Legislature(2001 - 2002)
04/26/2001 08:03 AM House STA
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* first hearing in first committee of referral
+ teleconferenced
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+ teleconferenced
= bill was previously heard/scheduled
HJR 2 - BIENNIAL STATE BUDGET Number 1026 CHAIR COGHILL announced that the next order of business would be HOUSE JOINT RESOLUTION NO. 2, Proposing amendments to the Constitution of the State of Alaska relating to the duration of regular sessions of the legislature and to a biennial state budget. Number 1040 REPRESENTATIVE LISA MURKOWSKI, Alaska State Legislature, sponsor, said that since the last hearing on HJR 2, she has considered the concept of implementing a pilot program rather than going forward with a constitutional amendment this year, adding that she recognizes that there is a lot to consider with regard to implementing a biennial budget. Number 1112 ANNALEE McCONNELL, Director, Office of Management & Budget (OMB), Office of the Governor, explained that the administration has been interested in and has had a lot of internal discussion over the last several years about a biennial state budget. She opined that it would be extraordinarily helpful to go through a real working-group process with the legislature on this issue, because if [OMB] simply puts together a biennial budget and then brings it to the legislature after passage of a constitutional amendment, then both the legislature and the administration would have to learn about all the things that should have been taken into account up front. By creating a working group composed of some legislators; OMB staff, including herself; and staff from other interested departments, issues surrounding a biennial state budget could be explored - not just the mechanics of how it would be done, but also the changes that would have to be made in the legislative process. She suggested that the working group could discuss all of these issues, such as how to modify the supplemental budget process, and then present the details - the pros and cons - as a whole, to the legislature next session. MS. McCONNELL suggested that the working group could start this summer or early fall, after the administration is past it's "year-end business." She also noted that several of the departments interested in working on the issue of a biennial budget include: the Department of Law (DOL); the Department of Labor & Workforce Development; the Department of Health & Social Services (DHSS); and a range of other departments, both those with budgets that don't change very much from year to year and those that have fairly substantial changes every year - either because of "our own situation," or because of changes on the federal side. She remarked that "the issue about the federal side is one that has been difficult for states that have done biennial state budgeting, particularly when the feds are in the process of making major overhauls like they have in areas like ... workforce development ... or Welfare reform." She again suggested that the working group could address these issues and come back before the legislature in January with some solid ideas on how a biennial budget could work. REPRESENTATIVE JAMES commented that she is supportive of a biennial budget process, and that Ms. McConnell's idea is an excellent one. She said a biennial budget would be a very good piece of a long-term fiscal plan. She opined that there is enough money to "forward fund" a biennial budget. Number 1458 REPRESENTATIVE CRAWFORD noted that while he was campaigning, a lot of state employees in his district suggested to him that a biennial budget would help make government more efficient because a biennial budget would limit the amount of time state employees spend each year working on budgets. He said he is in full support of a biennial budget. MS. McCONNELL agreed that working on budgets does take up an inordinate amount of time for both the administration and the legislature. REPRESENTATIVE MURKOWSKI, in response to a question, said that [the working group this summer] would have to include interested legislators, OMB staff, the DOL, the Department of Revenue (DOR), the budget subcommittee chairs of those two particular committees, and interested individuals within departments. When the working group comes back to the legislature in January, then other individuals could become involved as well. Addressing the committee, she said, "So I'm looking for volunteers, in other words." MS. McCONNELL added that the Legislative Finance Division should also be included in the working group. REPRESENTATIVE WILSON remarked that she is quite excited about [the idea of a biennial budget]. She said that in becoming a legislator, she was shocked to find that Alaska goes through its budgeting process every year. She said she hopes that the House State Affairs Standing Committee can forward, as a committee, a recommendation that "really puts the wheels in motion." She added that once a biennial budget is put in place, the state will benefit tremendously from it. CHAIR COGHILL noted that the fluctuation in oil prices makes forecasting revenues difficult. REPRESENTATIVE JAMES pointed out that a biennial budget would allow the legislature to come up with solutions to shortfalls in a timelier manner. REPRESENTATIVE MURKOWSKI said that she would bring this topic back before the House State Affairs Standing Committee in January. [HJR 2 was held over.]
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