Legislature(1993 - 1994)

05/10/1994 10:05 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                          May 10, 1994                                         
                           10:05 A.M.                                          
                                                                               
  TAPE HFC 94 - 168, Side 1, #000 - #622.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson  called the House Finance  Committee meeting                 
  to order at 10:05 A.M.                                                       
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Hoffman                         
  Co-Chair MacLean              Representative Martin                          
  Vice-Chair Hanley             Representative Navarre                         
  Representative Brown          Representative Parnell                         
  Representative Grussendorf    Representative Therriault                      
  Representative Foster                                                        
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Jerry Burnett, Staff, Senator  Randy Phillips; Nancy Slagle,                 
  Director, Division  of Budget Review,  Office of  Management                 
  and  Budget;   Juanita  Hensley,  Chief,   Driver  Services,                 
  Department  of  Public Safety;  M.  Clyde Stolzfus,  Special                 
  Assistant,    Commissioner's    Office,     Department    of                 
  Transportation and Public Facilities.                                        
                                                                               
  SUMMARY                                                                      
  SB 56     An  Act  relating  to   the  budget  reserve  fund                 
            established under art.  IX, sec. 17,  Constitution                 
            of the State of Alaska.                                            
                                                                               
            CS SB 56  (FIN) was reported out of Committee with                 
            "no recommendation" and with a  fiscal note by the                 
            Senate State Affairs Committee.                                    
  SB 365    An  Act  relating  to  the  improvement  of  state                 
            finances and fiscal  accountability by  increasing                 
            fees,   by   collecting  additional   revenue,  by                 
            reducing certain program expenditures  by changing                 
            services or eligibility requirements for programs,                 
            by changing certain statutory  limitation periods,                 
            by  providing   for  use  of   certain  electronic                 
            records,  by   making  changes  to   state  agency                 
            functions   or   procedures    including   certain                 
            reporting   and   planning   procedures,  and   by                 
            authorizing extensions  for state leases  for real                 
            property if  certain savings can be  achieved; and                 
                                                                               
                                1                                              
                                                                               
                                                                               
            providing for an effective date.                                   
                                                                               
            HCS SB  365 (FIN)  was reported  out of  Committee                 
            with "no recommendations" and with fiscal notes by                 
            the Department of Public Safety dated 3/24/94, the                 
            Office   of  the   Governor  dated   4/21/94,  the                 
            Department of Transportation and Public Facilities                 
            dated  4/21/94,  the  Department of  Environmental                 
            Conservation  dated  4/21/94,  the  Department  of                 
            Labor dated 4/21/94, the Department of Corrections                 
            dated  4/21/94,  the Department  of Administration                 
            dated  4/21/94 and  the  Department  of Law  dated                 
            4/21/94.                                                           
  SENATE BILL 56                                                               
                                                                               
       "An Act relating to the budget reserve fund established                 
       under  art. IX, sec.  17, Constitution of  the State of                 
       Alaska."                                                                
                                                                               
  JERRY BURNETT, STAFF,  SENATOR RANDY PHILLIPS, explained  SB
  56  which  would  implement repayment  provisions  made from                 
  appropriations  within  the  constitutional  budget  reserve                 
  fund.  The  legislation would  allow a carry  forward as  of                 
  June, 30,  1994, or  as much  as necessary  to complete  the                 
  repayment.  The repayment would be transferred to  that fund                 
  by   the  Department  of  Administration  after  the  annual                 
  financial report was filed.                                                  
                                                                               
  Representative  Brown  asked  what  the  definition   of  an                 
  unreserved balance, undesignated general  fund balance.  Mr.                 
  Burnett replied  that balance would  be the money  which had                 
  not been restricted by law for  specific use and which would                 
  accrue   to  the  general  fund  under  accepted  accounting                 
  principles.                                                                  
                                                                               
  Mr. Burnett added that the provisions provided by SB 56 were                 
  similar to those contained in HB  58, although that bill had                 
  been  found  unconstitutional.    SB 56  was  written  to be                 
  consistent  with the  State's constitutional  position.   He                 
  added that when  the judge ruled  on HB 58, he  advised that                 
  the legislation was  unduly restricting funds available  for                 
  repayment.  The  State continues to  argue that case to  the                 
  Supreme Court.  The section in question of the constitution,                 
  specifically requires  that the Legislature implement  it by                 
  law and that money be taken from the general fund.                           
                                                                               
  Representative Hanley MOVED to report CS  SB 56 (FIN) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.  There being NO OBJECTIONS, it was                 
  so ordered.                                                                  
                                                                               
                                                                               
                                2                                              
                                                                               
                                                                               
  CS  SB  56 (FIN)  was  reported  out of  Committee  with "no                 
  recommendations" and with a fiscal  note by the Senate State                 
  Affairs Committee.                                                           
  SENATE BILL 365                                                              
                                                                               
