Senate Committee on Finance (05/02/2006)

Final
STAFF SUMMARY OF MEETING

SENATE COMMITTEE ON FINANCE

Date:	05/02/2006	ATTENDANCE

Time:	02:01 PM to 02:35 PM	Brophy	X
		Shaffer	X
Place:	SCR 354	Taylor	*
		Teck	X
This Meeting was called to order by		Tupa	X
	Senator Sandoval	Veiga	*
		Sandoval	X
This Report was prepared by
	Jason Schrock
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB06-1398 HB06-1399		Amended, Referred to the Committee of the Whole Referred to Appropriations

02:01 PM -- House Bill 06-1398

Senator Sandoval, chair, called the meeting to order. Senator Owen, prime sponsor, explained the provisions of HB 06-1398 which simplifies the existing statute that governs the distribution of sales and use taxes and changes the way the SB 97-1 diversion is accomplished. He explained how revenue forecast inaccuracies can cause SB 97-1 diversions to turn on or off too soon which can result in either too much or too little revenue for the diversion.

The following person testified on the bill:

02:04 PM -- Mr. Herman Stockinger, Colorado Department of Transportation (CDOT), took no position on the bill. He stated that there needs to be a way to prevent the SB 97-1 diversion from occurring when it should not be because of insufficient revenue. However, the bill needs an amendment that would allow for 90 percent of the final transfer of money on September 20 and the remaining 10 percent at the close of books for the fiscal year.

Senator Owen explained that the purpose of amendment L.003 (Attachment A) was to deal with the potential conflict in statutes should both HB 06-1018 and HB 06-1398 become law. He also indicated that he will have an amendment prepared for the floor addressing Mr. Stockinger's issue.


BILL:	HB06-1398
TIME:	02:10:31 PM
MOVED:	Teck
MOTION:	Motion to adopt L.003 (Attachment A). The motion passed without objection.
SECONDED:
		VOTE
	Brophy
	Shaffer
	Taylor
	Teck
	Tupa
	Veiga
	Sandoval
Not Final YES: 0 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB06-1398
TIME:	02:10:42 PM
MOVED:	Teck
MOTION:	Motion to refer HB 06-1398, as amended, to the Committee of the Whole with favorable recommendation. The motion passed on a 7 - 0 vote.
SECONDED:
		VOTE
	Brophy	Yes
	Shaffer	Yes
	Taylor	Yes
	Teck	Yes
	Tupa	Yes
	Veiga	Yes
	Sandoval	Yes
Final YES: 7 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

02:11 PM -- House Bill 06-1399

Senator Tapia, prime sponsor, explained the provisions of HB 06-1399 which authorizes the governing board of an institution of higher education to expend up to 3 percent of the amount annually authorized as cash spending authority for stipends received on behalf of eligible students for postsecondary educational services purchased by the Department of Higher Education if authorized through a fee-for-service contract. The bill authorizes the Department of Higher Education to transfer General Fund spending authority from stipends to fee-for-service contracts in an equivalent amount to fulfill its fee-for-service contract obligations. He explained that fee-for-service contracts fund many educational services that are generally not covered by the stipend funding. He indicated that the fiscal note is neutral.

Senator Tupa asked about the need for the bill and how it would work.

The following people testified on the bill:

02:17 PM -- Mr. Eric Kurtz, Joint Budget Committee Staff, provided information on how money appropriated for higher education is allocated for schools to use and how the bill would allow schools to use 3 percent of their stipends funding for fee-for-service contracts. He explained that money appropriated to the College Opportunity Fund remains in the fund until a student attends a specific school. He responded to committee questions regarding how the provisions of the bill would be implemented and their impact on funding for institutions of higher education.

The committee discussed what happens when schools receive a different number of students than was estimated. Senator Tupa thought that the bill illustrates the problem that funding for higher education is too complex.

02:28 PM -- Ms. Jenna Langer, Executive Director, Colorado Commission on Higher Education, spoke in support of the bill. She stated that the bill addresses the issue of when institutions of higher education need to adjust their funding from stipends and from fee-for-service when it receives its actual enrollment numbers. She explained that institutions adjust their funding for stipends and fee-for-service only after they have received information on the actual number of students. Senator Tupa commented that an amendment may be necessary to clarify that the money can be adjusted only after each institution has received their actual enrollment numbers.

Senator Tapia closed by asking for support for the bill. He stated that the bill would provide institutions more flexibility in their funding.


BILL:	HB06-1399
TIME:	02:34:34 PM
MOVED:	Veiga
MOTION:	Motion to refer HB 06-1399 to the Committee on Appropriations. The motion passed on a 6 - 1 vote.
SECONDED:
		VOTE
	Brophy	No
	Shaffer	Yes
	Taylor	Yes
	Teck	Yes
	Tupa	Yes
	Veiga	Yes
	Sandoval	Yes
Final YES: 6 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS

02:35 PM

The committee recessed.