Legislature(1993 - 1994)
02/15/1993 02:07 PM Senate JUD
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SENATE JUDICIARY COMMITTEE
February 15, 1993
2:07 p.m.
MEMBERS PRESENT
Senator Robin Taylor, Chairman
Senator Rick Halford, Vice-Chairman
MEMBERS ABSENT
Senator George Jacko
Senator Dave Donley
Senator Suzanne Little
OTHERS PRESENT
Senator Randy Phillips
COMMITTEE CALENDAR
SENATE JOINT RESOLUTION NO. 8
Proposing amendments to the Constitution of the State of
Alaska relating to capital projects and loan appropriations,
and to the expenditure limit.
PREVIOUS SENATE COMMITTEE ACTION
SJR 8 - See State Affairs minutes dated 1/27/93.
WITNESS REGISTER
NONE
ACTION NARRATIVE
TAPE 93-11, SIDE A
Number 001
Chairman Robin Taylor called the Judiciary Committee meeting
to order at 2:07 p.m.
SENATOR TAYLOR began the meeting with no quorum, but chose
to hear the initial testimony on SJR 8 (CAPITAL PROJECTS AND
EXPENDITURE LIMIT) sponsored by SENATOR RANDY PHILLIPS, who
gave an opening statement.
SENATOR PHILLIPS explained it would be a constitutional
amendment to be considered by the voters in the election of
1994. He further explained SJR 8 would set a limit of $2.3
billion for expenditures, and he referred the committee to
the bill packet for 9 or 10 different exceptions to that
limit. The expenditure limit can be exceeded with a two-
thirds vote of both the Senate and the House.
Number 039
SENATOR PHILLIPS said SJR 8 would also provide that at least
10% of the $2.3 billion in each fiscal year would be
allocated for capital budget. If inflation exceeds 6%, the
legislature may appropriate an amount to offset the effect
of the inflation that exceeds 6%. He explained that any
revenue in excess of the expenditure limit would be
deposited in the Constitutional Reserve Fund.
SENATOR TAYLOR asked SENATOR PHILLIPS to read the exceptions
to the $2.3 billion dollar limit:
Appropriations to the Permanent Fund
Permanent Fund dividends
Appropriations to the Budget Reserve Fund
Appropriations of revenue from a tax approved by the
voters
Bond proceeds
The principal and interest on bonds issued by the state
Money received in trust for specific purpose
Endowment earnings
Revenue from public corporations
SENATOR TAYLOR questioned whether it included lapsed Federal
Highway Funds, and SENATOR PHILLIPS explained it was.
SENATOR PHILLIPS gave as his reasons for the bill, was
because the legislature collectively does not have the
political will to limit itself in the expenditures of money.
He said the only way to limit the legislature was by a
constitutional amendment, and he said it would restrain the
legislature from spending more money than they receive.
SENATOR PHILLIPS said it would keep the legislature in line
in the budgetary process. In reference to the $600 million
from British Petroleum America, he said it would be tempting
for the legislature to go on a feeding frenzy. He thought
his bill would eliminate the problem, which was his main
motivation.
Number 096
In reference to page 2, lines 11 and 12, (b), SENATOR
HALFORD questioned the consistency of the two-thirds vote of
the membership, whereas it takes a three-fourths vote to get
money out of the Constitutional Budget Reserve Fund.
SENATOR PHILLIPS said he would change to the three-fourths
if SENATOR HALFORD wanted.
SENATOR HALFORD explained the legislature could go by a two-
thirds vote as long as the money could be gotten from other
than the Constitutional Budget Reserve Fund, but if the
money had to be obtained from the fund, it will not only
take two-thirds vote to spend the money, but it would take
three-fourths to get it. SENATOR HALFORD thought this would
be a good interplay between those two things, because, if
there was a big strike in revenue, there would probably be
two-thirds to spend some of the money.
Number 120
SENATOR PHILLIPS thought his mechanisms were sound but
wondered about the limit of $2.3 billion limit. He reviewed
the constitutional amendment from about 1982 with a spending
limit of about $4.5 billion. SENATOR HALFORD explained the
inflation factor of the numbers.
After a general discussion on the use of SJR 8 in
restraining the legislature, SENATOR TAYLOR adjourned the
committee meeting - still with no quorum.
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