Legislature(1993 - 1994)

03/22/1993 01:30 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         March 22, 1993                                        
                            1:30 P.M.                                          
                                                                               
  TAPE HFC 93 - 52, Side 2, #000 - end.                                        
  TAPE HFC 93 - 53, Side 1, #000 - end.                                        
  TAPE HFC 93 - 53, Side 2, #000 - end.                                        
  TAPE HFC 93 - 54, Side 1, #000 - #481.                                       
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Ron  Larson called the meeting of the House Finance                 
  Committee to order at 1:30 P.M.                                              
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Brown                           
  Co-Chair MacLean              Representative Foster                          
  Vice-Chair Hanley             Representative Grussendorf                     
  Representative Hoffman        Representative Martin                          
  Representative Navarre        Representative Parnell                         
  Representative Therriault                                                    
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Larry  Fanning,  Alaska Fire  Chiefs, Juneau,  Alaska; Sandy                 
  Williams,  State  Parks  Advisory  Board,  Juneau,   Alaska;                 
  Richard  Hofman,  President,   Board  of  Directors,  Alaska                 
  Trollers Association  (ATA), Juneau,  Alaska; Diane  Kaplan,                 
  President, Alaska  Public Radio  Network (APRN),  Anchorage,                 
  Alaska; Paula  Terrel, Self, Juneau,  Alaska; Representative                 
  Tom Brice; Representative  Fran Ulmer; Representative  David                 
  Finkelstein;  Cheryl Frasca,  Director,  Division of  Budget                 
  Review,  Office  of  Management and  Budget,  Office  of the                 
  Governor; Randy  Welker, Legislative  Audit Division;  Janet                 
  Clarke,  Director,  Division  of   Administrative  Services,                 
  Department of  Health and Social  Services; Walter  Majoros,                 
  Project Coordinator, Older  Alaskans Commission,  Department                 
  of Administration;  Doug Moore,  Alaska Public  Broadcasting                 
  Corporation; Dennis DeWitt,  Director, Division of Pioneers'                 
  Benefits,  Department  of  Administration;   Sharon  Barton,                 
  Director, Division of Administrative Services (DOA).                         
                                                                               
  SUMMARY INFORMATION                                                          
  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.                          
  HB 155    An Act relating to audits of health facilities.                    
                                                                               
            HB 155 was held for  further discussion.  The bill                 
            was    placed    in   Subcommittee    with   Chair                 
            Representative Hanley  and members  Representative                 
            Foster and Representative Navarre.                                 
  HB 172    An Act  relating to the  wildlife conservation tag                 
            and  to   entry  onto  state  game   and  wildlife                 
            sanctuaries,  state  game  refuges,   state  range                 
            areas, and fish  and game critical habitat  areas;                 
            and providing for an effective date.                               
                                                                               
            HB  172   was  held   in  Committee   for  further                 
            discussion.   It was placed  in Subcommittee  with                 
            Chair    Representative    Foster    and   members                 
            Representative    Parnell    and    Representative                 
            Grussendorf.                                                       
  HOUSE BILL 155                                                               
                                                                               
       "An Act relating to audits of health facilities."                       
                                                                               
  Co-Chair Larson placed  HB 155 into Subcommittee  with Chair                 
  Representative Hanley with members Representative Foster and                 
  Representative Navarre.  The bill  was HELD in Committee for                 
  further discussion.                                                          
  HOUSE BILL 172                                                               
                                                                               
       "An Act relating  to the wildlife conservation  tag and                 
       to  entry  onto state  game  and  wildlife sanctuaries,                 
       state game  refuges, state  range areas,  and fish  and                 
       game  critical  habitat  areas;  and  providing for  an                 
       effective date."                                                        
                                                                               
  Co-Chair Larson placed  HB 172 into Subcommittee  with Chair                 
  Representative  Foster  with members  Representative Parnell                 
  and  Representative  Grussendorf.    The  bill was  HELD  in                 
  Committee for further discussion.                                            
  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.                                 
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 4:00 p.m.                                           
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         March 22, 1993                                        
                            1:30 P.M.                                          
                                                                               
  TAPE HFC 93 - 52, Side 2, #000 - end.                                        
  TAPE HFC 93 - 53, Side 1, #000 - end.                                        
  TAPE HFC 93 - 53, Side 2, #000 - end.                                        
  TAPE HFC 93 - 54, Side 1, #000 - #481.                                       
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Ron Larson called the meeting of the House  Finance                 
  Committee to order at 1:30 P.M.                                              
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Brown                           
  Co-Chair MacLean              Representative Foster                          
  Vice-Chair Hanley             Representative Grussendorf                     
  Representative Hoffman        Representative Martin                          
  Representative Navarre        Representative Parnell                         
  Representative Therriault                                                    
                                                                               
