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.