Legislature(1993 - 1994)
03/10/1993 01:12 PM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
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DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS
The House Finance Subcommittee on the Department of
Community and Regional Affairs consists of Chair MacLean
with members Representatives Olberg, Williams, B. Davis and
Brice.
Co-Chair MacLean noted that the Department of Community and
Regional Affairs had 42 positions transferred in the FY 93
Operating Budget. The Governor's FY 94 proposed budget for
the Department of Community and Regional Affairs is
$124,406.3 million dollars. Total funds represents a 15.6
percent decrease below FY 93 Authorized. The General Fund
request is 21.1 percent below FY 93 Authorized.
Co-Chair MacLean emphasized that the Subcommittee's intent
is to increase support for service delivery in remote
regions of the State. She noted that the Subcommittee
reduced all designated grants. She provided members with
the Transaction Summary for the House (Attachment 2). She
reviewed the Subcommittee's proposed reductions:
* Administrative Services - <$75.0> thousand dollars
This reduction will eliminate at least 2 full time
equivalent positions in administrative services.
Co-Chair MacLean stated that the Subcommittee approved
intent language regarding Reimbursable Service Agreement
(RSA) (Attachment 3). She stressed that the Subcommittee is
adamantly opposed to the transfer of funding from other
areas of the Department by use of a RSA, to reinstate
reductions made by the Legislature.
* Designated Grants - <$160.3> thousand dollars
Designated Grants were classified for reductions.
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Gaming/Training Programs - 30 percent
People Count - 15 percent
Native Cultural Activities - 10 percent
Life, Health and Safety - 10 percent
* Training and Development/Travel - $20.0
Twenty thousand dollars was added for travel of
local government specialists at the eight regional
offices, to improve outreach to communities. It
is the intention of the Subcommittee that
additional travel money above that which is
allocated in the Governor's proposal be equitably
distributed among all regional offices.
* Rural Utility Business Advisors (RUBA) - <$175.0
thousand dollars>
The authorization of interagency receipts was
reduced. Authorization was contingent upon a
request of $1 million dollars in the Department of
Environmental Conservation's capital budget. The
capital appropriation has been reduced to $500.0
thousand dollars.
* Community Development Assistance - <93.9 thousand
dollars>
The request for a deputy director position in
Anchorage was denied. Three positions were
approved.
Co-Chair MacLean noted that the Subcommittee adopted intent
language for the Day Care Assistance Program, urging the
Department to request a supplemental if the program is short
in FY 94.
Representative Brown asked Co-Chair MacLean to reiterate the
classification of reductions to designated grants. She
asked why Native Cultural grants were given priority over
Gaming and Training. Co-Chair MacLean declined to respond.
Representative Brown expressed her concern with reductions
to Alaska Legal Services. She asked if the Subcommittee
considered restoring Alaska Legal Services to the FY 92
level. Co-Chair MacLean stated that the Subcommittee did
consider increasing this component. She added that under
the 1 percent reduction plan the Subcommittee did not feel
the component could be increased. An office in Unalaska
will remain closed.
Representative Therriault asked if there is a criteria for
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designated grants.
REMOND HENDERSON, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS
clarified that designated grants are at the discretion of
the Legislature. Some grants have been in the Department's
budget for eight years. Co-Chair MacLean provided members
with a history of designated grants (Attachment 4).
Representative Parnell asked for a clarification of the
reductions to designated grants. Co-Chair MacLean clarified
that Perseverance Theatre was reduced by 30 percent. Alaska
Native Arts was reduced by 10 percent. Alaska Special
Olympics and Arctic Winter Games were reduced 30 percent.
Co-Chair MacLean MOVED to adopt the Intent Language,
Attachment 3. There being NO OBJECTION, it was so ordered.
Co-Chair MacLean noted that the Department has submitted
budget amendments totaling $325.2 thousand dollars. The
budget amendments were adopted but are not reflected in
Attachment 2.
Representative Brown observed that the Department estimates
that the Subcommittee's proposed funding level for Day Care
Assistance would result in 340 children or 240 families that
would not be served.
(Tape Change, HFC 93-43, Side 2)
Co-Chair MacLean justified the Subcommittee's reduction to
Day Care Assistance. She noted that Day Care Assistance is
pure general fund dollars. She gave statistics regarding
Child Care Programs:
* Daycare Assistance Programs: subsidies to low
income; parents has $11,173.9 million dollars left
in the current year.
* Funding has not been changed for Child Care
Subsidy Grants, FSA Entitlement Program, At Risk
Assistance Program and Block Grant Programs.
Co-Chair MacLean emphasized that the funding level for Day
Care Assistance has remained at the Governor's proposed
level.
Co-Chair MacLean observed that there was excess federal
authorization for FY 93 because the State received two years
of At-Risk funding in FY 92. In FY 92 $2.5 million dollars
in child care was lapsed. All applicants were served. The
Department voluntarily reduced $500.0 thousand dollars from
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Child Care in FY 94. She asserted that the Department can
request a supplement if the FY 94 demand exceeds the
appropriation.
Representative Brown referred to a letter from John Walsh,
Deputy Director, Department of Community and Regional
Affairs to Representative Bette Davis, dated March 3 1993.
She quotes the letter as stating: "Should the FY 94 budget
be approved as proposed, using an estimate of $345.00 per
month for a child, 340 children would not be served...
Based upon an average ratio of children to families, this
reduction would impact approximately 240 families... As I
stated during the overview, the Department was unaware of
the marked increase in enrollment at the time we prepared
our FY 94 budget document, nor do we have access to leading
economic indicators that correlate to changes in child care
demand."
Representative Brown alleged that the Day Care Assistance
Program will be under-funded.
Co-Chair MacLean MOVED to adopt the Subcommittee's proposals
as contained in Attachment 2.
Co-Chair Larson clarified, for Representative Grussendorf,
that the Subcommittee on Formula Programs will make
recommendations for formula programs to the full House
Finance Committee. Representative Brown noted her OBJECTION
to not funding the Home Owners Property Tax Exemption and
Renters Rebate Program. Co-Chair MacLean reiterated that
formula programs were not considered by the Subcommittee.
There being NO OBJECTION, the Subcommittee's proposals for
the Department of Community and Regional Affairs non-formula
programs were adopted and incorporated into HB 55.
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