Legislature(2005 - 2006)SENATE FINANCE 532

01/25/2005 09:00 AM Senate FINANCE


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09:03:12 AM Start
09:10:32 AM SB62
10:27:47 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 62 APPROP: DIVISION OF ELECTIONS TELECONFERENCED
Moved SB 62 Out of Committee
                                                                                                                                
     SENATE BILL NO. 62                                                                                                         
     "An Act making a supplemental appropriation for increased                                                                  
     operating costs of the division of elections; and providing                                                                
     for an effective date."                                                                                                    
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Wilken explained  that this bill, which is sponsored by the                                                            
Senate   Rules  Committee   by  Request  of   the  Governor,   would                                                            
appropriate  $694,900 to  the Division  of Elections,  as  increased                                                            
operating expenses would  exhaust the Division's FY 05 funding prior                                                            
to March 1, 2005.                                                                                                               
                                                                                                                                
LIEUTENANT  GOVERNOR LOREN  LEMAN suggested  that this supplemental                                                             
budget request  be recognized as the  result of success rather  than                                                            
an  indication  of  failure.  The  State's  November   2004  General                                                            
Election  was a success  in addition  to the fact  that 25,000  more                                                            
voters  voted than  in any  previous  Statewide election,  a  record                                                            
numbers of absentee ballot  requests were received. In addition, the                                                            
Division  responded to  five initiatives  and  one recall  petition,                                                            
each of which required  the Division to hire additional personnel in                                                            
order to verify,  review, and count signatures, and,  as required by                                                            
State law,  outside legal  counsel provided  guidance regarding  the                                                            
recall petition.  Furthermore, the  Division had to reprint  ballots                                                            
and,  in  a  cooperative  arrangement  between  the  State  and  the                                                            
Municipality  of Anchorage,  an Anchorage  school bond election  was                                                            
held concurrently  with the  November General  Election. While  this                                                            
arrangement  increased costs  to the State,  the Municipality  would                                                            
remit payment  for the  $100,000 expense.  The combination  of these                                                            
elements  served to  substantially  impact the  Division's  funding;                                                            
particularly,  the expenses  associated with  the General  Election.                                                            
While a  Youth Ambassador  Program  to train young  people as  poll-                                                            
workers  was implemented,  it  did  not add  to the  expenses.  This                                                            
program would  assist in providing a pool of replacement  workers as                                                            
long time poll workers age.                                                                                                     
                                                                                                                                
LAURA  GLAISER,  Director,  Division  of Elections,  Office  of  the                                                            
Lieutenant  Governor,   reviewed  the  summary  of  the   Division's                                                            
expenses  as outlined  in her  memorandum  to the  Co-chairs of  the                                                            
Senate Finance  Committee, dated January  24, 2005, [copy  on file].                                                            
                                                                                                                                
     Temporary Hire costs in excess of 2002                                                                                     
      election cycle costs                          $304.0                                                                      
     Court-ordered Ballot Re-printing costs         $243.2                                                                      
          Ballot printing                                 $203.1                                                                
          Transportation                                  $ 35.6                                                                
          Destruction                                     $  4.3                                                                
          Personal Services                               $  0.2                                                                
     *Municipality of Anchorage's bond                                                                                          
      question on General Election ballot           $104.6                                                                      
     **Recounts - District 5 and Statewide                                                                                      
      conducted simultaneously                            $ 39.8                                                                
     ***Independent Counsel re: Recall                    $ 37.6                                                                
     Expedited forms and freight charges                  $ 22.1                                                                
     Mainframe "chargebacks" in excess                                                                                          
      of 2000 and 2002 election cycles                    $ 23.3                                                                
     Additional cost for postage related                                                                                        
      to by-mail absentee                                 $ 19.0                                                                
     Fax presses                                          $ 11.7                                                                
     TOTAL to date                                        $805.3                                                                
                                                                                                                                
