Legislature(2007 - 2008)HOUSE FINANCE 519
02/28/2007 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB139 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 19 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| += | HB 49 | TELECONFERENCED | |
| += | HB 139 | TELECONFERENCED | |
HOUSE FINANCE COMMITTEE
February 28, 2007
1:43 P.M.
CALL TO ORDER
Co-Chair Meyer called the House Finance Committee meeting
to order at 1:43:39 PM.
MEMBERS PRESENT
Representative Mike Chenault, Co-Chair
Representative Kevin Meyer, Co-Chair
Representative Bill Stoltze, Vice-Chair
Representative Harry Crawford
Representative Les Gara
Representative Mike Hawker
Representative Reggie Joule
Representative Mike Kelly
Representative Mary Nelson
Representative Bill Thomas Jr.
MEMBERS ABSENT
Representative Richard Foster
ALSO PRESENT
Nancy Slagle, Director, Division of Administrative
Services, Department of Transportation and Public
Facilities; John Torgerson, Deputy Commissioner, Department
of Transportation and Public Facilities; Richard Leary,
Business Manager, Alaska Marine Highway, Department of
Transportation & Public Facilities; Eric Swanson, Director,
Division of Administrative Services, Department of
Administration; Mark Lewis, Director, Division of
Administrative Services, Department of Education & Early
Development; Tom Lawson, Director, Administrative Services,
Department of Fish and Game; Kathryn Daughhetee, Department
of Law; Nico Bus, Acting Director, Division of
Administrative Services, Department of Natural Resources;
Dan Spencer, Director, Division of Administrative Services,
Department of Public Safety; Jerry Burnett, Director,
Division of Administrative Services, Department of Revenue
PRESENT VIA TELECONFERENCE
Don McGee, State Assessment Review Board, Anchorage; John
Cramer, Deputy Commissioner, Military and Veterans Affairs,
Anchorage
SUMMARY
CONFIRMATION HEARING
Don McGee-State Assessment Review Board
HB 19 An Act relating to ignition interlock limited
driver's license privileges.
HB 19 was SCHEDULED but NOT HEARD.
HB 139 An Act making supplemental appropriations,
capital appropriations, and other appropriations;
amending certain appropriations; ratifying
certain expenditures; making appropriations to
capitalize funds; and providing for an effective
date.
Departments taken in the following order:
Department of Transportation & Public Facilities
Department of Administration
Department of Education & Early Development
Department of Fish and Game
Department of Law
Department of Public Safety
Department of Revenue
Department of Military & Veterans Affairs
HB 139 was HEARD and HELD in Committee for
further consideration.
1:44:16 PM
^
CONFIRMATION HEARING:
Don McGee-State Assessment Review Board
DON MCGEE, (TESTIFIED VIA TELECONFERENCE), STATE ASSESSMENT
REVIEW BOARD, ANCHORAGE, noted he was a life-long Alaskan.
He said he has been in the assessment profession for the
past 15 years and currently, the Municipality of Anchorage
assessor for the last 6 years. He added that he is
knowledgeable of the Board's work and the importance of
that work to the State. He hoped to use his expertise for
the benefit of the State and offered to answer questions of
the Committee.
Representative Hawker commended Mr. McGee on the
information packet he submitted.
Co-Chair Chenault MOVED that the House Finance Committee
forward the name of Don McGee for appointment to the State
Assessor Review Board, to be confirmed in a joint session
th
of the 25 Alaska State Legislature. There being NO
OBJECTION, it was so ordered & Mr. McGee was confirmed by
the House Finance Committee.
1:47:27 PM
HOUSE BILL NO. 139
An Act making supplemental appropriations, capital
appropriations, and other appropriations; amending
certain appropriations; ratifying certain
expenditures; making appropriations to capitalize
funds; and providing for an effective date.
DEPARTMENT OF TRANSPORTATION & PUBLIC FACILITIES
JOHN TORGERSON, DEPUTY COMMISSIONER, AVIATION & MARINE
HIGHWAYS, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, introduced himself.
RICHARD LEARY, BUSINESS MANAGER, ALASKA MARINE HIGHWAY,
DEPARTMENT OF TRANSPORTATION & PUBLIC FACILITIES,
introduced himself.
