SJR 43-MAINTENANCE OF EFFORT ON FEDERAL PROGRAMS                                                                    
                                                                                                                              
SENATOR DONLEY explained a maintenance  of effort requirement is a                                                              
condition that comes  with some federal funding  programs and says                                                              
that if a  state were to reduce  spending on a  particular program                                                              
then  there may  be a  reduction in  the amount  of federal  funds                                                              
received. The maintenance  of effort requirements are  not all the                                                              
same,  which state  budgets that  are heavily  dependent on  those                                                              
federal funds.                                                                                                                  
                                                                                                                                
It  is challenging  for  states  to do  their  best  based on  the                                                              
highest and  best need  in any  given year  because even  though a                                                              
state  wanted to  prioritize a  different  level of  funding in  a                                                              
different  program, the  maintenance  of effort  requirements  may                                                              
inhibit that  because of  the potential  loss of federal  funding.                                                              
This entices  the state  to continue funding  at a level  that may                                                              
not be the most appropriate level in that particular year.                                                                      
                                                                                                                                
The  resolution requests  the United  States Congress  to grant  a                                                              
two-year moratorium on the maintenance  of effort requirements for                                                              
those  states  receiving  federal funds.  States  could  therefore                                                              
adjust  their budgets  without  being  fearful of  losing  federal                                                              
funds.                                                                                                                          
                                                                                                                                
CHAIRMAN  THERRIAULT  asked  Senator  Donley  whether  he  thought                                                              
copies should be  sent to every state governor or  to the heads of                                                              
the legislature  in every  state to  alert them  and try  to build                                                              
nation wide support.                                                                                                            
                                                                                                                                
SENATOR DONLEY  thought copies should  be sent to  the legislative                                                              
leadership  since  they  would  be   the  ones  to  adopt  similar                                                              
legislation  if  they  thought it  meritorious.  He  also  thought                                                              
informing the National Conference  of State Legislators (NCSL) and                                                              
other  national  organizations of  legislatures  would  be a  good                                                              
idea.                                                                                                                           
                                                                                                                                
CHAIRMAN  THERRIAULT asked  him  to verify  that  this would  give                                                              
states a period of time in which  they could adjust their spending                                                              
to  suit  their  particular  situation   after  which  they  could                                                              
establish a new level for maintenance of effort.                                                                                
                                                                                                                                
SENATOR DONLEY replied that was the idea.                                                                                       
                                                                                                                                
SENATOR  PHILLIPS asked  Chairman Therriault  whether he  wanted a                                                              
conceptual amendment.                                                                                                           
                                                                                                                                
CHAIRMAN THERRIAULT replied he did.                                                                                             
                                                                                                                                
SENATOR PHILLIPS made a motion to  adopt a conceptual amendment to                                                              
send the  resolution to the presiding  officers of each  of the 49                                                              
states.                                                                                                                         
                                                                                                                                
CHAIRMAN THERRIAULT  said generic language  would be used  so each                                                              
recipient wouldn't necessarily be named.                                                                                        
                                                                                                                                
There being no objection, Amendment #1 was adopted.                                                                             
                                                                                                                                
SENATOR PHILLIPS asked whether he wanted to include NCSL.                                                                       
                                                                                                                                
CHAIRMAN  THERRIAULT thought  it  might be  best to  send them  an                                                              
explanatory letter from the Finance  Committee with the resolution                                                              
attached.                                                                                                                       
                                                                                                                                
SENATOR DONLEY said that was acceptable to him.                                                                                 
                                                                                                                                
SENATOR  PHILLIPS made  a motion  to  move CSSJR  43 and  attached                                                              
fiscal note from committee with individual recommendations.                                                                     
                                                                                                                                
There being no objection, CSSJR 43(STA) moved from committee.