     *Please see contract with Muni and detail sheet on costs to                                                                
     date                                                                                                                       
     ** $750 and $10,000 respectively were deposited into the                                                                   
      General Fund for the District 5 and Statewide recounts                                                                    
     ***Please see email from Department of Law regarding costs of                                                              
     independent counsel.                                                                                                       
                                                                                                                                
Ms. Glaiser  expressed that the largest  expense component  resulted                                                            
from  the need  to  hire  13 Temporary  Hires  to  process  absentee                                                            
ballots, review  the recall and initiative petitions,  and assist in                                                            
two election recounts:  one being a local and one  being a Statewide                                                            
election recount.  These tasks placed "an incredible  burden" on the                                                            
Division in terms of salaries and staff overtime.                                                                               
                                                                                                                                
Ms. Glaiser  shared  that the  reprinting  of the  ballots was  time                                                            
consuming  as the  paper supplies  were scarce  and the turn-around                                                             
time  was  short.  Associated  costs  included   destroying  of  the                                                            
original ballots and shipping  expenses for the replacement ballots.                                                            
                                                                                                                                
Ms. Glaiser  noted  that the incorporation  of  the Municipality  of                                                            
Anchorage bond  packets into the election was not  precedent setting                                                            
as such coordination  had previously occurred. The  Municipality has                                                            
not, of yet, reimbursed the State for the $90,000 plus expense.                                                                 
                                                                                                                                
Ms. Glaiser  noted  that the  Division  owes the  Department of  Law                                                            
approximately $37,000 for  their role connected with the independent                                                            
counsel  associated with  the Senator  Scott  Ogan recall  petition.                                                            
This  is further  detailed in  the memorandum  [copy  on file]  from                                                            
Kathryn Daughhetee,  Director, Administrative  Services,  Department                                                            
of  Law, to  Lauri  Allred,  Division of  Elections,  dated  Monday,                                                            
January 24, 2005.                                                                                                               
                                                                                                                                
Ms. Glaiser commented that  the Division conducted two recounts: one                                                            
for a  District 5 recount  at the  request of Tim  June, one  of the                                                            
State House  of Representatives candidates  and a Statewide  recount                                                            
at  the request  of  Alaskans for  a Fair  Election.  Current  State                                                            
Statute limits  the cost of the bond required by the  requester of a                                                            
Statewide  recount to  $10,000  and the  cost for  a House  District                                                            
election recount  to $750. Both of the requesters  paid the required                                                            
bond amounts;  however  the actual  costs of  the recounts  exceeded                                                            
$39,000.  These  recounts  were  conducted  simultaneously  to  more                                                            
efficiently utilize staff and contain costs.                                                                                    
                                                                                                                                
Senator  Bunde  asked whether  the  $39,000  expense was  the  total                                                            
recount expense  as opposed  to being the  cost associated  with the                                                            
Statewide recount.                                                                                                              
                                                                                                                                
Ms. Glaiser  clarified that $39,000  was the total recount  expense.                                                            
The bonds, totaling  $10,750, were deposited into  the General Fund.                                                            
                                                                                                                                
Senator Bunde  asked the cost attributed  to the Statewide  recount.                                                            
                                                                                                                                
Ms.  Glaiser responded  that  this  expense  is unavailable  as  the                                                            
recounts  were  run simultaneously   in order  to  more efficiently                                                             
control expenses.                                                                                                               
                                                                                                                                
Senator  Bunde expressed  that  the intent  of his  question was  to                                                            
ascertain  the actual costs  of conducting  recounts as compared  to                                                            
the Statutory  bond amounts.  Therefore, an  approximation  would be                                                            
appreciated.                                                                                                                    
                                                                                                                                
Ms. Glaiser acknowledged.                                                                                                       
                                                                                                                                
Senator  Hoffman asked  why the  recount expenses  were three  times                                                            
higher than anticipated.                                                                                                        
                                                                                                                                
