Legislature(2003 - 2004)
04/07/2004 09:06 AM Senate FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 256
"An Act making appropriations for the operating and loan
program expenses of state government, for certain programs,
and to capitalize funds; making appropriations under art. IX,
sec. 17(c), Constitution of the State of Alaska; and providing
for an effective date."
SENATE BILL NO. 258
"An Act making appropriations for the operating and capital
expenses of the state's integrated comprehensive mental health
program; and providing for an effective date."
This was the first hearing for these bills in the Senate Finance
Committee.
Co-Chair Green stated that due to the fact that the House of
Representatives operating budget companion bills have not been
transmitted to the Senate, today's meeting would be limited to
reviewing the differences between the Senate Finance Committee
subcommittee FY 05 operating budget report recommendations and
Governor Frank Murkowski's proposed FY 05 budget. She reviewed the
proposed timeline for developing a committee substitute, hearing
public testimony, and the deadline for the receipt of Members'
amendments to the Committee's proposed operating budget.
Department of Administration
Senator Con Bunde, Chair
Senator John Cowdery
Senator Bert Stedman
Senator Georgianna Lincoln
Senator Bunde commented that in the development of this
Department's budget recommendations, the subcommittee had closely
adhered, "where practical" to the Governor's proposed FY 05 budget.
He noted that minor changes were necessary in a few areas.
LYNN SMITH, Staff to Senator Con Bunde, informed the Committee that
the lone change to the Governor's proposed FY 05 Department
operating budget was a funding source change from General Funds to
receipt-supported services in the Division of Motor Vehicles.
Senator Dyson asked whether the subcommittee reviewed the
Department's Missions and Measures statement.
Senator Bunde responded that he had requested each of the
departments whose budgets he oversaw to provide a Mission and
Measures report. He noted that the Department of Administration's
report was quite extensive and when asked regarding its
corresponding volume of paperwork, the Department saved a
significant amount of money by making its report available on-line
rather than by printing the report to paper. He shared that this
dialogue between the Subcommittee and the Department resulted in a
small, but cost-saving, change in the process.
Senator Dyson asked whether the subcommittee chair agreed with the
Department's Missions and Measures report.
Senator Bunde replied yes. He noted that the Department's Missions
have not changed and that its attempt to measure efforts, "while
not perfect", is an ongoing process.
Department of Labor and Workforce Development
Senator Con Bunde, Chair
Senator Ralph Seekins
Senator Bert Stedman
Senator Bettye Davis
Ms. Smith informed that in contrast to the Governor's single
appropriation to this Department, the Committee separated the
appropriation into four components: the Commissioner;
Administrative Services; Workers Compensation and Safety; and
Workforce Development and Vocational Rehabilitation.
Senator Bunde noted that considerable time was spent reviewing the
Department's Missions and Measures report. The report presented no
area of discomfort.
Senator Dyson expressed pleasure and surprise at Senator Bunde's
comment, as he had found that the Department reports he reviewed
were measuring activity rather than the results and benefits being
provided to State residents.
Co-Chair Green asked for confirmation that the appropriation
structure being recommended by the subcommittee would divide the
appropriation into four rather than one allotment.
Senator Bunde concurred.
Department of Law
Senator Con Bunde, Chair
Senator Ralph Seekins
Senator Tom Wagoner
Senator Kim Elton
Ms. Smith commented that the subcommittee recommends only one
change to that proposed by the Governor. This change would reduce
the Department's overall General Fund budget by $100,000 and
transfer those funds to the Alaska Court System as it is
anticipated that the Court System, whose budget was held to its
prior year's level in the Governor's budget, would need this money
as both the Department of Law's and Department of Public Safety's
budgets have increased and might impact the Court System.
Senator Bunde explained that the Department of Law would be able to
identify the area from whence this funding reduction would occur.
He also informed Senator Dyson that limited review of this
Department's Missions and Measures was undertaken as time was
devoted to addressing the Department's budget issues. However, he
noted that the Department was made aware of the importance and
interest allocated to its Missions and Measures report.
