Legislature(2001 - 2002)

03/14/2001 09:12 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                                                                                                                                
     CS FOR HOUSE BILL NO. 117(FIN) am                                                                                          
     "An  Act  making supplemental  and  other  appropriations;  and                                                            
     providing for an effective date."                                                                                          
                                                                                                                                
Co-Chair  Donley detailed  the changes in  a new proposed  committee                                                            
substitute, Version "X".  He noted that changes made at the previous                                                            
hearing for this  bill are incorporated into the proposed  committee                                                            
substitute. In addition he listed.                                                                                              
                                                                                                                                
     Section  12(a), (b)  and (c)  - Change the  effective dates  of                                                            
     several appropriations  including Section 12(a), (b) and (c) to                                                            
     the year  2002, at the request  of the Administration.  This is                                                            
     consistent with other appropriations.                                                                                      
                                                                                                                                
     Section 10(b) - Added  $43,000 at the request of Co-Chair Kelly                                                            
     to  address an  emergency  relating to  clothing  at the  Youth                                                            
     Corps program at the Alaska Military Academy.                                                                              
                                                                                                                                
     Section 14(e) - Gives  authorization to accept $422,000 federal                                                            
     funds as  a grant through the Department of Transportation  and                                                            
     Public Facilities  for Fairbanks Downtown Transit  and Cultural                                                            
     Integration  Planning  at  the request  of Senator  Wilken.  No                                                            
     general  funds are involved  in this item.  This is to  address                                                            
     the requirements of  the federal Clean Air Act and is necessary                                                            
     to continue receiving federal highway funds.                                                                               
                                                                                                                                
Co-Chair Kelly moved to  adopt 22-GH1085\X as a working draft. There                                                            
was no objection and it was ADOPTED.                                                                                            
                                                                                                                                
Amendment  #7: This  amendment makes  the following  changes to  the                                                            
previous committee substitute.                                                                                                  
                                                                                                                                
     Delete:                                                                                                                    
     Section 4       Department of Environmental Conservation                                                                   
          $26,000 general funds for temporary personnel                                                                         
     Section 5 (d) Department of Fish and Game                                                                                  
          $43,900 general funds for temporary personnel                                                                         
     Section 8(b)    Department of Law                                                                                          
          $150,000 general funds for legal services                                                                             
     Section 11 (a) Department of Natural Resources                                                                             
          $75,000 general funds for gas royalty study                                                                           
     Section 11 (b) Department of Natural Resources                                                                             
          $30,000 general funds for gas pipeline supply-side study                                                              
     Section 11 (c) Department of Natural Resources                                                                             
          $50,000 general funds for Alaska North Slope gas sales                                                                
                     (reservoir studies)                                                                                        
     Section 11 (f) Department of Natural Resources                                                                             
          $293,600 general funds for State Pipeline Coordinator's                                                               
                     Office                                                                                                     
     Section 12 (c) Department of Revenue                                                                                       
          $25,000 general funds for study of state's fiscal regime                                                              
                     for ANS gas development                                                                                    
     Total      $693,500 general funds                                                                                          
                                                                                                                                
     Insert:                                                                                                                    
     Add a new bill section to read:                                                                                            
          Sec.__. DEPARTMENT OF NATURAL RESOURCES. The sum of                                                                   
     $693,500   is  appropriated  from  the  general   fund  to  the                                                            
     Department  of Natural Resources  for gas pipeline development                                                             
     and  related activities  for the fiscal  years ending  June 30,                                                            
     2001 and June 30, 2002.                                                                                                    
                                                                                                                                
Senator  Hoffman moved for  adoption and  noted necessary  technical                                                            
changes  are  necessary  to conform  to  the  committee substitute,                                                             
Version "X".                                                                                                                    
                                                                                                                                
Senator Ward objected to adoption of the amendment.                                                                             
                                                                                                                                
Senator   Hoffman   remarked    that   the   amendment   gives   the                                                            
Administration  flexibility and that the amount does  not change. He                                                            
reminded the members  of an appropriation Arctic Power  approved the                                                            
day prior  that gives  the organization  flexibility  to expend  the                                                            
funds  in the  best  manner  to secure  a  natural gas  pipeline  in                                                            
Alaska.                                                                                                                         
                                                                                                                                