Ms. Glaiser  clarified  that  rather than  the amount  of the  bonds                                                            
being  based  on  estimation,  the  amount  is  specified  in  State                                                            
Statute. The State must  conduct a recount "regardless of the cost."                                                            
                                                                                                                                
Senator Hoffman asked when these Statutes were last addressed.                                                                  
                                                                                                                                
Ms. Glaiser did not have that information.                                                                                      
                                                                                                                                
Co-Chair Wilken  asked whether the $39,800 recount  expense would be                                                            
reduced by the $10,000 and $750 bond payments.                                                                                  
                                                                                                                                
Ms. Glaiser  clarified that  the Division  would absorb the  $39,800                                                            
expense, as the $10,000  and $750 bonds proceeds were deposited into                                                            
the General Fund.                                                                                                               
                                                                                                                                
Lieutenant  Governor Leman  declared  that while  the recounts  were                                                            
appropriately  conducted,   the associated   expenses  exceeded  the                                                            
amount  of the bonds.  The Division  conducted  an AccuVote  machine                                                            
recount  with  hand-count  testing  of a  representative  number  of                                                            
Statewide  precincts.   This  sample  testing  confirmed   that  the                                                            
AccuVote  machines  are accurate.  The  entire recount  process  was                                                            
reasonable;  the $39,800  expense is  an accurate  portrayal of  the                                                            
cost of conducting such recounts in this State.                                                                                 
                                                                                                                                
Senator  Dyson  understood  that the  expenses  resulting  from  the                                                            
increase absentee  voter requests, the record number  of voters, the                                                            
petitions as well as the  recount process were beyond the control of                                                            
the Division.  He asked  how these "uncontrollable  variables"  have                                                            
historically been addressed.                                                                                                    
                                                                                                                                
Ms. Glaiser stated that  long-term Division employees have described                                                            
her as a "magnet for the  unprecedented", as there has never been an                                                            
election cycle  that included such things as the processing  of five                                                            
petitions and the record  number of absentee ballot requests. "There                                                            
is no easy mark  to compare it against." The Division's  most recent                                                            
large supplemental request resulted from reapportionment issue.                                                                 
                                                                                                                                
Co-Chair Green informed  that the current bond level guidelines were                                                            
established in State Statutes in 1986.                                                                                          
                                                                                                                                
Senator  Hoffman   asked  for  further  information   regarding  the                                                            
$304,000 in Personal Costs;  specifically as this indicates that the                                                            
13  temporary  staffers were  hired  at an  average  expenditure  of                                                            
$27,000 each.                                                                                                                   
                                                                                                                                
Ms. Glaiser clarified  that in addition to the wages  paid to the 13                                                            
temporary  staffers,  overtime  costs for  election  employees  were                                                            
included in the total.  The amount would provide for FY 05 expenses,                                                            
to date.                                                                                                                        
                                                                                                                                
Senator Hoffman  asked for the expense  solely attributed  to the 13                                                            
temporary workers who processed the five petitions.                                                                             
                                                                                                                                
Ms. Glaiser  asked for clarification  as to  whether the request  is                                                            
that overtime charges be  presented separately from the wages of the                                                            
extra temporary employees.                                                                                                      
                                                                                                                                
Senator Hoffman  asked that a breakout  of wages and overtime  wages                                                            
be developed.                                                                                                                   
                                                                                                                                
Ms. Glaiser stated that,  while this would be a "difficult process,"                                                            
this information could be provided.                                                                                             
                                                                                                                                
Senator Hoffman  understood therefore  that this information,  which                                                            
would provide  justification for the request, is unavailable  today.                                                            
                                                                                                                                
Ms. Glaiser concurred.                                                                                                          
                                                                                                                                
Co-Chair Wilken asked Ms. Glaiser to continue her testimony.                                                                    
                                                                                                                                