NANCY SLAGLE, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, provided an overview of the Department's fast
track and time sensitive issues.
1(h) Transportation
Capital - Airport Improvement Program Appropriation
The Airport Improvement Program appropriation
increases by $2,000.0 from $341,857.1 to $343,857.1
because of the increase in the allocation below: 0
1(i) Transportation
Capital - Airport Improvement Program Allocation
Amend FY07 Project - Ketchikan: Snow Removal
Equipment/Sand/Urea Building Construction - Project
includes constructing new snow removal equipment, sand
and chemical mixing and storage building to house all
of the airport's emergency response and snow removal
equipment. Project is ready to bid as soon as funding
is available. $2,000.0
1(j) Transportation
Capital - Surface Transportation Program
Appropriation
The Surface Transportation Program appropriation
increases by $18,300.0 from $337,095.2 to $355,395.2
because of the allocation changes below. 0.0
1(k) Transportation
Capital - Surface Transportation Program Allocation
New: Anchorage: Eagle River Road Rehabilitation -
Milepost 5.3 to 12.6 - Project includes widening
shoulders, improving visibility, and repaving. The
department plans to advertise as soon as funding is
available. $1,750.0
1(k) Transportation
Capital - Surface Transportation Program Allocation
Amend: Anchorage: Eagle River Loop Road Reconstruction
- Old Glenn Highway to Eagle River Road - Project
includes reconstructing shoulders, turn lanes,
pedestrian facilities, lighting and landscaping. The
department plans to advertise in March. $2,000.0
1(l) Transportation
Capital - Surface Transportation Program Allocation
New: Anchorage: Potter Marsh Trailhead and Access
Improvements - Project includes enhancing parking lot,
provide new boardwalk connections, and connect the
Bird Treatment Learning Center on the Old Seward
Highway to the existing boardwalk. The department
plans to advertise in March. $550.0
1(m) Transportation
Capital - Surface Transportation Program Allocation
New: Unalaska South Channel Bridge Construction -
Project includes replacing existing bridge with a
concrete deck bridge. Increased funding required as
low bid was greater than existing legislative
authority for project. $14,000.0
1:51:56 PM
Vice Chair Stoltze asked if the requested amount in 1(k)
would allow for the work needed to address the flooding
issues on Eagle River Road. Ms. Slagle did not know but
offered to get back to the Committee on that issue. She
pointed out that all the flooding disasters are under
federal highways. Vice Chair Stoltze thought the concern
was not related to the scale of flooding disasters but
rather a reoccurring problem resulting from drainage
issues.
Co-Chair Chenault referenced 1(m), the Unalaska South
Channel Bridge & asked how long the project had been
delayed. Ms. Slagle noted that the first appropriation had
been in 1999 and assumed that there had been pre-
construction funding available prior to that. Co-Chair
Chenault questioned if the archeological dig issues had
been addressed. Mr. Torgerson understood it had and that
the bid is ready to be awarded.
1:54:33 PM
Representative Thomas questioned 1(i), Ketchikan snow
removal. Ms. Slagle interjected that Ketchikan too, gets
snow sometimes.
11(a) Transportation
Measurement Standards and
Commercial Vehicle Enforcement
1) $55.0 for costs associated with data acquisition,
storage and transfer to meet federal reporting
requirements.
2) $15.0 for annual membership in the North American
Preclearance and Safety System (NORPASS) to continue
deployment of weigh station screening systems
equipment. $70.0
Ms. Slagle explained the two needed items that had not been
included in the FY07 operating budget, which had previously
been funded through federal grant funds no longer available
to the State.
11(b) Transportation
Southeast Region Facilities
1) $38.7 for Repairs/Maintenance - Backlog of deferred
maintenance issues that need addressed at facilities
throughout Southeast.
2) $5.0 for travel to inspect facilities.
3) $36.8 for contractual increases for facility
janitorial services at the 7-Mile Complex, AMHS
Reservations Building and Ketchikan Court and Office
Building. $80.5
Ms. Slagle noted how small the facilities budget was.
