Legislature(1999 - 2000)
03/09/1999 01:45 PM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 100
"An Act making and amending capital, supplemental, and
other appropriations, and appropriations to capitalize
funds; ratifying certain expenditures; and providing
for an effective date."
Co-Chair Mulder MOVED to adopt Amendment #16 which would
restore the funding for remodeling newly acquired space in
the same building now occupied by the Public Defender,
thereby, saving additional costs of establishing a full
support system for offices separate from the current space.
[Copy on File]. There being NO OBJECTION, Amendment #16 was
adopted.
Representative Williams MOVED to adopt Amendment #17 which
would add $70 thousand general fund program receipt dollars
to the Department of Transportation and Public Facilities,
Division of Design and Engineering Services for utility
permit issuance. [Copy on File].
Co-Chair Therriault asked where the program receipts would
be generated from.
DAN SPENCER, CHIEF BUDGET ANALYST, OFFICE OF MANAGEMENT AND
BUDGET, stated that they would come from utilities. He
noted that the Department of Transportation and Public
Facilities does support the amendment.
There being NO OBJECTION, Amendment #17 was adopted.
Representative Bunde WITHDREW Amendment #18. [Copy on
File].
Representative Bunde MOVED to adopt Amendment #19, which
would reappropriate $430,300 in federal indirect receipts
which would be used as State funds for the Child Support
Enforcement Division (CSED) shortfall. [Copy on File].
GINGER BLAISDELL, FISCAL ANALYST, LEGISLATIVE FINANCE
DIVISION, pointed out that there is a new Amendment #19
which would replace the original Amendment #19. [Copy on
File]. The original Amendment #19 does not show the federal
receipt portion. The new Amendment #19 includes federal
receipt dollars. The total supplemental request for CSED
would be $852,189 dollars.
Representative Bunde WITHDREW the MOTION to MOVE the
original Amendment #19. There being NO OBJECTION, it was
withdrawn. Representative Bunde MOVED to adopt the NEW
Amendment #19. There being NO OBJECTION, it was adopted.
Mr. Spencer asked to speak on the record regarding timing of
program receipts. He stressed that the Department of
Revenue will not know for certain the full amount of program
receipts until after June 30, 1999. He reiterated that the
number before the Committee was a projection. If the funds
do not come in at this level, an over expenditure will be
shown for CSED.
Co-Chair Therriault questioned the charge-back recalculation
for the Department of Administration. Mr. Spencer explained
that the Department establishes the rates approximately 16
months in advance. They implemented a new version of the
CICS, mainframe computer system software. A rate adjustment
has been made based on which costs actually need recovering.
Representative Grussendorf MOVED to RESCIND action taken on
Amendment #5. Representative Bunde OBJECTED.
Representative Grussendorf voiced concern with the Committee
not funding power cost equalization (PCE) in the rural
areas. Representative Bunde replied that he supported
research on whether power cost equalization should be
continued and if it was continued, how it would be financed.
Representative J. Davies stated that for several years, the
Legislature has funded PCE at the 85% level and that there
has been a reasonable expectation in rural Alaska that it
would continue to be funded at that level. He added that
the Blue Ribbon Commission has indicated that there is
enough money in that program to cover the request at that
level. He stated that to force a change before there has
been discussion would be premature.
Representative Austerman voiced concern that the Department
had not prorated PCE costs, which might suggest that it
would be the responsibility of the Department.
Representative J. Davies pointed out that the Department was
addressing it in the same manner they have in the past two
years.
Representative Moses pointed out that there has been a lot
of money spent on hydroelectric power and various types of
power in urban areas. Many taxpayer dollars have been spent
on getting inexpensive power to those areas. He exclaimed
that there must be a program established to get inexpensive
power to the rural area, whether it be thermal, hydro or
wind turban. Representative Moses emphasized that until
inexpensive power is achieved in the rural areas, it is
paramount that the State continues to fund PCE.
Representative Kohring noted that by continuing to fund PCE,
the State would not be accomplishing any sustainable plan of
development. Representative J. Davies agreed that there
does need to be a plan, however, what is being requested at
this time is supplemental money to help the rural area get
through until the end of the fiscal year. He emphasized
that money exists in the power cost equalization fund to
cover the expense and that it should be used for that
purpose.
A roll call vote was taken on the motion.
IN FAVOR: J. Davies, Foster, Grussendorf, Moses,
Williams
OPPOSED: Bunde, G. Davis, Kohring, Austerman,
Therriault, Mulder
The MOTION FAILED (5-6).
Representative Moses MOVED to RESCIND action taken on
Amendment #8. Co-Chair Therriault OBJECTED.
Representative Moses affirmed that this area has received a
triple hardship, including an economic and natural disaster.
These areas are hurting and their local government revenues
are down. That money is needed now! In the more removed
areas, supplies often take up to 6 weeks in shipment.
Representative Moses pointed out that this disaster would
eventually affect the entire State.
Co-Chair Mulder suggested that the request would be better
placed in the capital match grant program. He believed
that, as a supplemental for emergency disaster would be
stretching the concept of supplemental funding. Co-Chair
Mulder stated that the money would not provide direct relief
for these people as much as it would be providing community
improvement projects.
Representative G. Davis advised that capital projects would
require dollars to sustain the maintenance and upkeep. He
pointed out that such projects would require additional
local dollars in the future.
Representative Grussendorf compared this disaster to the
Millers Reach fire disaster, pointing out how the State came
forward to address that concern. He commented that now
there is an opportunity for the State to address the
disaster in the fishing areas, however, the Legislature is
not coming forward to take care of village economy.
Representative Kohring suggested that much of the monies in
the Millers Reach fire came through private funding such as
the Red Cross and United Way.
Representative J. Davies stated that the nature of this
request would not necessarily be a "capital project". The
funding would be used to provide wages and help to those
families so that they could make it through this time when
fish are not available. The primary purpose of this funding
would act as an alternate source of income to help these
people "survive".
Representative Grussendorf added that with passage of the
supplemental, these people would then have the supplies
necessary for the upcoming fishing season.
Co-Chair Mulder suggested that if funding was provided now,
the request would probably come back again in May in the
capital matching grants. Co-Chair Mulder voiced concern
regarding how the State should deal with economic disasters.
He foresaw that the commercial fishing industry is in for
some difficult years. He believes that there will be
expectation the State, and that by funding the supplemental
would not be a prudent way to address the magnitude of the
concern.
Representative Williams suggested that it could be better
for the fishing villages to receive funding at the end of
the summer season.
Representative Moses stressed that this funding was needed
months ago. These areas sometimes go 1.5 months without a
barge. He reiterated that the concern needs to be addressed
and coordinated soon.
A roll call vote was taken on the motion.
IN FAVOR: J. Davies, Foster, Grussendorf, Moses
OPPOSED: G. Davis, Kohring, Williams, Austerman,
Mulder, Therriault
Representative Bunde was not present for the vote.
The MOTION FAILED (4-6).
(Tape Change HFC 99 - 43, Side 2).
Co-Chair Therriault MOVED to report CS HB 100 (FIN) out of
Committee with individual recommendations. There being NO
OBJECTION, it was so ordered.
CS HB 100 (FIN) was reported out of Committee with "no
recommendations".
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