04/30/1997 02:00 PM House FIN

  SENATE BILL 29                                                               
                                                                               
       "An Act relating  to certain programs  of state aid  to                 
       municipalities  and  recipients   in  the   unorganized                 
       borough; and providing for an effective date."                          
                                                                               
  Senator  John Torgerson  noted  that  the legislation  would                 
  change  the name of the Revenue Sharing program to "priority                 
  Revenue  Sharing  for   Municipal  Services",  changes   the                 
  Municipal Assistance Fund  to the Safe Communities  Fund and                 
  would require that  payments from the Safe  Communities Fund                 
  be used for  specific prioritized purposes.   The intent  of                 
  these changes is to more accurately reflect the purposes for                 
  which payments received are used.   These programs appear to                 
  have fostered the  perception that  it is a  type of  "slush                 
  fund"  for  communities.    The  change  in  name   and  the                 
  requirements for  use  of the  monies  help to  dispel  that                 
  notion.                                                                      
                                                                               
  He  noted  that  communities  are  required to  spend  funds                 
  received from the Safe Communities Fund on specific purposes                 
  in the following priorities:                                                 
                                                                               
       1.   Police protection and  related public  safety                      
            services;                                                          
       2.   Fire   protection   and   emergency   medical                      
            services;                                                          
       3.   Water and  sewer services not offset  by user                      
            fees;                                                              
       4.   Solid waste management; and                                        
       5.   Other services the governing  body determines                      
            to have the highest priority.                                      
                                                                               
  Communities are not, however, required  to fund all requests                 
  for  services  in  a  category  before funding  services  in                 
  another  category.    Communities  that  levy  and   collect                 
  property taxes are required to  list the allocation received                 
  from the Safe Communities Fund and it's equivalent will rate                 
  on the "Notice to Taxpayers".                                                
                                                                               
  Senator Torgerson noted that the  bill also would revise how                 
  appropriations continue  to be reduced, allocations  to, and                 
                                                                               
                                7                                              
                                                                               
                                                                               
  the  resulting  payments  from the  base  amount  account be                 
  proportionately reduced.  In the past, the account was "held                 
  harmless" and  appropriation reductions were  taken entirely                 
  from the per capita account which resulted in an inequitable                 
  reduction of payments to communities.                                        
                                                                               
  The minimum entitlement  to communities is increased  to $40                 
  thousand  dollars  based  on the  FY97  appropriation.   If,                 
  however,  appropriations continue  to decline,  this minimum                 
  entitlement  may  be  proportionately   reduced  along  with                 
  payments from the base amount and the per capita accounts.                   
                                                                               
  Senator Torgerson  concluded that  the date  of payment  was                 
  changed so that  communities receive  entitlement from  both                 
  Priority Revenue Sharing  and the  Safe Communities Fund  on                 
  July 31st.   Previously, payments from revenue  sharing were                 
  made on  July 31st  and municipal  assistance payments  were                 
  made on February 1st.                                                        
                                                                               
  Representative Mulder MOVED that 0-LS02181\H, Cook, 4/28/97,                 
  be  the  version  before  the  Committee.   There  being  NO                 
  OBJECTION, it was adopted.                                                   
                                                                               
  Representative Mulder MOVED to report HCS CS SB 29 (FIN) out                 
  of Committee  with individual recommendations  and with  the                 
  accompanying fiscal note.  There being NO OBJECTION,  it was                 
  so ordered.                                                                  
                                                                               
  HCS CS SB  29 (FIN) was reported out of Committee with a "do                 
  pass"  recommendation and with  a fiscal note  by the Senate                 
  Finance Committee dated 2/6/97.