SENATOR TAYLOR began  the meeting with no quorum,  but chose                 
  to hear the initial testimony on SJR 8 (CAPITAL PROJECTS AND                 
  EXPENDITURE LIMIT) sponsored by  SENATOR RANDY PHILLIPS, who                 
  gave an opening statement.                                                   
                                                                               
  SENATOR  PHILLIPS  explained  it would  be  a constitutional                 
  amendment to be considered by the  voters in the election of                 
  1994.  He further explained SJR 8  would set a limit of $2.3                 
  billion for expenditures,  and he referred the  committee to                 
  the bill packet  for 9  or 10 different  exceptions to  that                 
                                                                               
                                                                               
  limit.  The  expenditure limit can  be exceeded with a  two-                 
  thirds vote of both the Senate and the House.                                
                                                                               
  Number 039                                                                   
                                                                               
  SENATOR PHILLIPS said SJR 8 would also provide that at least                 
  10%  of  the  $2.3 billion  in  each  fiscal  year would  be                 
  allocated for capital budget.  If inflation exceeds  6%, the                 
  legislature may appropriate  an amount to offset  the effect                 
  of the inflation  that exceeds  6%.  He  explained that  any                 
  revenue  in  excess  of  the   expenditure  limit  would  be                 
  deposited in the Constitutional Reserve Fund.                                
                                                                               
  SENATOR TAYLOR asked SENATOR PHILLIPS to read the exceptions                 
  to the $2.3 billion dollar limit:                                            
                                                                               
       Appropriations to the Permanent Fund                                    
       Permanent Fund dividends                                                
       Appropriations to the Budget Reserve Fund                               
       Appropriations of revenue  from a  tax approved by  the                 
       voters                                                                  
       Bond proceeds                                                           
       The principal and interest on bonds issued by the state                 
       Money received in trust for specific purpose                            
       Endowment earnings                                                      
       Revenue from public corporations                                        
                                                                               
  SENATOR TAYLOR questioned whether it included lapsed Federal                 
  Highway Funds, and SENATOR PHILLIPS explained it was.                        
                                                                               
  SENATOR  PHILLIPS  gave as  his  reasons for  the  bill, was                 
  because  the  legislature  collectively  does  not  have the                 
  political will to limit itself in the expenditures of money.                 
  He  said  the only  way to  limit the  legislature was  by a                 
  constitutional amendment, and he said  it would restrain the                 
  legislature from spending more money than they receive.                      
                                                                               
  SENATOR PHILLIPS said it would  keep the legislature in line                 
  in the budgetary process.  In  reference to the $600 million                 
  from British Petroleum America, he said it would be tempting                 
  for the  legislature to go on a  feeding frenzy.  He thought                 
  his bill  would eliminate  the problem,  which was  his main                 
  motivation.                                                                  
                                                                               
  Number 096                                                                   
                                                                               
  In  reference  to page  2,  lines  11 and  12,  (b), SENATOR                 
  HALFORD questioned the consistency of the two-thirds vote of                 
  the membership, whereas it takes a three-fourths vote to get                 
  money out of the Constitutional Budget Reserve Fund.                         
                                                                               
  SENATOR PHILLIPS said  he would change to  the three-fourths                 
  if SENATOR HALFORD wanted.                                                   
                                                                               
                                                                               
  SENATOR HALFORD explained the legislature could go by a two-                 
  thirds vote as long as the money could be  gotten from other                 
  than  the  Constitutional Budget  Reserve  Fund, but  if the                 
  money  had to  be obtained from  the fund, it  will not only                 
  take two-thirds vote to  spend the money, but it  would take                 
  three-fourths to get it.  SENATOR HALFORD thought this would                 
  be a good  interplay between those  two things, because,  if                 
  there was a big  strike in revenue, there would  probably be                 
  two-thirds to spend some of the money.                                       
                                                                               
  Number 120                                                                   
                                                                               
  SENATOR PHILLIPS  thought  his  mechanisms  were  sound  but                 
  wondered about the limit of $2.3 billion limit.  He reviewed                 
  the constitutional amendment from about 1982 with a spending                 
  limit of about $4.5 billion.   SENATOR HALFORD explained the                 
  inflation factor of the numbers.                                             
                                                                               
  After  a  general  discussion  on  the   use  of  SJR  8  in                 
  restraining the  legislature, SENATOR  TAYLOR adjourned  the                 
  committee meeting - still with no quorum.