Co-Chair Chenault asked the time frame of the janitorial
contracts. Ms. Slagle said they are issued on 3-year
fiscal base, which all vary. Co-Chair Chenault questioned
the $36 thousand dollar increase. Ms. Slagle said some
times those contracts get renegotiated. The request
indicates it expired in June, perhaps after session ended
last year.
Representative Hawker noted the $80.5 thousand dollar
request in a BRU that is $101 million dollars; he suggested
too much latitude by the Department. Ms. Slagle explained
that request was specific to the Southeast facilities
component and the majority would be used for set utility
costs. She pointed out that there is less than 10%
flexibility for repairs and materials, reiterating little
flexibility in those numbers.
Representative Hawker inquired if the Department of
Transportation & Public Facilities was "unique" in having
an ability to move money between the components. Ms.
Slagle explained within that within the Regional District
Units (RDU), there are many components within the three
large regions.
2:05:20 PM
11(c) Transportation
Central Region Highways and Aviation
1) State Equipment Fleet Cost Increases - $288.5 -
Central Region Highways and Aviation is experiencing
higher than anticipated costs of commodities and
overruns in other areas of the budget and cannot
absorb this increase within the existing FY07 budget.
2) Anchorage Snow Haul - $503.0 - Safety issue as
roads are one lane, there is poor visibility
associated with large snow piles and pedestrians are
forced to walk in road as sidewalks are full of snow.
3) Anchorage Street Sweeping - $274.0 - Must be done
per EPA Air Quality Standards in the spring after snow
melts and roads are full of sand and chemicals
creating air quality issues for Anchorage residents.
4) Avalanche Artillery Purchase and Equipment Repair -
$26.0
5) Funding for Law Enforcement Officers at state-owned
Kodiak Airport - $20.0 - from March 1 through June 30
due to Transportation Security Administration (TSA)
non-negotiable requirement. TSA has warned that
flights in and out of Kodiak will be prohibited if Law
Enforcement Officers not in place by March 1. Funds
are needed to decrease emergency response time to 15
minutes or less per TSA rules. Current airport
emergency response time is greater than 15 minutes
which is unacceptable to TSA. The
department has no choice but to incur this expense.
$1,111.5
In response to a question by Co-Chair Chenault, Mr.
Torgerson explained that the screening (5©) will happen at
every airport in which screening already exists; however,
it will not happen if the airport is not certificated.
There are 19 statewide airports, two of which are outside
the municipal boundaries of the municipality being served.
The FY08 budget includes funding requests for security.
Co-Chair Chenault asked what could happen if security was
not provided. Mr. Torgerson explained that Transportation
Security Agreement (TSA) could "pull the State's
certificates", which would not shut the airport down but
rather prohibit larger aircrafts [i.e. Alaska Airlines] to
fly.
Co-Chair Chenault questioned the number of people being
served. Ms. Slagle replied 1.2 million, adding the
contracted services.
Co-Chair Meyer referenced 11© (2), snow removal in
Anchorage and asked if the fire that happened in Girdwood,
housed some of that equipment. Ms. Slagle explained that
the Girdwood shop did burn but it was covered through Risk
Management. The equipment and facility will be replaced.
2:14:11 PM
11(d) Transportation
Northern Region Highways and Aviation
Funding for Law Enforcement Officers at state-owned
Cordova Airport from March 1 through June 30 due to
Transportation Security Administration (TSA) non-
negotiable requirement. TSA has warned that flights
in and out of Cordova will be prohibited if Law
Enforcement Officers not in place by March 1. Funds
are needed to decrease emergency response time to 15
minutes or less per TSA rules. Current airport
emergency response time is greater than 15 minutes
which is unacceptable to TSA. The department has no
choice but to incur this expense. $20.0
2:14:37 PM
11(e) Transportation
Southeast Highways and Aviation
1) $208.5 - Overtime resulting from extreme winter
weather. Personnel costs associated with plowing,
application of materials used for highways and
airports this winter.
2) $24.5 - Paint for road striping. Paint being
ordered now for spring/summer application.
Co-Chair Chenault asked the annual cost for paint. Ms.
Slagle replied that approximately $200 thousand dollars was
spent for paint in the Southeast region.
