04/19/1994 05:40 PM FIN

                                                                               
  SENATE BILL NO. 373                                                          
                                                                               
       An Act relating to a comprehensive state financial plan                 
       and to the Solving Alaska's Fiscal Emergency (S.A.F.E.)                 
       Commission; and providing for an effective date.                        
                                                                               
  Co-chair  Pearce  directed that  SB  373 be  brought  on for                 
  discussion  and  referenced a  draft  CSSB 373  (8-LS1876\J,                 
  Cook,  4/19/94).   Senator  Kelly  explained that  the draft                 
  contains a major departure from the original bill in that it                 
  removes  the earlier Section 2 which  mandated action by the                 
  legislature as  an alternative to binding  implementation of                 
  the  S.A.F.E.   commission  financial  plan.     The   draft                 
  establishes a nine-member advisory commission to work during                 
  the interim to develop  a six-year plan and return  a report                 
  to the next legislature.  At that point the commission would                 
  terminate.   Senator  Kelly acknowledged  that  the original                 
  bill  envisioned  a   long-term  commission  with  revolving                 
  members.    There  was  not   sufficient  support  for  that                 
  approach.                                                                    
                                                                               
                                                                               
  Senator Kelly MOVED  for adoption of CSSB 373 ("J" version).                 
  Co-chair Frank MOVED to remove the word "emergency" from the                 
  name of the  commission and insert  the word "gap" in  place                 
  thereof.  He  voiced his belief  that use of "emergency"  is                 
  inappropriate.    Senator  Kelly  advised  that he  did  not                 
  disagree with the  concept but  suggested substitution of  a                 
  word commencing with the  letter "e" to retain  the acronym,                 
  S.A.F.E., for designation of the commission.  Senator Rieger                 
  attested to real dollar gaps in state revenues necessitating                 
  a $200 million  reduction next  year and a  like amount  the                 
  year thereafter.   He  said he  disagreed with  the S.A.F.E.                 
  Commission  approach   but  does   not  disagree   with  the                 
  contention that an emergency exists.  He suggested that  the                 
  Governor should be undertaking the tasks contemplated by the                 
  commission.                                                                  
                                                                               
  Co-chair Pearce called for action on the motion for adoption                 
  of CSSB 373 ("J" version).  No objection having been raised,                 
  CSSB 373 (Fin) was ADOPTED.                                                  
                                                                               
  Co-chair Frank then MOVED to remove the word "emergency" and                 
  replace  it  with  "exigency."    No objection  having  been                 
  raised,  the  motion  CARRIED, and  the  replacement  was SO                 
  ORDERED.                                                                     
                                                                               
  Discussion followed  regarding staffing for  the Commission.                 
  Senator Kelly spoke to utilization  of legislative staff for                 
  support work.                                                                
                                                                               
  Senator  Kelly  MOVED  that  CSSB  373 (Finance)  pass  from                 
  committee.  CSSB 373 (Finance) was REPORTED OUT of committee                 
  with  a  fiscal  note from  the  Legislative  Affairs Agency                 
  showing reappropriation funding of  $300.0.  Co-chair Pearce                 
  and Senator Kelly  signed the  committee report  with a  "do                 
  pass" recommendation.   Co-chair Frank  and Senators  Rieger                 
  and Sharp signed "no recommendation."