HB 541-INCREASED APPROPRIATIONS REQUIRE OFFSET Number 0912 CHAIR WEYHRAUCH announced that the last order of business was HOUSE BILL NO. 541, "An Act relating to consideration by the legislature of the executive budget and other bills affecting appropriations; and providing for an effective date." CHAIR WEYHRAUCH mentioned that a committee substitute was expected soon from Legislative Legal and Research Services. Number 0923 CHERYL FRASCA, Director, Office of the Director, Office of Management & Budget (OMB), Office of the Governor, presented a summary of HB 541 on behalf of OMB. She explained that the proposed legislation would require a legislator or [legislative] committee proposing additional spending to identify either where the revenues will come from to pay for it or an offsetting budget reduction. She revealed that it is an concept to model after the federal Gramm-Rudman-Hollings Act of 1990. She explained that [OMB] envisions that the process would be done through a fiscal note. Number 0963 REPRESENTATIVE GRUENBERG indicated Section [1], which he said begins, "It is not in order". He stated that he thinks that may require a concurrent resolution to amend the Uniform Rules. MS. FRASCA offered her understanding that Tamara Cook, Legislative Legal and Research Services and Jim Baldwin, Department of Law have held several discussion regarding HB 541 and she said she's "just getting up to speed on what those have been." Number 1010 MS. FRASCA, in response t a question from Chair Weyhrauch, noted that the Gramm-Rudman-Hollings Act was originally intended as a budget deficit reduction proposal; it required that the comptroller general have the authority to make reductions if the budget exceeded revenues. However, that was ruled as unconstitutional. As a result, [the Act] has changed in scope and nature. She indicated that "we" could check on what is the current practice and how effective it is. She said [OMB] knows that "this has got some difficult dilemmas," especially in regard to checks and balances of the appropriation process. MS. FRASCA reiterated that the idea behind the proposed legislation is to look at how increased spending will be paid for. She stated that when [OMB] proposes the governor's budget in December, it has an obligation to outline its spending plan, as well as to identify the revenues proposed to cover that plan. Number 1089 CHAIR WEYHRAUCH said it's an interesting policy issue to question who is ultimately responsible to have an "income equal out go." He stated noted that the executive branch of government has line-item veto and the obligation to submit a budget, while the legislature makes "the other policy determination." MS. FRASCA added, "Then we veto [and] you have the opportunity to override." Number 1119 REPRESENTATIVE GRUENBERG suggested that [HB 541] may be within the jurisdiction of the House Special Committee on Ways and Means. He also indicated that he has held discussions with the people involved with the Alaska Municipal League to consider whether there should be a municipal fiscal note regarding the impact of legislation on municipalities. He indicated that he would like to discuss whether [HB 541] may be a vehicle to include that issue. Representative Gruenberg stated that [HB 541] is a "great subject to take up" and he commended the administration for his work. [HB 541 was heard and held.]