Department of Natural Resources
Senator Con Bunde, Chair
Senator Gary Stevens
Senator Tom Wagoner
Senator Lyman Hoffman
Ms. Smith expressed that the lone change in this budget as compared
to that proposed by the Governor was, at the request of the
Department, the addition of receipt authority in the Agricultural
Revolving Loan Fund. As a result of this change, $150,000 would be
made available for the Alaska Grown Marketing Program and $60,000
would be made available for the organic program. She stated that
Representative Bill Stoltze had furthered this request in order to
better market the State's organic grown program. She noted that
other Legislators have voiced support for the marketing program
increase.
Co-Chair Green understood that there would be no change to the
overall General Fund request level.
Ms. Smith affirmed.
Department of Fish and Game
Senator Ben Stevens, Chair
Senator Scott Ogan
Senator Tom Wagoner
Senator Kim Elton
Senator B. Stevens shared that the three differences between the
Senate subcommittee budget recommendation and that proposed by the
Governor include: "an improved fund source change" that "swaps"
$830,000 of General Funds designated for the Division of Commercial
Fisheries with an identical amount of funding by the Revolving Loan
Fund designated for the Division of Subsistence; an increase in the
Commercial Fisheries Limited Entry Commission Receipt Supported
Services to provide funding for the Public Employees Retirement
System (PERS) increase; and a $1.25 million General Fund increase
to provide funding to the Department's PERS expenses.
Senator Hoffman asked how these changes would affect the
Department's overall budget.
Senator B. Stevens responded that the changes would result in less
than an overall $1.025 million increase.
Senator Hoffman understood that the increase would primarily
address PERS expenses.
Senator B. Stevens concurred.
Department of Public Safety
Senator Ben Stevens, Chair
Senator Gene Therriault
Senator Ralph Seekins
Senator Gretchen Guess
Senator B. Stevens informed the Committee that the subcommittee, as
compared to the Governor's FY 05 budget proposal, has recommended a
General Fund reduction of $50,000 in the Division of Alaska State
Troopers and a General Fund reduction of $50,000 in the Alaska
Bureau of Investigation's budget. In addition, he continued, the
subcommittee allowed for a $200,000 General Fund increase to the
Council on Domestic Violence & Sexual Assault grants category to
provide funding for Shelters. A $200,000 transfer from the
Permanent Fund Felon Account in the Division of Personnel Services
Contracts would further supplement the shelter increment.
Co-Chair Green understood therefore that the proposal would provide
an additional $400,000 for shelters.
Senator B. Stevens concurred, but clarified that the net increase
would only amount to $200,000, as $200,000 of the total $400,000
would be a supported by a funding transfer.
Senator B. Stevens noted that the subcommittee also accepted an
increase of $9,900 in General Funds as the result of a transfer of
funds from the Department of Administration to the State facilities
Rentals Category in the Department of Public Safety.
Senator B. Stevens characterized the subcommittee changes to this
budget as "minor."
University of Alaska
Senator Ben Stevens, Chair
Senator Lyda Green
Senator Gary Wilken
Senator Con Bunde
Senator Fred Dyson
Senator Lyman Hoffman
Senator Donny Olson
Senator B. Stevens explained that due to the fact that the
University of Alaska FY 05 funding has been included in other
legislation, specifically SB 35 and HB 283, no subcommittee report
would be presented.
Senator Dyson asked whether Senator B. Stevens's subcommittees
addressed any of their departments' Missions and Measures reports.
Senator B. Stevens responded that the majority of the
subcommittees' efforts focused on the budgetary process and that
limited time was available to address Missions and Missions.
Department of Community and Economic Development
Senator Gary Wilken, Chair
Senator Bert Stedman
Senator Gary Stevens
Senator Donny Olson
Co-Chair Wilken pointed out that the changes recommended by the
subcommittee as compared to the Governor's proposed budget included
replacing all General Fund support for the Office of Economic
Development and the Commercial Fisheries Revolving Loan Funding
with business licensing receipts. He stated that the subcommittee
"accepted the Governor's amendments to transfer trade positions
between" the Department and the Governor's Office due to the fact
that the entirety of the Division's general funds had been
eliminated and replaced with business license receipts.
