04/21/1993 09:05 AM Senate FIN

                                                                               
  SENATE BILL NO. 88                                                           
                                                                               
       An  Act relating  to  grants  to municipalities,  named                 
       recipients,     and     unincorporated     communities;                 
       establishing  capital  project matching  grant programs                 
       for  municipalities  and   unincorporated  communities;                 
       establishing  a  local  share  requirement for  capital                 
       project grants to municipalities, named recipients, and                 
       unincorporated  communities;  and   providing  for   an                 
       effective date.                                                         
                                                                               
  Co-chair  Pearce  directed that  SB  88  be  brought on  for                 
                                                                               
                                                                               
  discussion.    Co-chair Frank  noted  a request  from Shelby                 
  Stastny of the  Office of Management  and Budget that he  be                 
  allowed to work with the legislature on language relating to                 
  legislative  approval  of capital  matching  grant projects.                 
  Co-chair  Pearce  voiced  her understanding  that  there  is                 
  presently no provision  for legislative approval  of capital                 
  matching grant projects to be  funded by moneys appropriated                 
  during  the current session.  Co-chair  Frank concurred.  He                 
  then cited the following options:                                            
                                                                               
       1.   Operate the  program in  the same  manner as  last                 
  year.                                                                        
       2.   Allow   OMB   to  approve   projects   subject  to                 
  subsequent                                                                   
               approval by the Legislative Budget and Audit                    
               committee.                                                      
       3.   Allow   OMB  to   approve   projects  only   after                 
  legislators                                                                  
               from the  impacted district have signed  off on                 
  the                                                                          
               project.                                                        
                                                                               
  Senator Rieger  suggested it would be difficult to develop a                 
  capital budget  without knowing  what the  process will  be,                 
  particularly since  SB 88  is still  in the  first house  of                 
  referral.  Co-chair Frank recommended that the bill  be held                 
  in committee until later in the  day.  Co-chair Pearce noted                 
  that the committee had prepared a $103.3 fiscal note for the                 
  Dept. of  Community and Regional  Affairs and a  $107.8 note                 
  for the Dept. of Administration.   She also referenced a new                 
  municipal  fiscal  note  from  the  Dept. of  Community  and                 
  Regional Affairs.