2:15:52 PM
11(f) Transportation
Marine Highway System - Marine Vessel Operations
Unpaid vendors from FY06, including state agencies -
Total is: $532,786.91
Outside Vendors:
Chevron - $7,985.03; Glacier Family Medicine -
$208.00; Murray Pacific - $753.91; Work safe -
$1,517.50; Sea Level Transport - $65,800.00; Southeast
Extinguisher Services - $240.00; Stanley - $327.25;
Tyler - $823.20; Otis - $4,035.34; Port of Bellingham
- $1,233.30; Petro Marine - Seward - $35,485.43
State Agencies:
State equipment Fleet (DOT) for June - $46,652.33; Law
Bills (DOL) - $12,695.62; Retirement & Benefits (DOA)
- $25,196.00; Labor Training (AVTEC) - $9,300.00; Tok
Ferry Reservations (Commerce) - $53,200.00; Laundry
Services (Corrections) - $103,561.77; UAS Training -
$87,990.00; Southeast DOT Inventory Adjustment -
$6,850.94; AMHS Travel & Incidentals not processed -
$68,931.29 $532.8
Co-Chair Chenault asked about the charge to the Port of
Bellingham. Ms. Slagle replied it was for fuel costs.
2:17:29 PM
11(g) Transportation
Marine Highway System - Marine Vessel Operations
1) $3,600.0 - FY07 operating marine highway fund
anticipated cash shortfall. Collection of revenues is
anticipated to be $51.0 million and expenditures are
anticipated to be $54.6 million.
2) $300.0 - Chenega crew training after winter lay-up
and warranty overhaul. U.S. Coast Guard requirement
to operate vessel.
3) $3,900.0 - Under projected vessel operations costs
for vessel employee overtime and leave.
4) $2,300.0 - Fairweather unbudgeted winter service.
$10,100.0
Mr. Leary explained the increment.
Co-Chair Chenault asked the number of people involved in
the above referenced crew. Mr. Leary replied it was a crew
of 10 to operate the boat with 6 on night-time maintenance
shift. The boat operates on a two crew base, requiring
approximately 35 employees.
Co-Chair Chenault asked when the operations would begin out
of Cordova. Mr. Leary understood that revenue services
th
would start April 20 and that the boat would be running
the beginning of April.
Co-Chair Chenault referenced 11(f)(3) and asked further
explanation. Mr. Leary explained that the Le Conte was
converted to a day boat and that Coast Guard overtime
problems were incurred. When the route was mapped out,
there were estimates of overtime, not met. Overtime and
operation costs have been targeted.
Co-Chair Chenault referenced 11(f)(4), asking what happened
with the crew of the Chenega during their winter-lay up.
Mr. Leary replied that a portion would stay with the boat
for maintenance and security functions and the rest of the
crew will bid back out.
2:24:33 PM
11(h) Transportation Capital
New:
Cantwell Maintenance Station Remodel
and Electrical Repair
OSHA inspection found unsafe electrical and building
code violations. Electrical service is located in a
low lying area that is prone to flooding and the
entrance/exit to the building is through the boiler
room. Department received an OSHA compliance order
for this and is mandated to fix the violation no later
than June of 2007. $250.0
2:26:21 PM
11(i) Transportation - Capital
New: Thompson Pass Refueling Station
OSHA inspection found fuel dispensing machines located
inside the maintenance station, creating an unsafe
work environment. Fuel dispensing machines must be
moved outside of building. Department received an
OSHA compliance order for this and is mandated to fix
the violation no later than November of 2007. Funds
are needed to begin work in FY07 in order to comply
with the deadline.
$150.0
2:27:27 PM
11(j) Transportation - Capital
Marine Highway System
Amend FY07 Project: Alaska Marine Highway System -
Vessel and Terminal Overhaul and Rehabilitation
Unforeseen problems that needed to be repaired during
annual overhaul. Unforeseen problems included
steering systems, replacing corroded steel decking,
life boat and davit refurbishment, turbo charger
repair, bow thruster work and electrical generator
repair. Without the repairs, vessels would not have
been certified for operations during FY07. Repaired
vessels include LeConte, Matanuska, Columbia,
Kennicott, Taku, and Fairweather.
