SSTA - 2/7/95 HCR 1 LONG RANGE FINANCIAL PLANNING COMMISSION Number 305 SENATOR SHARP brings up HCR 1 as the next order of business before the Senate State Affairs Committee and calls the first witness. Number 310 BILL MILES, Aide to Senate President Pearce, prime sponsor of SCR 3, the companion bill to HCR 1, informs the committee that a lot of work was done by the House Finance Committee on HCR 1. The House Finance Committee considered any number of majority and minority amendments and suggestions, and most of the suggestions made by the Governor's Office. HCR 1 passed the house by a 37-1 vote. The proposed SCS (senate committee substitute) is identical to the version passed by the house with one exception. Number 325 MR. MILES lists the changes made by the house: 1) page 1, line 7, the words "and expenditure" were added; 2) the whereas clause on page 1, line 9 is an entirely new clause; 3) page 1, lines 11 and 12 adds language specifying public participation; 4) page 1, line 14, adds the language "promote economic stability by diversifying the state's economy and lessening the dependence on oil revenues"; 5) page 2, line 3, the reference to a ten-year plan was replaced with a reference to a long-range financial plan; 6) a separate resolve clause was added referring to three, five, and ten-year plans; 7) page 3 of the proposed SCS (SCS CSHCR 1[STA]), paragraphs 8, 9, and 10 are new mandates; 8) three deadlines have been added: a March 15, 1995 start-up deadline, a July 15, 1995 preliminary report deadline, and a final report deadline of October 1, 1995. Number 355 MR. MILES informs the committee that Senator Pearce endorses the changes made by the house, and urges consideration of the committee substitute. MR. MILES states the final outstanding issue is the composition of the commission. Currently, the legislation passed by the House stipulates that all nine members be appointed jointly by the House Speaker, the Senate President, and the Governor. Senator Pearce feels that getting three people to agree on any nine appointees will be virtually impossible. That is why she suggets in the senate committee substitute that, of the nine public members, three members be appointed by the House Speaker, three by the Senate President, and three by the Governor. Number 380 SENATOR RANDY PHILLIPS asks what would force the legislature to implement the suggestions of the commission. MR. MILES responds there is nothing to force the legislature to follow the recommendations of the commission. SENATOR RANDY PHILLIPS states the vast majority of his constituents are opposed to the concept of a long-range planning commission; they think it will do no good. They also oppose the funding of such a panel. They think private groups should pick up the funding for this. The legislature should already be doing long-range planning. It would be a good concept if there was something to compel the legislature to follow the recommendations of the commission. But it is a non-binding resolution, and one legislature cannot bind another. Senator Phillips states he will not impede the forward motion of the resolution from committee, but he does not plan to vote for it when it reaches the floor of the Senate. Number 408 SENATOR DONLEY also thinks it is the job of the legislature and the governor's office to do long-range fiscal planning. SENATOR RANDY PHILLIPS thinks HCR 1 will have a difficult time passing the Senate. Number 450 MR. MILES states he cannot respond to Senator Phillips' and Senator Donley's concerns, but he will convey them to Senator Pearce. Number 456 JACK FARGNOLI, Office of Management & Budget, Governor's Office, states he is conveying testimony for Pat Pourchot. While the Governor supports HCR 1, the main concern is that in the proposed SCS, changing how the nine public members are appointed will alter the balance of power away from equality. Number 475 SENATOR RANDY PHILLIPS adds that two years ago, it was difficult to appoint members to the Legislative Ethics Committee due to a consensus clause. He thinks a consensus arrangement for appointing members to a long-range planning commission would cause similar problems. Number 480 MR. FARGNOLI responds it was felt that it would be easier to get unanimity than to deal with the minority issue. Number 485 SENATOR DONLEY suggests dealing with the problem by changing the number of public members the governor could appoint. Number 500 MR. FARGNOLI thinks the administration would be open to any approach that resulted in an equal balance. Number 505 KEVIN RITCHIE, Alaska Municipal League, states that state-wide, long-range financial planning is a priority of the municipal league. Many municipalities have completed long-range financial plans and would like to be involved in a state-wide effort. Mr. Ritchie thinks municipalities could provide technical and logistical support in creating a state-wide, long-range financial plan. Number 515 SENATOR RANDY PHILLIPS asks Mr. Ritchie how local governments funded their task forces. MR. RITCHIE replies some municipalities funded their task forces, while others simply did it internally. SENATOR RANDY PHILLIPS thinks the legislature and governor should do it internally. Number 525 CHAIRMAN SHARP says it is good to include the public, because the public then learns the ramifications of budget making. TAPE 95-3, SIDE B Number 580 SENATOR DONLEY offers an amendment to the proposed committee substitute for HCR 1. Amendment #1: page 3, line 3, after "programs", insert "of at least as much as the current fiscal gap