Senator Ward spoke to his  objection stating that he wants the money                                                            
to be spent  exactly as stipulated  in the committee substitute.  He                                                            
surmised  that the governor  has the  same intentions  to spend  the                                                            
funds to directly promote the gas line project.                                                                                 
                                                                                                                                
Senator  Hoffman countered  by  comparing  this project  to that  of                                                            
building  a  house.  He stated  that  although  the  floor  plan  is                                                            
established  beforehand, changes are  inevitable and the  "customer"                                                            
should have the ability to make those changes.                                                                                  
                                                                                                                                
Senator Ward maintained his objection.                                                                                          
                                                                                                                                
Senator Olson  acknowledged  the large amount  of funds in  question                                                            
and understood Senator  Ward's reservations, but agreed with Senator                                                            
Hoffman that flexibility must be maintained.                                                                                    
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED:  Senator Austerman,  Senator Leman,  Senator Ward,  Senator                                                            
Wilken, Co-Chair Kelly and Co-Chair Donley                                                                                      
                                                                                                                                
ABSENT: Senator Green                                                                                                           
                                                                                                                                
The motion FAILED (2-6-1)                                                                                                       
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
Amendment  #8: This  amendment makes  the following  changes to  the                                                            
committee substitute.                                                                                                           
                                                                                                                                
     Delete:                                                                                                                    
     Section 11 (a) Department of Natural Resources                                                                             
          $75,000 general funds for gas royalty study                                                                           
     Section 11 (b) Department of Natural Resources                                                                             
          $$30,000 general funds for gas pipeline supply-side study                                                             
     Section 11 (c) Department of Natural Resources                                                                             
          $50,000 general funds for Alaska North Slope gas sales                                                                
                     (reservoir studies)                                                                                        
     Section 11 (f) Department of Natural Resources                                                                             
          $293,600 general funds for State Pipeline Coordinator's                                                               
                     Office                                                                                                     
     Total      $448,600 general funds                                                                                          
                                                                                                                                
     Insert:                                                                                                                    
     Add a new bill section to read:                                                                                            
          Sec.__.DEPARTMENT OF NATURAL RESOURCES. The sum of                                                                    
     $448,600   is  appropriated  from  the  general   fund  to  the                                                            
     Department  of Natural Resources  for gas pipeline development                                                             
     and  related activities  for the fiscal  years ending  June 30,                                                            
     2001 and June 30, 2002.                                                                                                    
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Senator Ward objected.                                                                                                          
                                                                                                                                
Senator Olson again addressed the need for flexibility.                                                                         
                                                                                                                                
Senator  Ward  agreed  that  a  certain  amount  of  flexibility  is                                                            
necessary,  but thought that there  was adequate flexibility  in the                                                            
existing structure.                                                                                                             
                                                                                                                                
Co-Chair  Donley  pointed  out concerns  raised  over  the  governor                                                            
naming the task force the  Alaska Highway Gas Line Task Force, which                                                            
appears  to establish  the route of  the proposed  pipeline.  On the                                                            
contrary, Co-Chair Donley  asserted, the majority of Alaskans prefer                                                            
an Alaska  route. He added  that this item  is included in  the fast                                                            
track  supplemental  and that  the issue  would arise  again in  the                                                            
regular  supplemental.  He  stressed  that the  most  urgent  issues                                                            
should be addressed with  the fast track. He noted that the governor                                                            
has  a $400,000  contingency   fund, which  could  be  used  towards                                                            
portions  of the  project  if a  need  arose that  did  not fit  the                                                            
criteria set forth in the committee substitute.                                                                                 
                                                                                                                                
Senator Hoffman granted  that the governor does have the contingency                                                            
fund,  but noted that  this amendment  does  not request  additional                                                            
funds, only to give the flexibility to the funds provided.                                                                      
                                                                                                                                
Senator   Wilken  understood   and  appreciated   the  request   for                                                            
flexibility, but stated,  "The timing is bothering me." He explained                                                            
this is because of the  allocation the Committee approved for Arctic                                                            
Power  the day  prior. He  stressed he  wanted the  funds from  this                                                            
amendment  to be "targeted"  to the state  agencies as requested  by                                                            
the agencies.                                                                                                                   
                                                                                                                                