$1,944.0
Mr. Torgerson pointed out that the older boats are
beginning to have lists of "things" that need to be
repaired and is becoming more of an issue. He thought that
the "fix" would be placing more money into the Capital
Replacement Fund in the FY08 budget.
2:29:15 PM
11(k) Transportation - Capital
Airport Improvement Program Appropriation
The Airport Improvement Program appropriation will
increase by $11,500.0 from $341,857.1 to $353,357.1
because of allocation changes. 0.0
2:30:31 PM
11(l) Transportation - Capital
Airport Improvement Program Allocation
Amend FY07 Project: Atka Airport Extension and
Resurfacing Project includes runway extension and
minor realignment, a new taxiway and apron, paving of
operational surfaces, medium intensity runway
lighting, a double bay snow removal equipment
building, other related improvements and land
acquisition. The department plans to advertise in
April. $4,000.0
11(m) Transportation - Capital
Airport Improvement Program Allocation
New:
Nightmute Airport Reconstruction Project includes
expanding the runway, constructing a runway safety
area, taxiway and safety area, relocating and
expanding the apron, constructing two single bay snow
removal equipment buildings, rehabilitating the
airport access road, and acquiring land for airport
improvements. The department plans to advertise in
June. $3,000.0
11(n) Transportation - Capital
Airport Improvement Program Allocation
New:
Nunapitchuk Airport and Access Improvements
Project includes extending the runway, installing
runway and taxiway lights, improving the airport
access road, relocation of the apron, and constructing
two single bay snow removal equipment buildings. The
department plans to advertise in May. $1,500.0
11 (n) Transportation - Capital
Airport Improvement Program Allocation
Amend FY07 Project: Platinum Airport Relocation
Project includes relocating the airport, constructing
a new runway, installing airport lighting,
constructing a new apron and taxiway, constructing an
airport access road and equipment storage building.
The Department plans to advertise in May.
Mr. Torgerson explained that most of the requests resulted
from old under estimated projects of various issues. It
will cost more in FY08 dollars. The Department is
requesting the federal receipt authority to continue on the
projects.
Representative Hawker asked the number of users of the Atka
Facility. Mr. Torgerson explained it is a non certified
airport and he did not know the hard number. That airport
is used by the federal government.
Co-Chair Meyer pointed out that all requested funds for the
small airports were federal dollars. Ms. Slagle indicated
the State has already made an adequate match. Mr.
Torgerson pointed out that these are 95/5 funds (95%
federal dollars & 5% general fund dollars).
Co-Chair Meyer questioned the amount of usage the small
airports get for the amount of money put into them. Mr.
Torgerson admitted that is a discussion that happens often
at the Department. There are 260 airports statewide, which
is not unlike many of the small community transportation
links.
2:35:39 PM
11(o) Transportation - Capital
Airport Improvement Program Allocation
Scope change from Stony River: Airport Rehabilitation
(ch. 61, SLA 2001, page 32, line 3) to Stony River:
Airport Relocation and Airport Improvements. Project
includes constructing a new airport south of the
existing airport to include a new runway, lighting,
safety area, apron, taxiway, support area, and an
equipment storage building. 0.0
Ms. Slagle explained that the project resulted from the
location of the Village, encroaching on the airport
facilities.
2:38:06 PM
12(a) Fund Transfers - Disaster Relief Fund
Additional funding needed for:
2006 Hooper Bay Fire $4,844.1
2006 Southcentral Flood $6,118.4
2006 Southern Storm $6,463.2
2006 Kivalina Sea Wall $233.8
12(b) Fund Transfers
Debt Retirement Fund
Reduce general fund capitalization necessary to fund
School Debt Reimbursement due to a $709.7 increase in
the amount of School Fund receipts (cigarette tax)
available and a decrease of $4,855.9 in the amount
needed for FY2007 School Debt Reimbursement.
($5,565.6)
12(c) Fund Transfers - Alaska Marine Highway System Fund
Eliminate the ending FY06 / beginning FY07 negative
fund balance of: $10,732,284.58
The negative fund balance is indicative of under
collection of unrestricted revenues to support the
amounts appropriated from the fund for operation of
the system. $10,732.3
Ms. Slagle explained that during the last two years, the
Marine Highway ended with a negative fund balance because
they were using their cash ahead of time. It occurred
because the Fund did not have adequate carry-forward
balance to address the issues.
