MINUTES                                                                                         
                     SENATE FINANCE COMMITTEE                                                                                 
                         February 11, 2004                                                                                    
                              9:03 AM                                                                                         
                                                                                                                                
                                                                                                                                
TAPES                                                                                                                       
                                                                                                                                
SFC-04 # 8, Side A                                                                                                              
                                                                                                                              
CALL TO ORDER                                                                                                               
                                                                                                                                
Co-Chair Lyda Green convened the meeting at approximately 9:03 AM.                                                              
                                                                                                                                
PRESENT                                                                                                                     
                                                                                                                                
Senator Lyda Green, Co-Chair                                                                                                    
Senator Gary Wilken, Co-Chair                                                                                                   
Senator Con Bunde, Vice Chair                                                                                                   
Senator Lyman Hoffman                                                                                                           
Senator Fred Dyson                                                                                                              
                                                                                                                                
Also Attending: There were no additional participants.                                                                        
                                                                                                                                
Attending via Teleconference: There were no teleconference                                                                    
participants.                                                                                                                   
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
SB 136-RESIDENTIAL PROPERTY TAX EXEMPTION                                                                                       
                                                                                                                                
This bill was scheduled but not heard.                                                                                          
                                                                                                                                
SB 283-APPROP:  REVERSE 2003 CBR SWEEP                                                                                          
                                                                                                                                
A committee substitute was adopted and the bill reported from                                                                   
Committee.                                                                                                                      
                                                                                                                                
                                                                                                                                
     SENATE BILL NO. 283                                                                                                        
     "An  Act making  an appropriation  to  reverse  the deposit  of                                                            
     money  available for appropriation  in the general fund  at the                                                            
     end of fiscal year  2003 into the constitutional budget reserve                                                            
     fund;  making  an  appropriation  under  art. IX,  sec.  17(c),                                                            
     Constitution  of the State of  Alaska, from the constitutional                                                             
     budget reserve fund; and providing for an effective date."                                                                 
                                                                                                                                
                                                                                                                                
Co-Chair Wilken  moved to adopt CS SB 283(FIN), Version  23-LS1553\D                                                            
as the working document.                                                                                                        
                                                                                                                                
There being no  objection, the Version "D" committee  substitute was                                                            
adopted as the working document.                                                                                                
                                                                                                                                
Co-Chair Green explained  that the committee substitute differs from                                                            
the original  bill by the  inclusion of new  language in Section  1,                                                            
identified as subsection "b" on page 2 that reads as follows.                                                                   
                                                                                                                                
          (b) The sum of $125,000 is appropriated from the budget                                                               
     reserve  fund (art.IX,  sec. 17, Constitution  of the  State of                                                            
     Alaska)  to the Department of  Revenue, treasury division,  for                                                            
     the  fiscal   year  ending  June   30,  2004,  for   investment                                                            
     management fees for  the budget reserve fund (art. IX, sec. 17,                                                            
     Constitution of the State of Alaska).                                                                                      
                                                                                                                                
Co-Chair Green  commented that the  bill's prime sponsor  is Senator                                                            
Hoffman.                                                                                                                        
                                                                                                                                
Co-Chair Wilken  offered a motion to report the bill  from Committee                                                            
with individual recommendations.                                                                                                
                                                                                                                                
There  being  no  objection,  CS SB  283  (FIN)  was  REPORTED  from                                                            
Committee.                                                                                                                      
                                                                                                                                
                                                                                                                                
Co-Chair Green  allowed an opportunity for the Committee  to conduct                                                            
general Committee housekeeping as follows.                                                                                      
                                                                                                                                
Senator Bunde  asked whether  the Committee  might be discussing  an                                                            
alternate State budget being referred to as the 'B' budget."                                                                    
                                                                                                                                
Co-Chair Green responded  that that budget is very futuristic" as it                                                            
would pertain  to FY 2006. However,  she stated, while it  is worthy                                                            
of Members'  attention,  it is doubtful  that it  would be  formally                                                            
presented for discussion.                                                                                                       
                                                                                                                                
Senator  Bunde  voiced  the  desire to  understand  more  about  its                                                            
potential impact  on departments;  however, he stated that  he would                                                            
defer to the will of the Co-Chair.                                                                                              
                                                                                                                                
Co-Chair  Green opined  that  sufficient  discussion  time would  be                                                            
available between now and the fiscal year in question.                                                                          
                                                                                                                                
Senator Dyson  understood that the House of Representatives  Finance                                                            
Committee  is asking  its subcommittees  to consider  a ten  percent                                                            
reduction in the Governor's  FY 05 budget proposal. He asked whether                                                            
any further  information is available  in this regard. In  addition,                                                            
he commented,  for the benefit of the Senate Finance  subcommittees,                                                            
that some of  the State departments'  Missions and Measures  reports                                                            
are "disappointing"  as the information being measured  is two years                                                            
old. Therefore,  he encouraged  Committee  members "to be  vigilant"                                                            
when reviewing the department reports.                                                                                          
                                                                                                                                
Co-Chair  Wilken  informed  the  Committee  that  the  pace  of  the                                                            
Committee's  agenda  would be  increasing  as more  bills are  being                                                            
referred to the Committee.                                                                                                      
                                                                                                                                
Co-Chair Green concurred.                                                                                                       
                                                                                                                                
ADJOURNMENT                                                                                                                 
                                                                                                                                
Co-Chair Lyda Green adjourned the meeting at 09:10 AM