Legislature(1993 - 1994)
01/12/1994 01:35 PM House FIN
| Audio | Topic |
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
January 12, 1994
1:35 P.M.
TAPE HFC 94 - 1, Side 1, #000 - end.
TAPE HFC 94 - 1, Side 1, #000 - #589.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 1:35 P.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
Representative Jerry Sanders; Representative Bettye Davis;
Representative Pat Carney; Representative Brian Porter;
Representative Cynthia Toohey; Representative Fran Ulmer;
James L. Baldwin, Assistant Attorney General, Department of
Law; John Bitney, Legislative Aid to Representative Larson;
Joe Thomas, State Accountant, Division of Finance,
Department of Administration.
SUMMARY
GENERAL DISCUSSION - STATE FINANCES
HB 58 An Act relating to the budget reserve fund
established under art. IX, sec. 17, Constitution
of the State of Alaska.
HB 58 was placed into Subcommittee with
Representative Hanley as Chair and with members
Representative Brown and Representative Larson.
GENERAL DISCUSSION
Co-Chair Larson provided the Committee with an overview of
procedures to be used for Committee meetings and for
Subcommittee meetings. (Copy on file).
Co-Chair Larson encouraged discussion regarding budget
1
subcommittee closeouts. He asked if they should be .
presented before the full House Finance Committee or
restricted to subcommittee hearings only. Following the
discussion, it was agreed by members to invite individual
department commissioners to provide the full House Finance
Committee with a brief overview of the changes each
department would be required to make to accommodate revenue
reductions.
HOUSE BILL 58
"An Act relating to the budget reserve fund established
under art. IX, sec. 17, Constitution of the State of
Alaska."
Co-Chair Larson referenced the two HB 58 work drafts
included in Committee members packets provided by the House
Judiciary Committee and the House Finance Committee.
JAMES L. BALDWIN, ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF
LAW, referenced work draft #8-LS0188\K, CS HB 58 (FIN)
commenting that the purpose of that draft would be to
address issues needing clarification regarding the Budget
Reserve Fund. The amendment establishing the fund explains
the specific terms available while the work draft defines
the source of money going into that fund.
Mr. Baldwin pointed out, currently, there are disputes
regarding the provisions and definitions of the
appropriations. He suggested establishing a statute to
define the terms of the legislation as a way to address the
interpretive concerns.
Co-Chair Larson MOVED to adopte work draft CS HB 58 (FIN),
for purposes of discussion. She asked the differences
between the proposed work draft and CS HB 58 (JUD).
JOHN BITNEY, STAFF TO REPRESENTATIVE LARSON, explained that
the work draft changes pertain only to Page 2, Lines 10-29,
and deal with appropriation language. Representative Brown
felt that CS HB 58 (JUD) language would address the intent
of the Committee more precisely.
JOE THOMAS, STATE ACCOUNTANT, DIVISION OF FINANCE,
DEPARTMENT OF ADMINISTRATION, explained the classifications
of the fixed tax accounts which are a standard body for
accounting principles used in government. Representative
Brown asked if federal funds would be excluded in the
proposed language. Mr. Baldwin assured the Committee that
the proposed language would not exclude federal funds.
Representative Navarre stressed concern over possible
2
litigation and abuse with the current language.
Mr. Baldwin reiterated that access to the funds would not be
restricted. He felt the public had not been adequately
advised of possible consequences resulting from the
amendment.
(Tape Change, HFC 94-1, Side 2).
Committee members proceeded to discuss versions of spending
limit language within the Budget Reserve. All House Finance
Committee members agreed the language should be written more
clearly, defining what is precisely available.
Mr. Baldwin felt caution should be used in not making the
language too specific as proposed in the House Judiciary
Committee version. Representative Parnell recommended
limiting the interpretive language to a specified time
frame. Discussion followed regarding the gap between the
terms for "administrative proceedings" and "amount available
for appropriation". Mr. Baldwin explained that HB 58
provides evidence of the interpretive meaning of the
Constitution and that it would carry weight in a court since
it would provide direction by the Legislature.
Co-Chair Larson placed HB 58 into a Subcommittee for further
review with Representative Hanley as Chair and with members
Representative Brown and Representative Larson.
Co-Chair Larson MOVED TO WITHDRAW the MOTION that CS HB 58
(FIN) by the version before the Committee. There being NO
OBJECTION, it was so ordered.
Representative Brown asked if the Permanent Fund Earnings
Reserve Account would be available for appropriation. Mr.
Baldwin explained that the statute which establishes the
Permanent Fund Earnings Reserve Account in the Permanent
Fund is a "sinking fund" for the purpose of inflation
proofing and paying the dividend. He emphasized that fund
would not be available. Representative Martin added, that
there currently is a legal opinion from Legal Services
supporting the fact that the account is not a part of the
General Fund.