Co-Chair Meyer referenced 11(k) and 1(j) and asked where
the increased federal dollars came from. Ms. Slagle
explained that they come from the Airport Improvement
Program, resulting from various things. Sometimes there is
additional discretionary money provided to the State, which
usually happens at the end of the federal fiscal year. Mr.
Torgerson agreed that the request resulted from
discretionary funds; the U.S. Congress has not reauthorized
or funded at that level. To certify the airports - it will
take additional federal funding. He added that the State
will need that money before the bids are issued.
Co-Chair Meyer worried that the funds were replacing
something else. Mr. Torgerson responded that most were
additional add-ons; he would be concerned if the State did
not request the additional federal receipt authority.
DEPARTMENT OF ADMINISTRATION
2:44:41 PM
ERIC SWANSON, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF ADMINISTRATION, provided an
overview of the departmental requests.
2(a) Administration
Retirement and Benefits
The Division of Retirement and Benefits contracted
with a tax consultant to assist with obtaining
Internal Revenue Service code qualified status for the
defined contribution plan. The cost of this work was
not included in the original fiscal note for SB 141.
This request for a GF increase will be offset with a
$80.0 GF reduction from the Elected Public Officers
Retirement System (EPORS - (50.0)) and the Unlicensed
Vessel Participant Annuity Retirement Plan (UVPARP -
(30.0)) allocations. $80.0
2:46:20 PM
2(b) Administration
Retirement and Benefits
This request is for the purpose of zero balancing the
Division of Retirement and Benefits fund allocations.
Their cost allocation plan was reviewed by a tax
consultant, resulting in allocation changes that
affect the FY2007 budget. 0.0
2(c) Administration
Retirement and Benefits
This is a fund source adjustment for the PERS/TRS
litigation appropriations made in sec. 24(a) and (b),
ch. 82, SLA 2006, from the original $200.0 from each
retirement system fund to 72% and 28%, respectively,
per the division's cost allocation plan. The
appropriation from PERS changes from $200.0 to $288.0
and the TRS amount changes from $200.0 to $112.0. 0.0
2:47:53 PM
2(e) Administration
Office of Public Advocacy
Current year caseload increase estimate based on the
agency's current expenditures and projections. The
agency was not fully funded in FY2007, based on their
FY2006 supplemental roll forward and caseload
projections. There are excess guardianship fees
receipts in FY2007. $200.0
2:49:49 PM
DEPARTMENT OF EDUCATION & EARLY DEVELOPMENT
MARK LEWIS, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT
OF EDUCATION AND EARLY DEVELOPMENT, provided an overview of
the Department's supplemental budget requests.
4(a) Education
School Finance & Facilities
Cost to pay trial work already provided for the Moore
v State lawsuit, which pertains to adequate funding
levels for school districts. $100.0
4(b) Education
Mt. Edgecumbe Boarding School
Cost of one-time payment of the FY2005 Teachers'
Education Association of Mt. Edgecumbe arbitration
award. $107.9
Mr. Lewis explained that the State was found to have
violated the Collective Bargaining Agreement.
2:51:59 PM
Section 13 Debt School Debt Reimbursement
Reduce total School Debt Reimbursement by 4,855.9 from
$93,935.0 to $89,079.1. Debt Retirement Fund
decreases by $5,565.6 from $66,935.0 to $61,369.4 and
the School Fund increases by $709.7 from $27,000.0 to
$27,709.7. ($4,855.9)
Section 14(b) (1 & 2) = Ratifications
ARI7720-04 Quality Schools - $51.621
ARI7720-05 Quality Schools - $107.601
Mr. Lewis explained that they attempted to reconcile the
discrepancy through the federal division, leaving the
Department with an overall shortfall. The Division has
implemented a new standard procedure so it will not happen
again in the future.
2:54:53 PM
In response to a question by Representative Thomas, Mr.
Lewis explained that a number of schools applied for
additional support for their shortfalls in construction
costs. Representative Thomas asked if those schools needed
to get back on the major maintenance list. Mr. Lewis
affirmed.
