05/10/1994 10:05 AM House FIN

  SB 56     An  Act  relating  to   the  budget  reserve  fund                 
            established under art.  IX, sec. 17,  Constitution                 
            of the State of Alaska.                                            
                                                                               
            CS SB 56  (FIN) was reported out of Committee with                 
            "no recommendation" and with a  fiscal note by the                 
            Senate State Affairs Committee.                                    
  SENATE BILL 56                                                               
                                                                               
       "An Act relating to the budget reserve fund established                 
       under  art. IX, sec.  17, Constitution of  the State of                 
       Alaska."                                                                
                                                                               
  JERRY BURNETT, STAFF,  SENATOR RANDY PHILLIPS, explained  SB
  which  would  implement repayment  provisions  made from                 
  appropriations  within  the  constitutional  budget  reserve                 
  fund.  The  legislation would  allow a carry  forward as  of                 
  June, 30,  1994, or  as much  as necessary  to complete  the                 
  repayment.  The repayment would be transferred to  that fund                 
  by   the  Department  of  Administration  after  the  annual                 
  financial report was filed.                                                  
                                                                               
  Representative  Brown  asked  what  the  definition   of  an                 
  unreserved balance, undesignated general  fund balance.  Mr.                 
  Burnett replied  that balance would  be the money  which had                 
  not been restricted by law for  specific use and which would                 
  accrue   to  the  general  fund  under  accepted  accounting                 
  principles.                                                                  
                                                                               
  Mr. Burnett added that the provisions provided by SB 56 were                 
  similar to those contained in HB  58, although that bill had                 
  been  found  unconstitutional.    SB 56  was  written  to be                 
  consistent  with the  State's constitutional  position.   He                 
  added that when  the judge ruled  on HB 58, he  advised that                 
  the legislation was  unduly restricting funds available  for                 
  repayment.  The  State continues to  argue that case to  the                 
  Supreme Court.  The section in question of the constitution,                 
  specifically requires  that the Legislature implement  it by                 
  law and that money be taken from the general fund.                           
                                                                               
  Representative Hanley MOVED to report CS  SB 56 (FIN) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.  There being NO OBJECTIONS, it was                 
  so ordered.                                                                  
                                                                               
                                                                               
                                2                                              
                                                                               
                                                                               
  CS  SB  56 (FIN)  was  reported  out of  Committee  with "no                 
  recommendations" and with a fiscal  note by the Senate State                 
  Affairs Committee.