Legislature(1999 - 2000)
01/21/2000 01:37 PM Senate JUD
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* first hearing in first committee of referral
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SJR 28-CONST AM: APPROPRIATION LIMIT
SENATOR DONLEY stated that in article 9, section 16, of the
constitution, an appropriation limit, that applies to the operation
of government, has never worked because the initial dollar amount
was high--$2.5 billion in 1981. The constitution also includes a
provision for an escalator clause to raise the limit based on
population and inflation. That calculation would equal a limit in
excess of $6 billion today. There are several reasons for changing
the existing appropriation limit. First, the lay person cannot
understand the reading in the constitution. Second, it has never
worked, and third, it would be a useful tool in reducing or
restraining state spending. SJR 28 proposes to change and simplify
the existing appropriation limit so it would be more effective and
could be understood by the average person.
CHAIRMAN TAYLOR expressed concern about what would be an
appropriate number to allow for emergencies, expansions, the
population base, etc.
SENATOR TORGERSON acknowledged he would recommend a do pass, but
the proposal must hold restraints on spending.
Number 1080
SENATOR DONLEY stated there were hearings last summer in an attempt
to establish a spreadsheet, so the problem could be better
identified.
One proposed change added a section that mandatorily brings the
matter up for consideration in the year 2010. If the voters do not
re-approve the resolution in 2010, the matter will go away. This
would be an automatic "sunset" vote.
SENATOR TORGERSON commented that "sunsets" are not put into the
constitution, they are done through temporary law.
SENATOR DONLEY agreed.
Number 1315
SENATOR DONLEY stated if the legislature appropriated more money
than was allowed or there was a miscalculation, clear guidelines
are provided for the Governor to correct the problem. It would be
the duty of the Governor to reduce expenditures of each state
department, equally, to meet the limit.
CHAIRMAN TAYLOR asked if there is a limit on the Governor's
authority to spend.
SENATOR TORGERSON said it sounds like SJR 28 changes authority from
the legislative branch to the administrative branch. He questioned
whether the Governor should call a special session for the
legislature to handle the budget--the constitution does not give
the Governor the right to manipulate the budget.
CHAIRMAN TAYLOR commented that different governors have handled
this situation differently and the issue should be clarified in
the constitution.
SENATOR DONLEY said the status of the Alaska railroad was also a
concern. He asked whether the railroad is within or outside the
appropriation limit. Committee members felt that language for the
railroad and other trusts needed to be clarified.
CHAIRMAN TAYLOR asked if the deletion of the trust language impacts
fish and game and tobacco revenues.
SENATOR DONLEY responded that legislative finance has done an
analysis on which funds were affected and the total amounts.
CHAIRMAN TAYLOR asked for the analysis.
SENATOR DONLEY stated that the totals in the original bill are
affected by the definition of general fund. With the language of
the CS, the general fund expenditure for last year was a little
over $2.9 billion. He suggested the following solutions: expand
the dollar amount, change the year or limit the growth calculation.
Number 1776
CHAIRMAN TAYLOR expressed concern that if a spending limitation was
forced on state government, the only way to maintain that
limitation would be to shift costs and services to communities
that could afford them. If the spending limitation was too
arbitrary, there would be no effect, or too much of an effect.
SENATOR DONLEY asked for some guidance from the committee in
crafting the committee substitute. One problem of using a new base
number is that the public will perceive a dollar amount increase
so updating the base year to 2001 may be preferable.
CHAIRMAN TAYLOR stated he was not comfortable in giving a
recommendation at this time, but the consensus was that a special
session may be needed. The bill meets the judicial purview by
adhering to legal requirements and Chairman Taylor would defer to
the Finance Committee because the specific wording would depend on
the numbers coming from that committee.
SENATOR DONLEY moved SJR 28 from committee with individual
recommendations. Without objection, the bill moved from committee.
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