Co-Chair Wilken continued that the subcommittee showed support for
the Local Boundary Commission in the Division of Community Advocacy
by allowing for an increase of one position as well as an
additional $50,000 in General Funds. Furthermore, he noted that the
Qualified Trade Association's (QTA) $1.125 million of General Funds
was replaced with business license receipts. He stated therefore
that the total budget for the QTA would remain at both the
contracted amount and the $4.005 million amount specified in the
Governor's budget.
Co-Chair Wilken furthered noted that the subcommittee added
language to allow lapsed FY 04 business license receipts to support
the FY 05 budget.
Co-Chair Wilken also stated that the subcommittee supported the
Governor's proposal to transfer six positions from the Regulatory
Commission of Alaska (RCA) to the Department of Law.
Co-Chair Wilken noted that other than the aforementioned changes
regarding the QTA, no other language changes were made to the
Governor's proposed budget.
Department of Education and Early Development
Senator Gary Wilkin, Chair
Senator Bert Stedman
Senator Bettye Davis
Co-Chair Wilken thanked the Department of Education and Early
Development and the Subcommittee members for the assistance in
developing the subcommittee budget recommendations. He noted that
the K-12 Public Education Foundation Funding Formula budget is
embodied in other separate budgetary legislation, and therefore,
while it was included in the FY 04 budget, its associated
$8,400,000 expense is not reflected in the FY 05 proposed operating
budget.
Co-Chair Wilken stated that the subcommittee approved the
authorization for the State to receive an additional six million
dollars in federal funding for various [indiscernible due to
coughing] programs. He pointed out that due to organizational
changes, $4,088,000 has been eliminated from the Department's
budget due to this being the first year that the Yukon/Koyukuk
School District would be operating the State's distant education
correspondence program, Alyeska Central School (ACS), as a charter
school. This structural change also allowed for the elimination of
26 permanent full-time, 27 permanent part-time, and one temporary
employee in addition to the elimination of two positions in the
Pupil Transportation category.
Co-Chair Wilken noted that an Education Specialist II position was
added to oversee "at least for one budget cycle" of the newly
structured correspondence program and its 11,000 student enrollees.
He noted that this position would assist in furthering the
development of this program, which has experienced tremendous
growth in recent years.
Co-Chair Wilken also noted that $75,000 was restored to the
Division of Libraries archives section and intent language was
added to address concerns regarding the increasing usage of
interagency receipt funding for executive administration,
administrative services, and information services. The goal of the
intent language would be to recognize these expenses as "true"
budget expenditures.
Senator Hoffman asked the funding source for the Education
Specialist II position.
Co-Chair Wilken replied that the position would be funded by
$119,500 of General Funds.
Senator Olson asked how the oversight of the previous
correspondence program was managed.
Co-Chair Wilken replied that other than Department, there was no
specific person responsible for the oversight of the program. In
the year 2000, a position was established to oversee charter
schools; however, it was deemed necessary to authorize one specific
person to be responsible for overseeing all alternative education
programs being offered by the State as concerns have been raised in
regards to how the programs, and specifically correspondence
programs, were being managed. He noted that this position would be
able to provide assistance to the programs, especially as the
growth of alternative programs has been significant and has
resulted in fragmentation within the Department.
Senator Olson asked whether the $119,500 designated for this
position would provide sufficient funds for the Education
Specialist II to travel to various program locales.
Co-Chair Wilken responded that a business plan that includes travel
has been developed for this position.
Senator Dyson, while voicing appreciation in regards to adding a
position to monitor correspondence programs, noted that the charter
school overseer position had not reached its full potential. He
therefore, asked whether the Specialist II position would be a one-
year position and whether the original charter school monitor
position would assume the responsibility for monitoring all
alternative school programs thereafter.
Co-Chair Wilken responded that the position would "probably be" a
two-year position as the individual would travel and gather data
during the first year, and then implement Legislative and
regulatory recommendations the second year. He suggested that
continuance of these positions should be re-evaluated at that time.
Senator Dyson voiced the hope that these "two positions could work
together."
Co-Chair Wilken stated that the Department understands the intent
of establishing the position and would be developing a job
description.
Senator Hoffman noted that the FY 05 management plan, as compared
to the FY 04 management plan, reflects a reduction of 25 full-time
positions.
