Legislature(1995 - 1996)
01/30/1995 01:35 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
JANUARY 30, 1995
1:35 P.M.
TAPE HFC 95 - 12, Side 1, #000 - end.
TAPE HFC 95 - 12, Side 2, #000 - #510.
CALL TO ORDER
Co-Chair Mark Hanley called the House Finance Committee
meeting to order at 1:35 P.M.
PRESENT
Co-Chair Hanley Representative Kohring
Co-Chair Foster Representative Martin
Representative Mulder Representative Navarre
Representative Brown Representative Parnell
Representative Grussendorf Representative Kelly
Representative Therriault was not present for the meeting.
ALSO PRESENT
Mike Greany, Director, Legislative Finance Division; Pat
Pourchot, Legislative Director, Office of the Governor;
Representative John Davies; Representative Ivan Ivan.
SUMMARY
HCR 1 Creating the Long Range Financial Planning
Commission.
CS HCR 1 (FIN) was HELD in Committee for further
consideration.
HOUSE CONCURRENT RESOLUTION 1
Creating the Long Range Financial Planning Commission.
Co-Chair Hanley acknowledged that long-range financial
planning would be essential if we are to attain some
financial stability for Alaska's future. He stated that
creating the Long-Range Financial Planning Commission would
be a crucial first step in that direction and requested the
Committee's support of HCR 1.
Representative Parnell MOVED to adopt work draft, #9-
LS0021\G, Bannister, dated 1/30/95, as the version before
the Committee. There being NO OBJECTIONS, it was adopted.
1
Representative Parnell, Subcommittee Chair, explained the
changes made to HCR 1, committee substitute. On Page 1,
Lines 14 - 16 language was added to highlight economic
stability by diversifying the State's economy. On Page 2,
Lines 4 - 13 language would change the composition of the
Commission's members. The Commission's direction was
further explained in the committee substitute on Page 2 & 3,
Sections 1 - 12.
Representative Martin distributed Amendments #1 & #2.
[Attachments #1 & #2]. He noted that Amendments #1 & #2
would permit high school and college students to be members
of the Commission. Representative Martin MOVED that
Amendments #1 & #2 be adopted by the Committee.
Representative Navarre voiced his support of high school and
college students participation although advised that the
number of Commission members would be small. He thought
students should participate while not having voting rights.
Co-Chair Hanley agreed, advising that many small groups will
be affected by decisions of the Commission. It would be
difficult to have every interest in the State represented
and still maintain a workable sized group.
Representative Mulder offered a conceptual amendment to
Amendments #1 & #2 which would clarify that students be non
voting members. Discussion followed regarding concerns of
non voting members. Representative Mulder WITHDREW THE
MOTION to amend. There being NO OBJECTION, it was
withdrawn.
Following discussion among Committee members, Representative
Martin WITHDREW THE MOTION to adopt Amendment #1 and #2.
There being NO OBJECTION, it was withdrawn.
Representative Martin MOVED to adopt Amendment #3.
[Attachment #3]. The amendment addresses the issue of
forward funding the budget. Representative Parnell
responded that Section (8) of Amendment #3 had been
previously addressed in the legislation. He continued,
Section (5) would provide for a review of future earnings of
the Permanent Fund. He advised that this concern was not as
as fundamental as forward funding.
Representative Navarre commented that the Commission should
not be delegated responsibility to evaluate the intent of
the Permanent Fund. Co-Chair Hanley noted that Permanent
Fund earnings should be considered with those of AIDEA, AHFC
and the Alaska Railroad. He added, Page 2 identifies all
State income sources and includes all the State's assets.
2
Representative Parnell OBJECTED to adoption of Amendment #3.
A roll call vote was taken on the MOTION.
IN FAVOR: Martin, Brown, Foster.
OPPOSED: Grussendorf, Kelly, Kohring, Mulder,
Navarre, Parnell, Hanley.
Representative Therriault was not present for the vote.
The MOTION FAILED, (3-7).
Representative Brown MOVED to adopt Amendment #4.
[Attachment #4]. She explained that Amendment #4 would be a
technical change in order to clarify that the "people"
entitled to compensation would be the "public" members of
the Commission. That language change would consist of
inserting "public" following language "FURTHER RESOLVED that
the". There being NO OBJECTION, Amendment #4 was adopted.
Representative Navarre provided the Committee with Amendment
member from the House and Senate Minority Caucus be chosen
for the Commission. Co-Chair Hanley acknowledged that there
was an intent to have minority representation on the
Commission. Representative Navarre emphasized that a
partisan Commission would be ineffective. Representative
Navarre WITHDREW THE MOTION to adopt Amendment #5. There
being NO OBJECTION, it was withdrawn.
