02/21/1996 01:37 PM Senate CRA

        SSSB  20 ALASKA MUNICIPAL BASIC SERVICES PROGRAM                      
                                                                              
  SENATOR TORGERSON  brought CSSSSB 20(CRA), which was adopted by the          
 committee on 2/7/96, before the committee as the first order of               
 business, and directed attention to a proposed amendment as well as           
 a new fiscal note from the Department of Revenue.  He then asked              
 Bill Rolfzen of the Department of Community & Regional Affairs to             
 explain the department's amendment.                                           
                                                                               
 Number 030                                                                    
                                                                               
  BILL ROLFZEN , Division of Municipal & Regional Assistance,                  
 Department of Community & Regional Affairs, explained that when a             
 new borough incorporates under the existing Municipal Assistance              
 Program, its base amount assessment is set at the same amount as a            
 borough that is closest in population.  The amendment would                   
 eliminate one borough as far as determining base amounts.  He                 
 referred to a spreadsheet which lists 13 boroughs.  For 12 of the             
 boroughs, the average base amount is approximately $94,000, and the           
 remaining  borough's base amount is $1.2 million.  By excluding               
 that one borough, it will be a much more equitable determination of           
 base amount for future boroughs.                                              
                                                                               
 Number 055                                                                    
                                                                               
  SENATOR RANDY PHILLIPS  moved the adoption of the following                  
 amendment to CSSSSB 20(CRA):                                                  
                                                                               
 Amendment No. 1                                                             
                                                                               
 Page 5, line 27:  After "incorporation" insert ",excluding each              
 borough with a per capita full and true property value exceeding              
 $500,000"                                                                    
                                                                               
 Hearing no objection, the Chairman stated the motion carried.                 
                                                                               
 Number 065                                                                    
                                                                               
  LAMAR COTTEN , Deputy Commissioner, Department of Community &                
 Regional Affairs, voiced the department's support for of the intent           
 and language of the bill, with the exception of one the bill's                
 provisions which changes the date that checks are received from               
 February 1 to July 31.  In response to an inquiry from Senator                
 Torgerson, he stated the department, as part of the Administration,           
 supports the 8 percent cut recommended by the Governor.                       
                                                                               
  KEVIN RITCHIE , Executive Director, Alaska Municipal League,                 
 commenting on the Administration's position on the fiscal note,               
 said the bill itself has an internal equity to it, and that is a              
 very important part of it.  He added the question of the funding is           
 a whole separate issue and, certainly, the Legislature doesn't have           
 to take the recommendation of the 8 percent cut as the one it goes            
 with.                                                                         
                                                                               
 Number 103                                                                    
                                                                               
  SENATOR ZHAROFF  asked for assurance there would be no problem with          
 Metlakatla's allocation.   BILL ROLFZEN  responded Metlakatla                 
 currently participates in revenue sharing as an unincorporated                
 community, and under municipal assistance, as a municipality, this            
 bill does not change that.                                                    
                                                                               
 Number 125                                                                    
                                                                               
  SENATOR RANDY PHILLIPS  moved CSSSSB 20(CRA), as amended and with            
 the accompanying fiscal note, be passed out of committee with                 
 individual recommendations.  Hearing no objection, it was so                  
 ordered.