HJR 23-CONST. AM: GOVERNOR'S PROPOSED BUDGET  4:19:25 PM CHAIR CARRICK announced that the next order of business would be HOUSE JOINT RESOLUTION NO. 23, Proposing an amendment to the Constitution of the State of Alaska requiring the governor to submit a balanced budget to the legislature. 4:19:47 PM REPRESENTATIVE JUBILEE UNDERWOOD, Alaska State Legislature, as prime sponsor reintroduced HJR 23. This is an amendment to the constitution to submit a balanced budget without the constitutional budget reserve (CBR). 4:20:44 PM REPRESENTATIVE HIMSCHOOT asked whether this would require a signature from the governor. 4:20:55 PM MR. WHITT, Staff, Representative Jubilee Underwood, Alaska State Legislature, on behalf of Representative Underwood, prime sponsor of HJR 23, replied that it requires a three-quarter vote of the floor. It does not require the governor's signature. REPRESENTATIVE HIMSCHOOT asked whether it would have to have a three-quarter vote of each body. MR. WHITT replied yes. 4:21:55 PM REPRESENTATIVE HOLLAND said Alaskans have been concerned about the budgets with a huge deficit. School districts use fund accounts; individuals use their savings; and private businesses use their savings. It is very normal to use savings and fund reserves. He said that this is an everyday strategy that many organizations use. This resolution is a constitutional guardrail. Alaska's savings were intended to keep things balanced from year to year. REPRESENTATIVE UNDERWOOD replied this joint resolution would not take away the power of the legislature. She said the purpose is just to see if it is the will of Alaskans to start out with more constraints. Again, it does take away the legislature's ability to appropriate and use the CBR. MR. WHITT replied that most jurisdictions have some sort of balancing requirement. The budgeting process is quite unique with the expectation of a large dividend. This is only for the initial budget and doesn't take away the ability to appropriate. 4:26:02 PM REPRESENTATIVE VANCE expressed caution about revenue sources for appropriations and asked for clarification regarding those listed under HJR 23. MR. WHITT responded that by law, the legislation has ways to access the permanent fund for appropriation. The power of the legislature is to determine how to appropriate. REPRESENTATIVE VANCE stated right now the state has the percent of market value (POMV) draw that deposits money into the general fund (GF). The legislation has the authority to appropriate money directly from the earnings reserve account (ERA). She asked which one is this according to this legislation. MR. WHITT said this legislation does not make these decisions. REPRESENTATIVE VANCE stated that confusion can come from what is determined as income. The legislature can use the POMV and ERA. MR. WHITT said he doesn't have the ability to answer a hypothetical question. The appropriations bill is its own bill. 4:31:07 PM REPRESENTATIVE VANCE said a key factor is the legislature holds the power of the purse and can make the appropriations. This legislature is putting side bars on the governor. She asked if the courts put any restrictions on using the ERA as a source of income. MR. WHITT said he doesn't know whether the next governor is going to be looking at the appropriation. Currently, the legislature has been running off the POMV that has been passed. CHAIR CARRICK said she appreciated the discussion. Regarding Representative Vance's Points, she said it could be unclear for the executive branch. She said the trend of upfront budgeting using the CBR seems dishonest. Hopefully, the House Judiciary Standing Committee will have a further look at case law. She said, "It doesn't feel adequate when you're in the legislature and then you get a budget that's a huge CBR draw." 4:35:45 PM CHAIR CARRICK announced that HJR 23 was held over.