Legislature(1999 - 2000)

01/21/1999 04:05 PM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
GENERAL SUBJECT: PRESENTATION BY ALASKA PERMANENT FUND CORP.                                                                    
    CAPITAL MARKETS OUTLOOK                                                                                                     
    Joint Meeting with the House Finance Committee                                                                              
                                                                                                                                
The following overview was taken in log note format.  Tapes and                                                                 
handouts will be on file with the Senate Finance Committee through the                                                          
21st Legislative Session, contact 465-2618.  After the 21st                                                                     
Legislative session they will be available through the Legislative                                                              
Library at 465-3808.                                                                                                            
                                                                                                                                
Time Meeting Convened: 4:05 PM                                                                                                  
                                                                                                                                
Tape(s):  SFC-99 # 4, Side B                                                                                                    
   Side A                                                                                                                       
                                                                                                                                
                                                                                                                                
PRESENT:                                                                                                                        
                                                                                                                                
                                                                                                                                
x                                                                                                                               
Senator Parnell                                                                                                                 
x                                                                                                                               
Senator P. Kelly                                                                                                                
x                                                                                                                               
Senator Torgerson                                                                                                               
                                                                                                                                
Senator Leman                                                                                                                   
x                                                                                                                               
Senator Phillips                                                                                                                
                                                                                                                                
Senator Green                                                                                                                   
x                                                                                                                               
Senator Donley                                                                                                                  
                                                                                                                                
Senator Adams                                                                                                                   
x                                                                                                                               
Senator Wilken                                                                                                                  
                                                                                                                                
                                                                                                                                
ALSO PRESENT:                                                                                                                   
Representatives: Austerman, Phillips, Bunde, Green, Davies, Mulder,                                                             
Smalley, Therriault, Williams,                                                                                                  
Grussendorf, Kohring, Joule, Davis                                                                                              
Senator Mackie,                                                                                                                 
Lynn Thurber, Lasalle Advisors;                                                                                                 
Bill Price, Dresdner RCM Global Investors;                                                                                      
Michael O'Leary, Callan Associates;                                                                                             
Byron Mallott, Executive Director, Alaska Permanent Fund Corp.                                                                  
Jim Kelly, Research and Liaison Officer, APFC                                                                                   
Joan Cahill, Communications Assistant, APFC                                                                                     
Eric Wolfort                                                                                                                    
David Teal, Director, Division of Legislative Finance                                                                           
Ginger Blaisdell, Fiscal Analyst, Division of Legislative Finance                                                               
                                                                                                                                
                                                                                                                                
TAPE                                                                                                                            
LOG                                                                                                                             
SPEAKER                                                                                                                         
DISCUSSION                                                                                                                      
4B                                                                                                                              
                                                                                                                                
Co-Chair Sean                                                                                                                   
Parnell                                                                                                                         
Introduction of Senators and                                                                                                    
Representatives present                                                                                                         
                                                                                                                                
                                                                                                                                
Byron Mallott                                                                                                                   
Introduction of APFC speakers                                                                                                   
                                                                                                                                
988                                                                                                                             
Michael O'Leary                                                                                                                 
Background of when presentations                                                                                                
are made                                                                                                                        
                                                                                                                                
                                                                                                                                
We estimate a general forecast and                                                                                              
ask investment managers to make                                                                                                 
specific forecasts                                                                                                              
                                                                                                                                
                                                                                                                                
PF estimates relatively                                                                                                         
conservative                                                                                                                    
                                                                                                                                
947                                                                                                                             
                                                                                                                                
APFC Manager Survey - overhead                                                                                                  
Some members are specialists and                                                                                                
we ask for their estimates                                                                                                      
                                                                                                                                
939                                                                                                                             
                                                                                                                                
Inflation Expectations - overhead                                                                                               
                                                                                                                                
                                                                                                                                
All responses uniformly expect                                                                                                  
inflation to remain relatively low                                                                                              
- between 2 and 4 %                                                                                                             
                                                                                                                                
926                                                                                                                             
                                                                                                                                
S&P 500 One Year Return                                                                                                         
Projections - overhead                                                                                                          
                                                                                                                                
                                                                                                                                
5 managers anticipate negative                                                                                                  
returns - that surprised me                                                                                                     
                                                                                                                                
                                                                                                                                
Clay Finley is European firm-think                                                                                              
that's why negative                                                                                                             
                                                                                                                                