       "An Act relating  to the improvement of  state finances                 
       and  fiscal  accountability  by  increasing  fees,   by                 
       collecting  additional  revenue,  by  reducing  certain                 
       program   expenditures   by   changing    services   or                 
       eligibility  requirements  for  programs,  by  changing                 
       certain statutory limitation  periods, by providing for                 
       use of certain electronic records, by making changes to                 
       state agency functions or procedures including  certain                 
       reporting and  planning procedures, and  by authorizing                 
       extensions  for  state  leases  for  real  property  if                 
       certain savings can  be achieved; and providing  for an                 
       effective date."                                                        
                                                                               
  JUANITA  HENSLEY,  CHIEF,  DRIVER  SERVICES,  DEPARTMENT  OF                 
  PUBLIC SAFETY, explained Sections 7-22, Department of Public                 
  Safety amendments, from a handout provided by the Office  of                 
  Management and Budget.                                                       
                                                                               
  NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF                 
  MANAGEMENT AND BUDGET,  OFFICE OF  THE GOVERNOR, provided  a                 
  sectional analysis of the handout "Reducing State Government                 
  Expenditures-Sectional".  [Copy on file].                                    
                                                                               
  Representative Martin questioned the deletion to maintenance                 
  for the  Department of Transportation and  Public Facilities                 
  (DOTPF) in Section #1.                                                       
                                                                               
  M. CLYDE STOLZFUS, SPECIAL ASSISTANT, COMMISSIONER'S OFFICE,                 
  DEPARTMENT   OF   TRANSPORTATION   AND  PUBLIC   FACILITIES,                 
  commented  that  Section  #1  would  be  a  deletion  for  a                 
  transportation plan.                                                         
                                                                               
  Representative Brown  provided the Committee  with Amendment                 
  [Copy on file].  She felt that to include these  items would                 
  create a less  comprehensive planning process and  that less                 
  detail would be provided by the Department of Transportation                 
  and  Public  Facilities.    Mr.  Stolzfus  agreed  that  the                 
  maintenance level  has been  less than  adequate within  the                 
  Department.  However,  a problem arises when a certain level                 
  of maintenance is promised in a plan and then the Department                 
  can not provide the service due to a lack of funds.                          
                                                                               
  Representative Brown  asked  if  a  prioritized  maintenance                 
  program had been established.   Mr. Stolzfus replied one had                 
  not been because it would result  in a liability problem for                 
                                                                               
                                3                                              
                                                                               
                                                                               
  the Department.   He continued, by  stating that Section  #2                 
  had been added by the Senate  Finance Committee.  Section #1                 
  addresses the  six year  program, Section  #2 addresses  the                 
  construction report  of projects for  the next  construction                 
  season.                                                                      
                                                                               
  Discussion  followed  between Representative  Brown  and Mr.                 
  Stolzfus regarding  Sections #1 &  #2 and the  reductions to                 
  the level of detail which the legislation would provide.                     
                                                                               
  Representative Brown  asked the difference  between the  six                 
  year plans  proposed in  Section #1  and Section  #26.   Mr.                 
  Stolzfus advised  that Section #26 was the  report which the                 
  Governor submits to the Legislature.                                         
                                                                               
  Representative  Brown  understood  that  Section  #27  would                 
  exempt DOTPF from providing  the full reporting requirements                 
  due to the Legislature on the construction of projects.  Mr.                 
  Stolzfus agreed.   He added that Section #27 would eliminate                 
  in the six year plan, the estimated cost of that project.                    
                                                                               
  Representative Brown MOVED TO AMEND Amendment #1 which would                 
  now delete only  Sections #1, #2, #27 & #28.  There being NO                 
  OBJECTIONS, it was adopted.                                                  
                                                                               
  Representative Navarre MOVED to report HCS SB 364  (FIN) out                 
  of  Committee with  individual recommendations and  with the                 
  accompanying fiscal notes.   There  being NO OBJECTIONS,  it                 
  was so ordered.                                                              
                                                                               
  HCS SB  365 (FIN)  was reported  out of  Committee with  "no                 
  recommendations" and with fiscal notes  by the Department of                 
  Public  Safety  dated 3/24/94,  the  Office of  the Governor                 
  dated 4/21/94, the  Department of Transportation  and Public                 
  Facilities dated  4/21/94, the  Department of  Environmental                 
  Conservation dated  4/21/94, the  Department of Labor  dated                 
  4/21/94,  the Department of  Corrections dated  4/21/94, the                 
  Department   of  Administration   dated   4/21/94  and   the                 
  Department of Law dated 4/21/94.                                             
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 10:50 A.M.                                          
                     HOUSE FINANCE COMMITTEE                                   
                          May 10, 1994                                         
                           10:05 A.M.                                          
                                                                               
