Legislature(1993 - 1994)
03/22/1993 01:30 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 55 An Act making appropriations for the operating and loan program expenses of state government and to capitalize funds; and providing for an effective date. 1 HB 55 was held in Committee. Department of Administration amendments were addressed. HOUSE BILL 55 "An Act making appropriations for the operating and loan program expenses of state government and to capitalize funds; and providing for an effective date." PUBLIC TESTIMONY - JUNEAU 2 LARRY FANNING, ALASKA FIRE CHIEFS, JUNEAU, ALASKA, asked for reconsideration in three areas to help save financial losses to communities and citizens of Alaska. * Continued funding of the LAPC's. * Continued funding for fire suppression training. * Continued funding for emergency medical services. SANDY WILLIAMS, STATE PARKS ADVISORY BOARD, JUNEAU, ALASKA, spoke in support of the proposed Governor's recommendations for State parks. He added that the highway systems should be better maintained and supported adding an increased gas tax to cover these expenses. RICHARD HOFMAN, PRESIDENT, BOARD OF DIRECTORS, ALASKA TROLLERS ASSOCIATION (ATA), JUNEAU, ALASKA, asked for reconsideration of deductions recommended by the Department of Fish and Game Subcommittee. DIANE KAPLAN, PRESIDENT, ALASKA PUBLIC RADIO NETWORK, ANCHORAGE, ALASKA, urged the Committee to increase funding for the public radio systems in Alaska which are the only source of information for many small rural communities. PAULA TERREL, SELF, JUNEAU, ALASKA, spoke in support of the local Emergency Planning Committee contributing to community development projects and asked that the funding not be discontinued. DEPARTMENT OF ADMINISTRATION - AMENDMENTS CHERYL FRASCA, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, noted that the Governor's Office has withdrawn the amendment components lines #81 and #60. There being NO OBJECTION, they were deleted. Co-Chair Larson MOVED adoption of the three technical amendments; Line #81, the adjustment for leasing costs transferred from other department components; Line #1236, information services fund front, correct funding source for I/A receipts from the Department of Environmental Conservation; and Line #1230, home and community based care funding from the Department of Health and Social Services for Project Choice. Representative Hanley stated that the technical amendment to the home and community based care should not be listed as an increment to the HESS budget. Ms. Frasca stated the $42.4 thousand dollars was intended to be transferred from the 3 Department of Health and Social Services (DHSS) and pointed out that money had been reduced from DHSS's budget. JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, stated that the Department of Health and Social Services implemented the transfer from the Governor's original budget, although the Department of Administration did not transfer it in, which would be a technical adjustment. In the Governor's original budget, the Medicaid State Program component of $44.4 thousand dollars in general fund match was transferred out and was intended to be placed into the Department of Administration's budget as general funds. It was not added in the Governor's budget. Representative Martin MOVED to adopt the Governor's proposed technical amendments. Discussion followed regarding the impact on the DHSS budget. (Tape Change, HFC 93-53, Side 1). There were NO OBJECTIONS to adopting the three technical amendments; they were so ordered. Representative Hanley MOVED Amendment #DOA 1 for a designated grant to Southeast Senior Services in the amount of $200 thousand dollars for nutrition, transportation and support. REPRESENTATIVE ULMER advised the Committee that failure to adopt the amendment would have a very direct and detrimental impact on seniors throughout Southeast. New federal programs standards have changed the rules from which the funds are being distributed. She urged the Committee to adopt the amendment. Conflicting testimony followed regarding the amount necessary to provide adequate support for the Older Alaskans Commission as proposed in the amendments. Representative Brown pointed out that amendments #DOA 1 - #DOA 5 were of similar nature. She felt that $300 thousand would be essential to fully fund the agency. WALTER MAJOROS, PROGRAM COORDINATOR, OLDER ALASKANS COMMISSION, DEPARTMENT OF ADMINISTRATION, stated that the Older Alaskans Commission has requested excess federal authorization to offset the State reductions. Representative Martin suggested considering Amendments DOA questioned where the monies would be removed from and who would feel the impact if these amendments were not adopted. 