Legislature(1993 - 1994)
01/26/1993 08:00 AM STA
* first hearing in first committee of referral
= bill was previously heard/scheduled
= 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 government. 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 fund. 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 fund. Number 506 REPRESENTATIVE MARTIN advised that currently there was $625,000,000 in the budget reserve fund. Number 522 DON WANIS, DIRECTOR, DIVISION OF FINANCE, DEPARTMENT OF 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 account. 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 account. 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 account. 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 back. Number 641 CHAIRMAN VEZEY clarified the debt would continue forward and that only surplus monies would be available to replenish the account. ADJOURNMENT With no further comments on HB 35, Chairman Vezey Adjourned the meeting at 9:35 a.m.