Co-Chair Wilken explained that the reductions result from the
change with the ACS correspondence school program.
Senator Dyson asked regarding the Department's Missions and
Measures.
Co-Chair Wilken stated that the Department was asked to evaluate
its Missions and Measures and provide any change requests to the
subcommittee. Minimal discussion in this regard ensued.
Co-Chair Green interjected that she had not requested a Missions
and Measures report from the departments whose budgets she oversees
due to the fact that all Legislators had received a letter
requesting "a one-year delay" pertaining to the Missions and
Measures process. The intent of this delay was to allow time for
Departments to re-evaluate their goals and missions.
Senator Dyson understood that the request had originated from, at
that time, the newly seated Governor Frank Murkowski
Administration. The one-year time frame has expired and therefore,
he understood, as discussed at this table, that this should be the
year that the subcommittees would review the revised Missions and
Measures reports.
Co-Chair Wilken remarked that during the Legislative Interim, "an
arduous process" was conducted between the Administration and each
Department to further their Missions and Measures goals. He stated
that rather than being ignored, the results of that process are
embodied in the FY 05 budget, and that a subcommittee's review of
the Missions and Missions relating to the Department's budget would
be a repeat of what had already occurred and would be shallow in
comparison.
Senator Dyson voiced therefore that there might be a fundamental
difference between how the Missions and Measures process is viewed,
as he understood it to be a method through which the Legislature
could measure "performance against agreed upon missions" in the
budgetary process. Therefore, a subcommittee's acceptance of a
department's FY 05 budget, as presented, without conducting a
Missions and Measures review, could be likened to accepting,
without examination, that budget. This would be contrary to what
should be a Legislator's responsibility. He stressed that a
Legislator "has a very keen responsibility" in determining the
validity of how taxpayers dollars are spent and to adjust budgets
in order to support the missions of a department in an economical
manner. He opined that what he is hearing today is contrary to that
charge.
Co-Chair Wilken clarified that the Missions and Measures
responsibility for the FY 05 budget has been assumed by the
Administration, and that, while a subcommittee could also conduct
its own Missions and Measures review, it would be a duplication of
effort. Those who participated in the Department/Administration
Missions and Measures review process characterized it as being
exactly what the process should have been and even a step further.
In conclusion, he stated that while he considers Missions and
Measures to be an important and necessary process, his
subcommittees did not conduct such a review, as it would have
repeated efforts already conducted.
Senator Dyson opined therefore, that the subcommittee had not
utilized the process to determine how the department was
performing. Continuing, he asked why the tools provided by the
Missions and Measures process were not being utilized.
Co-Chair Wilken reiterated that his subcommittee had not conducted
a review due to the fact that the Administration had already
conducted the process during the months of May through September
15, 2003.
Senator Dyson suggested that the Legislature should either continue
or modify the measures regarding the results of a department's
efforts. The intended result should be positive for people of
Alaska. Things that do not work should not be funded.
Co-Chair Green pointed out that the current Director of the Office
of Management and Budget had participated in the Administration's
Missions and Measures department review, and had in years past,
participated in a similar process. This is "a particular passion"
of hers. "There is a point at which Missions and Measures is an
Administrative tool, probably more so than it is a Legislative
tool." Therefore, at this time, the Administration's participation
in the process should be allowed.
Department of Transportation and Public Facilities
Senator Gary Wilken, Chair
Senator Scott Ogan
Senator Tom Wagoner
Senator Georgianna Lincoln
Co-Chair Wilken acknowledged the efforts of Department staff and
the subcommittee members in addressing this budget. He noted that
other than expanding the Department's appropriation structure into
five rather than one appropriation as requested by the Department
and as reflected in the Governor's FY 05 Amended budget, no other
changes were made. The five appropriation components are
Administration and Support; Design, Engineering and Construction;
Highways, Aviation, and Facilities; International Airport System;
and the Marine Highway System.
Senator Hoffman noted that the FY 05 budget, as compared to the FY
04 management plan, indicates that there would be a reduction of
126 fulltime and 34 part-time staffing positions. This is reflected
on page two of the "Agency Totals - FY 2005 Operating Budget -
Senate Structure" spreadsheet in the subcommittee report. He asked
how this would affect public service delivery. In addition, given
that there would be a decrease in staffing, why would there be a $3
million increase in the Administration and Support Services
appropriation.