                                                                                                                                
6 managers expect 0-10%                                                                                                         
                                                                                                                                
                                                                                                                                
3 expect slightly more than 10%                                                                                                 
                                                                                                                                
905                                                                                                                             
                                                                                                                                
That's conservative uniformly                                                                                                   
                                                                                                                                
                                                                                                                                
5 Year S&P 500 Projections                                                                                                      
Slightly More Optimistic-handout                                                                                                
                                                                                                                                
888                                                                                                                             
                                                                                                                                
Small Cap Return Forecasts-handout                                                                                              
                                                                                                                                
                                                                                                                                
Smaller cap stocks doing better -                                                                                               
long term trend                                                                                                                 
                                                                                                                                
                                                                                                                                
Since 1994 large companies doing                                                                                                
much better                                                                                                                     
                                                                                                                                
                                                                                                                                
Managers saying that will change                                                                                                
to smaller companies doing better                                                                                               
                                                                                                                                
                                                                                                                                
Representative Bill                                                                                                             
Williams                                                                                                                        
Any reasons for that?                                                                                                           
                                                                                                                                
                                                                                                                                
Michael O'Leary                                                                                                                 
My sense is that earning growth                                                                                                 
has stalled and larger ratio                                                                                                    
between smaller and larger                                                                                                      
companies                                                                                                                       
                                                                                                                                
863                                                                                                                             
Representative Con                                                                                                              
Bunde                                                                                                                           
                                                                                                                                
                                                                                                                                
Byron Mallott                                                                                                                   
My understanding is there will be                                                                                               
a bill to modify                                                                                                                
                                                                                                                                
                                                                                                                                
Representative                                                                                                                  
Green                                                                                                                           
Does this include some companies                                                                                                
that might not make it?                                                                                                         
                                                                                                                                
                                                                                                                                
Michael O'Leary                                                                                                                 
Small companies to us are big                                                                                                   
companies to the real world -                                                                                                   
examples                                                                                                                        
                                                                                                                                
                                                                                                                                
International arena -                                                                                                           
diversification makes sense                                                                                                     
                                                                                                                                
                                                                                                                                
Before didn't make sense - looks                                                                                                
like that might be changing                                                                                                     
                                                                                                                                
                                                                                                                                
Managers are more optimistic for                                                                                                
international stocks-handout                                                                                                    
                                                                                                                                
                                                                                                                                
Returns measured in US dollars                                                                                                  
                                                                                                                                
                                                                                                                                
Co-Chair Sean                                                                                                                   
Parnell                                                                                                                         
Housekeeping-ask members to state                                                                                               
name for record when speaking                                                                                                   
4A                                                                                                                              
                                                                                                                                
Michael O'Leary                                                                                                                 
Significant event is decline in                                                                                                 
interest rates                                                                                                                  
                                                                                                                                
                                                                                                                                
Most expect 5year bond returns to                                                                                               
fall in a range of 5-6.5%                                                                                                       
                                                                                                                                
                                                                                                                                
2 firms have slightly higher                                                                                                    
forecasts                                                                                                                       
                                                                                                                                
                                                                                                                                
Real Estate Outlook-handout                                                                                                     
                                                                                                                                
                                                                                                                                
Managers generally felt optimistic                                                                                              
                                                                                                                                
                                                                                                                                
Five year estimate fall in 10-12%                                                                                               
range                                                                                                                           
                                                                                                                                
                                                                                                                                
The Economic Environment for the                                                                                                
Next Five Years-handout                                                                                                         
                                                                                                                                
                                                                                                                                
Despite troubles in Asia and                                                                                                    
Russia, feel economy will remain                                                                                                
strong - always danger of                                                                                                       
recession                                                                                                                       
                                                                                                                                
                                                                                                                                
Callan's 1999 Capital Market                                                                                                    
Projections-handout                                                                                                             
                                                                                                                                
                                                                                                                                
Five year capital market                                                                                                        
projections                                                                                                                     
                                                                                                                                
                                                                                                                                
Introduce Bill Price and gave                                                                                                   
qualifications                                                                                                                  
                                                                                                                                
                                                                                                                                
Bill Price                                                                                                                      
Challenge today is to put global                                                                                                
outlook into perspective                                                                                                        
                                                                                                                                
                                                                                                                                
The longest post-year period of                                                                                                 
positive growth                                                                                                                 
                                                                                                                                
