Legislature(1993 - 1994)
04/01/1993 04:12 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
HOUSE BILL NO. 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."
Co-Chair Larson provided members with a Committee Substitute
for House Bill 55 (FIN), work draft 8-GH1038/O, dated
3/31/93 (copy on file). He presented members with a summary
of formula funded programs contained in HB 55 (Attachment
1
1).
FORMULA PROGRAMS
DEPARTMENT OF ADMINISTRATION
Co-Chair Larson MOVED to INCORPORATE into HB 55, funding for
the Longevity Bonus Program at the Governor's Amended FY 94
level ($69,584.2 million dollars). There being NO
OBJECTION, it was so ordered.
Co-Chair Larson MOVED to INCORPORATE into HB 55, funding for
Retirement and Benefits/EPORS at the Governor's Amended FY
94 level ($893.9 thousand dollars). There being NO
OBJECTION, it was so ordered.
Co-Chair Larson MOVED to INCORPORATE into HB 55, funding for
Leasing at the Governor's Amended FY 94 level ($26,484.9
million dollars). There being NO OBJECTION, it was so
ordered.
DEPARTMENT OF REVENUE
Co-Chair Larson MOVED to INCORPORATE into HB 55 the front
section, funding for Shared Taxes at the Governor's Amended
FY 94 level ($19,085.0 million dollars). There being NO
OBJECTION, it was so ordered.
DEPARTMENT OF EDUCATION
Co-Chair Larson observed that funding for Education is
contained in HB 45. Funding for single site districts, not
included in HB 45, is contained in the Department of
Education's operating budget.
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
Co-Chair Larson MOVED to INCORPORATE into HB 55, funding for
AFDC at the Governor's Amended FY 94 level ($56,800.4
million dollars). He noted that legislation is pending
which would affect funding for AFDC (HB 67).
MIKE GREANY, DIRECTOR, LEGISLATIVE FINANCE COMMITTEE pointed
out that the Governor's Amended FY 94 budget can be used as
a base. Funding can be added or subtracted through a fiscal
note if the proposed legislation is enacted. Representative
Brown noted that the legislation would reduce funding for
AFDC.
Representative Navarre suggested that funding should reflect
the current statute. A change to the statutes should be
reflected by a fiscal note. The Governor's Amended FY 94
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level assumes that HB 67 will pass. Mr. Greany clarified
that money would have to be added to the Governor's Amended
FY 94 level to fully fund AFDC according to current
statutes.
Representative Navarre suggested that AFDC funding reflect
action taken in CSHB 67 (FIN). Representative Grussendorf
agreed with Representative Navarre's proposal. Co-Chair
Larson observed that Adult Public Assistance would also be
affected.
Co-Chair Larson MOVED to INCORPORATE into HB 55, funding for
AFDC and Adult Public Assistance at the level proposed in
CSHB 67 (FIN). There being NO OBJECTION, it was so ordered.
Co-Chair Larson concluded that a shortfall in funding could
be addressed in a FY 95 supplemental.
Representative Martin expressed concern with funding of
abortions in the General Relief component. Representative
Martin suggested that state funding could be reduced to an
increase in federal funding for abortions.
CHERYL FRASCA, DIVISION DIRECTOR, OFFICE OF MANAGEMENT AND
BUDGET, OFFICE OF THE GOVERNOR clarified that increased
federal funding has been proposed. The state has not
received an increase in funds at this time.
Representative Martin MOVED to delete $300.0 thousand
dollars from the Governor's Amended FY 94 level for General
Relief. A roll call vote was taken on the motion.
IN FAVOR: Hanley, Martin, Parnell, Therriault
OPPOSED: Brown, Foster, Grussendorf, Hoffman, Navarre,
Larson, MacLean
The MOTION FAILED (4-7).
There being NO OBJECTION, the Governor's Amended FY 94 level
for General Relief was adopted.