Co-Chair Wilken responded that the majority of the 126 full-time
positions are vacant and therefore, their elimination would not
affect the service area. He was unsure as to the reason for the
increase in Administration and Support services.
Senator Hoffman agreed that, as reflected in the FY 04 management
plan's $267 million budget, those positions must have been vacant.
However, noting that the FY 05 budget is proposed to be $282
million, he voiced concern that, as the State continues efforts "to
tighten its belt" a portion of the "substantial" $15 million
increase would be designated to increase Administration and Support
funding rather than to support direct services.
Co-Chair Green stated that this concerns would be addressed as the
budgetary numbers are further reviewed.
Department of Environmental Conservation
Senator Fred Dyson, Chair
Senator Scott Ogan
Senator Lyman Hoffman
Senator Dyson stated that the Governor's Amended Budget reduced the
Department's FY 05 budget by $219,000 and that the House of
Representatives further reduced it by $270,200. The Senate
Subcommittee, however, recommended that $201,400 be added back in.
The Senate agreed with the House's $19,000 reduction in Department
travel and $50,000 reduction to the Department's new integrated
water quality program called "Raindrops to Oceans." However, while
the House did not support the Governor's inclusion of an $80,500
Homeland Security position, the Subcommittee retained that position
in its budget. While, the House had eliminated $46,000 for Class C
Drinking Water Program, the Senate Subcommittee reinstated it in
addition to providing $75,000 for the initial phase-out of the
Class 3 Solid Waste Program.
Senator Dyson stated that the Department agrees with the Senate
Subcommittee's recommendations.
Senator Dyson noted that the previous year, legislation was adopted
that required departments to submit their budgetary requests in a
prioritized format and that any reductions to a budget should be
made respectful of that process. However, this Department's budget
was not prioritized.
Senator Dyson noted that the Subcommittee held "considerable
discussions" with the Department in regards to its Missions and
Measures, and in conclusion, agreed with the Department that public
health and the environment are high priorities. However, he allowed
that it is difficult to determine a manner through which to measure
how goals are being met.
LUCKY SCHULTZ, Staff to Senator Fred Dyson, explained that the
Subcommittee's budget proposal is $288,300 lower than the reduction
proposed in the Governor's budget. He also noted that while the
Department had requested a single appropriation, the Subcommittee
divided the appropriations into four components: Administration;
Environmental Health; Spill Prevention and Response; and Water.
Senator Hoffman, a Subcommittee Member, stated that when the
Department was asked how it would manage its Public Employees
Retirement System (PERS) obligation of approximately one million
dollars, its response was that, while there was no definitive plan,
they were planning on absorbing the obligation via such things as
staffing vacancies. However, he argued that vacancies are already a
factor in most budgets and that absorbing a one million dollar
obligation within an eleven million dollar budget would be
difficult and might negatively affect the Department's ability to
meet its Mission and Measures goals.
Senator Dyson noted that the Department has projected that, as the
result of efforts to consolidate its information and administrative
divisions, approximately one million dollar savings would be
realized. The understanding is that these funds would be used to
address the PERS obligation.
Department of Military and Veterans Affairs
Senator Fred Dyson, Chair
Senator Scott Ogan
Senator Bert Stedman
Senator Johnny Ellis
Senator Dyson stated that the proposed FY 05 budget is a $377,000
increase over the FY 04 budget. The Subcommittee concurred with the
House of Representative's Finance Committee's recommendations. He
noted that the majority of the increase is in response to the
Department's PERS obligation combined with the need to expand the
military academy in Fairbanks. He noted that the consolidation of
homeland security and emergency services resulted in savings of
approximately $500,000. Other changes offset each other in terms of
personnel expenses and the House/Senate budget aligned with that
proposed by the Governor.