Ms. Glaiser  continued that  the Division's  database is located  on                                                            
the  State's mainframe  computer  system and  that  the Division  is                                                            
charged  for this usage.  To date,  this usage,  for such things  as                                                            
voter registration and  petition processing, exceeds normal election                                                            
year usage by approximately $26,000.                                                                                            
                                                                                                                                
Ms. Glaiser  shared that the high  level of absentee voting  by mail                                                            
resulted  in an  unanticipated  increase  in postage  expenses.  The                                                            
Municipality  of Anchorage  would be reimbursing  the State  for the                                                            
postage expenses associated with its bond packet election.                                                                      
                                                                                                                                
Ms.  Glaiser noted  that,  in addition  to  the increase  in  mailed                                                            
ballot voting, there was  also an increase in Facsimile voting. As a                                                            
result,  the  Division  was  required  to  acquire   two  additional                                                            
Facsimile  presses, which  provided 16 additional  lines. This  cost                                                            
amounted to $11,700.                                                                                                            
                                                                                                                                
Senator Bunde  stated that,  while the Committee  should be  excited                                                            
were  this   supplemental   request  "driven   by  increased   voter                                                            
participation,"  it is essential that  more detailed information  be                                                            
provided.  He surmised  that the  substantial  increase in  absentee                                                            
voters was  the result of the political  activities affiliated  with                                                            
party  politics. He  asked whether  the Division  could compare  the                                                            
number of  voters who requested  absentee ballots  to the number  of                                                            
ballots actually voted.                                                                                                         
                                                                                                                                
Ms. Glaiser  responded  that comparing  the number  of the  absentee                                                            
ballots  voted  to  the  number  requested   would  be  a  difficult                                                            
calculation  as  the  numbers  are  "skewed"  due  to  many  factors                                                            
including that  some absentee voters  were sent two ballots  because                                                            
they requested a "special  advance ballot" and then they were mailed                                                            
the official  ballot.  Were a person  to mail  the Division  both of                                                            
these ballots,  only one would be counted. She noted  that there was                                                            
a 300-percent  increase  in "special  advance  ballot" requests.  In                                                            
addition,  some people inadvertently  requested  an absentee  ballot                                                            
thinking they  had requested a voter registration  form, received an                                                            
absentee ballot,  but voted at their  voting precinct. The  Division                                                            
could  provide  the  exact number  of  absentee  ballots  that  were                                                            
requested  and how  many were processed.  The  inability to  provide                                                            
exact information  is "frustrating;"  however, "human factors"  must                                                            
be acknowledged.                                                                                                                
                                                                                                                                
Senator  Bunde  clarified  that rather  than  desiring  to know  the                                                            
reason that ballots were  not returned, he is asking for the percent                                                            
of requested absentee ballots that were returned.                                                                               
                                                                                                                                
Ms. Glaiser stated that  approximately fifty-percent of the absentee                                                            
ballots  were mailed  back to the  Division.  However, she  stressed                                                            
that this  number "is  skewed" as  some people  might have  received                                                            
more  than  one ballot.  Therefore,  the  numbers  must  be  further                                                            
evaluated,  as the  Division's database  does  not separate  Special                                                            
Advance ballots from absentee ballots.                                                                                          
                                                                                                                                
Senator Bunde  asked whether the involvement of "partisan  political                                                            
activity"  might   have  generated  some  of  the  absentee   ballot                                                            
increase. Continuing,  he asked whether  an absentee ballot  request                                                            
that  is processed  through  a  political  party rather  than  being                                                            
individually  directed   to the  Division   might  incur  additional                                                            
expenses to the Division.                                                                                                       
                                                                                                                                
