Legislature(1993 - 1994)
05/10/1994 10:05 AM House FIN
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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
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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