  TAPE HFC 94 - 168, Side 1, #000 - #622.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson  called the House Finance  Committee meeting                 
                                                                               
                                4                                              
                                                                               
                                                                               
  to order at 10:05 A.M.                                                       
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Hoffman                         
  Co-Chair MacLean              Representative Martin                          
  Vice-Chair Hanley             Representative Navarre                         
  Representative Brown          Representative Parnell                         
  Representative Grussendorf    Representative Therriault                      
  Representative Foster                                                        
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Jerry Burnett, Staff, Senator Randy  Phillips; Nancy Slagle,                 
  Director, Division  of Budget  Review, Office of  Management                 
  and  Budget;  Juanita   Hensley,  Chief,  Driver   Services,                 
  Department  of Public  Safety;  M.  Clyde Stolzfus,  Special                 
  Assistant,    Commissioner's    Office,     Department    of                 
  Transportation and Public Facilities.                                        
                                                                               
  SUMMARY                                                                      
                                                                               
  SB 56     An  Act  relating  to  the  budget   reserve  fund                 
            established under  art. IX, sec.  17, Constitution                 
            of the State of Alaska.                                            
                                                                               
            CS  SB 56 (FIN) was reported out of Committee with                 
            "no recommendation" and with a  fiscal note by the                 
            Senate State Affairs Committee.                                    
                                                                               
  SB 365    An  Act  relating  to  the  improvement  of  state                 
            finances and fiscal  accountability by  increasing                 
            fees,   by   collecting  additional   revenue,  by                 
            reducing certain program expenditures  by changing                 
            services or eligibility requirements for programs,                 
            by changing certain statutory  limitation periods,                 
            by  providing  for   use  of  certain   electronic                 
            records,  by   making  changes  to   state  agency                 
            functions   or   procedures    including   certain                 
            reporting   and   planning   procedures,  and   by                 
            authorizing extensions  for state leases  for real                 
            property if certain  savings can be achieved;  and                 
            providing for an effective date.                                   
                                                                               
            HCS SB  365 (FIN)  was reported  out of  Committee                 
            with "no recommendations" and with fiscal notes by                 
            the Department of Public Safety dated 3/24/94, the                 
            Office   of  the   Governor  dated   4/21/94,  the                 
            Department of Transportation and Public Facilities                 
            dated  4/21/94,  the  Department of  Environmental                 
            Conservation  dated  4/21/94,  the  Department  of                 
            Labor dated 4/21/94, the Department of Corrections                 
                                                                               
                                5                                              
                                                                               
                                                                               
            dated  4/21/94,  the Department  of Administration                 
            dated 4/21/94  and  the Department  of  Law  dated                 
            4/21/94.                                                           
                                                                               
  SENATE BILL 56                                                               
                                                                               
       "An Act relating to the budget reserve fund established                 
       under art.  IX, sec. 17,  Constitution of the  State of                 
       Alaska."                                                                
                                                                               
  JERRY BURNETT,  STAFF, SENATOR RANDY  PHILLIPS, explained SB
  56  which would  implement  repayment  provisions made  from                 
  appropriations  within  the  constitutional  budget  reserve                 
  fund.  The  legislation would  allow a carry  forward as  of                 
  June, 30,  1994, or  as much  as necessary  to complete  the                 
  repayment.  The repayment would be  transferred to that fund                 
  by  the  Department  of   Administration  after  the  annual                 
  financial report was filed.                                                  
                                                                               
  Representative   Brown  asked  what  the  definition  of  an                 
  unreserved balance, undesignated general fund  balance.  Mr.                 
  Burnett replied that  balance would be  the money which  had                 
  not been restricted by law for  specific use and which would                 
  accrue  to  the  general   fund  under  accepted  accounting                 
  principles.                                                                  
                                                                               
  Mr. Burnett added that the provisions provided by SB 56 were                 
  similar to those contained in HB  58, although that bill had                 
  been  found  unconstitutional.   SB  56  was written  to  be                 
  consistent with  the  State's constitutional  position.   He                 
  added  that when the judge  ruled on HB  58, he advised that                 
  the legislation  was unduly restricting  funds available for                 
  repayment.  The  State continues to  argue that case to  the                 
  Supreme Court.  The section in question of the constitution,                 
  specifically requires that  the Legislature implement it  by                 
  law and that money be taken from the general fund.                           
                                                                               
  Representative Hanley MOVED to report CS  SB 56 (FIN) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.  There being NO OBJECTIONS, it was                 
  so ordered.                                                                  
                                                                               
  CS  SB  56 (FIN)  was  reported  out of  Committee  with "no                 
  recommendations" and with a fiscal note by the  Senate State                 
  Affairs Committee.                                                           
                                                                               