Senator Hoffman  also supported  the efforts  of the past month  but                                                            
stressed there is no guarantee  there would not be changes after the                                                            
committee substitute is passed.                                                                                                 
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Hoffman and Senator Olson                                                                                     
                                                                                                                                
OPPOSED: Senator  Wilken, Senator Austerman, Senator  Leman, Senator                                                            
Ward, Co-Chair Kelly and Co-Chair Donley                                                                                        
                                                                                                                                
ABSENT: Senator Green                                                                                                           
                                                                                                                                
The motion FAILED (2-6-1)                                                                                                       
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
Amendment  #9: This  amendment changes  Section 1  of the  committee                                                            
substitute to read as follows.                                                                                                  
                                                                                                                                
          Section 1. DEPARTMENT OF ADMINISTRATION. The sum of                                                                   
     $195,000  [$100,000] is appropriated  from the general  fund to                                                            
     the Department of  Administration, division of Alaska longevity                                                            
     programs,  pioneers homes, for increased costs  for nurses [and                                                            
     nurse's assistants]  for the fiscal year ending  June 30, 2001.                                                            
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Senator Ward objected.                                                                                                          
                                                                                                                                
Senator Olson  relayed his experience  as a physician regarding  the                                                            
need for qualified nursing staff in the Pioneers' Homes.                                                                        
                                                                                                                                
Senator  Austerman objected  to the $100,000  already appropriated,                                                             
saying that he  thought it poor policy for the legislature  to agree                                                            
to fund salary increases  that the Administration contracted without                                                            
consulting the  legislature first. He admitted that  the budget cuts                                                            
over the past five years "got ourselves into this".                                                                             
                                                                                                                                
Senator Hoffman  stated that  the intent is  to provide services  in                                                            
the facilities  and that the state  is having difficulty  recruiting                                                            
and retaining nurses. He  stressed that the field is competitive and                                                            
that the  Pioneers' Homes  are loosing staff.  He suggested  that to                                                            
deny this request  due to the five-year budget philosophy  would not                                                            
alleviate the problem.                                                                                                          
                                                                                                                                
Senator Austerman did not  disagree that nurses should receive a pay                                                            
increase. However,  he stressed this  should be done as part  of the                                                            
regular budget process.                                                                                                         
                                                                                                                                
Co-Chair  Kelly  remarked  that  the regular  budget  cycle  is  the                                                            
appropriate  process to address  this issue,  and he anticipated  it                                                            
would receive support at that time.                                                                                             
                                                                                                                                
Senator  Olson hoped  that  the Committee,  as a  responsible  body,                                                            
would act  as such,  given that  many members  might someday  become                                                            
residents  of the  Pioneers'  Homes.  He spoke  to the  shortage  of                                                            
doctors and nurses in rural Alaska.                                                                                             
                                                                                                                                
Co-Chair Donley stated,  "This issue is really about pay raises." He                                                            
detailed  the governor's  supplemental budget  request for  funds to                                                            
pay for the pay  increases the Department of Administration  granted                                                            
these  employees without  prior approval  from  the legislature.  He                                                            
asserted this action equated  to "very extraordinary circumstances."                                                            
He noted  that when discussing  the matter  with the department,  he                                                            
learned  that  when  comparing  state  salaries  to  private  sector                                                            
salaries,  the  department  had  not  taken  benefit  packages  into                                                            
account. While he expressed  that he does support the pay raises for                                                            
nurses, he opposed the  Administration's method in this instance. He                                                            
assured that the matter  would again be addressed during the regular                                                            
budget cycle. He took Senator Olson's observations to heart.                                                                    
                                                                                                                                
Co-Chair Donley  noted that the provision  allowing the funds  to be                                                            
spent on nurses'  assistants is not a requirement,  but an option to                                                            
give flexibility  for  those duties  that could  be performed  by an                                                            
assistant.  He pointed  out that  sometimes nurses  are required  to                                                            
perform  some duties  for which  they are overqualified.  He  stated                                                            
these  funds could  be used  to increase  nurses'  salaries or  hire                                                            
additional nurses. He understood  the requested amount is the entire                                                            
amount needed if all of the existing vacancies were filled.                                                                     
                                                                                                                                