                                                                                                                                
Should have had a normal downturn                                                                                               
partly because of boost put into                                                                                                
                                                                                                                                
                                                                                                                                
Also placed a variable into                                                                                                     
economy                                                                                                                         
                                                                                                                                
                                                                                                                                
common stock market before Gulf                                                                                                 
War of household sector outlooks                                                                                                
only 17.5% were income in stocks                                                                                                
now gone up to 40-43%                                                                                                           
                                                                                                                                
                                                                                                                                
Has created an industry-money                                                                                                   
manager                                                                                                                         
                                                                                                                                
                                                                                                                                
Has drawn precedent amounts of                                                                                                  
funds into stock market                                                                                                         
                                                                                                                                
                                                                                                                                
Since 1982 interest rates declined                                                                                              
making other money earning methods                                                                                              
necessary - therefore stock market                                                                                              
investments                                                                                                                     
                                                                                                                                
                                                                                                                                
Market itself and sense of                                                                                                      
positive feedback of making money                                                                                               
easily - tends to create adaptive                                                                                               
expectations                                                                                                                    
                                                                                                                                
                                                                                                                                
Historically has led to overpriced                                                                                              
markets                                                                                                                         
                                                                                                                                
                                                                                                                                
Alan Greenspan difficult job to                                                                                                 
slowly lower expectations plus                                                                                                  
global responsibilities                                                                                                         
                                                                                                                                
                                                                                                                                
Buyer of last resort to bail out                                                                                                
Asian and Latin American countries                                                                                              
- US is the buyer                                                                                                               
                                                                                                                                
                                                                                                                                
Because of that there is a                                                                                                      
responsibility we share                                                                                                         
                                                                                                                                
                                                                                                                                
Don't want to create picture of                                                                                                 
impending doom-but want to lean                                                                                                 
against popular belief                                                                                                          
                                                                                                                                
                                                                                                                                
Word of caution                                                                                                                 
                                                                                                                                
                                                                                                                                
Managers are trained in much more                                                                                               
disciplined fundamentals                                                                                                        
                                                                                                                                
                                                                                                                                
Internet stocks-not what PF owns                                                                                                
                                                                                                                                
                                                                                                                                
As we look across we see lowering                                                                                               
of growth                                                                                                                       
4A                                                                                                                              
                                                                                                                                
Bill Price                                                                                                                      
Actually experiencing negative                                                                                                  
growth while stock market is going                                                                                              
up                                                                                                                              
                                                                                                                                
                                                                                                                                
Companies can't raise prices                                                                                                    
                                                                                                                                
                                                                                                                                
Good news-inflation expectations                                                                                                
continue to be low                                                                                                              
                                                                                                                                
                                                                                                                                
Interest rates also remain                                                                                                      
relatively low                                                                                                                  
                                                                                                                                
                                                                                                                                
May go up to 4.5%                                                                                                               
                                                                                                                                
                                                                                                                                
Rely on corporate bonds for higher                                                                                              
returns                                                                                                                         
                                                                                                                                
                                                                                                                                
Exports will be down this year                                                                                                  
                                                                                                                                
                                                                                                                                
As reserve currency of the world                                                                                                
are being deluged by                                                                                                            
                                                                                                                                
                                                                                                                                
Capital spending we see as                                                                                                      
negative - over-invested in past                                                                                                
several years                                                                                                                   
                                                                                                                                
                                                                                                                                
3 legs of economy                                                                                                               
                                                                                                                                
                                                                                                                                
Positive overall gain for the year                                                                                              
1._ %                                                                                                                           
                                                                                                                                
                                                                                                                                
Rep. Davies                                                                                                                     
Real Estate - people waiting for                                                                                                
the bottom to fall out - does that                                                                                              
lead to expectation that dividend                                                                                               
should go up                                                                                                                    
                                                                                                                                
                                                                                                                                
Bill Price                                                                                                                      
Talking about cyclical risk - not                                                                                               
talking about Depression- talking                                                                                               
about normal cycles                                                                                                             
                                                                                                                                
                                                                                                                                
Policy responses have become much                                                                                               
more sophisticated                                                                                                              
                                                                                                                                
                                                                                                                                
Nothing irresponsible about equity                                                                                              
position                                                                                                                        
                                                                                                                                
                                                                                                                                
Question of unrealized gains                                                                                                    
separate issue                                                                                                                  
                                                                                                                                
