04/27/1996 09:50 AM Senate FIN

                                                                               
  CS FOR HOUSE BILL NO. 22(FIN)                                                
                                                                               
       An Act  relating to  long-term plans  of certain  state                 
       agencies and recommendations  regarding elimination  of                 
       duplication in state agency functions.                                  
                                                                               
  Co-chairman Halford directed  that CSHB 22 (Fin)  be brought                 
  on for discussion.   RICHARD VITALE, aide  to Representative                 
  Parnell, came before  committee.  He explained that  CSHB 22                 
  (Fin) would integrate long-term (six-year) planning into the                 
  budget process.   He noted  that Representative Parnell  had                 
  been  working on  the effort  for a  number  of years.   Co-                 
  chairman Frank  referenced language at Page 2,  line 13, and                 
  questioned the difference  between "rural" and "bush."   Mr.                 
  Vitale said he was unaware of a legal difference between the                 
  two.  He  noted that it was  a point of importance  to "some                 
  people  that  were  out of  the  urban  areas  to make  that                 
  distinction."  Co-chairman  Halford voiced his understanding                 
                                                                               
                                                                               
  that "rural" is road-system rural versus Western Alaska.                     
                                                                               
  The Co-chairman referenced language requiring OMB to compile                 
  a single, long-term plan for judicial and executive branches                 
  of government and  voiced concern  that the judicial  branch                 
  may not agree  with OMB  preparation.  Mr.  Vitale said  the                 
  language was reviewed by the Court  System.  Wording is such                 
  that  OMB  is to  utilize the  plan  developed by  the Court                 
  System.                                                                      
                                                                               
  Senator Zharoff asked  how departments could be  expected to                 
  do the work with which they are charged and develop plans to                 
  coincide with budget  submissions.  Co-chairman  Frank asked                 
  how  the  planning   process  would  dovetail  with   budget                 
  preparation.  Mr. Vitale explained that the proposed bill is                 
  the first step in developing a budget process similar to the                 
  Texas plan which  includes a side-by-side comparison  of the                 
  cost of each item and the ultimate goal.  The intent  is not                 
  a  50-page documents  but a  simple statement  of  goals and                 
  objectives.                                                                  
                                                                               
  Co-chairman  Frank   suggested  that   sunset  language   be                 
  included.    He  voiced  concern  over   placing  additional                 
  undertakings, that require  much time  and effort, into  law                 
  when they may  not be utilized as planning  documents.   Mr.                 
  Vitale said  that  he  did  not believe  the  sponsor  would                 
  support  sunset because the  concept within the  bill is for                 
  long-term planning predicated on a performance-based budget.                 
  It  only  works  when one  looks  back  over  the years  and                 
  determines what the goals were and how moneys were spent.                    
                                                                               
  Co-chairman Frank  MOVED for passage  of CSHB 22  (Fin) with                 
  individual  recommendations  and accompanying  fiscal notes.                 
  No objection having been raised, CSHB  22 (Fin) was REPORTED                 
  OUT of committee with a $5.2 House Finance  Committee fiscal                 
  note covering all departments.  Co-chairman Frank signed the                 
  committee report with a "do pass" recommendation.  All other                 
  members signed "no recommendation."