Legislature(2015 - 2016)CAPITOL 106
04/07/2015 08:00 AM House STATE AFFAIRS
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| HB77 | |
| HB173 | |
| HB55 | |
| HJR19 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 77 | TELECONFERENCED | |
| *+ | HJR 19 | TELECONFERENCED | |
| *+ | HB 173 | TELECONFERENCED | |
| *+ | HB 55 | TELECONFERENCED | |
| + | TELECONFERENCED |
HJR 19-CONST. AM: APPROPRIATIONS FROM CBR
8:45:00 AM
CHAIR LYNN announced that the next order of business was HOUSE
JOINT RESOLUTION NO. 19, Proposing an amendment to the
Constitution of the State of Alaska relating to the
constitutional budget reserve fund.
8:45:13 AM
REPRESENTATIVE LAURA REINBOLD, Alaska State Legislature, as
prime sponsor, presented HJR 19. She paraphrased the sponsor
statement, which read as follows [original punctuation
provided]:
House Joint Resolution 19 proposes to place a
constitutional amendment before the voters during the
fall 2016 general election. This bill amends Article
IX, sec. 17(b), of the Alaska Constitution and would
place an annual spending cap of ten percent of the
current balance in the fund on the constitutional
budget reserve.
Currently, the constitutional budget reserve may
provide the amount necessary (when added to other
appropriation funds) to provide for total
appropriations equal to the amount of appropriations
made in the previous fiscal year. The result is this
fund being depended upon to backfill Alaska's large
budget deficits.
Our current fiscal situation has been masked by a
false sense of security cushioned by our savings
accounts. At the end of this fiscal year the statutory
budget reserve will be diminished. We must remember
that as our oil revenues diminish, it is the men and
women of this great state who will bear the cost of
big government.
This legislation will allow Alaskans to determine if
they wish to place a cap on the constitutional budget
reserve in order to save for future generations.
I appreciate your consideration and urge your support
of HJR 19.
8:47:44 AM
REPRESENTATIVE KELLER noted that the sponsor had talked about a
cap on the constitutional budget reserve (CBR) and he asked her
to confirm that would be a cap on spending.
REPRESENTATIVE REINBOLD answered that is correct; HJR 19
proposed an annual spending cap of ten percent.
8:47:59 AM
CHAIR LYNN asked how many dollars that would be.
REPRESENTATIVE REINBOLD offered her understanding that currently
there was $14 billion in the CBR; therefore, the cap would allow
the state to spend $1.4 billion.
8:48:22 AM
REPRESENTATIVE KELLER asked what would happen if there was a
catastrophe that required more state spending.
REPRESENTATIVE REINBOLD answered that there are provisions in
the [Constitution of the State of Alaska] that would allow the
governor of Alaska to declare a state of emergency.
CHAIR LYNN asked if "this would be null and void" if there was a
state or national emergency declared.
REPRESENTATIVE REINBOLD replied, "Invasions and things like
that; it's ... outlined very carefully."
8:49:02 AM
REPRESENTATIVE KREISS-TOMKINS observed that for each year the 10
percent was taken out to spend by the state, each following year
the 10 percent amount would be diminished, without actually
disappearing completely, but to a point at which the amount
would be inconsequential. He asked if the bill sponsor had
thought through that scenario or if he might be misunderstanding
the intent of the proposed legislation.
REPRESENTATIVE REINBOLD indicated there were clearly outlined
requirements to redeposit money to the CBR. He said the intent
of HJR 19 was to give the people of Alaska the opportunity to
vote on whether or not they want a 10 percent cap.
8:50:34 AM
REPRESENTATIVE TALERICO said he thought he understood the logic
that if there were smaller balances in the CBR each subsequent
year, then the state's finances really would not be "going so
well," and there would be a need for the increments to diminish
"in order to expand that out." He said he thought replacement
of the fund was a key issue. He said, "I'm assuming there's a
natural inclination to cut back as much as possible."
8:51:32 AM
REPRESENTATIVE REINBOLD relayed that the language relating to
deposits being directed back into the CBR was found on page 72,
Section 29, of "the overview of the governor's request."
8:52:00 AM
REPRESENTATIVE KELLER asked if the proposed legislation would
reduce the power and responsibility of the legislature, which
currently makes the choice about how much money to pull from the
CBR. He opined that HJR 19 would restrict that power.
REPRESENTATIVE REINBOLD responded that "the whole purpose of the
constitution" was that "the power does belong to the people."
The proposed legislation would give the people the opportunity
to decide whether they want to cap the spending at 10 percent,
because what the legislature spends does effect the people of
the state. She said it would take a three-quarters majority to
pass a constitutional budget amendment.
CHAIR LYNN asked, "Could this be done by public initiative?"
REPRESENTATIVE REINBOLD offered her understanding that anything
that would change the constitution must be initiated by the
legislature.
8:53:30 AM
REPRESENTATIVE KELLER said he would like the committee to move
the bill out of committee to be discussed next by the House
Judiciary Standing Committee and House Finance Committee.
8:53:57 AM
REPRESENTATIVE VAZQUEZ said the state's current deficit was
currently between $3.5 and $3.6 billion. She asked what the
practical consequences would be of having "a provision like this
applied to the legislature."
REPRESENTATIVE REINBOLD said the proposed legislation was about
the financial future of the state and whether the people want a
10 percent cap.
REPRESENTATIVE VAZQUEZ asked for confirmation that if HJR 19
passed out of the legislature, then it would be placed on the
ballot.
REPRESENTATIVE REINBOLD answered that is correct: it would be
on the ballot in 2016.
8:55:16 AM
CHAIR LYNN, after ascertaining there was no one else who wished
to testify, closed public testimony on HJR 19.
8:55:26 AM
REPRESENTATIVE KELLER moved to report HJR 19 out of committee
with individual recommendations and the accompanying zero fiscal
note. There being no objection, HJR 19 was reported out of the
House State Affairs Standing Committee.