Senator Dyson described the Department's Missions and Measures
report as "healthy." It was agreed that two manners with which to
test the effectiveness of the Missions were: how much of the
equipment allotted to the Department is functionally operational
and how many of the authorized positions are filled and how many of
those people "are trained and ready to go to work" were an
emergency to arise. A new mission has been developed through which,
when feasible, local and rural facilities' maintenance would be
conducted by local people. Another proposal being developed through
which to measure the ability of the Department's readiness to
protect against such things as terrorist attacks would be to allow
a committee of Legislators to attend briefings and other
discussions regarding the Department's readiness.
Senator Olson understood that, in addition to a three-quarter of a
million dollars PERS debt in FY 04, this amount would also be
anticipated in FY 05. He asked how a 1.1 percent increase in the FY
05 budget could provide that for that obligation.
Senator Dyson responded that he did not have that information.
Co-Chair Green asked that an answer be provided at the next hearing
on this bill.
Department of Revenue
Senator Fred Dyson, Chair
Senator John Cowdery
Senator Donny Olson
Senator Dyson noted that the Department originally requested an FY
05 budget increase of $369,000. The Governor decreased that amount
by $315,000; the House eliminated an additional $19,000; and the
Senate subcommittee is recommending $125,000 more than the House.
Of that amount, $106,000 is result of the Department's request to
fund the Alaska Natural Gas Authority. An additional funding
request for a Wood McKinzie subscription to the North America Gas
Insight Service/Multi-Client Study might be forthcoming.
Senator Dyson noted that a significant portion of the Department's
budget increase was to support the PERS impact as a result of
salary increases. The overall $2.5 million PERS impact would be
offset by internal budgetary reductions.
SFC 04 # 74, Side B 09:53 AM
Senator Dyson urged the Committee to designate that the State
employee retirement accounts should be viable and not subject to
the continuance of the "unpleasant surprise" experienced this year.
When he suggested to the Department of Revenue that their missions
should include having a healthy retirement system, their response
was that they only control the investment portion of it, and
another group has the mission of making "it actuarially viable." He
declared that this Committee should require the Administration to
have a mission of a healthy retirement system and to require the
people involved in that mission to develop good standards with
which to further it. "This is very, very important."
Senator Dyson stated that a great deal of discussion ensued
regarding the performance of the Department of Revenue's Child
Support Enforcement Division (CSED). While that Division must
adhere to federal standards, it was urged that on the local level,
they should respond in a quicker fashion to the needs of those in
the CSED system. A better coordination of efforts between the
Department of Revenue, the Department of Law, and the Alaska Court
System is required to better serve the public.
Co-Chair Green noted that to mandate to the Court System a
timeframe in which something should be handled would be difficult,
particularly in regards to Court Orders.
Senator Dyson agreed, but stated that this is valuable information
for us, for if the Court System "is lacking the people and
resources" with which to address things in a reasonable timeframe,
there are impacts on other departments and citizens. He stated that
Missions and Measures ought to direct Legislators' attention to
"the chokepoints" in the process.
Co-Chair Green agreed.
Senator Hoffman inquired regarding the increase in the Department
of Revenue's FY 05 retirement budget as compared to its FY 04
budget.
Senator Dyson responded that it would amount to $2.5 million.
Senator Hoffman asked whether the FY 05 retirement system expenses
are fully funded in the Department's Personal Services expenses. In
addition, he asked whether the Personal Services funding amount
would fund salary increases.
Mr. Schultz stated that it is difficult to identify whether the
retirement system expenses are fully funded in the Personal
Services category as the expenses could have been offset by
reductions in other budget components.
SUSAN TAYLOR, Director, Administrative Services, Department of
Revenue, clarified that the majority of the Department's PERS
commitment would be funded within this budget. She noted that some
PERS expenses would be offset by such things as a small reduction
in the Tax Division. However, the required salary adjustments in
larger Department components such as the Alaska Housing Finance
Corporation (AHFC) served to significantly increase the Personal
Services budget.
Department of Corrections
Senator Lyda Green, Chair
Senator Scott Ogan
Senator Gary Stevens
Senator Gretchen Guess
Co-Chair Green stated that the subcommittee has recommended a one
million dollar reduction to the Governor's Amended FY 05 budget, as
the net result of increasing inmate health care costs by one
million general fund dollars and reducing the Correctional
Industries fund by two million dollars. The increase in inmate
health care funding would align funding with recent costs. "Greater
savings" in inmate health care costs are anticipated as a new
health care program is implemented. She reminded that recently
enacted legislation required the Correctional Industries program to
be self-sustaining.