between reoccurring revenues and current expenditures". CHAIRMAN SHARP objects to amendment #1. Number 574 SENATOR DUNCAN thinks it would be good to pass this amendment and HCR 1, if for no other reason than to show people how difficult it is to cut the budget. CHAIRMAN SHARP agrees with Senator Duncan. Balancing the budget is not going to occur simply by cutting the budget. Number 555 A vote is called on amendment # 1 to HCR 1. The amendment is adopted by 3 yeas, 1 nay, 1 absent. Voting for the amendment are Senators Phillips, Duncan, and Donley. Voting against the amendment is Chairman Sharp. Senator Leman is not present. Number 540 SENATOR DUNCAN offers amendment # 2 to the proposed committee substitute to HCR 1. Amendment # 2: page 2, paragraph 1, after the word "appoint" it will read, "the Speaker of the House of Representatives and the President of the Senate shall appoint two each, and the Governor shall appoint five of these members; page 2, paragraphs 2 and 3 shall stipulate that of the Senators and Representatives appointed, one of each shall be a member of the majority and one shall be a member of the minority. CHAIRMAN SHARP objects to amendment # 2. A vote is called on amendment # 2 to HCR 1. The amendment fails to be adopted by 2 yeas, 2 nays, and 1 absent. Voting for the amendment are Senators Duncan and Donley. Voting against the amendment are Senators Sharp and Phillips. Senator Leman is not present. Number 485 SENATOR DUNCAN offers amendment # 3 to the proposed committee substitute to HCR 1. Amendment # 3: page 2, paragraph 1, of the nine public members, five shall be appointed by the Governor, two by the Speaker of the House, and two by the President of the Senate. CHAIRMAN SHARP objects to amendment # 3. A vote is called on amendment # 3 to HCR 1. The amendment fails to be adopted by 2 yeas, 2 nays, and 1 absent. Voting for the amendment are Senators Duncan and Donley. Voting against the amendment are Senators Sharp and Phillips. Senator Leman is not present. Number 445 SENATOR DONLEY offers amendment # 4 to the proposed committee substitute to HCR 1. Amendment # 4: page 2, paragraphs 1-4: of the public members, two shall be appointed by the Speaker of the House, two by the President of the Senate, and three by the Governor. Of the non- public members, there shall be one Senate majority member, one Senate minority member, one House majority member, one House minority member, and two officials from the Executive Branch. Number 416 CHAIRMAN SHARP notes that the proposed committee substitute has not yet been adopted. SENATOR RANDY PHILLIPS makes a motion to adopt the proposed committee substitute. Number 412 CHAIRMAN SHARP, hearing no objection, states that SCS CSHCR 1(STA) has been adopted. The chairman notes that amendment # 1, which has been adopted applies to the SCS. Number 407 SENATOR DONLEY repeats amendment # 4 and moves the amendment. CHAIRMAN SHARP objects to amendment # 4. A vote is called on amendment # 4 to HCR 1. The amendment fails to be adopted by 2 yeas, 2 nays, and 1 absent. Voting for the amendment are Senators Duncan and Donley. Voting against the amendment are Senators Sharp and Phillips. Senator Leman is not present. Number 350 SENATOR DONLEY offers amendment # 5 to HCR 1. Amendment # 5: page 2, paragraphs 1-4: of the public members, two shall be appointed by the Speaker of the House, two by the President of the Senate, and three by the Governor. Of the non- public members, there shall be one Senate majority member, one Senate minority member, one House majority member, one House minority member, and one official from the Executive Branch. CHAIRMAN SHARP objects to amendment # 5. A vote is called on amendment # 5 to HCR 1. The amendment fails to be adopted by 1 yea, 3 nays, and 1 absent. Voting for the amendment is Senator Donley. Voting against the amendment are Senators Sharp, Phillips, and Duncan. Senator Leman is not present. Number 320 SENATOR DONLEY offers amendment # 6 to HCR 1. Amendment # 6: page 2, paragraphs 2 and 3, shall specify that there will be a majority member and a minority member from each house of the legislature. Number 313 CHAIRMAN SHARP objects to amendment # 6. A vote is called on amendment # 6 to HCR 1. The amendment fails to be adopted by 2 yeas, 2 nays, and 1 absent. Voting for the amendment are Senators Duncan and Donley. Voting against the amendment are Senators Sharp and Phillips. Senator Leman is not present. Number 243 SENATOR RANDY PHILLIPS makes a motion to discharge HCR 1 from the Senate State Affairs Committee with individual recommendations. SENATOR DUNCAN objects to releasing HCR 1 from the State Affairs Committee. A vote is called on releasing HCR 1 from committee. The motion fails, 2 yeas, 2 nays, and 1 absent. Voting in favor of the motion are Senators Sharp and Phillips. Voting against the motion are Senators Duncan and Donley. Senator Leman is not present. SENATOR DONLEY asks for reconsideration of amendment # 6. SENATOR RANDY PHILLIPS withdraws his motion to discharge HCR 1 from the Senate State Affairs Committee. SENATOR DONLEY moves amendment # 6 for reconsideration. Amendment # 6 is adopted by a vote of 4 yeas, 1 absent. Voting in favor of the amendment are Senators Sharp, Phillips, Duncan, and Donley. Senator Leman is not present. Number 208 SENATOR RANDY PHILLIPS makes a motion to discharge HCR 1 from the Senate State Affairs Committee with individual recommendations. Number 206 CHAIRMAN SHARP, hearing no objection, orders HCR 1 released from committee with individual recommendations.