Representative Hanley provided members with Amendment 1 for
formula programs in the Department of Health and Social
Services (Attachment 2). He explained the amendment.
Representative Hanley MOVED to ADOPT an increment of $400.0
thousand dollars in the Foster Care Component. There being
NO OBJECTION, it was so ordered.
Representative Hanley MOVED to ADOPT an increment of $340.0
thousand dollars to the Governor's Amended FY 94 level
($1,574.6 million dollars). There being NO OBJECTION, it
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was so ordered.
Representative Hanley MOVED to reduce Medical Assistance to
$122,114.3 million dollars. There being NO OBJECTION, it
was so ordered.
Representative Hanley provided members with intent language
for the Department of Health and Social Services which read,
"The intent of the Legislature is that the Department of
Health and Social Services provide all optional Medicaid
services and that any shortfall in funding be absorbed by
controlling the cost and growth of optional land mandatory
Medicaid services, rather than the elimination of any
services." Representative Brown asked if the Department
would be able to control the cost and growth of Medicaid
services.
KIMBERLY BUSCH, DIRECTOR, DIVISION OF MEDICAL SERVICES,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES stated that the
Department would limit contracts for services such as eye
glasses and durable medical equipment. Additional limits
would be established.
Representative Brown asked why limiting services would be
preferable to dropping the lowest priority. Representative
Hanley noted that some of the lowest priority services save
funding. He maintained that greater flexibility will be
provided.
Co-Chair Larson reiterated the motion. There being NO
OBJECTION, the intent language was adopted.
Representative Therriault asked for information concerning
the Social Services Grant Block.
JANET CLARKE, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT
OF HEALTH AND SOCIAL SERVICES explained that Social Services
Block Grants Offsets component represent federal funds. The
Social Services Block Grant amount is not being reduced.
Co-Chair Larson MOVED to INCORPORATE into HB 55, funding for
Health and Social Services Formulas, as contained on
attachment 1, at the Governor's Amended FY 94 level. There
being NO OBJECTION, it was so ordered.
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT
Co-Chair Larson MOVED to INCORPORATE into HB 55, funding for
Power Cost Equalization at the Governor's Amended FY 94
level ($17,920.0 million dollars). Representative Navarre
noted that CSHB 216 (FIN) would affect the funding. There
being NO OBJECTION, it was so ordered.
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Co-Chair Larson MOVED to INCORPORATE into HB 55, funding for
Fisheries Enhancement Tax Receipts at the Governor's Amended
FY 94 level ($7,189.9 million dollars). Mr. Greany
clarified that the Fisheries Enhancement Tax Receipts have
been adopted in the front section of HB 55. He observed
that a specific dollar amount has not be adopted. The exact
amount has been estimated. He compared the Fisheries
Enhancement Tax to other shared taxes. There being NO
OBJECTION, funding for Fisheries Enhancement Tax Receipts
was included at the Governor's Amended FY 94 level ($7,189.9
million dollars).
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
Ms. Frasca provided members with a letter requesting
$964.001 thousand dollars for National Guard Retirement
(Attachment 3). Ms. Frasca explained attachment 3.
(Tape Change, HFC 93-88, Side 2)
Representative Foster MOVED to INCORPORATE into HB 55,
funding for National Guard Retirement at the level requested
in attachment 3 ($964,001.0). Representative Parnell asked
for further information concerning the actuarial soundness
of the retirement system. The National Guard Retirement
component was HELD OPEN.
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS
Co-Chair Larson suggested that Senior Citizen Tax Relief
reflect action take by the Committee in CSHB 66 (FIN).
Representative Brown thought that funds for the calendar
year 1993 should be appropriated in FY 94. She stressed
that municipalities will have to pay the 20 percent the
state has provided.
Municipal Revenue Sharing and Municipal Assistance were HELD
OPEN.
Ms. Frasca explained that Organizational Grant funding will
be contained in the capital budget. Representative Navarre
felt that the funding should be included in the operating or
supplemental budget.
