04/22/1998 09:22 AM Senate FIN

                                                                               
SENATE BILL NO. 230                                                            
                                                                               
"An Act making appropriations for the operating and                            
capital expenses of the state's integrated                                     
comprehensive mental health program; and providing for                         
an effective date."                                                            
                                                                               
Senator Phillips briefly explained the Department of                           
Administration subcommittee closeout.  He reviewed the                         
changes and reductions, specifically noting the reduction                      
to Longevity Bonus in the amount of $560,000 from the                          
Governor's amended version of the budget.  He also noted                       
the reductions to the Office of the Public Advocate and the                    
Office of the Public Defender.  There was a general                            
deduction in the Division of Finance in the amount of                          
$286,000.  He MOVED the Department of Administration                           
subcommittee closeout.  Senator Adams OBJECTION.  He                           
requested Sharon Barton from the  department be invited to                     
join the committee.  He said he wanted to know the problem                     
areas of the subcommittee report.                                              
                                                                               
SHARON BARTON, Director, Division of Administrative                            
Services, Department of Administration was invited to join                     
the committee.  She said the Longevity Bonus cut should not                    
be a problem because they were still funded at the high                        
range.  However, the level of the reduction to the Office                      
of the Public Advocate and Office of the Public Defender                       
may well result in a supplemental in 1999.  The                                
Commissioner's increment for $310,000 and APOC for $167,000                    
are priorities for the department and they have previously                     
spoken to those details.  It had been requested that those                     
increments be rolled into the supplemental bill as one-time                    
items using Longevity Bonus grants surplus from this fiscal                    
year.  She was also concerned about the reduction to the                       
Division of Finance and explained there will be a charge-                      
back or pro-ration for services.  She reviewed the cut in                      
Oil and Gas Conservation Commission in the amount of                           
$250,000.  She explained that $200,000 was for additional                      
inspection staff to deal with the increase in drilling                         
activity on the Slope.  She also said the remaining $50,000                    
were for the State's dues for IOGC of which the State has                      
been a member for many years.  She explained a comparison                      
to FY '98.  Even though the costs this year are over and                       
above, they would try to hold down on a supplemental                           
request for FY '99.                                                            
                                                                               
She said the reduction to the Division of Motor Vehicles in                    
the amount of $485,000 was for license plates, manuals and                     
equipment.  These items have to be purchased for FY '99 as                     
they do not have an ample supply on hand.  If not funded it                    
will be the same as a staff reduction or general reduction                     
to DMV and will be taken by necessity from the personal                        
services line item.  The impact of that reduction would be                     
those satellite offices now being contemplated for                             
Anchorage and Matanuska Valley would not be established.                       
It will take away their opportunity to redeploy staff from                     
the back office into the front office to help eliminate                        
long lines at DMV.  Field service operations will also be                      
reevaluated, especially the one-person offices that are                        
less efficient than the larger offices.  They will try to                      
find a more cost-effective way to deliver services to the                      
outlying communities.                                                          
                                                                               
Senator Sharp asked if any numbers were available on how                       
many people were using the relicensing tag options through                     
emission control offices and new car dealers?                                  
                                                                               
JUANITA HENSLEY, Division of Motor Vehicles was invited to                     
join the committee.  She said the numbers were available at                    
her office and she would get them to him promptly.  She did                    
note, however, that in 1997 the two dealers on line to                         
issue titles for DMV issued only ninety-seven titles for                       
that year.  New dealers were being brought on this week.                       
Those were:  Anchorage Chrysler, Eero Volkswagen, Saturn,                      
Continental Motors, Honda, and Dollar Rent-a-Car all of                        
Anchorage.  One dealer in Juneau is waiting the proper                         
hardware so they could also come on line.                                      
                                                                               
Senator Adams asked the subcommittee chair what their                          
position regarding the Office of the Public Advocate and                       
the Office of the Public Defender in regards to Smart Start                    
was.  Senator Phillips said he thought that was going to be                    
considered in another budget.  Senator Adams also                              
questioned the elimination of $310,000 from the                                
Commissioner's Office for negotiations on on-going or                          
future contracts and how that was going to be handled.                         
Senator Phillips said the subcommittee would rather have                       
those items addressed in a supplemental.                                       
                                                                               
Senator Adams advised Co-chair Pearce that he MAINTAINED                       
his OBJECTION.  By a roll call vote of 5 yeas (Pearce,                         
Sharp, Donley, Parnell, Phillips) and 1 nay (Adams)                            
(Torgerson absent) the Department of Administration                            
subcommittee report was ADOPTED.                                               
                                                                               
Co-chair Pearce advised that the Department of                                 
Transportation closeout would be at 4:30 p.m. this                             
afternoon.  She then passed the gavel to Co-chair Bert                         
Sharp.                                                                         
                                                                               
(pause on record)