03/06/1997 08:20 AM House STA

 HJR 16 - SUPPORT FEDERAL BALANCED BUDGET AMENDMENT                          
                                                                               
 The next order of business to come before the House State Affairs             
 Standing Committee was HJR 16, Relating to a federal balanced                 
 budget amendment.                                                             
                                                                               
 CHAIR JAMES called on Representative Al Vezey, sponsor of HJR 16,             
 to present the resolution.                                                    
                                                                               
 Number 0868                                                                   
                                                                               
 REPRESENTATIVE VEZEY stated the resolution was simple.  The purpose           
 was to urge Congress to pass a balanced budget resolution and for             
 the states to ratify such a resolution.  It also indirectly urged             
 the Alaskan Congressional Delegation to support the resolution.               
                                                                               
 Number 0889                                                                   
                                                                               
 REPRESENTATIVE BERKOWITZ stated that Congress had already                     
 considered this issue.  "This resolution is a little bit like                 
 shutting the barn door after the horses fled."                                
 Number 0895                                                                   
                                                                               
 CHAIR JAMES replied it was not over until it was over.  It was like           
 the appeals process in the courts.  It was now in the U.S. House of           
 Representatives pending a vote then it would return to the U.S.               
 Senate.  Therefore, the resolution was appropriate.                           
                                                                               
 Number 0908                                                                   
                                                                               
 REPRESENTATIVE VEZEY stated that the resolution also showed the               
 support of the legislature to the Alaskan Congressional Delegation            
 of their vote on a tough issue.  He also believed that it would               
 come up for a vote again.                                                     
                                                                               
 Number 0920                                                                   
                                                                               
 REPRESENTATIVE HODGINS moved that HJR 16 move from the committee              
 with the attached fiscal note(s) and individual recommendations.              
                                                                               
 Number 0925                                                                   
                                                                               
 REPRESENTATIVE BERKOWITZ objected.  The state was sticking its nose           
 into federal business when there was a lot of state business to               
 attend to.  In addition, there was no testimony or evidence that              
 this resolution was in the best interest for the state of Alaska.             
 He also had reservations about the Federal Balanced Budget Act and            
 its ability to impact the state.  There were many times when                  
 federal funding was a quick and an easy way to correct the problems           
 of the economy which the act interfered.                                      
                                                                               
 Number 0990                                                                   
                                                                               
 REPRESENTATIVE HODGINS stated that as long as the state of Alaska             
 received one cent from the federal government, it had an interest             
 in how the federal government operated.  Therefore, it was very,              
 very appropriate for the resolution to move forward.                          
                                                                               
 Number 1009                                                                   
                                                                               
 REPRESENTATIVE VEZEY stated that the resolution was very much in              
 the best interest of the state of Alaska or he would not have                 
 introduced it.  "I don't think we are capable of imagining the                
 opportunities that this would create in Alaska, if the federal                
 budget was to be balanced."  Most of the housing and development              
 needs in the state were met through financing and financing was               
 affected by the interest rates.  A balanced budget would have a               
 profound affect on the interest rates.                                        
                                                                               
 Number 1045                                                                   
                                                                               
 REPRESENTATIVE ELTON explained that Senator Ted Stevens said a                
 hasty action such as this could put states like Alaska at risk.               
 Because, for every dollar that Alaska sent to the federal                     
 government it received several dollars back which might not happen            
 under a balanced budget.  Furthermore, this issue had been subject            
 to a great deal of debate in Congress which created unresolved                
 questions.  He was distressed at how rapidly the resolution was               
 moving forward.  For example, the committee members had not heard             
 testimony on how this would affect the social security system or              
 the ability to conduct a war on several fronts.  "I think that this           
 right now with lack of debate probably speaks more to politics than           
 it does to policy."                                                           
                                                                               
 Number 1108                                                                   
                                                                               
 CHAIR JAMES stated that she would be happier if the state did not             
 depend as much on federal funds because it dictated what and how              
 the state did things.                                                         
                                                                               
 CHAIR JAMES called for a roll call vote.  Representatives James,              
 Hodgins, Ivan and Vezey voted in favor of the motion.                         
 Representatives Berkowitz and Elton voted against the motion.                 
 House Joint Resolution 16 was so moved from the House State Affairs           
 Standing Committee.