Legislature(1999 - 2000)
03/07/2000 09:06 AM Senate FIN
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SENATE BILL NO. 250
"An Act making and amending capital, supplemental, and
other appropriations and reappropriations; making a
reappropriation under art. IX, sec. 17(c), Constitution
of the State of Alaska, from the constitutional budget
reserve fund; making appropriations to capitalize
funds; ratifying certain expenditures; and providing
for an effective date."
Co-Chair Parnell noted the items that will be contained in
the final version of this bill would only be the "fast
track" items that needed immediate attention. The remainder
of the items would be considered at a later date.
He referred to a committee substitute, 1-GS204/H, and noted
that the Committee would work from this rather than HB 343,
which was the supplemental appropriation bill adopted by the
House of Representatives.
Co-Chair Parnell directed the Committee's attention to a
spreadsheet, SB 250 - FY 2000 Fast Track Supplemental
Appropriations Bill [copy on file], that detailed the items
requested, the amount the House funded and the proposed
Senate amount. He explained the committee substitute using
the spreadsheet as a guide. [Original SB 250 location is
shown in brackets.]
Section 1 [Section 2 of the original version of SB
250]: Department of Natural Resources, Fire Suppression
- House and Senate funding the same at $6,415,100
general funds
Section 2 [Section 4(d)]: Department of Administration,
Division of Senior Services, Operating Costs of the
General Relief Program - House and Senate funding the
same at $118,600 general funds
Co-Chair Parnell noted the committee substitute does not
fund the Department of Administration, Division of
Retirement and Benefits request of $100,000 for the
unexpected Public Employees Retirement System (PERS) Board
election. The House did fund this item.
Section 3 [Section 6]: Alaska Industrial Development
and Export Authority (AIDEA) Revolving Fund, Additional
one-time AIDEA dividend - uses $3.6 million to fund the
Power Cost Equalization (PCE) program shortfall to
carry it through May 15, 2000
Senator Adams interjected to state that he hoped the
Committee would fund the program up through June 30, 2000.
Section 4 [Section 9 (a)]: Early Development/Day Care
Assistance - funding $1.5 Interagency Receipts
Co-Chair Parnell clarified that the funding would actually
be federal receipts coming through the Department of Health
and Social Services.
Section 5 (a) [not included in the original SB 250]:
Office of the Governor, Human Rights Commission,
Operating costs for Equal Employment Opportunities
Commission contract - $18,000 federal funds
Section 5 (b) [not included in the original SB 250]:
Office of the Governor, Human Rights Commission,
Operating costs for Housing and Urban Development Grant
- $5,500 federal funds
Co-Chair Parnell explained that these two requests were
originally submitted to the Legislative Budget and Audit
Committee and that the Commission was instructed to resubmit
to the full legislature through the supplemental budget
process.
Section 6 (a) [Section 10 (c)]: Department of Health
and Social Services, Catastrophic and Chronic Illness
Assistance, Operating costs - House and Senate funding
the same at $608,600 general funds
Section 6 (b) [Section 10 (k)]: Department of Health
and Social Services Public Assistance
Administration/Child Care Benefits, Operating costs -
House and Senate funding the same at $1,500,000 federal
funds
Section 6 (c) [Section 10 (l)]: Department of Health
and Social Services, Low Income Home Energy Assistance
Program, federal grant for emergency heating assistance
- House and Senate funding the same at $2,361,100
federal funds
Section 7 (a) [Section 11 (b)]: Department of Law,
Lapse date extension to June 30, 2001 for tort reform
and medical procedures cases - House and Senate
language the same
Section 7 (b) [not included in the original SB 250]:
Department of Law, Statehood defense - new section
added by the Senate to fund $500,000 for statehood
defense issues
Section 8 [not included in the original SB 250]:
Legislative Council, Statehood defense - new section
added by Senate to fund $400,000 for statehood defense
issues.
Co-Chair Parnell listed some of the statehood defense cases
arising including a potential Antiquities Act withdrawal by
President Clinton, national forests roadless areas disputes
and submerged lands litigation in Glacier Bay National Park
and the Tongass National Forest.
Senator Adams asked if members could get a breakdown of the
statehood defense items to show accountability. Co-Chair
Parnell said he would provide.