                                                                                                                                
Much more mechanical                                                                                                            
                                                                                                                                
                                                                                                                                
No accident that last year better                                                                                               
stocks limited to better group                                                                                                  
                                                                                                                                
                                                                                                                                
Breakdown of earning of S&P 500                                                                                                 
2B                                                                                                                              
                                                                                                                                
                                                                                                                                
4:52 PM                                                                                                                         
                                                                                                                                
                                                                                                                                
Bill Price                                                                                                                      
Continued detailing eschew of 500                                                                                               
stocks                                                                                                                          
                                                                                                                                
                                                                                                                                
Talking about overextended sector                                                                                               
of the market                                                                                                                   
                                                                                                                                
                                                                                                                                
If you realized those gains the                                                                                                 
challenge would be to reinvest                                                                                                  
those assets with same returns if                                                                                               
you could do in short period of                                                                                                 
time                                                                                                                            
                                                                                                                                
                                                                                                                                
Doesn't really affect those                                                                                                     
posture but does affect the                                                                                                     
dividend                                                                                                                        
                                                                                                                                
                                                                                                                                
Issue that needs to be addressed -                                                                                              
beyond us right now                                                                                                             
                                                                                                                                
                                                                                                                                
The average 3-5 year annual rate                                                                                                
about 20%                                                                                                                       
                                                                                                                                
                                                                                                                                
Price earnings ration to its                                                                                                    
growth rate                                                                                                                     
                                                                                                                                
                                                                                                                                
Small stocks slightly more                                                                                                      
volatile now have higher returns                                                                                                
and better evaluations                                                                                                          
                                                                                                                                
                                                                                                                                
Begin to take some of those                                                                                                     
profits off the table and reinvest                                                                                              
in smaller companies that are                                                                                                   
doing better                                                                                                                    
                                                                                                                                
                                                                                                                                
Diversity of managers                                                                                                           
                                                                                                                                
                                                                                                                                
Rep. Bunde                                                                                                                      
Refer to discussion of IRS                                                                                                      
ramifications if provide residents                                                                                              
with straight earnings - want to                                                                                                
talk about later                                                                                                                
                                                                                                                                
                                                                                                                                
Michael O'Leary                                                                                                                 
Introduce Lynn Thurber and list                                                                                                 
qualifications as real estate                                                                                                   
expert                                                                                                                          
                                                                                                                                
115                                                                                                                             
Lynn Thurber                                                                                                                    
Perspective that we will be able                                                                                                
to provide higher returns than                                                                                                  
stock managers                                                                                                                  
                                                                                                                                
                                                                                                                                
Low inflation and slow economic                                                                                                 
growth                                                                                                                          
                                                                                                                                
                                                                                                                                
May be surprising that we predict                                                                                               
high growth in private industry                                                                                                 
                                                                                                                                
                                                                                                                                
We believe to be strong in private                                                                                              
real estate industry                                                                                                            
                                                                                                                                
                                                                                                                                
Vacancy rates as low as 6 % in                                                                                                  
quality office space                                                                                                            
                                                                                                                                
                                                                                                                                
That supply and demand basis                                                                                                    
allows for higher rental rates and                                                                                              
property values                                                                                                                 
                                                                                                                                
                                                                                                                                
Stopping pipeline of new                                                                                                        
construction for areas of high                                                                                                  
vacancy                                                                                                                         
                                                                                                                                
                                                                                                                                
Will see higher vacancies but                                                                                                   
moderate                                                                                                                        
                                                                                                                                
                                                                                                                                
Then when this pipeline finished                                                                                                
won't see new pipeline until after                                                                                              
2001-vacancies will slowly fill up                                                                                              
during that time                                                                                                                
                                                                                                                                
                                                                                                                                
In place leases giving annual                                                                                                   
return of 9%                                                                                                                    
                                                                                                                                
                                                                                                                                
Leases long term - turnover will                                                                                                
be for rentals which will have                                                                                                  
higher return because of higher                                                                                                 
rents                                                                                                                           
                                                                                                                                
                                                                                                                                
Property types and sectors                                                                                                      
                                                                                                                                
                                                                                                                                
Greatest appreciation and return                                                                                                
in single family                                                                                                                
                                                                                                                                
