04/21/2004 08:05 AM House STA

HB 541-INCREASED APPROPRIATIONS REQUIRE OFFSET                                                                                
                                                                                                                                
Number 0912                                                                                                                     
                                                                                                                                
CHAIR WEYHRAUCH  announced that  the last  order of  business was                                                               
HOUSE  BILL NO.  541, "An  Act relating  to consideration  by the                                                               
legislature  of the  executive budget  and other  bills affecting                                                               
appropriations; and providing for an effective date."                                                                           
                                                                                                                                
CHAIR  WEYHRAUCH  mentioned  that   a  committee  substitute  was                                                               
expected soon from Legislative Legal and Research Services.                                                                     
                                                                                                                                
Number 0923                                                                                                                     
                                                                                                                                
CHERYL  FRASCA,  Director,  Office  of the  Director,  Office  of                                                               
Management &  Budget (OMB), Office  of the Governor,  presented a                                                               
summary  of HB  541 on  behalf of  OMB.   She explained  that the                                                               
proposed legislation would require  a legislator or [legislative]                                                               
committee proposing additional spending  to identify either where                                                               
the  revenues will  come  from to  pay for  it  or an  offsetting                                                               
budget reduction.   She revealed that  it is an concept  to model                                                               
after  the  federal  Gramm-Rudman-Hollings  Act  of  1990.    She                                                               
explained that  [OMB] envisions  that the  process would  be done                                                               
through a fiscal note.                                                                                                          
                                                                                                                                
Number 0963                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GRUENBERG indicated  Section [1],  which he  said                                                               
begins, "It is not in order".   He stated that he thinks that may                                                               
require a concurrent resolution to amend the Uniform Rules.                                                                     
                                                                                                                                
MS.   FRASCA  offered   her  understanding   that  Tamara   Cook,                                                               
Legislative  Legal   and  Research  Services  and   Jim  Baldwin,                                                               
Department of Law  have held several discussion  regarding HB 541                                                               
and she said  she's "just getting up to speed  on what those have                                                               
been."                                                                                                                          
                                                                                                                                
Number 1010                                                                                                                     
                                                                                                                                
MS. FRASCA, in response t  a question from Chair Weyhrauch, noted                                                               
that the  Gramm-Rudman-Hollings Act was originally  intended as a                                                               
budget  deficit   reduction  proposal;   it  required   that  the                                                               
comptroller general have the authority  to make reductions if the                                                               
budget   exceeded  revenues.     However,   that  was   ruled  as                                                               
unconstitutional.   As a result,  [the Act] has changed  in scope                                                               
and nature.   She indicated that "we" could check  on what is the                                                               
current practice and  how effective it is.  She  said [OMB] knows                                                               
that  "this  has  got some  difficult  dilemmas,"  especially  in                                                               
regard to checks and balances of the appropriation process.                                                                     
                                                                                                                                
MS.  FRASCA   reiterated  that  the  idea   behind  the  proposed                                                               
legislation is  to look  at how increased  spending will  be paid                                                               
for.  She  stated that when [OMB] proposes  the governor's budget                                                               
in December, it  has an obligation to outline  its spending plan,                                                               
as well as to identify the revenues proposed to cover that plan.                                                                
                                                                                                                                
Number 1089                                                                                                                     
                                                                                                                                
CHAIR  WEYHRAUCH  said  it's  an   interesting  policy  issue  to                                                               
question who is  ultimately responsible to have  an "income equal                                                               
out  go."    He  stated   noted  that  the  executive  branch  of                                                               
government  has line-item  veto and  the obligation  to submit  a                                                               
budget,   while  the   legislature   makes   "the  other   policy                                                               
determination."                                                                                                                 
                                                                                                                                
MS. FRASCA  added, "Then we  veto [and] you have  the opportunity                                                               
to override."                                                                                                                   
                                                                                                                                
Number 1119                                                                                                                     
                                                                                                                                
REPRESENTATIVE GRUENBERG  suggested that  [HB 541] may  be within                                                               
the  jurisdiction of  the  House Special  Committee  on Ways  and                                                               
Means.  He  also indicated that he has held  discussions with the                                                               
people  involved with  the Alaska  Municipal  League to  consider                                                               
whether there  should be  a municipal  fiscal note  regarding the                                                               
impact of  legislation on municipalities.   He indicated  that he                                                               
would  like to  discuss  whether [HB  541] may  be  a vehicle  to                                                               
include  that issue.   Representative  Gruenberg stated  that [HB
]  is a  "great  subject  to take  up"  and  he commended  the                                                               
administration for his work.                                                                                                    
                                                                                                                                
[HB 541 was heard and held.]