HB 58 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting adjourned at 2:55 P.M.
3
HOUSE FINANCE COMMITTEE
January 12, 1994
1:35 P.M.
TAPE HFC 94 - 1, Side 1, #000 - end.
TAPE HFC 94 - 1, Side 1, #000 - #589.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 1:35 P.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
Representative Jerry Sanders; Representative Bettye Davis;
Representative Pat Carney; Representative Brian Porter;
Representative Cynthia Toohey; Representative Fran Ulmer;
James L. Baldwin, Assistant Attorney General, Department of
Law; John Bitney, Legislative Aid to Representative Larson;
Joe Thomas, State Accountant, Division of Finance,
Department of Administration.
SUMMARY
GENERAL DISCUSSION - STATE FINANCES
HB 58 An Act relating to the budget reserve fund
established under art. IX, sec. 17, Constitution
of the State of Alaska.
HB 58 was placed into Subcommittee with
Representative Hanley as Chair and with members
Representative Brown and Representative Larson.
GENERAL DISCUSSION
Co-Chair Larson provided the Committee with an overview of
procedures to be used for Committee meetings and for
Subcommittee meetings. (Copy on file).
4
Co-Chair Larson encouraged discussion regarding budget
subcommittee closeouts. He asked if they should be .
presented before the full House Finance Committee or
restricted to subcommittee hearings only. Following the
discussion, it was agreed by members to invite individual
department commissioners to provide the full House Finance
Committee with a brief overview of the changes each
department would be required to make to accommodate revenue
reductions.
HOUSE BILL 58
"An Act relating to the budget reserve fund established
under art. IX, sec. 17, Constitution of the State of
Alaska."
Co-Chair Larson referenced the two HB 58 work drafts
included in Committee members packets provided by the House
Judiciary Committee and the House Finance Committee.
JAMES L. BALDWIN, ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF
LAW, referenced work draft #8-LS0188\K, CS HB 58 (FIN)
commenting that the purpose of that draft would be to
address issues needing clarification regarding the Budget
Reserve Fund. The amendment establishing the fund explains
the specific terms available while the work draft defines
the source of money going into that fund.
Mr. Baldwin pointed out, currently, there are disputes
regarding the provisions and definitions of the
appropriations. He suggested establishing a statute to
define the terms of the legislation as a way to address the
interpretive concerns.
Co-Chair Larson MOVED to adopte work draft CS HB 58 (FIN),
for purposes of discussion. She asked the differences
between the proposed work draft and CS HB 58 (JUD).
JOHN BITNEY, STAFF TO REPRESENTATIVE LARSON, explained that
the work draft changes pertain only to Page 2, Lines 10-29,
and deal with appropriation language. Representative Brown
felt that CS HB 58 (JUD) language would address the intent
of the Committee more precisely.
JOE THOMAS, STATE ACCOUNTANT, DIVISION OF FINANCE,
DEPARTMENT OF ADMINISTRATION, explained the classifications
of the fixed tax accounts which are a standard body for
accounting principles used in government. Representative
Brown asked if federal funds would be excluded in the
proposed language. Mr. Baldwin assured the Committee that
the proposed language would not exclude federal funds.
5
Representative Navarre stressed concern over possible
litigation and abuse with the current language.
Mr. Baldwin reiterated that access to the funds would not be
restricted. He felt the public had not been adequately
advised of possible consequences resulting from the
amendment.
(Tape Change, HFC 94-1, Side 2).
Committee members proceeded to discuss versions of spending
limit language within the Budget Reserve. All House Finance
Committee members agreed the language should be written more
clearly, defining what is precisely available.
Mr. Baldwin felt caution should be used in not making the
language too specific as proposed in the House Judiciary
Committee version. Representative Parnell recommended
limiting the interpretive language to a specified time
frame. Discussion followed regarding the gap between the
terms for "administrative proceedings" and "amount available
for appropriation". Mr. Baldwin explained that HB 58
provides evidence of the interpretive meaning of the
Constitution and that it would carry weight in a court since
it would provide direction by the Legislature.
Co-Chair Larson placed HB 58 into a Subcommittee for further
review with Representative Hanley as Chair and with members
Representative Brown and Representative Larson.
Co-Chair Larson MOVED TO WITHDRAW the MOTION that CS HB 58
(FIN) by the version before the Committee. There being NO
OBJECTION, it was so ordered.
Representative Brown asked if the Permanent Fund Earnings
Reserve Account would be available for appropriation. Mr.
Baldwin explained that the statute which establishes the
Permanent Fund Earnings Reserve Account in the Permanent
Fund is a "sinking fund" for the purpose of inflation
proofing and paying the dividend. He emphasized that fund
would not be available. Representative Martin added, that
there currently is a legal opinion from Legal Services
supporting the fact that the account is not a part of the
General Fund.
HB 58 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting adjourned at 2:55 P.M.
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