CS FOR SENATE JOINT RESOLUTION NO. 3(JUD) Proposing an amendment to the Constitution of the State of Alaska relating to an appropriation limit and a spending limit. This was the eighth hearing for this bill in the Senate Finance Committee. Amendment #11: This amendment deletes Section 16 (c)(4) from Section 1 on page 2, lines 17 and 18 of committee substitute Version "C" and inserts new language to read as follows: (4) of State general obligation bond and revenue bond proceeds; Senator Dyson moved for adoption. Co-Chair Wilken objected for an explanation. Senator Dyson explained that this amendment would remove certificates of participation (COP) proceeds as an exclusion from the calculation of an appropriation limit. Co-Chair Wilken clarified that the amendment would remove the exemption of COP proceeds. Senator Dyson affirmed. Without objection the amendment was ADOPTED. Amendment #12: This amendment deletes Section 16(c)(7) from Section 1 on page 2, line 21 and inserts new language to read as follows. (7) of money received by the University of Alaska as tuition, fees, or contract receipts, or from other non-general fund sources Senator Dyson moved for adoption. Co-Chair Wilken objected for an explanation. Senator Dyson explained this amendment would allow the University to receive an exemption for these funds from the calculation of the appropriation limit. The University operates much like an enterprise and exampled locker fees and bookstore income as exempted revenues under this provision. Co-Chair Wilken noted that Pat Pitney of the University of Alaska provided information titled, "Examples of Revenue included in University Receipts and the unintended impact on a Spending Limit" [copy on file.] JOE BEEDLE, Vice President of Finance, University of Alaska, testified via teleconference from an offnet location in support of the amendment. Senator Dyson wanted confirmation that Ms. Frasca did not oppose this amendment. CHERYL FRASCA, Director, Office of Management and Budget, Office of the Governor, implored that the Committee consider the impact of this amendment. All State agencies would compete for the finite amount of funding available under a spending limit system. This amendment would address the University at a "higher standard" than other State agencies because other agencies operate somewhat like a corporation and generate revenue, yet their revenues are not exempted from the spending limit. She stated that adoption of this amendment would be a policy decision. SFC 04 # 68, Side A 10:44 AM Ms. Frasca continued that the University currently has "significant excess authority" for expending University receipts without further legislative authorization. She explained that because of this, University appropriations would reach the appropriation limit at a slower rate than other agencies. This exemption is an "accounting issue" for the University, but it is a "significant policy decision" for the Executive Branch. Co-Chair Wilken removed his objection to the adoption of the amendment. Co-Chair Green objected. A roll call was taken on the motion. IN FAVOR: Senator Olson, Senator Bunde, Senator Dyson and Co-Chair Wilken OPPOSED: Senator B. Stevens and Co-Chair Green ABSENT: Senator Hoffman The motion PASSED (4-2-1) The amendment was ADOPTED. Co-Chair Wilken ordered the bill HELD in Committee. ADJOURNMENT  Co-Chair Wilken adjourned the meeting at 10:46 AM