NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of Gubernatorial Action

The governor vetoed language contained in Subsection B of Section 7 and all of Section 14 regarding the legislature's ability to transfer monies among categories. The governor also vetoed personal services ($1,695.8) and employee benefits ($508.1) from the LFC appropriation.

Synopsis of Concurrence

The House did not concur with the Senate amendments and requested the Senate to recede from all its amendments. The Senate agreed to recede from its Senate Floor Amendment #1, but did not recede from the Senate Finance Committee amendment. The House receded from nonconcurrence. The effect of this action was to eliminate the $1,330.0 appropriation for district office and staff.

Synopsis of Senate Floor Amendment #1

The amendment adds a new appropriation of $1,330.0 from the general fund, $13.0 for each senate member and $10.0 for each house member, to provide a district office or staff for each legislator for expenditure in FY2000. The amendment also provides that the Legislative Council develop policies, procedures and limitation on the use of the appropriation. Unencumbered and unexpended balances remaining at the end of FY2000 revert to the general fund.

Synopsis of Senate Finance Committee Amendment

The amendment strikes item three of House Floor amendment No. 1 and decreases the FY2000 appropriation for the Legislative Council Service by $24.9 from $3,810.5 to $3,785.6 and the Legislative Education Study Committee by $6.0 from $763.1 to $757.1.

Synopsis of House Floor Amendment #1

The amendment decreases the session expenses of the Legislative Council Service, the joint billroom and mailroom and joint legislative switchboard by $50.0 from $998.3 to $948.3 and decreases the FY2000 appropriation for the Legislative Council Service by $100.0 from $3,810.5 to $3,710.5.

Synopsis of House Appropriations and Finance Committee Amendment

The amendment decreases the FY2000 appropriation for the Legislative Finance Committee (LFC) by $220.2, from $3,008.4 to $2,788.2.

During the interim, the LFC studied the performance audit function and identified a need to increase resources and strengthen processes. The LFC budget included $415.9 in program change for five additional performance auditors and one support staff. In early January, LFC entered into a memorandum of understanding with the state auditor to conduct a joint performance audit program. The proposed amendment reduces the program change request by three positions and eliminates the request for rent. The state auditor will seek additional funding for his performance audit function.

Synopsis of Bill

House Bill 1 provides funding for the operation of the 1999 regular legislative session and funding for interim activities, including fiscal year 2000 operating budgets of the Legislative Council Service, Legislative Education Study Committee, Legislative Finance Committee, and the house and senate chief clerk offices. Other appropriations include legislative interim expenses, session preparation, statewide legislative internship program and expenses of the Senate Rules Committee.

FISCAL IMPLICATIONS

Details of the appropriations are:

_______________

* Nonrecurring

** Amount in original bill was $3,008.4. This amount reflects the HAFC amendment.

*** Amount in original bill was $6,354.3. This amount reflects the House Floor amendment.

**** Amount in original bill was $3,810.5. This amount reflects the Senate Finance amendment.

***** Amount in original bill was $763.1. This amount reflects the Senate Finance amendment.

****** Amount added by Senate Floor amendment #1.

With the exception of the telephone system, the appropriations are recurring.

DKB/njw:prr