Co-Chair Donley stated  that although the pay raises were necessary,                                                            
he  did  not  think the  manner  in  which  they  were  granted  are                                                            
appropriate. He  wanted to send the message that the  actions of the                                                            
Administration must be "discouraged"                                                                                            
                                                                                                                                
Senator Hoffman requested  to hear from the Administration as to the                                                            
seriousness of the immediate need.                                                                                              
                                                                                                                                
DAN  SPENCER,   Director,  Division   of  Administrative   Services,                                                            
Department  of Administration, clarified  that the raise  is already                                                            
being paid to  the nurses and that the increased wage  would be paid                                                            
to all new  hires as well. He warned  that if this request  were not                                                            
granted, some  of the vacant positions  would have to be  held open.                                                            
                                                                                                                                
Senator Ward asked if an  option of contracting out nursing services                                                            
was considered before the  decision was made to grant the pay raise.                                                            
                                                                                                                                
Mr. Spencer  responded  that this  practice is not  employed  in the                                                            
Pioneers'   Homes,  except   for  some   on-call  positions.   These                                                            
positions,  he described as qualified  nurses available for  work on                                                            
short notice.                                                                                                                   
                                                                                                                                
Senator Ward asked if some services are currently outsourced.                                                                   
                                                                                                                                
Mr.  Spencer  affirmed  and  again told  of  the  on-call  part-time                                                            
positions that do not include benefits.                                                                                         
                                                                                                                                
Senator Ward asked  if any consideration was given  to the option of                                                            
contracting out  additional services at a higher salary  but without                                                            
benefits.                                                                                                                       
                                                                                                                                
Mr. Spencer responded that it was not.                                                                                          
                                                                                                                                
Senator Ward suggested the department do so.                                                                                    
                                                                                                                                
Mr. Spencer understood  the point, but noted that approximately half                                                            
of the on-call positions are vacant.                                                                                            
                                                                                                                                
Senator  Ward  suggested  that if  the  funds  could be  put  toward                                                            
funding  the outsourced  services  without providing  benefits,  the                                                            
state could become competitive.                                                                                                 
                                                                                                                                
Co-Chair Donley  pointed out that  the appropriation gives  $100,000                                                            
and that the  estimated cost of the  increase is $43,000  per month,                                                            
which would be adequate for the remainder of the fiscal year.                                                                   
                                                                                                                                
Co-Chair  Kelly stressed that  the situation  is not critical  given                                                            
that  the matter  would be  addressed again  before  the end of  the                                                            
session.  Meanwhile, he assured,  no staff  would go without  pay or                                                            
would be laid off. In addition,  he noted that the state would still                                                            
be competitive because the raises have been granted.                                                                            
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Olson and Senator Hoffman                                                                                     
                                                                                                                                
OPPOSED:  Senator  Leman,  Senator  Ward,  Senator  Wilken,  Senator                                                            
Austerman, Co-Chair Kelly and Co-Chair Donley                                                                                   
                                                                                                                                
ABSENT: Senator Green                                                                                                           
                                                                                                                                
The motion FAILED (2-6-1)                                                                                                       
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
Co-Chair  Kelly offered a  motion to move SCS  CS HB 117 (FIN),  22-                                                            
GH1085\X, from Committee.                                                                                                       
                                                                                                                                
There was no objection and the bill MOVED from Committee.                                                                       
                                                                                                                                
Co-Chair Donley  thanked George Utermohle  of the Division  of Legal                                                            
and Research Services and drafter of HB 117, for his efforts.                                                                   
                                                                                                                                
AT EASE 9:50 AM / 10:03 AM                                                                                                      
[Note:  Portion of  audio  tape is  blank as  tape  machine was  not                                                            
turned off.]                                                                                                                    
                                                                                                                                
                                                                                                                                
SFC 01 # 39, Side B 10:03 AM                                                                                                    
                                                                                                                                
                                                                                                                                
Co-Chair Kelly chaired the remainder of the meeting.                                                                            
                                                                                                                                

Document Name Date/Time Subjects