Legislature(2005 - 2006)
2006-01-13 House Journal
Full Journal pdf2006-01-13 House Journal Page 2262 HB 361 HOUSE BILL NO. 361 by the House Rules Committee by request of the Governor, entitled: "An Act relating to the dividend paid to the state by the Alaska Housing Finance Corporation; and providing for an effective date." was read the first time and referred to the Finance Committee. 2006-01-13 House Journal Page 2263 The following fiscal note(s) apply: 1. Zero, Dept. of Revenue The Governor's transmittal letter dated January 13, 2006, follows: "Dear Speaker Harris: Under the authority of art. III, sec. 18, of the Alaska Constitution, I am transmitting a bill relating to the dividend paid to the state by the Alaska Housing Finance Corporation. As a result of the Governmental Accounting Standards Board Statement No. 34 ("GASB 34"), governmental entities no longer are allowed to report contributed capital and retained earnings on their balance sheets. In addition, the balance sheet itself has now been renamed to "Statement of Net Assets." Under the rules of pre-GASB 34 generally accepted accounting principles, capital grants and other transfers to or on behalf of the state were considered a return of capital to the state and were shown as a reduction of contributed capital -- thus, not affecting net income. The GASB 34 requires these same amounts to be included in net income (now called "Change in Net Assets"). The bill would permit the Alaska Housing Finance Corporation to remove those expenditures from "Change in Net Assets" before the dividend is calculated. It further would allow the Alaska Housing Finance Corporation to remove prior years' capital appropriations from "Change in Net Assets" before the dividend is calculated. The primary objective of these changes is to bring the corporation's reconciliation and calculation of the dividend into compliance with GASB 34 rules. I urge your prompt and favorable action on this measure. Sincerely yours, /s/ Frank H. Murkowski Governor"