Legislature(2003 - 2004)

04/02/2004 09:05 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
CS FOR SENATE JOINT RESOLUTION NO. 3(JUD)                                                                                       
                                                                                                                                
     Proposing an amendment to the Constitution of the State of                                                                 
     Alaska relating to an appropriation limit and a spending                                                                   
     limit.                                                                                                                     
                                                                                                                                
This was  the eighth  hearing for  this bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Amendment  #11:  This  amendment  deletes  Section  16  (c)(4)  from                                                            
Section  1 on  page  2, lines  17  and 18  of  committee  substitute                                                            
Version "C" and inserts new language to read as follows:                                                                        
                                                                                                                                
                (4) of State general obligation bond and revenue                                                                
     bond proceeds;                                                                                                             
                                                                                                                                
Senator Dyson moved for adoption.                                                                                               
                                                                                                                                
Co-Chair Wilken objected for an explanation.                                                                                    
                                                                                                                                
Senator   Dyson  explained   that   this  amendment   would   remove                                                            
certificates  of participation (COP)  proceeds as an exclusion  from                                                            
the calculation of an appropriation limit.                                                                                      
                                                                                                                                
Co-Chair  Wilken  clarified  that  the amendment  would  remove  the                                                            
exemption of COP proceeds.                                                                                                      
                                                                                                                                
Senator Dyson affirmed.                                                                                                         
                                                                                                                                
Without objection the amendment was ADOPTED.                                                                                    
                                                                                                                                
Amendment #12: This amendment  deletes Section 16(c)(7) from Section                                                            
1 on page 2,  line 21 and inserts  new language to read as  follows.                                                            
                                                                                                                                
                (7) of money received by the University of Alaska as                                                            
     tuition, fees, or contract receipts, or from other non-general                                                             
     fund sources                                                                                                               
                                                                                                                                
Senator Dyson moved for adoption.                                                                                               
                                                                                                                                
Co-Chair Wilken objected for an explanation.                                                                                    
                                                                                                                                
Senator Dyson  explained this amendment  would allow the  University                                                            
to receive an exemption  for these funds from the calculation of the                                                            
appropriation   limit.  The   University  operates   much  like   an                                                            
enterprise  and  exampled  locker   fees  and  bookstore  income  as                                                            
exempted revenues under this provision.                                                                                         
                                                                                                                                
Co-Chair Wilken  noted that Pat Pitney  of the University  of Alaska                                                            
provided  information  titled,  "Examples  of  Revenue  included  in                                                            
University Receipts  and the unintended impact on  a Spending Limit"                                                            
[copy on file.]                                                                                                                 
                                                                                                                                
JOE  BEEDLE,  Vice  President  of  Finance,  University  of  Alaska,                                                            
testified via  teleconference from an offnet location  in support of                                                            
the amendment.                                                                                                                  
                                                                                                                                
Senator Dyson  wanted confirmation  that Ms.  Frasca did not  oppose                                                            
this amendment.                                                                                                                 
                                                                                                                                
CHERYL FRASCA, Director,  Office of Management and Budget, Office of                                                            
the Governor,  implored that  the Committee  consider the impact  of                                                            
this amendment.  All  State agencies  would compete  for the  finite                                                            
amount  of funding  available under  a spending  limit system.  This                                                            
amendment would  address the University at a "higher  standard" than                                                            
other State agencies because  other agencies operate somewhat like a                                                            
corporation  and  generate  revenue,  yet  their  revenues  are  not                                                            
exempted from  the spending limit. She stated that  adoption of this                                                            
amendment would be a policy decision.                                                                                           
                                                                                                                                
                                                                                                                                
SFC 04 # 68, Side A 10:44 AM                                                                                                    
                                                                                                                                
                                                                                                                                
Ms. Frasca continued that  the University currently has "significant                                                            
excess authority" for expending  University receipts without further                                                            
legislative  authorization.  She  explained  that because  of  this,                                                            
University appropriations  would reach the appropriation  limit at a                                                            
slower rate  than other agencies.  This exemption is an "accounting                                                             
issue"  for  the  University,   but  it is  a  "significant   policy                                                            
decision" for the Executive Branch.                                                                                             
                                                                                                                                
Co-Chair  Wilken  removed  his  objection  to the  adoption  of  the                                                            
amendment.                                                                                                                      
                                                                                                                                
Co-Chair Green objected.                                                                                                        
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Olson, Senator Bunde, Senator Dyson and Co-Chair                                                              
Wilken                                                                                                                          
                                                                                                                                
OPPOSED: Senator B. Stevens and Co-Chair Green                                                                                  
                                                                                                                                
ABSENT: Senator Hoffman                                                                                                         
                                                                                                                                
The motion PASSED (4-2-1)                                                                                                       
                                                                                                                                
The amendment was ADOPTED.                                                                                                      
                                                                                                                                
Co-Chair Wilken ordered the bill HELD in Committee.                                                                             
                                                                                                                                
ADJOURNMENT                                                                                                                 
                                                                                                                                
Co-Chair Wilken adjourned the meeting at 10:46 AM                                                                               

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