03/23/2000 01:55 PM House FIN

HOUSE JOINT RESOLUTION NO. 2                                                                                                    
                                                                                                                                
Proposing amendments to the Constitution of the State                                                                           
of Alaska relating to a biennial state budget, to the                                                                           
appropriation limit, and to appropriations from the                                                                             
budget reserve fund.                                                                                                            
                                                                                                                                
There was discussion amongst Committee members regarding the                                                                    
fiscal note.  Representative Phillips clarified that with                                                                       
$2.5 million dollar savings the second year, $1.6 million                                                                       
dollars would be Legislature and rest would be agency.                                                                          
                                                                                                                                
Representative J. Davies voiced concern that there is not a                                                                     
clear idea of how the legislation would be implemented.  He                                                                     
asked if the resolution would allow the Legislature to deal                                                                     
with formula driven programs each year.  He recommended that                                                                    
a working group be established to address concerns.                                                                             
                                                                                                                                
Representative Grussendorf thought that implementation of                                                                       
the proposed legislation in the State of Alaska would be                                                                        
more difficult.  He commented that currently, what occurs is                                                                    
an annual audit within each department.  The proposed                                                                           
changes would be shifting the authority elsewhere, placing                                                                      
more dependency on the Executive Branch.  He recommended                                                                        
that consideration of the resolution could be considered if                                                                     
the revenue flow became stabilized.                                                                                             
                                                                                                                                
Representative G. Davis asked what the effective date would                                                                     
be.  Representative Phillips replied that it would become                                                                       
effective 2001.                                                                                                                 
                                                                                                                                
Representative Williams MOVED to report CS HJR 2 (JUD) out                                                                      
of Committee with individual recommendations and with the                                                                       
accompanying fiscal note.  There being NO OBJECTION, it was                                                                     
so ordered.                                                                                                                     
                                                                                                                                
CS HJR 2 (JUD) was reported out of Committee with individual                                                                    
recommendations and with a fiscal note by the Office of the                                                                     
Lt. Governor dated 1/26/00.