4 Co-Chair Larson recommended that the amendment components DOA #1 -DOA #6 be held open for further consideration following additional information. Representative Brown noted that Representative Brice asked to WITHDRAW the second increment listed in Amendment #DOA 5, which would add $318.4 thousand dollars for home and community based care. There being NO OBJECTION, it was so ordered. Representative Foster MOVED Amendment #DOA 7, which would delete $5,724.7 thousand dollars for the Alaska Public Broadcasting Commission and insert $6024.7 thousand dollars. The amendment would add $300 thousand dollars to the Public Broadcasting Commission in support of public radio and television stations. This would return funding to the FY 93 level. Discussion followed regarding the need for greater broadcasting capacity particularly for rural Alaska. DOUG MOORE, ALASKA PUBLIC BROADCASTING COMMISSION stated that two new stations have come on line this year needing to receive new funds. He stated that Ft. Yukon has requested $65 thousand dollars operating costs and Talkeetna has requested $30 thousand dollars for first year costs. Mr. Moore added that the Commission is considering their available options facing continued decreased State funding. This years impact could be reduction of $400 thousand dollars federal funds. Representative Martin noted that #DOA 7 and #DOA 8 are the same amendment. He suggested that public radio become a private enterprise. Mr. Moore stated that fund raising efforts have increased statewide although a maximum has been reached in many communities throughout the State. Co-Chair Larson MOVED to amend #DOA 7 to add $225 thousand dollars rather than the recommended $300 thousand dollars. Representative Hoffman stated that the original amendment would reduce the component $95 thousand dollars. He emphasized that a further reduction would severely impact rural Alaska. (Tape Change, HFC 93-52, Side 2). Representative Brown OBJECTED, to the motion to amend. A roll call was taken on the MOTION. IN FAVOR: Martin, Parnell, Therriault, Hanley, Larson. 5 OPPOSED: Navarre, Brown, Foster, Grussendorf, Hoffman, MacLean. The MOTION FAILED, 5 - 6. Disagreeing discussion followed in regarding balancing the budget and the exceeding spending level caps contained within the proposed budget. Mr. Moore reiterated, that the responsibility of the Commission is to bring radio and public television services to all people in Alaska. He noted the significant holes in the coverage ability to areas in the Interior. Representative Brown voiced her concern regarding the arbitrary method caps were determined and the impact this will have on residents in the State. Co-Chair Larson summarized that the action of the Subcommittee which reduced the recommended Governor's budget of $20.8 million dollars by $23.1 million dollars. He pointed out, this brings the FY 94 budget below that of the FY 93 authorized budget. Representative Brown commented on the $54 million dollar decrease to Debt Service. She asked how this would be incorporated into the projected budget. Representative Navarre urged that the Committee establish policy which would take into consideration long term projections rather than establishing only fiscal goals. He reiterated that the minority was not included in the determination of the caps. Co-Chair MacLean MOVED to amend #DOA 7 and change the $300 thousand dollar request to $250 thousand dollars. Representative Navarre OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Parnell, Therriault, Foster, Hanley, Larson, MacLean. OPPOSED: Navarre, Brown, Grussendorf, Hoffman. Representative Martin was not present for the vote. The MOTION PASSED, 6 - 4. A roll call was taken on the MOTION to incorporate #DOA 7 with the amended $250 thousand dollar increase. IN FAVOR: Brown, Foster, Grussendorf, Hoffman, Navarre, MacLean, Larson. 