Legislature(1999 - 2000)

01/21/2000 01:37 PM Senate JUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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              SJR 28-CONST AM: APPROPRIATION LIMIT                                                                              
                                                                                                                                
SENATOR DONLEY stated that in article 9, section 16, of the                                                                     
constitution, an appropriation limit, that applies to the operation                                                             
of government, has never worked because the initial dollar amount                                                               
was high--$2.5 billion in 1981.  The constitution also includes a                                                               
provision for an escalator clause to raise the limit based on                                                                   
population and inflation.  That calculation would equal a limit in                                                              
excess of $6 billion today.  There are several reasons for changing                                                             
the existing appropriation limit. First, the lay person cannot                                                                  
understand the reading in the constitution. Second, it has never                                                                
worked, and third, it would be a useful tool in reducing or                                                                     
restraining state spending.  SJR 28 proposes to change and simplify                                                             
the existing appropriation limit so it would be more effective and                                                              
could be understood by the average person.                                                                                      
                                                                                                                                
CHAIRMAN TAYLOR expressed concern about what would be an                                                                        
appropriate number to allow for emergencies, expansions, the                                                                    
population base, etc.                                                                                                           
                                                                                                                                
SENATOR TORGERSON acknowledged he would recommend a do pass, but                                                                
the proposal must hold restraints on spending.                                                                                  
                                                                                                                                
Number 1080                                                                                                                     
                                                                                                                                
SENATOR DONLEY stated there were hearings last summer in an attempt                                                             
to establish a spreadsheet, so the problem could be better                                                                      
identified.                                                                                                                     
                                                                                                                                
One proposed change added a section that mandatorily brings the                                                                 
matter up for consideration in the year 2010.  If the voters do not                                                             
re-approve the resolution in 2010, the matter will go away.  This                                                               
would be an automatic "sunset" vote.                                                                                            
                                                                                                                                
SENATOR TORGERSON commented that "sunsets" are not put into the                                                                 
constitution, they are done through temporary law.                                                                              
                                                                                                                                
SENATOR DONLEY agreed.                                                                                                          
                                                                                                                                
Number 1315                                                                                                                     
                                                                                                                                
SENATOR DONLEY stated if the legislature appropriated more money                                                                
than was allowed or there was a miscalculation, clear guidelines                                                                
are provided for the Governor to correct the problem.  It would be                                                              
the duty of the Governor to reduce expenditures of each state                                                                   
department, equally, to meet the limit.                                                                                         
                                                                                                                                
CHAIRMAN TAYLOR asked if there is a limit on the Governor's                                                                     
authority to spend.                                                                                                             
                                                                                                                                
SENATOR TORGERSON said it sounds like SJR 28 changes authority from                                                             
the legislative branch to the administrative branch.  He questioned                                                             
whether the Governor should call a special session for the                                                                      
legislature to handle the budget--the constitution does not give                                                                
the Governor the right to manipulate the budget.                                                                                
                                                                                                                                
CHAIRMAN TAYLOR  commented that different governors have handled                                                                
this situation differently and  the issue should be clarified in                                                                
the constitution.                                                                                                               
                                                                                                                                
SENATOR DONLEY said the status of the Alaska railroad was also a                                                                
concern.  He asked whether the railroad is within or outside the                                                                
appropriation limit.  Committee members felt that language for the                                                              
railroad and other trusts needed to be clarified.                                                                               
                                                                                                                                
CHAIRMAN TAYLOR asked if the deletion of the trust language impacts                                                             
fish and game and tobacco revenues.                                                                                             
                                                                                                                                
SENATOR DONLEY responded that legislative finance has done an                                                                   
analysis on which funds were affected and the total amounts.                                                                    
                                                                                                                                
CHAIRMAN TAYLOR asked for the analysis.                                                                                         
                                                                                                                                
SENATOR DONLEY stated that the totals in the original bill are                                                                  
affected by the definition of general fund.  With the language of                                                               
the CS, the general fund expenditure for last year was a little                                                                 
over $2.9 billion.  He suggested the following solutions:  expand                                                               
the dollar amount, change the year or limit the growth calculation.                                                             
                                                                                                                                
                                                                                                                                
Number 1776                                                                                                                     
                                                                                                                                
CHAIRMAN TAYLOR expressed concern that if a spending limitation was                                                             
forced on state government, the only way to maintain that                                                                       
limitation would be to shift costs  and services to communities                                                                 
that could afford them.  If the spending limitation was too                                                                     
arbitrary, there would be no effect, or too much of an effect.                                                                  
                                                                                                                                
SENATOR DONLEY asked for some guidance from the committee in                                                                    
crafting the committee substitute.  One problem of using a new base                                                             
number is that the  public will perceive a dollar amount increase                                                               
so updating the base year to 2001 may be preferable.                                                                            
                                                                                                                                
CHAIRMAN TAYLOR stated he was not comfortable in giving a                                                                       
recommendation at this time, but the consensus was that a special                                                               
session may be needed.  The bill meets the judicial purview by                                                                  
adhering to legal requirements and Chairman Taylor would defer to                                                               
the Finance Committee because the specific wording would depend on                                                              
the numbers coming from that committee.                                                                                         
                                                                                                                                
SENATOR DONLEY moved SJR 28 from committee with individual                                                                      
recommendations.  Without objection, the bill moved from committee.                                                             

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