Ms. Glaiser  responded that both major  political parties  conducted                                                            
voter  registration drives  for  this election.  Voter registration                                                             
drives do incur  costs to the State;  however, this is viewed  "as a                                                            
good thing."  There were instances  in which the voter registration                                                             
information was first submitted  to the party and then to the State.                                                            
This resulted  in delays and stress to the Division  because some of                                                            
the voter  registration  forms were  held for up  to a month  before                                                            
being delivered  to the Division.  Thus they could not be  processed                                                            
in a timely  manner. In  one instance, the  Division had to  contact                                                            
approximately  1,000 people by priority mail to confirm  information                                                            
on  their  voter  registration  form  as a  party  had  altered  the                                                            
application  by  adhering a  sticker  to it.  The Division  did  not                                                            
separate  the costs associated  with these  efforts by party  or per                                                            
application  as the focus  at the time was  to get the applications                                                             
processed expediently.                                                                                                          
                                                                                                                                
Senator Bunde  voiced that rather  than his comments being  critical                                                            
of the  Division, "the thrust"  of his comments  was that,  were the                                                            
action of political parties  to generate expenses to the Division of                                                            
Elections,  he would support  a request that  the parties  reimburse                                                            
the Division.  However, he applauded  the efforts to increase  voter                                                            
participation.                                                                                                                  
                                                                                                                                
9:40:37 AM                                                                                                                    
                                                                                                                                
Lieutenant  Governor  Leman  commented  that  his  Office  would  be                                                            
supporting  proposed  changes  to  the process  that  would  address                                                            
situations in  which unwarranted party activities  incurred expenses                                                            
to the  State.  He noted  that although  the party  altering of  the                                                            
voter  registration forms  had complied  with the  Cease and  Desist                                                            
order he  had issued,  a number  of costs were  associated with  the                                                            
situation  including  staff time,  postage,  and the  processing  of                                                            
large batches  of registration forms that were delivered.  Temporary                                                            
employees had to be hired to process them expediently.                                                                          
                                                                                                                                
Senator  Hoffman  commented   that  "obviously"  the  desire  is  to                                                            
encourage  people to vote.  He asked how  the Division could  assure                                                            
that the situation  in which 2,500 absentee ballots  were delayed in                                                            
the Juneau  post office due to both  a lack of postage and  an under                                                            
count of the number of  ballots being delivered, would not re-occur.                                                            
                                                                                                                                
Ms. Glaiser  reiterated that this  is a "human process,"  and rather                                                            
than being  a lack  of postage,  "an accounting  error" was  made in                                                            
filing  out the  paperwork for  the post  office.  The Division  has                                                            
acknowledged the  error. The Postal Service should  also acknowledge                                                            
that, on their part, an  error was made in that the Division was not                                                            
contacted  until the  following day,  even though  staff could  have                                                            
been contacted that day. The Division regrets the mistake.                                                                      
                                                                                                                                
Senator Hoffman  countered that the Postal Clerk stated  that both a                                                            
lack of postage and a ballot count error were involved.                                                                         
                                                                                                                                
Lieutenant Governor Leman  stated that this was an unfortunate bulk-                                                            
mailing  mistake. The  process  is very  strict on  reconciling  the                                                            
count of the  pieces to the paperwork.  He declared that  the State,                                                            
which is the Post  Office's largest customer in Juneau,  is good for                                                            
the postage and that "it  is sad that a lower level Postal employee"                                                            
held up the mailing  rather than conferring with the  Postmaster. It                                                            
is agreed that were such  an issue to re-occur, the Postmaster would                                                            
ultimately make the decision.  In summary, two human errors occurred                                                            
with the  result being  that the  absentee ballots  were not  mailed                                                            
until  the next  day.  He understood  that  this situation  did  not                                                            
result in  anyone not receiving  his or her  ballot in time  for the                                                            
election. It was  unfortunate that this occurred and  received media                                                            
attention.                                                                                                                      
                                                                                                                                
Senator  Hoffman agreed,  but understood  that  there were  numerous                                                            
complaints  about  the  processing  of absentee  ballots.  He  asked                                                            
whether the  Division could  track how many  of the delayed  ballots                                                            
were mailed back to the Division in time for the election.                                                                      
                                                                                                                                