2:56:42 PM
Representative Joule noted that there would be costs to
return equipment if projects are not completed. Mr. Lewis
clarified that they could be considered as a supplemental,
but that the intent would be to give priority to projects
with funding over the ones not funded.
2:58:45 PM
DEPARTMENT OF FISH AND GAME
5(a) & (b) Fish and Game
Wildlife Conservation
Fund source switch for the Harlequin Duck Population
Dynamics project in Prince William Sound that is
measuring the recovery from the Exxon Valdez Oil
Spill. 0.0
TOM LAWSON, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT
OF FISH AND GAME, explained the funding source change to
the Exxon Valdez Oil Spill Settlement. A grant was
received for monitoring of the duck population.
2:59:59 PM
DEPARTMENT OF LAW
KATHYRN DAUGHHETEE, DEPARTMENT OF LAW, addressed the three
judgment and claims provided by the Department of Law.
7(a) Law
Civil Division, Deputy Attorney General
Judgments and Settlements
Amount is $92,509.85 as of February 1, 2007. $92.6
7(b) Law
Civil Division, Deputy Attorney General
The amount necessary to pay additional judgments
awarded against the state before June 30, 2007. 0.0
7(c) Law
Administrative Services
FY2006 Unpaid Miscellaneous Bills - $6,254.47
Funding to pay prior year bills not received in time
for payment by the department.
Employee moving expenses - $1,581.05; employee mileage
reimbursement - $47.89; consulting contracts -
$4,200.00; hotel rooms for employee travel - $349.28;
copier maintenance $76.25. $6.3
3:02:08 PM
Representative Hawker referred to the Alaska Psychiatric
Institute (API) case and asked how the Department was
doing on legislation to bring the statutes in line with
that Court decision. Ms. Daughhetee offered to provide
that information to the Committee.
In response to comments made by Representative Hawker
regarding the Department's minimal request this year, Ms.
Daughhetee advised traditionally, there have been many
personal injury cases against the State, while last year,
the Legislature approved an increase to the Catastrophic
Reserve Fund. Those funds are now keeping more in line
with the operational costs.
3:04:27 PM
DEPARTMENT OF NATURAL RESOURCES
8(a)(1) Natural Resources
Claims, Permits & Leases
Implementation of geologists' class study effective
June 2006. $79.4
NICO BUS, ACTING DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF NATURAL RESOURCES, explained that
the requests will pay for increased salaries.
8(a)(2) Natural Resources
Geological Development
Implementation of geologists' class study effective
June 2006. $114.8
8(b) Natural Resources
Capital
Funding from the Mat-Su Borough for development of the
South Denali Visitors Center Interpretive Plan. $100.0
14a Ratification
Mr. Bus observed that the request was for the annual fire
suppression activity, which happens after the Legislative
session ends. The FY06 request is $6.06 million dollars.
There have been no declared disasters to date for FY07.
3:06:52 PM
DEPARTMENT OF PUBLIC SAFETY
9 Public Safety
Capital
The U.S. Department of Justice has awarded the Council
on Domestic Violence and Sexual Abuse a Violence
Against Women Act Stop grant of $5 million for
prevention of domestic violence and sexual assault in
Alaska. The funding will be used for services
provided by the Departments of Law, Public Safety and
Alaska Court System and for victim services. $5,000.0
DAN SPENCER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF PUBLIC SAFETY, advised the request had not
been appropriated because the Department did not know the
timing of the "ear marked" funds. The funding would be
used for 30% victim services, 25% law enforcement, 25%
prosecution, 5% Court and 15% discretionary.
In response to a question by Co-Chair Meyer, Mr. Spencer
clarified that if pending legislation is not passed to
extend the Council, the Department will seek federal
government advice regarding what will happen if the grant
is not ratified by the State of Alaska.
3:09:58 PM
DEPARTMENT OF REVENUE
JERRY BURNETT, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF REVENUE, explained the Department's
supplemental budget requests.
10(a) Revenue
Tax Division
1) $210.5 - Cruise Tax Initiative implementation
costs: Three positions and contractual expenses for
hearings for public notice, legal advice on
regulations, advertising, training and development of
online data filing system.