                                                                                                                                
Multi family apartments in balance                                                                                              
                                                                                                                                
                                                                                                                                
Area of concern is retail                                                                                                       
                                                                                                                                
                                                                                                                                
Regional malls given too much                                                                                                   
space - square footage in US 5                                                                                                  
times as rest of the world                                                                                                      
                                                                                                                                
                                                                                                                                
We expect them to become                                                                                                        
entertainment centers                                                                                                           
                                                                                                                                
                                                                                                                                
Sectors of the country SW  and SE                                                                                               
greatest                                                                                                                        
                                                                                                                                
                                                                                                                                
Sector very disappointing -18% **                                                                                               
                                                                                                                                
                                                                                                                                
Publicly traded rates                                                                                                           
                                                                                                                                
                                                                                                                                
Occurred year after 37% return                                                                                                  
rate                                                                                                                            
                                                                                                                                
                                                                                                                                
1997 number of investors came into                                                                                              
market looking for growth then                                                                                                  
left no longer saw growth                                                                                                       
opportunity                                                                                                                     
                                                                                                                                
                                                                                                                                
Correct to see that - tax changes,                                                                                              
other things                                                                                                                    
                                                                                                                                
                                                                                                                                
Our view is that they overreacted                                                                                               
                                                                                                                                
                                                                                                                                
Average return of 7.5% better than                                                                                              
other stocks                                                                                                                    
                                                                                                                                
                                                                                                                                
Companies already have imbedded                                                                                                 
growth                                                                                                                          
                                                                                                                                
                                                                                                                                
Also they bought a number of                                                                                                    
properties and seeing income                                                                                                    
                                                                                                                                
                                                                                                                                
Stock price is below underlying                                                                                                 
assets                                                                                                                          
                                                                                                                                
                                                                                                                                
We believe they will provide 7.5%                                                                                               
dividends                                                                                                                       
4B                                                                                                                              
                                                                                                                                
Lynn Thurber                                                                                                                    
Conclude                                                                                                                        
                                                                                                                                
272                                                                                                                             
Michael O'Leary                                                                                                                 
                                                                                                                                
                                                                                                                                
Bill Price                                                                                                                      
Increased portfolio by 40% last                                                                                                 
year                                                                                                                            
                                                                                                                                
                                                                                                                                
Senator Gary Wilken                                                                                                             
Money supply and inflation                                                                                                      
forecast questions                                                                                                              
                                                                                                                                
                                                                                                                                
Are the 2 working together                                                                                                      
                                                                                                                                
                                                                                                                                
Bill Price                                                                                                                      
Huge money growth part of US                                                                                                    
policy to optimize employment                                                                                                   
                                                                                                                                
                                                                                                                                
Excess of supply of goods relative                                                                                              
to demand                                                                                                                       
                                                                                                                                
                                                                                                                                
Huge import from out of country                                                                                                 
                                                                                                                                
                                                                                                                                
Improvements in technology                                                                                                      
                                                                                                                                
                                                                                                                                
All factors together                                                                                                            
                                                                                                                                
                                                                                                                                
When you put too much money in                                                                                                  
economy it can't absorb extra goes                                                                                              
into financial account                                                                                                          
                                                                                                                                
                                                                                                                                
Alan Greenspan very nervous                                                                                                     
because he created it                                                                                                           
                                                                                                                                
                                                                                                                                
Driven up bond prices                                                                                                           
                                                                                                                                
                                                                                                                                
Excess liquidity is our concern                                                                                                 
                                                                                                                                
                                                                                                                                
What would happen if the fed rose                                                                                               
interest rates to reign in supply                                                                                               
- people won't expect                                                                                                           
                                                                                                                                
                                                                                                                                
Rep. Williams                                                                                                                   
Is that why market so volatile                                                                                                  
today?                                                                                                                          
                                                                                                                                
                                                                                                                                
Bill Price                                                                                                                      
Characteristic of market later                                                                                                  
stage                                                                                                                           
                                                                                                                                
                                                                                                                                
20% of market done over computer                                                                                                
                                                                                                                                
                                                                                                                                
That is part of reason for                                                                                                      
volatility                                                                                                                      
                                                                                                                                
                                                                                                                                
It's just noise - just gets more                                                                                                
volatile and gives less                                                                                                         
information                                                                                                                     
                                                                                                                                
                                                                                                                                
Co-Chair Sean                                                                                                                   
Parnell                                                                                                                         
Follow-up - same said for Y2K                                                                                                   
issue - is it just noise?                                                                                                       
                                                                                                                                
