Legislature(1995 - 1996)
01/28/1995 12:05 PM House FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
JANUARY 28, 1995
12:05 P.M.
TAPE HFC 95 - 11, Side 1, #000 - end.
TAPE HFC 95 - 11, Side 2, #000 - #370.
CALL TO ORDER
Co-Chair Mark Hanley called the House Finance Committee
meeting to order at 12:05 P.M.
PRESENT
Co-Chair Hanley Representative Kohring
Co-Chair Foster Representative Martin
Representative Mulder Representative Kelly
Representative Brown Representative Parnell
Representatives Grussendorf, Therriault and Navarre were not
present for the work session.
ALSO PRESENT
Pat Pourchot, Legislative Director, Office of the Governor.
SUMMARY
WORK SESSION - HCR 1
HCR 1 Creating the Long Range Financial Planning
Commission.
CS HCR 1 (FIN) was HELD in Committee for further
discussion. The legislation was placed into
Subcommittee with Representative Parnell as Chair
and with members Representatives Brown and
Kohring.
HOUSE CONCURRENT RESOLUTION 1
Creating the Long Range Financial Planning Commission.
Co-Chair Hanley explained the concept of creating a special
Long-Range Financial Planning Commission charged with
proposing a plan to organize the state's finances. The
concept was proposed during the last legislative session.
He added, recognizing that State spending has consistently
exceeded recurring revenue and that the State is faced with
an unpredictable and declining revenue stream, several
1
thoughtful plans for dealing with the budget crisis were
proposed to the last Legislature. Notable among these was
the plan to change the process of managing the State's
financial accounts. This plan was developed by Roger Cremo.
The Cremo Plan was presented to the last legislature (HJR
48) and received extensive consideration by the House
Judiciary Committee.
Representative Brown pointed out that the legislation would
provide a statewide opportunity to reach a consensus thus
providing a workable plan. She recommended that the
Commission review, debate and define options and at which
time provide a preliminary report. She emphasized that a
public process and effort should be used in collaberation
with the Legislature to address the overall level of
spending and reserves.
Representative Brown recommended a structural change to Page
2, Section #3, delineating that as a separate section. She
pointed out that a statutory change would be necessary to
implement reductions.
Co-Chair Hanley recommended the Committee work session begin
by addressing the "WHEREAS" section of the legislation.
Representative Parnell suggested a change to Page 1, Line 7,
following "revenue", deleting "at" and adding the language
"and reducing expenditures to". Co-Chair Hanley recommended
a further change by deleting "at" and changing the language
to "and expenditures at a". Committee members agreed with
the recommended change.
Representative Brown suggested adding a language change to
Page 1, Line 8, following "uncertainty", adding "which is
impeding economic growth". Following discussion among
Committee members, Representative Brown recommended removing
the language on Page 1, Line 8, "in order to remove doubt
and uncertainty regarding expenditures; and".
Representative Parnell discussed deleting all material
following "WHEREAS", Page 1, Line 9 - 11, through "issues
that"; thus beginning the sentence "the State system of
budgeting and spending must be analyzed and reevaluated by
the legislature; and". He felt that would provide a
systemwide view as recommended by Roger Cremo. Committee
members agreed with the proposed change.
Representative Parnell suggested a change to Page 1, Line
14, following the language, "topics", deleting the word
"and"; delete "on" and insert "and participate in drafting".
Representative Brown recommended replacing the word
"drafting" with "developing". Committee members agreed with
2
both changes.
Representative Brown recommended a change to Page 1, Line
15, deleting the word "establish" and inserting "implement";
Line 16, deleting "organizes" and inserting "stabilizes".
Representative Parnell recommended further moderation of
"stabilize"; he proposed deleting all material on Line 16
following the word "plan;". Representative Brown requested
inclusion to Page 1, Line 15, following "long-range",
inserting "financial".
Representative Brown recommended a change to Page 2, Line 2,
deleting "goals" and adding the language, "mechanisms for
implementing the plan". Representative Parnell suggested
removing on Page 2, Line 2, "10-year" and then add to that
language which explains the roll of the Commission and a
definition of the length of the Commission's
responsibilities. Co-Chair Hanley agreed that information
should be contained in the "RESOLVED" information rather
than in the "WHEREAS" section.
PAT POURCHOT, LEGISLATIVE DIRECTOR, OFFICE OF THE GOVERNOR,
agreed with comments made by the Committee members. He
thought that specific actions to achieve goals should be the
Commission's intent during the first three to five years.
He noted that the first three to five years would be the
most usable time frame to address the context of revenue
expenditures and focus.
Representative Parnell suggested a change to Page 2, Line 1,
after the words "legislature" insert "and governor".
Representative Brown advised deleting "10-year" and
inserting "long range".
Representative Brown provided new language to be inserted on
Page 2, Line 1, deleting previous material on Page 2, Lines
1 - 3 and inserting, "BE IT RESOLVED that the Alaska State
Legislature establishes the Long Range Financial Planning
Commission in order to develop and recommend to the Governor
and Legislature a long-range financial plan for the State
that includes specific actions needed within the first three
and five years to implement the plan;".
Representative Kohring requested that a statement be
included clarifying the need for stability by diversifying
the economy. Co-Chair Hanley agreed that would be
appropriate although should be contained in the "FURTHER
RESOLVED" portion of the legislation. Representative
Kohring offered to provide that language to the
subcommittee.
Representative Parnell provided the Committee with a handout
3
expanding the "FURTHER RESOLVED" portion of the legislation.
[Attachment #1].
(Tape Change, HFC 95 - 11, Side 2).
Co-Chair Hanley commented on the public make-up of the
Commission. Representative Parnell acknowledged the issue
in question is whether or not to have legislative and
administrative members voting on the Commission as well as
the public. He pointed out that the Commission needs
support of the Legislative and Executive branch. He pointed
out that in order to truly have a public commission, it
would be necessary to exclude administrative members.
Representative Parnell requested further discussion on the
composition of the Commission.
Discussion followed among Committee members regarding the
size and political division among the public and non public
participation of the Commission. Co-Chair Foster emphasized
it would be important to choose the participants for the
Commission geographically. Co-Chair Hanley agreed.
Thoughts surfaced regarding the majority and minority party
composition of the Commission. Co-Chair Hanley stated it
would be more successful if the established goals were
determined as part of an extensive debate.
Mr. Pourchot applauded the concept of a non-voting test to
achieve the balance of the Commission without providing a
vote position.
Co-Chair Hanley summarized the responsibilities of future
discussion:
1. The make-up of the Commission.
2. Responsibilities of the Commission.
3. When the work of the Commission should be
completed.
He added, the goals and guidelines for the future movement
of the plan should be a priority of the House Finance
Committee. Members agreed on the need for a special session
in order to finalize the resolves of the Commission. Co-
Chair Hanley specified Subcommittee members consisting of
Chair, Representative Parnell and members Representative
Brown and Representative Kohring.
CS HCR 1 (FIN) was HELD in Committee for further discussion.
ADJOURNMENT
The meeting adjourned at 1:05 P.M.
| Document Name | Date/Time | Subjects |
|---|