6 OPPOSED: Parnell, Therriault, Hanley. Representative Martin was not present for the vote. The MOTION PASSED, (7 - 3). Representative Brown asked to hold #DOA 9 until the outcome of #DOA 10 was determined. Representative Navarre MOVED #DOA 10. He stated that the Pioneers Homes program anticipates increasing the rates charged residents again in FY 94. However, the prospective rate increase is not reflected in the FY 94 budget. Anticipating a ten percent rate increase effective in February, 1994, and assuming the same percentage of uncollectables applies to the additional funds, the revenue raised would be as represented in the amendment, an increase of $182.5 thousand dollars general fund. There being NO OBJECTION, it was adopted. Representative Brown WITHDREW #DOA 9. There being NO OBJECTION, it was so ordered. Representative Navarre MOVED #DOA 11 which would provide a study to address the unconstitutionality of the state's residency requirement for Pioneer Homes services. He noted that an increased demand for bed space is anticipated. Representative Hanley OBJECTED. He thought this concern should be placed in the capital budget. RANDY WELKER, LEGISLATIVE AUDIT DIVISION, advised there had been a recent audit performed on the Assisted Living Program within the Pioneers Home. During the time of the audit, the Agency became aware of several factors which needed to be recognized with the increasing demand on the Pioneer's Homes. He said the options available to the State should be discussed. Privatization would be one option in which funding would be available through Amendment #DOA 11. DANNY DEWITT, DIRECTOR, DIVISION OF PIONEER BENEFITS, DEPARTMENT OF ADMINISTRATION, noted his concerns with the direction of the Pioneer Homes. He felt that to perform a study of privatization, a year would not be enough time. Representative Navarre stated the Department should be responsible to determine the needed funds for the suggested study. (Tape Change, HFC 93-54, Side 1). Co-Chair Larson acknowledged that a cost efficiency study including privatization is needed. He recommended 7 Representative Navarre meet with Mr. DeWitt to determine the necessary factors. Co-Chair Larson noted #DOA 11 would be HELD open for further discussion. Representative Brown MOVED #DOA 12 which would restore to the Governor's FY 94 budget request an addition of $166.8 thousand dollars general fund for the public defender. Co- Chair Larson OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Brown, Foster, Grussendorf, Hoffman, Navarre. OPPOSED: Therriault, Hanley, Parnell, Larson, MacLean. Representative Martin was not present for the vote. The MOTION FAILED (5-5). Representative Navarre MOVED #DOA 13, personnel/equal employment opportunity, to deny the Governor's proposed fund source shift of $140.0 thousand dollars IAR to $140.0 general fund. The Division of Labor Relations is being combined with the Division of Personnel in the proposed FY 94 budget. Since FY 92, both agencies have been contributing to the operations of the Division of Labor Relations to provide enhanced labor relations services so that the full range of necessary labor relation functions would be performed for each department. He added, denial of the funding source would require continued transfer of funds from the agencies desiring additional labor relations service. Representative Hanley asked if interagency receipts would be indicated as going to the Department of Administration. SHARON BARTON, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF ADMINISTRATION, advised that the $140 thousand dollars is needed in the Labor Relations budget to fund that agency at the current level. The Department understands that necessary funds do not exist within the agencies at this time and are not available for an IAF transfer. Discussion followed on interagency receipts as shown in the Governor's budget. Co-Chair Larson suggested the amendment be left open for further research. Representative Brown MOVED #DOA 14 which would bring the OPA budget up to the Governor's proposed level. It is currently below the FY 93 level including the FY 93 supplemental funding level. Co-Chair Larson OBJECTED. 8 A roll call was taken on the MOTION. IN FAVOR: Brown, Foster, Grussendorf, Hoffman, Navarre, Parnell. OPPOSED: Hanley, Martin, Therriault, Larson, MacLean. The MOTION PASSED (6-5). Representative Brown WITHDREW #DOA 15, but suggested that intent language be written to direct the Department of Administration to reestablish permanency planning. Co-Chair Larson summarized the House Finance Committee's actions on the Department of Administration's amendments. Representative Brown asked for future discussion of Mental Health Board recommendations which will affect OAC, Community Based Care, Pioneer Homes and OPA.
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