                                                                                                                                
Bill Price                                                                                                                      
Most bull markets end with a shock                                                                                              
- Lt. Gov. statement                                                                                                            
                                                                                                                                
                                                                                                                                
So much said about issue it can't                                                                                               
be a surprise                                                                                                                   
                                                                                                                                
                                                                                                                                
Think much more serious issue                                                                                                   
outside US                                                                                                                      
                                                                                                                                
                                                                                                                                
Enough of a trauma to end market?                                                                                               
Hard to tell                                                                                                                    
                                                                                                                                
                                                                                                                                
Senator Pete Kelly                                                                                                              
If more problem outside US - will                                                                                               
it actually work to our benefit by                                                                                              
slowing down their economy  and                                                                                                 
production                                                                                                                      
                                                                                                                                
                                                                                                                                
Bill Price                                                                                                                      
Doubt it - will cause disruption                                                                                                
in their economy in their system                                                                                                
with banking industry                                                                                                           
                                                                                                                                
                                                                                                                                
Senator John                                                                                                                    
Torgerson                                                                                                                       
Predictable time when portfolio                                                                                                 
might not perform as expected?                                                                                                  
                                                                                                                                
                                                                                                                                
Bill Price                                                                                                                      
Personal view - yes                                                                                                             
                                                                                                                                
                                                                                                                                
Longest recorded bear market -                                                                                                  
gold                                                                                                                            
                                                                                                                                
                                                                                                                                
Can allow demand to slowly go up                                                                                                
                                                                                                                                
                                                                                                                                
Michael O'Leary                                                                                                                 
About year ago permanent fund                                                                                                   
thought good example to have a                                                                                                  
model for a management tool                                                                                                     
                                                                                                                                
                                                                                                                                
Overhead-Range of Ending Market                                                                                                 
Value                                                                                                                           
                                                                                                                                
                                                                                                                                
Byron Mallott                                                                                                                   
February meeting presentation                                                                                                   
4B                                                                                                                              
                                                                                                                                
Michael O'Leary                                                                                                                 
When making long term tend to                                                                                                   
think in average terms                                                                                                          
                                                                                                                                
                                                                                                                                
Model designed to faithfully                                                                                                    
project market value                                                                                                            
                                                                                                                                
                                                                                                                                
Starts with September quarter                                                                                                   
which was bad                                                                                                                   
                                                                                                                                
                                                                                                                                
Shows the range of possible                                                                                                     
outcomes over next 5 years                                                                                                      
                                                                                                                                
                                                                                                                                
Not only what's the average but                                                                                                 
what's the range around the                                                                                                     
average                                                                                                                         
                                                                                                                                
                                                                                                                                
Give full average not just middle                                                                                               
of the road                                                                                                                     
                                                                                                                                
                                                                                                                                
Jim Kelly                                                                                                                       
Ask to explain colors in overhead                                                                                               
                                                                                                                                
                                                                                                                                
Michael O'Leary                                                                                                                 
                                                                                                                                
                                                                                                                                
How active are the managers in                                                                                                  
projecting gains                                                                                                                
                                                                                                                                
                                                                                                                                
Look at turnover rate in the                                                                                                    
portfolio                                                                                                                       
                                                                                                                                
                                                                                                                                
Byron Mallott                                                                                                                   
We have not figured into model                                                                                                  
one-time $4billion transfer                                                                                                     
                                                                                                                                
                                                                                                                                
Rep. Green                                                                                                                      
Percentiles up the scale to 2001                                                                                                
then slacking coming back up in                                                                                                 
2003                                                                                                                            
                                                                                                                                
                                                                                                                                
Michael O'Leary                                                                                                                 
Given current policy expect a                                                                                                   
little less than 8 percent                                                                                                      
                                                                                                                                
                                                                                                                                
Co-Chair Sean                                                                                                                   
Parnell                                                                                                                         
Thank presenters                                                                                                                
                                                                                                                                
                                                                                                                                
Rep. Mulder                                                                                                                     
Thank presenters                                                                                                                
                                                                                                                                
523                                                                                                                             
Co-Chair Sean                                                                                                                   
Parnell                                                                                                                         
Adjourn 5:32 PM                                                                                                                 
                                                                                                                                
SENATE FINANCE COMMITTEE                                                                                                        
LOG NOTES                                                                                                                       
1/21/99                                                                                                                         
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