Legislature(2001 - 2002)

05/17/2002 05:44 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
<Meeting will convene call of the Chair>
* Reappropriations & Capital
Appropriations
<Pending Introdcuction and Referral>
* Municipal Bond Reimbursement
<Pending Introdction and Referral>
* G.O. Bonds: Schools/Museum/University
<Pending Introduction and Referral>
* Regulatory Com. of Alaska:Sunset & Misc
<Pending Introduction and Referral>
HOUSE BILL NO. 2007                                                                                                           
                                                                                                                                
     "An Act  making an appropriation  to reverse  the effect                                                                   
     of art.  IX, sec.  17(d), Constitution  of the  State of                                                                   
     Alaska; making  an appropriation to balance  revenue and                                                                   
     general fund appropriations;  making an appropriation to                                                                   
     the  Department   of  Revenue  for  management   of  the                                                                   
     constitutional     budget    reserve    fund;     making                                                                   
     appropriations under art. IX, sec. 17(c), Constitution                                                                     
     of the State of Alaska, from the constitutional budget                                                                     
    reserve fund; and providing for an effective date."                                                                         
                                                                                                                                
Co-Chair Mulder explained that  HB 2007 would make a separate                                                                   
appropriation from  the Constitutional Budget  Reserve (CBR),                                                                   
as  opposed to  placement in  a capital  budget or  operating                                                                   
budget. He  explained that an  appropriation from the  CBR is                                                                   
needed to pass the budget if there  are insufficient funds in                                                                   
the General Fund  to pay for state operating  costs. A three-                                                                   
quarter  vote is required:  30  of 40 members  in the  House.                                                                   
Without 30  votes, funds  contained in  the General  Fund and                                                                   
other sub accounts  are swept from the General  Fund into the                                                                   
CBR under the debt repayment provisions  in the Constitution.                                                                   
Included  in these  funds are:  Marine Highway  Stabilization                                                                   
Fund, Power Cost Equalization,  Alaska Science and Technology                                                                   
Foundation,   and  dividends   paid   by  Alaska   Industrial                                                                   
Development and  Export Authority (AIDEA) and  Alaska Housing                                                                   
Finance  Corporation (AHFC).  If these  funds are swept  into                                                                   
the  CBR, things  like water  and sewage  projects funded  by                                                                   
AHFC in rural Alaska would not be funded.                                                                                       
                                                                                                                                
Representative  Bunde pointed  out that  the legislature  has                                                                   
been  using money  from the  CBR  to balance  the budget  and                                                                   
cover the fiscal  gap. He noted that $5 billion  dollars have                                                                   
been  spent in  this way  and must  be paid  back when  state                                                                   
revenues are available beyond what is spent.                                                                                    
                                                                                                                                
Co-Chair  Mulder MOVED  to report  HB 2007  out of  Committee                                                                   
with the accompanying fiscal note.  There being NO OBJECTION,                                                                   
it was so ordered.                                                                                                              
                                                                                                                                
HB  2007 was  REPORTED  out of  Committee  with  a "do  pass"                                                                   
recommendation.                                                                                                                 

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