                                                                                                                                
SENATOR   OGAN  responded   that  was   the  philosophy   of  the                                                               
constitutional  budget reserve  (CBR) and  it's had  the opposite                                                               
effect, depending on who the minority is.                                                                                       
                                                                                                                                
SENATOR  DYSON pointed  out that  page 2,  line 21,  said if  the                                                               
expenditures are more than appropriated,  the governor can reduce                                                               
them.  He  assumed,  if  there are  attempts  to  circumvent  the                                                               
spending cap,  that various  public interest  groups would  be in                                                               
court to seek an injunction.                                                                                                    
                                                                                                                                
SENATOR FRENCH  said he was  interested in how this  would impact                                                               
the  state  budget  and  wanted  to look  at  1992  general  fund                                                               
spending  and  apply  this  formula.   The  difficulty  with  any                                                               
mechanical approach  is if you  make it too tight,  you're always                                                               
jumping around  the exceptions and if  you make it too  loose, it                                                               
doesn't work.                                                                                                                   
                                                                                                                                
SENATOR  THERRIAULT said  that the  Finance Committee  could send                                                               
the  bill back  to the  Judiciary  Committee after  they run  the                                                               
spreadsheets.  He  then  motioned   to  pass  CSSJR  3(JUD)  from                                                               
committee   with  individual   recommendations.   There  was   no                                                               
objection and it was so ordered.