Co-Chair Green also noted that, while the Department requested a
single appropriation, the Subcommittee designated five separate
appropriations: Administration and Operations; Inmate Health Care;
Institutions; Probation and Parole; and Parole Board.
Co-Chair Green stated that dividing the appropriations in this
manner would allow for an accurate portrayal of each component's
expenses, specifically in the field of inmate health care costs.
Senator Hoffman noted that while there would be a five percent
reduction in staffing positions, there would be an increase in
Personal Services expenses. He asked whether the increase is the
result of PERS expenses.
Co-Chair Green responded that the Department's PERS expenses were
included in the Governor's PERS/TRS Budget request because of the
fact that its 365 day a year, 24 hour a day operations would "skew"
its overall budget.
Senator Hoffman asked whether the Department's five-percent
reduction in full time positions was comprised of existing vacant
positions.
JERRY BURNETT, Director, Division of Administrative Services,
Department of Corrections explained that the majority of the 72
positions being eliminated were vacant. The identical number of
security facility positions would continue in FY 05 as FY 04, and
that due to business practice changes in the administration of the
Department, 18 administrative positions were eliminated. The
savings from the elimination of the administrative positions served
to support the security staff expenses.
Co-Chair Green understood that the end result would be an increase
in the number of security facilities staffers.
Mr. Burnett stated that the goal is "to not decrease" the number of
employees in the facilities.
Senator Olson noted that there is a decrease projected for inmate
transportation expenses.
Mr. Burnett responded that most of decrease is the result of
changes in how inmates are transported, specifically that more
ground transportation and fewer charter flights would be utilized
as well as a reduction in the frequency of moving inmates between
facilities.
Senator Olson asked whether transportation expenses have increased
as a result of the closure of the jail in Kotzebue.
Mr. Burnett explained that while the Department does fund community
jail expenses, specifically the jails in Kotzebue and Nome, they
are funded via a reimbursable services agreement (RSA) between the
Department of Corrections and the Department of Public Safety. This
expenditure is reflected in the community jails component of the
Department of Public Safety budget. He noted that the FY 04
$#67,000 expenses associated with this RSA component are projected
to continue at the same level in FY 05.
Department of Health and Social Services
Senator Lyda Green, Chair
Senator Ralph Seekins
Senator Ben Stevens
Senator Hollis French
Co-Chair Green stated that upon "review of some anticipated savings
that the Department had brought forth," the Subcommittee increased
the Governor's Amended Budget proposal by $500,000 General Funds in
order to provide substitute funds for the Pioneer Home, as
projected receipt services were over-projected. In addition, the
Safety Action Program budget was increased by utilizing $845,000 in
federal and other funds with the instruction that the entire
program should be evaluated to determine what system would best
serve all entities involved in the process, including counselors,
the Court System, and others. The Office of Children's Services,
Residential Child Care budget was increased $375,100; a new federal
grant of $600,000 was earmarked for and provided to the Children's
Trust Programs; and $900,000 in federal receipts was added to the
Alaska Temporary Assistance Program in the Public Assistance
Division.
Co-Chair Green expressed that due to projected revenue decreases in
both the Tobacco Prevention and Control Program and the Alcohol and
Drug Abuse Prevention and Treatment fund, appropriations were
adjusted to reflect this downturn. In addition, the funding for the
Human Services Community Matching Grant Program, which is being
phased out, reflects the first of the next three-year equal
reductions slated to occur.
Senator Hoffman asked regarding the funding of the Department's
PERS obligation.
JANET CLARKE, Director, Division of Administrative Services,
Department of Health and Social Services, responded that the
Department's four million dollar PERS and Teachers Retirement
System (TRS) General Fund increase was absorbed by reductions that
would occur throughout the Department. Staffing for 24-hour
facilities was, however, sustained.
Co-Chair Green understood that these facilities would include the
Alaska Psychiatric Institute (API), the Pioneer Homes, and juvenile
corrections facilities.
Ms. Clarke stated that it would also include front line social
workers and other direct field staff.
