Legislature(2001 - 2002)
04/23/2002 08:05 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
SJR 38 - CONST AM: PRIORITY OF EXPENDITURES Number 0030 CHAIR COGHILL announced that the first order of business would be SENATE JOINT RESOLUTION NO. 38, Proposing amendments to the Constitution of the State of Alaska relating to information regarding proposed expenditures. Number 0186 REPRESENTATIVE HAYES acknowledged that he missed the testimony on this bill at the last meeting and wanted some information as to the point of SJR 38, since there had been some previous legislation on this subject. Number 0309 WENDY HALL, Staff to Senator Pete Kelly, Alaska State Legislature, explained that the reason that Senator Kelly is interested in amending the constitution is to ensure that a prioritized budget stays this way and isn't overturned by statute. She explained that this resolution only adds the word "prioritized" to what is in the constitution already. She said her office feels that it would be best if the departments analyzed which services are more needed when the budget needs to be cut. Number 0435 REPRESENTATIVE HAYES said he assumed that her office felt that the executive staff does not already go through the budget before the legislature sees it. MS. HALL answered that this idea came from Governor Knowles when he was the mayor of Anchorage. Number 0544 CHAIR COGHILL told Representative Hayes that the "second article" gives the legislature the opportunity to have a joint resolution that would request a priority budget after the December deadline. This resolution gives the legislature a communication tool that it doesn't have now. Number 0605 REPRESENTATIVE STEVENS commented that the constitution is a living document, but that doesn't mean it shouldn't be changed. He noted that the legislature is not making this change; it is submitting it to the people for a vote. He expressed support for SJR 38. REPRESENTATIVE FATE told Representative Hayes that missions and measures don't really call for prioritization. This year the agencies and departments were asked to prioritize, and they neglected to or chose not to. The prioritization helps when things need to be cut. He expressed support for SJR 38. Number 0753 REPRESENTATIVE JAMES commented that there are pros and cons to this. She reiterated comments from the last meeting about how she thought her business experience could make a difference in the budget process. She said there is some argument that a priority budget would be a good idea and agreed that the administration should do a priority budget. Number 1186 REPRESENTATIVE HAYES made a motion to adopt the following conceptual amendment: Page 1, line 6, following "a", add "biennial"; following "for the", delete "next fiscal year" and add "two fiscal years" Page 1, line 14, following "a", add "biennial" REPRESENTATIVE JAMES objected. She said she thinks the state needs to work in this direction, but she isn't willing to put that on the ballot and then be stuck with it next year. There are year-to-year changes in Alaska, and she is not convinced the state is ready to go to a biennial budget. She noted that she is not ready to mandate it. Number 1390 REPRESENTATIVE FATE commented that this amendment will change the title. CHAIR COGHILL noted that Representative Hayes did say conceptual amendment, so that could include the title amendment. Number 1459 REPRESENTATIVE WILSON acknowledged that a biennial budget is a good way to go. However, she indicated that it would not be a wise decision for Alaska at this time, because there isn't a steady flow of revenue to base it on. CHAIR COGHILL agreed with Representative Wilson and spoke against the amendment. Number 1601 REPRESENTATIVE CRAWFORD expressed support for a biennial budget. REPRESENTATIVE JAMES cautioned the committee because this change might constitute a revision and might not be proper. She said that a biennial budget could be done as an amendment in the future but not as part of this process. She said she is in favor of a biennial budget if all the necessary ingredients are in place. REPRESENTATIVE HAYES concluded with his reasons for the amendment, which ultimately would save the state money. He said that a biennial prioritized budget would reduce costs to the state because the legislature wouldn't have to meet as often. There would be more accountability and credibility in a biennial budget set forth for each department. The incoming governor would be able to see what the two-year vision in the budget is for the state. Right now the legislature is just budgeting one year at a time and hasn't any vision where the state is going. He also commented that it isn't really known if this bill is a revision issue or not. Number 1900 A roll call vote was taken. Representatives Crawford, Hayes, and Stevens voted for Amendment 1. Representatives Fate, James, Wilson, and Coghill voted against it. Therefore, Amendment 1 failed by a vote of 3-4. Number 1935 REPRESENTATIVE JAMES moved to report SJR 38 out of committee with individual recommendations and the accompanying fiscal notes. REPRESENTATIVE HAYES objected to reiterate his concerns. He then removed his objection. Number 2020 CHAIR COGHILL asked if there were further objections. There being none, SJR 38 moved from the House State Affairs Standing Committee.
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