Lieutenant  Governor Leman stated  that while he has received  fewer                                                            
than 20 complaints from  people who had not received their ballot in                                                            
a  time to  vote,  "one person  is  too many".  The  Division  would                                                            
attempt  to   perfect  the  process.   Efforts  would  be   made  to                                                            
investigate how  many of the delayed mailings were  not delivered in                                                            
time.                                                                                                                           
                                                                                                                                
Senator  Olson asked  what improvements  could be  made in order  to                                                            
avoid  unexpected   expenses   and  processing   delays  in   future                                                            
elections; perhaps the 1986 bond requirements should be updated.                                                                
                                                                                                                                
Lieutenant  Governor   Leman  reiterated  that  this  appropriation                                                             
request is not being advanced  solely due to problems in the system.                                                            
There  are  a number  of  things involved,  and  contrary  to  media                                                            
representation,  no mismanagement occurred. Contributing  factors to                                                            
the request included costs  associated with the substantial increase                                                            
in new voters,  the two recounts and  their associated bond  levels,                                                            
the costs of  managing five petitions,  and the costs incurred  with                                                            
conducting  concurrent State/local  government elections.  While the                                                            
concurrent election costs  would be reimbursed, the Legislature must                                                            
appropriate the funds to  pay the bills. In addition, the bond level                                                            
requirements  should  be  updated  to  reflect  true  costs  of  the                                                            
process. He  would be willing to further  discuss the reprinting  of                                                            
the  ballots  and  the lessons  that  could  be  learned  from  that                                                            
situation.                                                                                                                      
                                                                                                                                
Senator Olson  asked how the Legislature  might assist in  improving                                                            
the process  so that  the Director  and the  Division of  Elections'                                                            
staff not continue to be subject to criticism.                                                                                  
                                                                                                                                
Lieutenant  Governor Leman  responded that  one problematic  area is                                                            
the  time period  designated  for  the receipt  of  absentee  ballet                                                            
requests. The current process  could be likened to a bell curve with                                                            
a large high,  preceded and followed by extreme lows  as a result of                                                            
ballots  being batched  and processed  in a narrow  period of  time.                                                            
Extending the  processing timeframe would require  fewer temporaries                                                            
and allow the Division to be more efficient.                                                                                    
                                                                                                                                
Co-Chair  Wilken, referencing  the  "FY 2005  Division of  Elections                                                            
Budget Status  As of January 24, 2005"  spreadsheet provided  by the                                                            
Division  [copy on file],  asked for further  information  regarding                                                            
the footnote,  "$181,300 in CIP Receipts  for Personal Services  has                                                            
also been reduced for management reporting purposes".                                                                           
                                                                                                                                
Ms. Glaiser understood  that this footnote referred to receipt money                                                            
that was  removed from  the total  funding as  the result of  hiring                                                            
only one of  two positions involved  in furthering The Help  America                                                            
Vote Act [HAVA]. This funding was from the Election Fund.                                                                       
                                                                                                                                
Co-Chair Wilken  understood therefore that the CIP  Receipts equated                                                            
to federal HAVA funding.                                                                                                        
                                                                                                                                
Ms. Glaiser concurred.                                                                                                          
                                                                                                                                
Co-Chair  Wilken   asked  for  further  information   regarding  the                                                            
$187,599  charge under the  "73000 Services"  "Obligated" column  on                                                            
the aforementioned spreadsheet.                                                                                                 
                                                                                                                                
LYNDA PEREZ, Director,  Division of Administrative  Services, Office                                                            
of the  Governor,  explained that  this category  includes  anything                                                            
that  the Division  had  purchased,  but  as of  yet,  has not  been                                                            
invoiced.   This  would  include   the  charge-backs  for   computer                                                            
services,  Central Mailroom  services, phones,  and other  operating                                                            
costs.                                                                                                                          
                                                                                                                                