Senator Hoffman understood that the Department has absorbed the
funding for the "around the clock" staffing positions.
Ms. Clarke clarified that the PERS and TRS expenses were absorbed
throughout the Department. Even though the Governor's Amended
Budget reflected a one million dollar detriment in the Department's
budget, the PERS and TRS expenses were funded by a variety of
Department reductions, refinancing, or other budgetary elements.
Senator Hoffman requested that detailed information about the
reductions be provided.
Co-Chair Green asked the Department for a breakout of the four
million dollar PERS and TRS expenses, specific to both the 24-hour
facilities employees and others.
Alaska Court System
Senator Lyda Green, Chair
Senator John Cowdery
Senator Tom Wagoner
Senator Hollis French
Co-Chair Green stated that the Subcommittee's FY 05 budget
recommendation is $400,000 higher than that proposed in the
Governor's Amended Budget proposal as the net result of: increasing
the Trial Court funding by $300,000 to allow for the anticipated
case load increase resulting the addition of more troopers, public
defenders, criminal prosecutors and CINA attorneys and the denial
of pay increases for jurors; the denial of the request to increase
Court salaries, Court House leases and security, juror pay, and to
increase Court-Appointed Attorney hourly pay; approving two Mental
Health Trust projects; and a minimal reduction in the Judicial
Council budget.
Alaska State Legislature
Senator Lyda Green, Chair
Senator Gary Wilken
Senator Gene Therriault
Senator John Cowdery
Senator Lyman Hoffman
Co-Chair Green stated that the Subcommittee recommended a budget
that is $2.1 million less than that approved by the Legislative
Council and the Legislative Budget and Audit Committee. The
reduction was the net result of: the elimination of seven one-time
items that were included in the FY 04 budget; the lowering of the
funds specified to support anticipated re-districting lawsuits; a
reduction in the Permanent Fund Dividend (PFD) felon fund amount to
more accurately reflect the amount of those funds that would be
available; a fund source change provided to the Office of Victim
Rights to replace the amount lost by the reduction in the PFD felon
funds; and other miscellaneous adjustments being made within
Personal Services
Office of the Governor
Senator Lyda Green, Chair
Senator Gary Wilken
Senator Gene Therriault
Senator John Cowdery
Senator Donny Olson
Co-Chair Green communicated that although it recommends slightly
different allocations, the Subcommittee has recommended the same
funding level as the Governor's Amended Budget. The net result of
these changes would include the replacement of $651,000 General
Funds in the Executive Office with business license receipts for
the support of overseas trade development functions; the transfer
of $340,000 from the Executive Office to the Contingency Fund; and
the denial of two small increments totaling $80,000 General Funds.
Senator Hoffman commented that while the Subcommittee's FY 05
budget recommendation in total matches that proposed by the
Governor, there has been a 21-percent increase over the FY 04
Management Plan budget.
Co-Chair Green responded that the increase is the result of the
transfer of business license receipt funds from the Department of
Community and Economic Development to support trade functions.
LINDA PEREZ, Administrative Director, Division of Administrative
Services, Office of the Governor, explained that the increase in
the Governor's budget is the result of the transfer of funds to
support the International Trade operations from the Department of
Community and Economic Development to the Governor's office. In
addition, the budget reflects the funding required in support of
the PERS increase.
Senator Hoffman asked whether these two items accounted for the
majority of the funding increase.
Ms. Perez affirmed.
Co-Chair Green stated that this concludes the subcommittee
operating budget reports. Upon the collection of the information
and the receipt of the House of Representatives Operating Budget
legislation, a committee substitute would be developed and
presented to the Committee.
Senator Hoffman asked whether any departments anticipate the need
to present a supplemental budget request for FY 05.
Co-Chair Green responded that there has been no indication that any
supplemental budget requests would be forthcoming.
AT EASE 10:16 AM / 10:17 AM
Co-Chair Green stressed that no budget has been short-funded with
the expectation that a supplemental request might be necessary.
However, whether or not any supplemental budget requests might be
forthcoming is unknown.
The bills were HELD in Committee.
[NOTE: Co-Chair Wilken chaired the remainder of the meeting.]
| Document Name | Date/Time | Subjects |
|---|