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
JEFF MORRISON, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT
OF MILITARY AND VETERANS AFFAIRS discussed the actuarial
soundness of the retirement system. In 1991, the system was
at 41.7 percent. In 1989, the system was at 47.0 percent.
He noted that both PERS and TRS systems are close to 100
5
percent funded. The National Guard Retirement System is
currently 42.0 percent funded. Members continued to discuss
the National Guard Retirement System.
Representative Martin MOVED to INCORPORATE into HB 55,
funding for National Guard Retirement at the level requested
in attachment 3 ($964.0 thousand dollars). There being NO
OBJECTION, it was so ordered.
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS
Representative Navarre reiterated that the Senior Citizen's
Tax Exemption is prorated. Representative Brown referred to
the Renter's Rebate Program. Members discussed the affect
of CSHB 66 (FIN) on the Senior Citizen's Tax Exemption
Program.
Co-Chair MacLean provided members with two handouts
regarding municipal assistance and revenue
sharing(Attachment 4 and 5). She explained the handouts.
Attachment 5 demonstrated the affects of reductions to each
community at 5, 10, 15, 20 and 25 percent. Co-Chair MacLean
provided members with a handout detailing a 7 percent
reduction to municipal assistance and revenue sharing
(Attachment 6).
Representative Grussendorf spoke in support of full funding
for the programs. Co-Chair MacLean suggested a 7 percent
reduction to the programs.
Co-Chair MacLean MOVED to ADOPT a 7 percent reduction to the
FY 93 level for revenue sharing and municipal assistance.
She explained that $14.0 million dollars will be added to
the Governor's proposed 25 percent reduction.
Representative Navarre MOVED to AMEND the motion to fund
revenue sharing and municipal assistance at the FY 93 level.
Co-Chair MacLean OBJECTED. A roll call vote was taken on
the motion.
IN FAVOR: Brown, Grussendorf, Navarre
OPPOSED: Foster, Hoffman, Martin, Parnell, Therriault,
MacLean, Larson
The MOTION FAILED (3-7).
Representative Hanley was absent for the vote.
A roll call vote was taken on the motion to add $14 million
dollars to fund revenue sharing and municipal assistance at
a 7 percent reduction from the FY 93 level.
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IN FAVOR: Brown, Foster, Hoffman, Martin, Navarre, Parnell,
Therriault, MacLean, Larson
OPPOSED: Grussendorf
The MOTION PASSED (9-1).
Representative Hanley was absent for the vote.
FRONT SECTION
Co-Chair Larson provided members with CSHB 55 (FIN) during a
previous meeting (Attachment 7). Co-Chair Larson noted that
section 11 was held open. Co-Chair Larson MOVED to
INCORPORATE Section 11 into CSHB 55 (FIN). There being NO
OBJECTION, it was so ordered.
Section 13 was HELD OPEN.
Representative Therriault noted that the funding source for
section 22 (b) should be the Mitigation Account.
Representative Brown asked that sections 21 and 22 be
addressed at the same time. Co-Chair MacLean stated that
$7.5 million dollars were appropriated to the Vessel
Replacement Fund from the 470 Fund. An additional $7.5
million dollars is requested in the front section of HB 55.
She noted that the capital budget contains $6.4 million
dollars.
Sections 21 and 22 were HELD OPEN.
Representative Therriault noted that Mr. Greany had worked
with the drafter to clarify that funding is not lapsed
before appropriations are made. Mr. Greany discussed the
drafting. Ms. Frasca assured members that the
Administration understands the Legislature's intent.
Representative Therriault suggested that a statutory
reference be added to section 20 to clarify that the $26.7
million dollars is an appropriation of the surtax money in
the General Fund.
Mr. Greany explained that the balance of the Mitigation
Account is $14 million dollars.
HB 55 was HELD in Committee.
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