Legislature(1995 - 1996)
01/26/1995 03:35 PM Senate STA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SSTA - 1/26/95
SCR 3 LONG RANGE FINANCIAL PLANNING COMMISSION
CHAIRMAN SHARP brings up SCR 3 as the first order of business
before the committee and calls the first witness.
Number 050
SENATOR PEARCE, prime sponsor of SCR 3, notifies committee members
that there is a sponsor substitute in their bill packets, and notes
that Chairman Sharp has suggested it be introduced as a State
Affairs Committee substitute. Senator Pearce thinks, with
declining oil revenues and an increasing fiscal gap, long-range
fiscal planning is becoming more important. It is the intent of
the House and Senate presiding officers that SCR 3 and HCR 1 give
the legislature something on which to focus. These resolutions are
not perfect, but they are on the table and we are open to comments
and suggestions. This issue needs to be taken up now.
Number 105
SENATOR PEARCE states there are eighteen entities which formally
support SCR 3: the State Chamber of Commerce, Anchorage Chamber of
Commerce, Alaska Oil & Gas Association, Alaska Municipal League,
Common Sense for Alaska, National Federation of Independent
Businesses, Resource Development Council, and others. The senator
informs the committee that, although she cannot speak for Governor
Knowles, the governor does support the concept of a long-range
financial planning commission.
Number 122
SENATOR PEARCE informs the committee that the sponsor substitute
for SCR 3 was prepared to incorporate suggestions presented by the
governor. The difference between the original and the substitute
are: page 2, paragraphs (2) and (3), specify that one Senate member
and one House member be from the minority; page 2, line 22, specify
that one of the public members of the commission be the
chairperson; page 3, paragraph (9), change the reporting deadline
from 1996 to October 1, 1995.
SENATOR PEARCE thanks the committee for scheduling SCR 3 and asks
for their consideration of the resolution.
Number 151
SENATOR DUNCAN asks Senator Pearce if the Governor agreed to the
provision that all administration members have a non-voting
membership.
SENATOR PEARCE replies the administration wants the commission to
have more public members than members from the legislature and the
administration. The governor feels he will have a direct voice on
the commission through the public members, which he will appoint.
We did not want the commission to be dominated by people who are
already in public service. Those members are there to be a
resource to the commission.
SENATOR DUNCAN states he will double-check with the governor on
whether the governor approves of administration members being non-
voting members. Senator Duncan thinks there should be a stronger
voice from the administration on the commission. He asks if the
members specified in the resolution are the ones appointed by the
governor.
Number 195
BILL MILES, Aide to Senator Pearce, responds he just received the
substitute for SCR 3 and has not yet sent a copy to the governor's
office.
Number 198
SENATOR PEARCE adds that the members designated in the substitute
are the same as were designated in the original resolution.
Number 205
SENATOR DUNCAN asks why the commission is required to report by
October 1, 1995, but the commission continues until January, 1997.
SENATOR PEARCE replies that is probably an oversight, and the
commission should probably be disbanded after the final report,
unless there is interest shown in having the commission do
additional work.
Number 218
CHRIS CHRISTENSEN, General Counsel, Alaska Court System, states he
has not had the opportunity to review the committee substitute for
SCR 3, only the original version. Since the commission is intended
to be a state planning commission, and not simply and executive
planning commission, the judicial branch feels it should be
allotted a seat on the commission. Mr. Christensen asks that the
judicial branch be included in the long-term financial planning
commission.
Number 237
PAM NEAL, Alaska State Chamber of Commerce (ASCC), states ASCC
supports SCR 3. In fact, ASCC's number one priority for the 1995
legislative session is fiscal planning to identify and employ
innovative solutions to the state's budgetary problems. However,
ASCC would like to offer some suggestions: technical experts should
not be members of the commission, but should just serve the
commission in a support capacity; review of state programs should
include evaluating all services the state currently provides and
identifying those traditionally provided by a state to its'
citizens; identification of services not traditionally provided by
a state, and which therefore could be eliminated or restructured;
and insuring services are being provided efficiently and
effectively. Only after Alaskans are assured that the state is
providing just traditional government services, and these services
are being provided efficiently and effectively, should the state
look at other fiscal tools, such as increased taxation. Ms. Neal
thanks the committee for allowing ASCC to present their ideas. Ms.
Neal has provided the committee with copies of her testimony and
copies of the ASCC resolution supporting long-term financial
planning.
Number 290
SENATOR RANDY PHILLIPS remarks that his constituency is opposed to
the creation of another commission. His constituents suggested
that groups in favor of the commission volunteer to fund it.
Senator Phillips asks Ms. Neal if the ASCC would contribute funding
for a long-range financial planning commission.
Number 303
MS. NEAL states she has not seen a fiscal note for funding the
commission. But speaking of government responsibilities, she
thinks it is the government's responsibility to fund their own
planning.
SENATOR RANDY PHILLIPS states his constituents think the executive
and legislative branches should be doing long-range financial
planning in the first place. In addition, why not have volunteers
do it, instead of spending the money?
Number 315
JACK FARGNOLI, Member of the Policy Staff, Office of Management &
Budget, states the governor supports the objectives of the
legislation. But Mr. Fargnoli says he cannot offer an official
position at this time since they haven't seen the proposed
substitute yet. The governor is happy to work with the legislature
on this legislation.
Number 340
SENATOR DUNCAN asks Mr. Fargnoli if the governor has seen the
proposed substitute.
MR. FARGNOLI says he has been told that the governor's office has
not yet seen the committee substitute.
SENATOR DUNCAN comments he thinks the governor should have the
opportunity to provide input before the resolution moves forward.
MR. FARGNOLI responds that the governor definitely would like to
see the proposed committee substitute.
SENATOR DUNCAN asks the chairman if SCR 3 will be held in committee
until the governor has a chance to respond to the committee
substitute.
Number 341
CHAIRMAN SHARP replies that SCR 3 will be held over for
consideration at the next meeting of the State Affairs Committee,
which will be on Tuesday, January 31, 1995. Some of the
suggestions made by witnesses today will be considered.
Number 347
SENATOR PEARCE states that many of the questions brought up at a
meeting earlier this week with the governor's office have been
addressed in the committee substitute. Senator Pearce appreciates
the committee holding the SCR 3 for further work, and notes that
the resolution will have to have a Finance Committee hearing since
there is a fiscal note attached to it.
CHAIRMAN SHARP announces that SCR 3 will be held until the
committee meeting Tuesday, January 31, 1995.
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