04/30/2003 08:15 AM House W&M

HJR  9-CONST AM: APPROPRIATION/SPENDING LIMIT                                                                                 
                                                                                                                                
CO-CHAIR  WHITAKER announced  that  the first  order of  business                                                               
would be  HOUSE JOINT RESOLUTION  NO. 9, Proposing  amendments to                                                               
the  Constitution  of   the  State  of  Alaska   relating  to  an                                                               
appropriation limit and a spending limit.                                                                                       
                                                                                                                                
Number 0037                                                                                                                     
                                                                                                                                
REPRESENTATIVE   CO-CHAIR  HAWKER   moved   to  adopt   committee                                                               
substitute (CS)  for HJR 9,  Version 23-LS0435\H,  Cook, 4/29/03,                                                               
as the  working document.   There being  no objection,  Version H                                                               
was before the committee.                                                                                                       
                                                                                                                                
[At this point  there is a motion to adopt  CSHJR 26, Version 23-                                                               
LS1006\I,  Cook,   4/29/03,  as   the  working  document.     The                                                               
discussion related  to HJR 26  happens later, which is  where the                                                               
motion is noted.]                                                                                                               
                                                                                                                                
CO-CHAIR WHITAKER  said HJR 9  is a  constitutional appropriation                                                               
limit,  which is  one of  the  components of  a long-term  budget                                                               
solution.  He told  the members his intent is to  move HJR 9 [out                                                               
of committee] tomorrow.                                                                                                         
                                                                                                                                
Number 0346                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG  suggested  an  amendment  to  the  [10]                                                               
exemptions under subsection (a),  Appropriation Limit, that would                                                               
include appropriations  for capital projects.   He explained that                                                               
there   will  be   times  when   the  legislature   decides  that                                                               
investments  in  state  infrastructure  may be  important.    For                                                               
example,  the  legislature  may need  to  match  abnormally  high                                                               
federal  appropriations  or  use  public  works  monies  to  help                                                               
[recover  from] an  economic disaster.   Having  some flexibility                                                               
with capital projects may be warranted, he said.                                                                                
                                                                                                                                
CO-CHAIR WHITAKER  announced that the committee  will take action                                                               
on amendments tomorrow.                                                                                                         
                                                                                                                                
Number 0609                                                                                                                     
                                                                                                                                
REPRESENTATIVE SAMUELS  asked about the  changes in Version  H of                                                               
HJR 9.                                                                                                                          
                                                                                                                                
CO-CHAIR WHITAKER said he would  prefer to answer those questions                                                               
tomorrow, giving committee members time to review the CS.                                                                       
                                                                                                                                
CO-CHAIR  HAWKER offered  to  summarize  the differences  between                                                               
Version H of the committee substitute and the original bill.                                                                    
                                                                                                                                
Number 0649                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GRUENBERG   asked  if   the  committee   will  be                                                               
discussing the  differences between  the 4/16/03, Version  D, and                                                               
the 4/29/03, Version H, committee substitutes.                                                                                  
                                                                                                                                
CO-CHAIR  HAWKER  recalled  that  the Version  D  draft  was  not                                                               
adopted, although  it was discussed.   The substantive difference                                                               
between the two versions is that in  Version H on page 1, line 7,                                                               
the  option  of  a  2  percent increase  in  the  base  level  of                                                               
appropriations  can be  passed each  year by  a simple  majority.                                                               
Subsection (b)  on page 2, starting  on line 11, adds  a second 2                                                               
percent [increase]  that can be  achieved with a  two-thirds vote                                                               
of each house;  and the last 2 percent increment  is subject to a                                                               
three-quarters vote of each house of the legislature.                                                                           
                                                                                                                                
REPRESENTATIVE ROKEBERG pointed out that  the budget could grow a                                                               
maximum of 6 percent in one year.                                                                                               
                                                                                                                                
CO-CHAIR WHITAKER  suggested considering  that increase  in light                                                               
of  the  presentation earlier  today  by  Guy Bell,  Director  of                                                               
Retirement  and Benefits,  Department of  Administration.   Given                                                               
the  rising  costs of  the  Public  Employees' Retirement  System                                                               
(PERS), the  first 2  percent increase would  have to  absorb the                                                               
increasing costs of the retirement fund.                                                                                        
                                                                                                                                
CO-CHAIR  HAWKER  noted that  the  hurdles  to  achieve 4  and  6                                                               
percent increments are  substantial with a two-thirds  and then a                                                               
three-quarters  vote  of  the  members   of  each  house  of  the                                                               
legislature.                                                                                                                    
                                                                                                                                
Number 0847                                                                                                                     
                                                                                                                                
REPRESENTATIVE GRUENBERG said  on page 2, line  28, there appears                                                               
to  be  a  sunset in  [FY]  2013.    He  added that  there  is  a                                                               
difference  in  language  between   the  two  proposed  committee                                                               
substitutes:   on page  2, line 29  of Version H  and on  page 2,                                                               
starting on line 28 in Version D.                                                                                               
                                                                                                                                
CO-CHAIR WHITAKER  suggested delaying  these questions  until the                                                               
next meeting.                                                                                                                   
                                                                                                                                
REPRESENTATIVE ROKEBERG said  it might be helpful  to compare the                                                               
differences  in the  two committee  substitutes with  a chart  or                                                               
table.                                                                                                                          
                                                                                                                                
Number 1051                                                                                                                     
                                                                                                                                
REPRESENTATIVE   GRUENBERG   echoed   Representative   Rokeberg's                                                               
concern  that  the legislature  retain  some  flexibility in  the                                                               
capital budget.  However, he said he  is not sure how to do it in                                                               
the constitution.                                                                                                               
                                                                                                                                
Number 1200                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG   asked  if  the  legislature   will  be                                                               
repealing the existing constitutional spending limit.                                                                           
                                                                                                                                
CO-CHAIR WHITAKER  replied yes,  the intention  is to  repeal it;                                                               
however,  he is  not certain  that  it is  in this  draft of  the                                                               
resolution.                                                                                                                     
                                                                                                                                
[HJR 9 was held over.]