Section 11 [Section 12 (c)]: Department of Military and
Veterans Affairs, Alaska National Guard/Youth Corps,
operating costs - House and Senate funding the same at
$582,100 general funds and $110,500 other funds
Section 12 [not in original bill]: Department of Public
Safety, Alaska State Troopers, Grant to Alaska Mountain
Safety Center to provide avalanche warning services -
$125,400 general funds
Co-Chair Parnell explained this item was submitted to him
the previous day and he was offering it for consideration by
the full Committee. He said further information would be
provided later in the meeting.
Section 13 [Section 15 (d)]: Department of Revenue,
Child Support Enforcement, One-time project to reduce
the backlog of case adjustments (extended lapse date of
June 30, 2001) - House and Senate funding is the same
at $150,000 general funds and $470,200 federal funds
Section 14 (a) [Section 16 (b)]: Department of
Transportation and Public Facilities, Marine Vessel
Operations, Increased fuel costs for FY 01 - House and
Senate funding the same at $500,000 general funds
Co-Chair Parnell commented that the fuel costs rose from 35
cents a gallon to 80 cents a gallon creating this
extraordinary short fall.
Section 14 (b) [Section 16 (d)]: Department of
Transportation and Public Facilities, Northern Region
Facility Maintenance and Operations, Unanticipated
winter storm costs outside declared Central Gulf storm
disaster area - House and Senate funding the same at
$25,000 general funds
Co-Chair Parnell pointed out that the committee substitute
did not include funding for the special highway projects
that the House had inserted. He stated these are ongoing
maintenance issues happening across the state.
Co-Chair Parnell also pointed out that the committee
substitute did not include funding for the University of
Alaska for planning and design of the university museum
because it was not considered a fast track item and could be
considered during the FY 01 capital budget deliberations. He
noted that the House did appropriate $500,000 federal funds
for the project.
Section 9 (a) [Section 18 (a)]: Use the estimated
$3,070,000 lapse of Y2K appropriation to partially fund
the shortfall in Longevity Bonus grants - House and
Senate funding the same
Section 9 (b) [Section 18 (b)]: Longevity Bonus Grants,
Estimated general funds required to complete full-
funding - House and Senate funding the same at
$1,430,000 general funds
Section 10 (a) and (b) [not included in the original SB
250]: Northwest Arctic Schools-Buckland, Amend Section
133, Ch. 139, SLA 1998, Lines 26-31 - House and Senate
language changes the same
Co-Chair Parnell noted this reappropriation is within the
same school district.
Section 15 [Section 19]: Department of Community and
Economic Development, Capitalize PCE Fund with the
additional one-time AIDEA dividend - House and Senate
funding the same at $3,600,000 AIDEA funds
Co-Chair Parnell stated that the final items contained in
the committee substitute pertain to the three-quarters vote
of the legislature to draw from the Constitutional Budget
Reserve fund, lapse provisions and an immediate effective
date. He said this information was the same as that in HB
343.
Co-Chair Parnell stated that the total general fund amount
appropriated in the committee substitute was $10.2 million.
Senator Adams referred to Section 22 of the original bill
that addressed Ratification and asked if it would be
considered in the committee substitute. Co-Chair Parnell
said he had not intended to take them up in the fast track
but noted that specific items could be discussed if any
member felt it was an extraordinary fast track item.
ANNALEE MCCONNELL, Director, Office of Management and Budget
noted that the HB 343 contained funding for the Department
of Transportation and Public Facilities to address areas
outside of the declared Central Gulf Coast storm disaster
area. She said that originally, the Administration did not
feel this item needed to be included in the fast track bill,
but due to other circumstances, the department had requested
earlier funding.
She reminded the Committee of the serious avalanche problems
this winter and said that experts had determined that there
would be particularly severe avalanche danger for the
remainder of the spring. Therefore, she said, the request
was submitted for funds to monitor and provide additional
public safety information about avalanche warnings and
dangers. She noted the Alaska Mountain Safety Center had
previously provided this service as required by statute but
that funding was eliminated in 1986. She said the governor
had requested that a task force be formed to identify what
efforts the state should be making to issue avalanche
warnings. She spoke of the still active group operating in
the Hatcher Pass area that has expertise and does avalanche
forecasting training for industry and government. She stated
that in light of the current danger and in effort to prevent
further fatalities, the group should be funded until the
crisis passed.
Senator Phillips asked about the $35,000 request for
avalanche activities in Juneau. Ms. McConnell replied that
three areas of the state had been identified as having the
highest risk: the Anchorage area, Valdez and Juneau-Douglas.
