02/20/2003 01:45 PM House FIN

HOUSE BILL NO. 100                                                                                                            
                                                                                                                                
     An Act making supplemental and other appropriations;                                                                       
     amending appropriations; and providing for an effective                                                                    
     date.                                                                                                                      
                                                                                                                                
                                                                                                                                
HOUSE BILL NO. 110                                                                                                            
                                                                                                                                
     An Act making supplemental and other appropriations;                                                                       
     amending appropriations; making appropriations to                                                                          
     capitalize funds; and providing for an effective date.                                                                     
                                                                                                                                
CHERYL  FRASCA, DIRECTOR,  DIVISION OF  MANAGEMENT &  BUDGET,                                                                   
OFFICE   OF  THE   GOVERNOR,   provided  'general   comments'                                                                   
regarding proposed supplemental package.                                                                                        
                                                                                                                                
Co-Chair  Williams  advised that  those  bills  would not  be                                                                   
moved from Committee today.                                                                                                     
                                                                                                                                
Ms.   Frasca   emphasized   that  all   requests   had   been                                                                   
scrutinized.   She  listed criteria  used  to determine  each                                                                   
request.  The total supplemental  request is in the amount of                                                                   
$63.3 million dollars of which,  $9 million needs to be "fast                                                                   
tracked".                                                                                                                       
                                                                                                                                
Ms. Frasca highlighted the reasons for supplemental growth:                                                                     
                                                                                                                                
   · Caseload growth with a net cost of $15 million dollars.                                                                    
     She noted  that savings in  the K-12 foundation  formula                                                                   
     had covered some of the caseload  growth. There was also                                                                   
     increased  tobacco  tax  proceeds  providing for  a  $13                                                                   
     million dollar savings;                                                                                                    
   · Disasters and fire suppression requests amounts to $31                                                                     
     million dollars;                                                                                                           
   · Short-funded programs in the amount of $7 million                                                                          
     dollars; and                                                                                                               
   · The balance of $11 million dollars will be used for                                                                        
     "other" kinds of requests.                                                                                                 
                                                                                                                                
Representative  Whitaker inquired  why "fair  share" had  not                                                                   
been included in the supplemental request.                                                                                      
                                                                                                                                
Ms. Frasca  understood that was  a 'permitted'  program under                                                                   
federal regulations.   Their denial of the  plan is currently                                                                   
on appeal through  the administrative agency,  with a hearing                                                                   
scheduled  next month.   If that  process is not  successful,                                                                   
                                       th                                                                                       
then the State  will appeal it in the 9  Court  circuit.  The                                                                   
process  could take  a couple  years.   She  advised that  it                                                                   
would be 'premature' to replace those general funds.                                                                            
                                                                                                                                
Representative Whitaker  inquired if the $55  million dollars                                                                   
had been paid out.                                                                                                              
                                                                                                                                
Ms. Frasca  clarified that in  the 'accounting world',  it is                                                                   
booked as "income receivable".   The Administration is acting                                                                   
as if those funds will be received.   She understood that the                                                                   
funds would be spent throughout the fiscal year.                                                                                
                                                                                                                                
Representative  Joule  mentioned  the 'erosion  issue'.    He                                                                   
offered  to provide  information  regarding  that concern  by                                                                   
Monday, February 24th.                                                                                                          
                                                                                                                                
Representative  Foster   voiced  his  appreciation   for  the                                                                   
supplemental  recommendations   of  restoration   of  highway                                                                   
maintenance cuts, which had previously been made.                                                                               
                                                                                                                                
Ms. Frasca  responded that originally,  that amount  had been                                                                   
estimated at $3.1  million dollars.  The  Department 'shaved'                                                                   
that number off by $500,000 dollars;  additionally, there has                                                                   
not been a lot  of snow this year throughout the  State.  She                                                                   
noted there continues to be further savings potential.                                                                          
                                                                                                                                
Co-Chair  Williams  commented  that Co-Chair  Harris'  office                                                                   
would  provide a  committee substitute  for this  legislation                                                                   
early next week.                                                                                                                
                                                                                                                                
Co-Chair  Williams stated  that HB  100 and  HB 110 would  be                                                                   
HELD in Committee for further consideration.