03/24/1995 02:00 PM House FIN

                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         March 24, 1995                                        
                            1:30 P.M.                                          
                                                                               
  TAPE HFC 95-62, Side 1, #000 - #398.                                         
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair  Mark Hanley  called  the House  Finance  Committee                 
  meeting to order at 2:00 p.m.                                                
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Hanley               Representative Martin                          
  Co-Chair Foster               Representative Mulder                          
  Representative Brown          Representative Navarre                         
  Representative Grussendorf    Representative Parnell                         
  Representative Kelly          Representative Therriault                      
  Representative Kohring                                                       
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Nancy Slagle, Director, Division of Budget Review, Office of                 
  the Management  and Budget,  Office of  the Governor;  Janet                 
  Clark,  Director,  Division   of  Administrative   Services,                 
  Department of Health & Social  Services; Guy Bell, Director,                 
  Division of Administrative Services, Department of  Commerce                 
  and Economic Development.                                                    
                                                                               
  SUMMARY                                                                      
                                                                               
  HB 100    An Act making appropriations for the operating and                 
            loan program expenses  of state government and  to                 
            capitalize funds; making appropriations under art.                 
            IX,  sec.  17(c),  Constitution  of  the State  of                 
            Alaska,  from  the  constitutional budget  reserve                 
            fund; and providing for an effective date.                         
                                                                               
            HB   100  was   HELD  in  Committee   for  further                 
            discussion.                                                        
                                                                               
  HB 101    An   Act   making  appropriations   for  operating                 
            expenses for certain programs  for which the costs                 
            are derived  from mandated  formulas or  criteria,                 
            and for expenses for  certain leases and contracts                 
            for state  services and operations;  and providing                 
            for an effective date.                                             
                                                                               
            HB   101  was  HELD   in  Committee   for  further                 
            discussion.                                                        
                                                                               
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  HOUSE BILL NO. 100                                                           
                                                                               
       An Act making appropriations for the operating and loan                 
       program expenses of state  government and to capitalize                 
       funds; making appropriations under art. IX, sec. 17(c),                 
       Constitution  of  the   State  of   Alaska,  from   the                 
       constitutional budget  reserve fund; and  providing for                 
       an effective date.                                                      
                                                                               
                                                                               
  Representative  Therriault MOVED  to  adopt and  incorporate                 
  into HB  100 the House Finance Subcommittee  reports for the                 
  Department of Health & Social Services, Department of Public                 
  Safety, Department of  Law and Department of  Fish and Game.                 
  There being NO OBJECTION, it was so ordered.                                 
                                                                               
  Representative Brown provided members with  a handout "FY 96                 
  Operating   Budget   Problems  (Identified   by   the  House                 
  Democrats)  (Attachment  1).   She  noted  that  the handout                 
  identifies areas of  the budget  which House Democrats  feel                 
  need to  be addressed  during  the amendment  process.   She                 
  stressed that program receipts should  not be counted within                 
  Department caps,  when they are  paying for the  function of                 
  necessary programs.   She  maintained that  rural areas  are                 
  particularly affected  by the  proposed budget.   She  noted                 
  concern  with  the  level  of   funding  for  public  safety                 
  programs.    She  asserted that  the  proposed  budget hurts                 
  employment  and  economic  development.     She  urged   the                 
  Committee not to take actions that will penalize children.                   
                                                                               
  Co-Chair  Hanley  assured  Representative  Brown  that   the                 
  majority  is  willing to  work  with  the Governor  and  the                 
  minority.    He  expressed  frustration  with a  failure  to                 
  recognize the fiscal gap.   He stated that spending  must be                 
  controlled  before  revenue  sources  are  considered.    He                 
  observed  the  number  of new  positions  in  the Governor's                 
  budget.                                                                      
                                                                               
  Co-Chair  Hanley  maintained  that  the  House caps  are  $3                 
  million dollars over the FY 95  level.  He acknowledged that                 
  supplementals were  not included in  the base.   He observed                 
  that the proposed Senate caps are substantially lower.                       
                                                                               
  In  response   to  a  question  by   Representative  Martin,                 
  Representative Brown discussed  program receipts.   Co-Chair                 
  Hanley observed that motor vehicle  fees are actually taxes.                 
  Discussion ensued regarding program receipts.                                
                                                                               
  HB 100 was HELD in Committee for further discussion.                         
  ADJOURNMENT                                                                  
                                                                               
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  The meeting adjourned at 2:30 p.m.                                           
                                                                               
                                                                               
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