She stressed that there had been some avalanche fatalities
in Juneau in the last few years.
DELL SMITH, Deputy Commissioner, Department of Public Safety
testified that although there have been no avalanche deaths
in Juneau this year, there were some the previous year. Ms.
McConnell added that efforts had already been made this
season to break up avalanches in the Juneau area.
Senator Green asked if the funding for Anchorage included
the Hatcher Pass area. Mr. Smith assured her it did.
Ms. McConnell pointed out that the funding source shown on
the spreadsheet was program receipts and she was unaware of
any program receipts that would apply. Co-Chair Parnell
clarified the funding source should be general funds.
NANCY SLAGLE, Department of Transportation and Public
Facilities spoke to the extreme weather conditions and the
extra efforts made by the department to mediate the
situation outside of the declared disaster area. She warned
that if additional funds were not allocated to the Northern
Region, the department would have to lay off some employees.
Co-Chair Parnell asked why this item needed to be included
in the fast track rather than the regular supplemental
budget, which would be funded sometime in April. Ms. Slagle
replied the cash flow would run out in early April. She
explained that before the department could lay staff off,
they needed to provide the employees with two weeks notice.
Senator Phillips asked who owned and maintained the building
in St. Mary's. Ms. Slagle answered the Department of
Transportation and Public Facilities. Senator Phillips asked
if there was a building and maintenance fund and if a
different project could be delayed to direct funds to this
emergency project. Ms. Slagle spoke of the limited funds
available through the deferred maintenance capital budget
appropriation and the urgency of the other projects as well,
saying they are all "critical needs".
Senator Leman asked about the extent of the damage and if
the windstorm ripped all of the siding off of the building
or just some of the siding. Ms. Slagle said she would
provide pictures showing the damage.
Ms. McConnell addressed the need for a supplemental
appropriation for pupil transportation saying that school
districts are concerned about what would happen in the event
that no further funds are appropriated.
Ms. McConnell then stressed that the PCE program needed to
have the full funding amount rather than the reduced amount
proposed by the Committee. She understood the intent to
appropriate the remainder of needed funds with the full
supplemental but thought it made sense to fund the entire
amount in this bill.
Ms. McConnell talked next about the National Missile Defense
System, the opportunities to attract the project to Alaska
and the importance of allowing the Department of Military
and Veterans Affairs ensure that as many jobs are brought to
the state as possible.
Co-Chair Parnell said he had received no indication from the
Administration that this request needed to be a fast track
item. Ms. McConnell said she would explain more at a later
time, but noted that the urgency had just been realized. She
pointed out that the funding was inserted in the House
budget. She again stressed the importance of the job
opportunities and the advantage of taking the most proactive
approach.
Co-Chair Parnell told the witness that the Committee
supported the project but wondered why the additional travel
was needed in the next three weeks. He asked if Congress was
expected to make a decision on the location of the program
within those three weeks. Ms. McConnell responded that while
Congress was not involved at this point, the state was
working with the Department of Defense and the Boeing
Corporation to position Alaska to the best advantage.
NICO BUS, Administrative Services Manager, Division of
Support Services, Department of Military and Veterans
Affairs explained the travel scheduled for national meetings
in Colorado and Washington D.C. in February, March and
April. He stated the department currently had no funds to
cover the cost. Co-Chair Parnell asked if funds were being
diverted from elsewhere in the department. Mr. Bus affirmed.
Ms. McConnell recommended general funding of $1 million for
the Central Gulf Coast Disaster to match $3 million in
federal funds. She said additional funds would be needed
later but this amount would help the immediate cash flow
situation.
Senator Wilken asked why the PCE would need an additional
$4.4 million to operate the program from May 15 to June 30,
2000 if the fast track appropriated $3.6 million. Co-Chair
Parnell answered that the $3.6 million would not cover the
projected need for billings from previous months explaining
that the program operates on a cash flow basis. The entire
$8 million would pay all the costs for this fiscal year, he
detailed.
Ms. McConnell expounded on the time lag between the
utilization and the receipt of billings. She said there was
question about the future of PCE and that it would be good
for the concerned customers and utility companies to know up
front that the program has been fully funded.
Ms. McConnell told the Committee of her appreciation that
the legislature was addressing the supplemental so early.
Co-Chair Parnell said the bill would report from Committee
tomorrow and be heard on the Senate floor tomorrow. He
announced that amendments to the committee substitute were
due at his office by 4:00 PM.
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