Representative Parnell requested that relationship of faith
and trust be exercised by the people making the selections,
guaranteeing that there would be a partisan and regional
balance sought. Representative Navarre recommended that the
Commissioner of Revenue or the Director of the Office of
Management and Budget be included with Governor, the Speaker
of the House and the Senate President to choose the nine
public members of the Commission. He pointed out that
appointment would create a party balance in the selection
committee.
Representative Brown suggested adding language to assure a
consensus. She recommended a language change made to Page
2, Line 7, deleting "a committee composed of" and adding
"consensus by". Co-Chair Hanley asked to consult the
Speaker of the House, Representative Phillips in regards to
her intent.
Representative Parnell MOVED Amendment #6, Page 2, Line 28,
inserting language following "identify" and adding "and
evaluate", while deleting the "evaluate" following "and".
There being NO OBJECTION, it was adopted.
3
Representative Parnell recommended adding language to Page
3, Line 11, following "providing services", and inserting
"and raising revenue". The change would address local
governments off-setting the loss of state revenue.
Representative Parnell MOVED to adopt Amendment #7. There
being NO OBJECTION, it was adopted.
Representative Brown MOVED to adopt Amendment #8, Page 2,
Line 7, deleting the language "a committee composed of" and
inserting "consensus by". There being NO OBJECTION, it was
adopted.
(Tape Change, HFC 95 - 12, Side 2).
PAT POURCHOT, LEGISLATIVE DIRECTOR, OFFICE OF THE GOVERNOR,
pointed out that "consensus" would not indicate unanimity.
Representative Brown stated that adding the language
"unanimous agreement of" would be specific to the intent.
Representative Brown MOVED TO RESCIND previous action taken
on Amendment #8. There being NO OBJECTION, it was so
ordered. Representative Brown MOVED a language change to
Page 2, Line 7, deleting "a committee composed of" and
inserting "unanimous agreement of" as the new language for
Amendment #8. There being NO OBJECTION, it was adopted.
Co-Chair Hanley distributed the fiscal note compiled by the
Senate. That note would provide adequate funding for
hearings throughout the State. The note would also include
funds to contract one position to coordinate Commission
activities. The staff financial work would be handled by
either the Office of Management and Budget or Legislative
Finance. Those costs would be borne by the Legislative
Budget and Audit Committee. Co-Chair Hanley advised that
the Senate fiscal note would deal with the real costs of the
Commission and would include the addition of funds for one
contract position to coordinate activities.
Representative Mulder suggested a statewide mailing would be
valuable and should be included in the fiscal note.
Representative Brown agreed that a statewide mailing would
be an effective way to reach all people in the State. She
recommended that the $6 thousand dollar allocation for the
computer and printer should instead be covered out of the
Legislature's surplus, emphasizing that the Legislature has
a lot of surplus equipment. She added, a statewide mailing
would cost several hundred thousand dollars.
Co-Chair Hanley pointed out that the cost of the mailing
would be prohibitive. Representative Parnell suggested
providing public service announcements through the local
public service broadcasting stations. Representative Brown
4
suggested that the Commission should have funds available if
they determine the mailing would be important to the
information they require for the decision process.
Representative Grussendorf rejected the idea of a statewide
mailing, pointing out the already numerous responsibilities
of the Commission. He suggested that the additional
responsibility of dealing with complicated issues would be a
larger task than the Commission would be able to perform by
the established deadline. Co-Chair Hanley agreed that the
public should have access to the report of the Commission.
Co-Chair Hanley summarized the fiscal need for the
Commission. Travel costs, contractual and postage funds are
necessary. He noted that the Legislative budget could
handle costs amounting to $50 to $60 thousand dollars for
services accrued in 1995 thus eliminating a supplemental
request.
Representative Navarre scrutinized the need for all members
to travel to all site locations. He suggested a better use
of funds would be to use the teleconference system already
established. Representative Martin agreed. Representative
Kohring observed that finding qualified persons for the
Commission will be a extensive responsibility given the
required time commitment.
CS HCR 1 (FIN) was HELD in Committee for further discussion
on the fiscal note.
MIKE GREANY, DIRECTOR, LEGISLATIVE FINANCE, noted that the
budget books to the December version of the proposed Hickel
budget would be available the first week in February. The
proposed Hickel budget is a base maintenance budget,
although it builds in increments for non general fund
sources.
Co-Chair Hanley clarified that the Legislative Finance
Division provided the detail work to the proposed Hickel
budget. He added that some of those details would be
opposed by the current Administration.
ADJOURNMENT
The meeting adjourned at 2:50 P.M.
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