03/17/2004 03:29 PM House FIN

HOUSE JOINT RESOLUTION NO. 9                                                                                                  
                                                                                                                                
     Proposing amendments to the Constitution of the State                                                                      
     of Alaska relating to an appropriation limit and a                                                                         
     spending limit.                                                                                                            
                                                                                                                                
Representative  Fate explained that  the proposed  work draft                                                                   
resolution would take the unrestricted  general fund revenues                                                                   
and  the restricted  revenues  from agency  receipts such  as                                                                   
Alaska Industrial Development  and Export Authority, (AIDEA).                                                                   
(Copy on File, FATE-1.a).                                                                                                       
                                                                                                                                
He stated  that the  draft was  not intended  to shorten  the                                                                   
process but instead,  he hoped it would be  beneficial to the                                                                   
existing structure.   He pointed out that the  intent was for                                                                   
it to  have full  procedural hearings  and that the  solution                                                                   
had been approached  from a business perspective.   The draft                                                                   
uses the  historic revenues  and base  line taken during  the                                                                   
stable period when  the pipeline was at half  capacity, which                                                                   
was  the  baseline used  to  make  an  index derived  in  the                                                                   
proposed work draft.                                                                                                            
                                                                                                                                
Representative Fate  calculated that the exemptions  would be                                                                   
approximately the  same and added that each  section had been                                                                   
determined  independently  from   the  original  legislation.                                                                   
That process  has been underway for  the past 15 months.   He                                                                   
claimed that  the proposed draft  was a departure  from using                                                                   
revenues as the baseline rather than the expenditures.                                                                          
                                                                                                                                
Co-Chair  Harris questioned  if the draft  had been  adopted.                                                                   
Co-Chair  Williams  explained  that it  was  currently  being                                                                   
reviewed.                                                                                                                       
                                                                                                                                
Representative  Fate  recommended  before adopting  the  work                                                                   
draft, the Committee  wait for the spreadsheet.   It would be                                                                   
available tomorrow.                                                                                                             
                                                                                                                                
Co-Chair  Williams noted  that it  was not  his intention  to                                                                   
adopt the  draft.   He intended to  take discussion  and then                                                                   
determine  what  sections should  be  placed  into the  House                                                                   
Judiciary version.                                                                                                              
                                                                                                                                
Co-Chair Harris  recommended that Representative  Stoltze and                                                                   
Representative  Fate  work  together  on the  draft,  out  of                                                                   
fairness to  the sponsor of the  bill and the sponsor  of the                                                                   
conceptual  amendment.   He encouraged  that the concerns  be                                                                   
addressed outside of the committee process.                                                                                     
                                                                                                                                
Representative Stoltze  pointed out that the  House Judiciary                                                                   
draft  was   currently  before   the  Committee.     In  each                                                                   
Committee, unforeseen  concepts had come forward.   He warned                                                                   
that  any  bill that  amends  the  Constitution must  have  a                                                                   
serious process of  discussion and elaboration.   He asked to                                                                   
see the projections  for the benefit of the  Committee, while                                                                   
incorporating  directional  advice  from  the Office  of  the                                                                   
Governor and the Legislative Finance Division.                                                                                  
                                                                                                                                
Co-Chair Williams acknowledged  that the entire issue did not                                                                   
excite him.                                                                                                                     
                                                                                                                                
CHERYL  FRASCA, DIRECTOR,  DIVISION OF  MANAGEMENT &  BUDGET,                                                                   
OFFICE OF  THE GOVERNOR,  noted that she  had not yet  had an                                                                   
opportunity to review the bill draft.                                                                                           
                                                                                                                                
Co-Chair  Williams  stated  that  HJR  9  would  be  HELD  in                                                                   
Committee for further consideration.