Legislature(2001 - 2002)
04/04/2002 03:55 PM Senate STA
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SJR 43-MAINTENANCE OF EFFORT ON FEDERAL PROGRAMS
SENATOR DONLEY explained a maintenance of effort requirement is a
condition that comes with some federal funding programs and says
that if a state were to reduce spending on a particular program
then there may be a reduction in the amount of federal funds
received. The maintenance of effort requirements are not all the
same, which state budgets that are heavily dependent on those
federal funds.
It is challenging for states to do their best based on the
highest and best need in any given year because even though a
state wanted to prioritize a different level of funding in a
different program, the maintenance of effort requirements may
inhibit that because of the potential loss of federal funding.
This entices the state to continue funding at a level that may
not be the most appropriate level in that particular year.
The resolution requests the United States Congress to grant a
two-year moratorium on the maintenance of effort requirements for
those states receiving federal funds. States could therefore
adjust their budgets without being fearful of losing federal
funds.
CHAIRMAN THERRIAULT asked Senator Donley whether he thought
copies should be sent to every state governor or to the heads of
the legislature in every state to alert them and try to build
nation wide support.
SENATOR DONLEY thought copies should be sent to the legislative
leadership since they would be the ones to adopt similar
legislation if they thought it meritorious. He also thought
informing the National Conference of State Legislators (NCSL) and
other national organizations of legislatures would be a good
idea.
CHAIRMAN THERRIAULT asked him to verify that this would give
states a period of time in which they could adjust their spending
to suit their particular situation after which they could
establish a new level for maintenance of effort.
SENATOR DONLEY replied that was the idea.
SENATOR PHILLIPS asked Chairman Therriault whether he wanted a
conceptual amendment.
CHAIRMAN THERRIAULT replied he did.
SENATOR PHILLIPS made a motion to adopt a conceptual amendment to
send the resolution to the presiding officers of each of the 49
states.
CHAIRMAN THERRIAULT said generic language would be used so each
recipient wouldn't necessarily be named.
There being no objection, Amendment #1 was adopted.
SENATOR PHILLIPS asked whether he wanted to include NCSL.
CHAIRMAN THERRIAULT thought it might be best to send them an
explanatory letter from the Finance Committee with the resolution
attached.
SENATOR DONLEY said that was acceptable to him.
SENATOR PHILLIPS made a motion to move CSSJR 43 and attached
fiscal note from committee with individual recommendations.
There being no objection, CSSJR 43(STA) moved from committee.
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