  ALSO PRESENT                                                                 
                                                                               
                                9                                              
                                                                               
                                                                               
  Larry Fanning,  Alaska  Fire Chiefs,  Juneau, Alaska;  Sandy                 
  Williams,  State  Parks   Advisory  Board,  Juneau,  Alaska;                 
  Richard  Hofman,  President,  Board   of  Directors,  Alaska                 
  Trollers Association  (ATA), Juneau,  Alaska; Diane  Kaplan,                 
  President,  Alaska Public  Radio Network  (APRN), Anchorage,                 
  Alaska; Paula Terrel,  Self, Juneau, Alaska;  Representative                 
  Tom Brice;  Representative Fran Ulmer;  Representative David                 
  Finkelstein;  Cheryl Frasca,  Director,  Division of  Budget                 
  Review,  Office  of  Management and  Budget,  Office  of the                 
  Governor; Randy  Welker, Legislative  Audit Division;  Janet                 
  Clarke,  Director,  Division  of   Administrative  Services,                 
  Department  of Health  and Social Services;  Walter Majoros,                 
  Project Coordinator, Older  Alaskans Commission,  Department                 
  of  Administration; Doug  Moore, Alaska  Public Broadcasting                 
  Corporation; Dennis DeWitt, Director,  Division of Pioneers'                 
  Benefits,  Department  of  Administration;   Sharon  Barton,                 
  Director, Division of Administrative Services (DOA).                         
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  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.                                                              
                                                                               
            HB 55  was  held in  Committee.     Department  of                 
            Administration amendments were addressed.                          
                                                                               
  HB 155    An Act relating to audits of health facilities.                    
                                                                               
            HB 155  was held for further discussion.  The bill                 
            was    placed    in   Subcommittee    with   Chair                 
            Representative Hanley  and members  Representative                 
            Foster and Representative Navarre.                                 
                                                                               
  HB 172    An  Act relating to  the wildlife conservation tag                 
            and  to   entry  onto  state  game   and  wildlife                 
            sanctuaries,  state  game  refuges,   state  range                 
            areas, and  fish and game critical  habitat areas;                 
            and providing for an effective date.                               
                                                                               
            HB  172   was  held   in  Committee  for   further                 
            discussion.   It was  placed in  Subcommittee with                 
            Chair    Representative    Foster    and   members                 
            Representative    Parnell    and    Representative                 
            Grussendorf.                                                       
                                                                               
  HOUSE BILL 155                                                               
                                                                               
       "An Act relating to audits of health facilities."                       
                                                                               
                                                                               
                               10                                              
                                                                               
                                                                               
  Co-Chair Larson placed  HB 155 into Subcommittee  with Chair                 
  Representative Hanley with members Representative Foster and                 
  Representative Navarre.  The bill was HELD  in Committee for                 
  further discussion.                                                          
                                                                               
  HOUSE BILL 172                                                               
                                                                               
       "An Act relating  to the wildlife conservation  tag and                 
       to entry  onto  state game  and  wildlife  sanctuaries,                 
       state game  refuges, state  range areas,  and fish  and                 
       game  critical  habitat  areas;  and  providing  for an                 
       effective date."                                                        
                                                                               
  Co-Chair Larson placed  HB 172 into Subcommittee  with Chair                 
  Representative  Foster  with members  Representative Parnell                 
  and  Representative  Grussendorf.    The  bill was  HELD  in                 
  Committee for further discussion.                                            
                                                                               
  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                                              
                                                                               
  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.                      
                                                                               
                                                                               
                               11                                              
                                                                               
                                                                               
  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                 
  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                 
                                                                               
                               12                                              
                                                                               
                                                                               
  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.                 
                                                                               
                                                                               
  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.                 
                                                                               
                               13                                              
                                                                               
                                                                               
  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.                                                  
                                                                               
       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                 
                                                                               
                               14                                              
                                                                               
                                                                               
  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.                                
                                                                               
       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                 
                                                                               
                               15                                              
                                                                               
                                                                               
  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                 
  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                 
                                                                               
                               16                                              
                                                                               
                                                                               
  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.                                    
                                                                               
  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.                                 
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 4:00 p.m.                                           
                                                                               
                                                                               
                               17                                              

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