Legislature(1993 - 1994)

01/26/1993 08:00 AM House STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
  Number 215                                                                   
  HB 35:  DEPOSITS TO THE BUDGET RESERVE FUND                                  
  The committee then addressed HB 35, related to deposits to                   
  the budget reserve fund.                                                     
  Number 292                                                                   
  REPRESENTATIVE MARTIN, PRIME SPONSOR of HB 35, discussed the                 
  need for protecting the fund and having money for future                     
  generations so they would not be heavily taxed to support                    
  Number 350                                                                   
  CHAIRMAN VEZEY discussed how monies would be paid back and                   
  how the budget reserve fund had been created.                                
  Number 376                                                                   
  REPRESENTATIVE MARTIN discussed revenue shortfalls.                          
  Number 408                                                                   
  CHAIRMAN VEZEY discussed how money was to be deposited into                  
  the fund.                                                                    
  Number 417                                                                   
  REPRESENTATIVE ULMER inquired into the necessity of HB 35.                   
  She thought the Department of Administration was required to                 
  deposit funds.                                                               
  Number 426                                                                   
  REPRESENTATIVE MARTIN stated there was no statute that                       
  required funds to be deposited.                                              
  Number 432                                                                   
  REPRESENTATIVE ULMER discussed deposits to the fund.                         
  Number 441                                                                   
  REPRESENTATIVE MARTIN stated the legislature was to                          
  establish procedures through the law yet had not done so.                    
  CHAIRMAN VEZEY stated HB 35 would fulfill the legislative                    
  requirement.  He asked a question regarding monies for the                   
  Number 457                                                                   
  REPRESENTATIVE MARTIN spoke about the constitutional                         
  provision.  He stated the monies borrowed had to be returned                 
  by December 16th.                                                            
  REPRESENTATIVE SANDERS asked if the budget reserve fund was                  
  like a revolving loan fund.                                                  
  Number 479                                                                   
  REPRESENTATIVE MARTIN stated the budget reserve fund was                     
  like a revolving loan fund that would have to be paid back                   
  each following year.  In reality it was a spending account,                  
  not a saving account, he added.                                              
  Number 487                                                                   
  REPRESENTATIVE SANDERS discussed with Representative Martin                  
  the fact that the budget reserve fund drew interest.                         
  Number 493                                                                   
  REPRESENTATIVE BETTYE DAVIS asked if any monies had been                     
  drawn from the fund.                                                         
  Number 495                                                                   
  REPRESENTATIVE MARTIN stated at this time no monies from the                 
  budget reserve fund had been touched.                                        
  Number 504                                                                   
  REPRESENTATIVE KOTT inquired into the current balance of the                 
  Number 506                                                                   
  REPRESENTATIVE MARTIN advised that currently there was                       
  $625,000,000 in the budget reserve fund.                                     
  Number 522                                                                   
  ADMINISTRATION (the Department), and JOE THOMAS, State                       
  Accountant for the Division, discussed the December 16 date                  
  for depositing funds.  They suggested November 1 would be                    
  too soon because the balance would not be available to the                   
  general fund by that date.                                                   
  CHAIRMAN VEZEY discussed the deposit being made on                           
  December 16.                                                                 
  Number 540                                                                   
  MR. WANIS stated a report would be available to the public                   
  on the first week of December regarding the monies in the                    
  REPRESENTATIVE ULMER asked how the Department would proceed                  
  without HB 35.                                                               
  MR. THOMAS stated there were constitutional regulations to                   
  take monies out, but there needed to be statutory authority                  
  to put monies back into the account.                                         
  Number 564                                                                   
  REPRESENTATIVE ULMER discussed accounting procedures.                        
  MR. THOMAS discussed accounting procedures.                                  
  CHAIRMAN VEZEY clarified the Department advocated passage of                 
  HB 35 to make execution of accounting duties clear.                          
  Number 603                                                                   
  MR. WANIS stated the Department supported passage of HB 35.                  
  Number 608                                                                   
  REPRESENTATIVE SANDERS restated authority was in place to                    
  take funds out of the account but there was no authority to                  
  repay it.  He stated the Department was advocating this way                  
  to put monies back in the fund.                                              
  Number 615                                                                   
  MR. WANIS concurred.                                                         
  Number 616                                                                   
  CHAIRMAN VEZEY summarized the testimony, asked Mr. Wanis                     
  again if HB 35 was necessary to put monies back into the                     
  Number 625                                                                   
  MR. WANIS replied in the affirmative.  He added that                         
  authority was needed in the law in some fashion.                             
  Number 626                                                                   
  CHAIRMAN VEZEY discussed monies to be placed into the                        
  Number 633                                                                   
  MR. WANIS asked if the balance in the general fund was                       
  available and monies were owed to the reserve account, would                 
  only monies that were available be used to pay the account                   
  Number 641                                                                   
  CHAIRMAN VEZEY clarified the debt would continue forward and                 
  that only surplus monies would be available to replenish the                 
  With no further comments on HB 35, Chairman Vezey Adjourned                  
  the meeting at 9:35 a.m.                                                     

Document Name Date/Time Subjects