04/15/1999 01:24 PM House JUD

                                                                                                                                
                                                                                                                                
HJR 30 - CONST. AM: REPEAL BUDGET RESERVE FUND                                                                                  
                                                                                                                                
CHAIRMAN KOTT announced that the final item of business would be                                                                
House Joint Resolution No. 30, proposing amendments to the                                                                      
Constitution of the State of Alaska repealing provisions relating                                                               
to the constitutional budget reserve fund and providing that the                                                                
balance in the fund be deposited into the budget reserve fund                                                                   
established by statute.  There was no longer a quorum, and Chairman                                                             
Kott advised listeners that there would be only an opening                                                                      
statement.                                                                                                                      
                                                                                                                                
Number 2336                                                                                                                     
                                                                                                                                
BARBARA COTTING, Legislative Assistant to Representative Jeannette                                                              
James, Alaska State Legislature, explained on behalf of the sponsor                                                             
that HJR 30 simply proposes a constitutional amendment to do away                                                               
with the constitutional budget reserve (CBR) fund; where the money                                                              
would go is up to the committee.  She referred members to a fiscal                                                              
note to cover the Official Election Pamphlet, and to the sponsor                                                                
statement, which contained a history of how the CBR started and why                                                             
it appears to have outlived its usefulness.  Created to keep the                                                                
legislature from spending more money, the CBR has had the opposite                                                              
effect, she said.  It complicates the budget process and creates                                                                
dissent between the minority and majority at budget time.                                                                       
Therefore, Representative James believes it should be repealed.  A                                                              
lot of plans are coming out regarding use of the CBR money.  As HJR
 stands, the money would go into a "long-established budget                                                                   
reserve fund in statute," but Representative James is not set on                                                                
that idea.  It could go anywhere that it earns a good amount of                                                                 
interest and is available without a three-quarters' vote.                                                                       
                                                                                                                                
[Representative Rokeberg's motion to move the resolution was in                                                                 
jest.]                                                                                                                          
                                                                                                                                
CHAIRMAN KOTT announced that HJR 30 would be held over until the                                                                
following Monday, at which time he would ask about the debt owed by                                                             
the state to the CBR.  Specifically, he wanted to know what becomes                                                             
of the pay-back status, and whether it is transferred into a                                                                    
subsequent fund, for example, in the event that the state doesn't                                                               
have enough to repay that loan.  [HJR 30 was held over.]