Co-Chair  Wilken  asked  whether the  amount  consists  entirely  of                                                            
interagency   charges  or  whether   outside  vendor  services   are                                                            
included.                                                                                                                       
                                                                                                                                
Ms. Perez would provide that information.                                                                                       
                                                                                                                                
Co-Chair  Wilken  understood  therefore  that  the  "7300  Services"                                                            
component includes both interagency and outside vendor services.                                                                
                                                                                                                                
Co-Chair  Wilken asked  whether it  is anticipated  that any  of the                                                            
expenses depicted on the  Division's summary sheet might re-occur in                                                            
FY 07.                                                                                                                          
                                                                                                                                
Ms. Glaiser understood  the question to be how could  the process be                                                            
refined  in order to  allow the  Division to remain  on budget.  She                                                            
stated that when budgeting  for FY 07, the Division would be mindful                                                            
of possible  issues that  might affect them,  but at the same  time,                                                            
must not over-budget.  While some  issues are presented early,  some                                                            
are not. Such  things as whether or  not Alaskans are serving  their                                                            
country  on  foreign  soil  would  also  affect  absentee   numbers.                                                            
Therefore  the Division would  present its  best budget estimation.                                                             
This  election  cycle  was  wrought  with  "multiple  unprecedented                                                             
occurrences.                                                                                                                    
                                                                                                                                
Co-Chair Wilken  asked how voter participation in  FY 04 compared to                                                            
FY 2000 and FY 1996.                                                                                                            
                                                                                                                                
Ms. Glaiser  stated  that she did  not have  those comparisons  with                                                            
her. However,  voter participation  in FY 04 was "the highest  ever"                                                            
at 66-percent.  She noted that while 24,000 voters  were purged from                                                            
the Voter Registration  Rolls, 170,000  new voter applications  were                                                            
processed  in 2004.  "Real additional  voters  … were  added to  the                                                            
process."                                                                                                                       
                                                                                                                                
Ms. Glaiser stated that  the FY 04 comparison to FY 2000 and FY 1996                                                            
would be provided.                                                                                                              
                                                                                                                                
Co-Chair  Green  asked  for  further   information  as  to  why  the                                                            
Division's  summary  sheet  reflects Total  additional  expenses  of                                                            
$805,300,  the  bill  designates  $694,900  and  the aforementioned                                                             
spreadsheet depicts expenses of $717,500.                                                                                       
                                                                                                                                
Ms. Glaiser responded that  the bill specifies the amount determined                                                            
essential to the Division's  operation. While the $717,500 amount is                                                            
the Division's  "honest projection"  of expenses, that amount  would                                                            
be pared back  to $694,900. The $805,000 is the "real  costs" total;                                                            
however, some of that has been absorbed into the Division.                                                                      
                                                                                                                                
10:01:24 AM                                                                                                                   
                                                                                                                                
Lieutenant Governor  Leman addressed the ballot reprinting  issue by                                                            
stating that it should  not have occurred. He recounted that a group                                                            
called  "Trust the  People,"  which included  three  members of  the                                                            
House  of   Representatives,   formed  to   further  an   initiative                                                            
pertaining  to how  the  State's vacant  Congressional  Senate  seat                                                            
should be filled. At the  same time, the Legislature "established by                                                            
policy" that  a special election would  be held to replace  a vacant                                                            
State Congressional  Senate seat.  The House and Senate both  passed                                                            
legislation   in  this  regard,  which   then  went  to   Conference                                                            
Committee.  The Chair of  the Conference  Committee, Representative                                                             
Lesil McGuire, asked him,  as Lieutenant Governor, for an opinion in                                                            
regards  to whether  the measure  language being  considered by  the                                                            
Conference    Committee   was   substantially    similar    to   the                                                            
aforementioned  Initiative  language.  The "rationale"  being  that,                                                            
were it  deemed "substantially  similar",  the  initiative would  be                                                            
removed from  the ballot. His conclusion,  as agreed to by  both the                                                            
Department  of Law and Legislative  counsel,  "was that it  would be                                                            
similar,  word for word",  with the  only exception  being that  the                                                            
Conference   Committee's   language   would  include   a   Temporary                                                            
Replacement  provision  that "would  allow  the Governor  to name  a                                                            
temporary replacement  who would serve from the time  of the vacancy                                                            
until  the special  election" was  held, certified,  and the  member                                                            
seated; this time frame  might range from three to approximately six                                                            
months.  His opinion  was  presented in  writing  to the  Conference                                                            
Committee. There  was no discussion in the Conference  Committee nor                                                            
was  there any  "dissention"  from the  Initiative's  sponsors.  "In                                                            
fact, the  sponsors voted  for the Legislation"  as well as  for the                                                            
Conference  Committee Report when  it was presented. It became  law.                                                            
                                                                                                                                