2) $45.0 - Corporate Income Tax Litigation
The Tax Division is working on a high-level corporate
income tax case with a potential for hundreds of
millions of dollars in settlement. Funding is
requested to begin the casework with the Department of
Law. Additional funding will not be required in
FY2008. $255.5
10(b) Revenue
Permanent Fund Dividend Division
1) $70.0 - Increased MyAlaska costs - Department of
Administration did not charge for service before FY07.
The Division did not know when preparing the FY07
budget that DOA would be charging for the service in
FY07.
2) $60.0 - Department of Administration's (DOA) Office
of Administrative Hearings costs are higher than
anticipated due to high rates.
3) $220.7 - Data Loss and Recovery.
Ongoing recovery efforts are beyond division's
capability to absorb. $350.7
Co-Chair Chenault inquired why there had been more
hearings. Mr. Burnett explained that in FY06, the
Department had requested a supplemental appropriation
because it was the first year they were charged by the
Office of Administrative Hearings for the hearing costs &
FY07 was the first, full year of charge-backs.
10(c) Revenue
Child Support Services
Unanticipated federal incentive funding due to
performance during FY 05. $181.7
10(d) Revenue
Child Support Services
Reduction in receipt supported services funding due to
unanticipated federal incentive funding due to
performance during FFY 05. ($181.7)
10(e) Revenue
Alaska Mental Health Trust Authority,
Long Term Care Ombudsman
The Long Term Care Ombudsman's Office (LTCO) receives
its funding from DHSS/Senior and Disabilities Services
Administration, mostly from a federal grant (Title 3
and Title 7). This year DHSS has reduced the amount
of the grant due to unavailable federal funding, so
additional general funds are necessary. 0.0
3:15:03 PM
Representative Hawker asked if there is a way to implement
the Cruise Ship Initiative without adding additional State
resources. Mr. Burnett said no; the funds would allow the
Department to make the regulations and be able to collect
more than $40 million dollars a year. He stressed that
they need additional staff in order to do that. The Tax
Division is absorbing the pay increases of that sector.
Representative Gara asked how much the State will recover
from the initiative and the cost to the State. Mr. Burnett
did not know the total net. The head tax should bring in
around $42 million dollars to the State based on 900,000
visitors. He could not estimate the income tax because
some companies might already be paying tax.
Representative Gara referenced the corporation gambling tax
and asked if it could raise $100 million dollars. Mr.
Burnett did not know the amount.
Representative Gara asked if the State was obligated to
give a portion of the crew ship dollars back to the
communities. Mr. Burnett indicated that under the Crew
Ship Initiative, a portion of the head tax is shared with
the first five communities. He did not know if the
Legislature was obligated. Co-Chair Chenault suggested
that a large portion of the collected amount should be
shared.
Representative Thomas understood that there were strict
"side bars" regarding use of the $42 million dollars
collected by the head tax. He asked if the income tax
would have the same type of restrictions. Mr. Burnett
responded that the Department of Revenue and the Department
of Law are looking at the restrictions for spending that
money. He acknowledged restrictions were in place.
DEPARTMENT OF MILITARY & VETERANS AFFAIRS
12(a) Department of Public Safety
Disaster Relief Fund
Additional funding needed for:
2006 Hooper Bay Fire - $4,844.1
2006 Southcentral Flood - $6,118.4
2006 Southern Storm - $6,463.2
2006 Kivalina Sea Wall - $ 233.8
Total - $17,659.2
JOHN CRAMER, (TESTIFIED VIA TELECONFERENCE), DEPUTY
COMMISSIONER, MILITARY AND VETERANS AFFAIRS, ANCHORAGE,
explained the Department's request for the Disaster Relief
Fund.
3:22:56 PM
Representative Thomas asked if Cordova would be included in
the Southcentral portion. Mr. Cramer said it would.
HB 139 was HELD in Committee for further consideration.
3:24:02 PM
HOUSE BILL NO. 19
An Act relating to ignition interlock limited driver's
license privileges.
Co-Chair Meyer noted that HB 19 was SCHEDULED but would not
th
be HEARD. It was RESCHEDULED for March 4.
ADJOURNMENT
The meeting was adjourned at 3:25 P.M.
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