05/04/1999 01:55 PM House FIN

HOUSE BILL NO. 95                                                                                                               
                                                                                                                                
An Act making and amending appropriations under art.                                                                            
IX, sec. 17c, Constitution of the State of Alaska, from                                                                         
the constitutional budget reserve fund; and providing                                                                           
for an effective date.                                                                                                          
                                                                                                                                
Co-Chair Mulder advised Committee members that by taking                                                                        
action on the bill would remove the cap on the Capital                                                                          
Budget Reserve (CBR) fund.                                                                                                      
                                                                                                                                
ANNALEE MCCONNELL, DIRECTOR, OFFICE OF MANAGMENT AND BUDGET,                                                                    
OFFICE OF THE GOVERNOR, stated that the increase to the                                                                         
Capital Budget Reserve (CBR) would have nothing to do with                                                                      
the proposed expenditure level.  She pointed out that oil                                                                       
prices are rapidly shifting and these expenditures would be                                                                     
left open-ended.                                                                                                                
                                                                                                                                
Co-Chair Mulder noted that passage of the bill would provide                                                                    
that the Administration would not have to distribute "pink                                                                      
slips".  Ms. McConnell agreed, noting that it would assure                                                                      
proper access authority to the CBR be available.  She added                                                                     
that funds borrowed from the CBR and not used would be                                                                          
returned at the end of the fiscal year.                                                                                         
                                                                                                                                
Representative Williams MOVED to adopt work draft, 1-                                                                           
GH1051\P, Cramer, 5/3/99, as the version before the                                                                             
Committee.  There being NO OBJECTION, it was adopted.                                                                           
                                                                                                                                
Co-Chair Mulder MOVED a conceptual amendment which would                                                                        
appropriate $500 thousand dollars to the Department of Law                                                                      
for negotiating costs associated with the BP/Amoco-ARCO                                                                         
merger.  Additionally, there would be a $100 thousand dollar                                                                    
appropriation to the Legislative Council for costs                                                                              
associated with that merger.                                                                                                    
                                                                                                                                
Representative J. Davies inquired if there consideration had                                                                    
been made to add an appropriation for Y2K efforts.  Co-Chair                                                                    
Mulder noted that issue is being addressed on the Senate                                                                        
Floor.                                                                                                                          
                                                                                                                                
There being NO OBJECTION to the conceptual amendment, it was                                                                    
adopted.                                                                                                                        
                                                                                                                                
Representative Foster MOVED to report CS HB 95 (FIN) out of                                                                     
Committee with individual recommendations.  There being NO                                                                      
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
CS HB 95 (FIN) was reported out of Committee with a "do                                                                         
pass" recommendation.