05/17/2002 05:01 PM Senate FIN

                                                                                                                                
     SENATE 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."                                                                 
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair  Donley  commented this  legislation  is the  mechanism  by                                                            
which the State would access  the CBR fund and that passage requires                                                            
a vote of three-quarters  of the members of both the  Senate and the                                                            
House of Representatives.  He stated  that the need for these  funds                                                            
is  dependant  upon  whether  revenue  is  sufficient  to  fund  the                                                            
activities  of state  government  in the  upcoming  fiscal year.  He                                                            
remarked that current estimates  indicate CBR funds would be needed.                                                            
                                                                                                                                
Senator  Leman  furthered  that,  although  small  compared  to  the                                                            
proposed  total   withdrawal  from   the  fund,  the  $125,000   CBR                                                            
withdrawal for  the Department of Revenue, Division  of Treasury, as                                                            
contained  in  this bill,  is  part of  the  efforts of  the  Senate                                                            
Majority to meet spending limitations.                                                                                          
                                                                                                                                
Senator Ward  offered a motion to  move SB 2007 from Committee  with                                                            
individual recommendations.                                                                                                     
                                                                                                                                
Without objection SB 2007 MOVED from Committee.                                                                                 
                                                                                                                                
AT EASE 5:07 PM / 5:27 PM