  SENATE BILL 365                                                              
                                                                               
       "An Act relating  to the improvement of  state finances                 
       and  fiscal  accountability  by  increasing  fees,   by                 
       collecting  additional  revenue,  by  reducing  certain                 
       program   expenditures   by   changing    services   or                 
                                                                               
                                6                                              
                                                                               
                                                                               
       eligibility  requirements  for  programs,  by  changing                 
       certain statutory limitation periods, by providing  for                 
       use of certain electronic records, by making changes to                 
       state agency functions or  procedures including certain                 
       reporting and  planning procedures, and  by authorizing                 
       extensions  for  state  leases  for  real  property  if                 
       certain savings can  be achieved; and providing  for an                 
       effective date."                                                        
                                                                               
  JUANITA  HENSLEY,  CHIEF,  DRIVER  SERVICES,  DEPARTMENT  OF                 
  PUBLIC SAFETY, explained Sections 7-22, Department of Public                 
  Safety amendments, from a handout provided by  the Office of                 
  Management and Budget.                                                       
                                                                               
  NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF                 
  MANAGEMENT AND BUDGET,  OFFICE OF  THE GOVERNOR, provided  a                 
  sectional analysis of the handout "Reducing State Government                 
  Expenditures-Sectional".  [Copy on file].                                    
                                                                               
  Representative Martin questioned the deletion to maintenance                 
  for the Department  of Transportation and Public  Facilities                 
  (DOTPF) in Section #1.                                                       
                                                                               
  M. CLYDE STOLZFUS, SPECIAL ASSISTANT, COMMISSIONER'S OFFICE,                 
  DEPARTMENT   OF   TRANSPORTATION   AND  PUBLIC   FACILITIES,                 
  commented  that  Section  #1  would  be  a  deletion  for  a                 
  transportation plan.                                                         
                                                                               
  Representative Brown  provided the Committee  with Amendment                 
  [Copy  on file].  She felt that to include these items would                 
  create a less  comprehensive planning process and  that less                 
  detail would be provided by the Department of Transportation                 
  and  Public  Facilities.    Mr.  Stolzfus  agreed  that  the                 
  maintenance level  has been  less than  adequate within  the                 
  Department.   However, a problem arises when a certain level                 
  of maintenance is promised in a plan and then the Department                 
  can not provide the service due to a lack of funds.                          
                                                                               
  Representative  Brown  asked  if  a prioritized  maintenance                 
  program had  been established.  Mr. Stolzfus replied one had                 
  not been because it would result  in a liability problem for                 
  the Department.   He continued, by  stating that Section  #2                 
  had been added by the Senate  Finance Committee.  Section #1                 
  addresses the  six year  program, Section  #2 addresses  the                 
  construction report  of projects for  the next  construction                 
  season.                                                                      
                                                                               
  Discussion  followed  between Representative  Brown  and Mr.                 
  Stolzfus regarding  Sections #1 &  #2 and the  reductions to                 
  the level of detail which the legislation would provide.                     
                                                                               
                                                                               
                                7                                              
                                                                               
                                                                               
  Representative Brown  asked the  difference between the  six                 
  year plans  proposed in  Section #1  and Section  #26.   Mr.                 
  Stolzfus advised that Section #26  was the report which  the                 
  Governor submits to the Legislature.                                         
                                                                               
  Representative  Brown  understood  that  Section  #27  would                 
  exempt DOTPF from providing the  full reporting requirements                 
  due to the Legislature on the construction of projects.  Mr.                 
  Stolzfus  agreed.  He added that Section #27 would eliminate                 
  in the six year plan, the estimated cost of that project.                    
                                                                               
  Representative Brown MOVED TO AMEND Amendment #1 which would                 
  now delete only Sections #1, #2, #27  & #28.  There being NO                 
  OBJECTIONS, it was adopted.                                                  
                                                                               
  Representative Navarre MOVED to report HCS  SB 364 (FIN) out                 
  of Committee  with individual  recommendations and  with the                 
  accompanying fiscal notes.   There  being NO OBJECTIONS,  it                 
  was so ordered.                                                              
                                                                               
  HCS SB  365 (FIN)  was reported  out of  Committee with  "no                 
  recommendations" and with fiscal notes  by the Department of                 
  Public  Safety  dated 3/24/94,  the  Office of  the Governor                 
  dated 4/21/94,  the Department of Transportation  and Public                 
  Facilities dated  4/21/94, the  Department of  Environmental                 
  Conservation dated  4/21/94, the  Department of  Labor dated                 
  4/21/94,  the Department  of Corrections dated  4/21/94, the                 
  Department   of   Administration  dated   4/21/94   and  the                 
  Department of Law dated 4/21/94.                                             
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 10:50 A.M.                                          
                                                                               
                                                                               
                                8                                              

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