SSTA - 1/26/95 SCR 3 LONG RANGE FINANCIAL PLANNING COMMISSION  CHAIRMAN SHARP brings up SCR 3 as the first order of business before the committee and calls the first witness. Number 050 SENATOR PEARCE, prime sponsor of SCR 3, notifies committee members that there is a sponsor substitute in their bill packets, and notes that Chairman Sharp has suggested it be introduced as a State Affairs Committee substitute. Senator Pearce thinks, with declining oil revenues and an increasing fiscal gap, long-range fiscal planning is becoming more important. It is the intent of the House and Senate presiding officers that SCR 3 and HCR 1 give the legislature something on which to focus. These resolutions are not perfect, but they are on the table and we are open to comments and suggestions. This issue needs to be taken up now. Number 105 SENATOR PEARCE states there are eighteen entities which formally support SCR 3: the State Chamber of Commerce, Anchorage Chamber of Commerce, Alaska Oil & Gas Association, Alaska Municipal League, Common Sense for Alaska, National Federation of Independent Businesses, Resource Development Council, and others. The senator informs the committee that, although she cannot speak for Governor Knowles, the governor does support the concept of a long-range financial planning commission. Number 122 SENATOR PEARCE informs the committee that the sponsor substitute for SCR 3 was prepared to incorporate suggestions presented by the governor. The difference between the original and the substitute are: page 2, paragraphs (2) and (3), specify that one Senate member and one House member be from the minority; page 2, line 22, specify that one of the public members of the commission be the chairperson; page 3, paragraph (9), change the reporting deadline from 1996 to October 1, 1995. SENATOR PEARCE thanks the committee for scheduling SCR 3 and asks for their consideration of the resolution. Number 151 SENATOR DUNCAN asks Senator Pearce if the Governor agreed to the provision that all administration members have a non-voting membership. SENATOR PEARCE replies the administration wants the commission to have more public members than members from the legislature and the administration. The governor feels he will have a direct voice on the commission through the public members, which he will appoint. We did not want the commission to be dominated by people who are already in public service. Those members are there to be a resource to the commission. SENATOR DUNCAN states he will double-check with the governor on whether the governor approves of administration members being non- voting members. Senator Duncan thinks there should be a stronger voice from the administration on the commission. He asks if the members specified in the resolution are the ones appointed by the governor. Number 195 BILL MILES, Aide to Senator Pearce, responds he just received the substitute for SCR 3 and has not yet sent a copy to the governor's office. Number 198 SENATOR PEARCE adds that the members designated in the substitute are the same as were designated in the original resolution. Number 205 SENATOR DUNCAN asks why the commission is required to report by October 1, 1995, but the commission continues until January, 1997. SENATOR PEARCE replies that is probably an oversight, and the commission should probably be disbanded after the final report, unless there is interest shown in having the commission do additional work. Number 218 CHRIS CHRISTENSEN, General Counsel, Alaska Court System, states he has not had the opportunity to review the committee substitute for SCR 3, only the original version. Since the commission is intended to be a state planning commission, and not simply and executive planning commission, the judicial branch feels it should be allotted a seat on the commission. Mr. Christensen asks that the judicial branch be included in the long-term financial planning commission. Number 237 PAM NEAL, Alaska State Chamber of Commerce (ASCC), states ASCC supports SCR 3. In fact, ASCC's number one priority for the 1995 legislative session is fiscal planning to identify and employ innovative solutions to the state's budgetary problems. However, ASCC would like to offer some suggestions: technical experts should not be members of the commission, but should just serve the commission in a support capacity; review of state programs should include evaluating all services the state currently provides and identifying those traditionally provided by a state to its' citizens; identification of services not traditionally provided by a state, and which therefore could be eliminated or restructured; and insuring services are being provided efficiently and effectively. Only after Alaskans are assured that the state is providing just traditional government services, and these services are being provided efficiently and effectively, should the state look at other fiscal tools, such as increased taxation. Ms. Neal thanks the committee for allowing ASCC to present their ideas. Ms. Neal has provided the committee with copies of her testimony and copies of the ASCC resolution supporting long-term financial planning. Number 290 SENATOR RANDY PHILLIPS remarks that his constituency is opposed to the creation of another commission. His constituents suggested that groups in favor of the commission volunteer to fund it. Senator Phillips asks Ms. Neal if the ASCC would contribute funding for a long-range financial planning commission. Number 303 MS. NEAL states she has not seen a fiscal note for funding the commission. But speaking of government responsibilities, she thinks it is the government's responsibility to fund their own planning. SENATOR RANDY PHILLIPS states his constituents think the executive and legislative branches should be doing long-range financial planning in the first place. In addition, why not have volunteers do it, instead of spending the money? Number 315 JACK FARGNOLI, Member of the Policy Staff, Office of Management & Budget, states the governor supports the objectives of the legislation. But Mr. Fargnoli says he cannot offer an official position at this time since they haven't seen the proposed substitute yet. The governor is happy to work with the legislature on this legislation. Number 340 SENATOR DUNCAN asks Mr. Fargnoli if the governor has seen the proposed substitute. MR. FARGNOLI says he has been told that the governor's office has not yet seen the committee substitute. SENATOR DUNCAN comments he thinks the governor should have the opportunity to provide input before the resolution moves forward. MR. FARGNOLI responds that the governor definitely would like to see the proposed committee substitute. SENATOR DUNCAN asks the chairman if SCR 3 will be held in committee until the governor has a chance to respond to the committee substitute. Number 341 CHAIRMAN SHARP replies that SCR 3 will be held over for consideration at the next meeting of the State Affairs Committee, which will be on Tuesday, January 31, 1995. Some of the suggestions made by witnesses today will be considered. Number 347 SENATOR PEARCE states that many of the questions brought up at a meeting earlier this week with the governor's office have been addressed in the committee substitute. Senator Pearce appreciates the committee holding the SCR 3 for further work, and notes that the resolution will have to have a Finance Committee hearing since there is a fiscal note attached to it. CHAIRMAN SHARP announces that SCR 3 will be held until the committee meeting Tuesday, January 31, 1995.