05/04/1994 09:15 AM Senate FIN

  SJR 52:             Proposing amendments to the Constitution                 
                      of the State of  Alaska relating to  the                 
                      budget reserve fund.                                     
                                                                               
                      Senator  Rieger  proposed   amendment  1                 
                      incorporating new language  for SJR  52.                 
                      Amendment 1 was ADOPTED.  CSSJR  52(FIN)                 
                      was REPORTED out of committee with a "do                 
                      pass," and  a fiscal note for the Office                 
                      of the Governor/  Division of  Elections                 
                      for $2.2.                                                
  SENATE JOINT RESOLUTION NO. 52:                                              
                                                                               
       Proposing  amendments to the  Constitution of the State                 
       of Alaska relating to the budget reserve fund.                          
                                                                               
  Co-chair Pearce announced  that SJR  52 had been  previously                 
  heard  in  committee.   She  said  that  Senator Rieger  had                 
  proposed  new  language that  could  be incorporated  into a                 
  committee  substitute.   It  was  understood that  the House                 
  version was on the way to the Senate.                                        
                                                                               
  SENATOR STEVE RIEGER said that in  both versions of the bill                 
  the  repayment  provision  was  repealed  because  of  court                 
  rulings that suggested  repayment might require  ratings and                 
  revolving  loan funds  or other  funds that  were serving  a                 
  purpose  but technically  could  be  treated  as  repayment.                 
  Also, the amount that was withdrawn might not be practically                 
  repayable  making  this  a   meaningless  provision  in  the                 
  Constitution.   Secondly, he said  this approach  paralleled                 
  the  prior  constitutional  amendment.    The  statement  in                 
  support which was in the  election pamphlet said that  money                 
  in the budget reserve fund could be  used only if it did not                 
  serve to  increase spending over the prior year of spending,                 
  but if it was used to increase spending,  it would require a                 
  three-quarter vote.   He explained  that the House  approach                 
  was  more  restrictive,  saying  that  money in  the  budget                 
  reserve fund could not be used for any purpose even in cases                 
                                                                               
                                                                               
  of a deficit or a shortfall that needed to be covered except                 
  with  a three-quarter  vote.   The  other  issue raised  was                 
  whether  to  use  plain english  or  as  it  was drafted  in                 
  technical  language.   He  felt it  should  be put  in plain                 
  English like the rest of the Constitution was written.                       
                                                                               
  Senator  Rieger  MOVED  amendment  1  containing  his  plain                 
  English language.   Senator Kerttula OBJECTED.   Amendment 1                 
  was  ADOPTED on a vote  of 3 to  1 (Co-chairs Pearce, Frank,                 
  and  Senator  Sharp  were  in  favor, Senator  Kerttula  was                 
  opposed).                                                                    
                                                                               
  CSSJR  52(FIN)  was REPORTED  out  of committee  with  a "do                 
  pass,"  and fiscal  note  for the  Office  of the  Governor,                 
  Division  of  Elections,  for $2.2.    Co-chairs  Pearce and                 
  Frank,  Senators  Rieger  and  Sharp,  signed a  "do  pass."                 
  Senator Kerttula signed a "do not pass."