HJR 16 - SUPPORT FEDERAL BALANCED BUDGET AMENDMENT The next order of business to come before the House State Affairs Standing Committee was HJR 16, Relating to a federal balanced budget amendment. CHAIR JAMES called on Representative Al Vezey, sponsor of HJR 16, to present the resolution. Number 0868 REPRESENTATIVE VEZEY stated the resolution was simple. The purpose was to urge Congress to pass a balanced budget resolution and for the states to ratify such a resolution. It also indirectly urged the Alaskan Congressional Delegation to support the resolution. Number 0889 REPRESENTATIVE BERKOWITZ stated that Congress had already considered this issue. "This resolution is a little bit like shutting the barn door after the horses fled." Number 0895 CHAIR JAMES replied it was not over until it was over. It was like the appeals process in the courts. It was now in the U.S. House of Representatives pending a vote then it would return to the U.S. Senate. Therefore, the resolution was appropriate. Number 0908 REPRESENTATIVE VEZEY stated that the resolution also showed the support of the legislature to the Alaskan Congressional Delegation of their vote on a tough issue. He also believed that it would come up for a vote again. Number 0920 REPRESENTATIVE HODGINS moved that HJR 16 move from the committee with the attached fiscal note(s) and individual recommendations. Number 0925 REPRESENTATIVE BERKOWITZ objected. The state was sticking its nose into federal business when there was a lot of state business to attend to. In addition, there was no testimony or evidence that this resolution was in the best interest for the state of Alaska. He also had reservations about the Federal Balanced Budget Act and its ability to impact the state. There were many times when federal funding was a quick and an easy way to correct the problems of the economy which the act interfered. Number 0990 REPRESENTATIVE HODGINS stated that as long as the state of Alaska received one cent from the federal government, it had an interest in how the federal government operated. Therefore, it was very, very appropriate for the resolution to move forward. Number 1009 REPRESENTATIVE VEZEY stated that the resolution was very much in the best interest of the state of Alaska or he would not have introduced it. "I don't think we are capable of imagining the opportunities that this would create in Alaska, if the federal budget was to be balanced." Most of the housing and development needs in the state were met through financing and financing was affected by the interest rates. A balanced budget would have a profound affect on the interest rates. Number 1045 REPRESENTATIVE ELTON explained that Senator Ted Stevens said a hasty action such as this could put states like Alaska at risk. Because, for every dollar that Alaska sent to the federal government it received several dollars back which might not happen under a balanced budget. Furthermore, this issue had been subject to a great deal of debate in Congress which created unresolved questions. He was distressed at how rapidly the resolution was moving forward. For example, the committee members had not heard testimony on how this would affect the social security system or the ability to conduct a war on several fronts. "I think that this right now with lack of debate probably speaks more to politics than it does to policy." Number 1108 CHAIR JAMES stated that she would be happier if the state did not depend as much on federal funds because it dictated what and how the state did things. CHAIR JAMES called for a roll call vote. Representatives James, Hodgins, Ivan and Vezey voted in favor of the motion. Representatives Berkowitz and Elton voted against the motion. House Joint Resolution 16 was so moved from the House State Affairs Standing Committee.