Lieutenant  Governor  Leman  stated  that subsequently,   he sent  a                                                            
letter  to "Trust  the People"  notifying them  that the  Initiative                                                            
would be removed  from the ballot. They sued on the  grounds that it                                                            
was  not  substantially  similar.  This  was  viewed  as  "a  direct                                                            
confrontation"  to himself as Lieutenant Governor  as well as to the                                                            
action taken  by the Legislature.  In late  August 2004, the  Alaska                                                            
Supreme  Court  issued  a  decision  that  the  Initiative  must  be                                                            
included on the  November ballot; with the "ruling  to follow". This                                                            
decision came  at a very busy time,  being that it was made  one day                                                            
prior  to  the  State's  August  primary  election.  The  Lieutenant                                                            
Governor's  Office has three  days from receipt  of the decision  to                                                            
the time when  the language was due to the Division  of Election for                                                            
printing. State  Statutes require that ballot language  be submitted                                                            
sixty days prior to the date of the election.                                                                                   
                                                                                                                                
Lieutenant Governor Leman  concluded that, since the ruling from the                                                            
court had not been received  and the Special Election issue had been                                                            
addressed  by the  Legislature, were  the Initiative  placed on  the                                                            
ballot  and adopted,  "it  would repeal  the  Temporary Replacement                                                             
language".   This  was  discussed   with  the  Department   of  Law.                                                            
Initiative  ballot "language  was  devised that  met the  test  … of                                                            
being  fair  and  impartial."  The  language  was  provided  to  the                                                            
Division  of Elections, posted  on the Division's  website,  and the                                                            
ballots were printed.  Two weeks later, "Trust the  People" objected                                                            
to the  ballot language and  sued over the  language and the  ballot                                                            
title. The Judge  agreed, "at least in part", with  Trust the People                                                            
that  the  language  was  inaccurate   and  biased.  "With  all  due                                                            
respect," the  Judge was wrong regarding the inaccuracy  ruling. She                                                            
did  not  understand  the  time  required  to  run  and  certify  an                                                            
election. In  addition, she did not  explain her statement  that the                                                            
language  was inaccurate.  This election  cycle has  proved that  it                                                            
would  take approximately   an entire  month  to count  ballots  and                                                            
absentee ballots  and certify election  results, and, including  the                                                            
sixty-day prior to an election  ballot language requirement it would                                                            
require three  months to  conduct an election.  In addition,  he did                                                            
not  support the  fact that  the Judge's  opinion  ultimately  would                                                            
leave the State  without Congressional Senate representation  during                                                            
the time between the Seat's vacancy and the election.                                                                           
                                                                                                                                
Lieutenant  Governor  Leman voiced  that the  Temporary Replacement                                                             
provision  adopted  by  the  Legislature   "struck  a  happy  medium                                                            
between"  Trust the  People's desire  to prevent  the Governor  from                                                            
naming the Seat's  replacement and "the parties' bosses"  naming "in                                                            
closed  door  sessions",  the  nominees  to  the  seat.  The  better                                                            
approach  would  be to  clearly state  what  was happening  and  its                                                            
impact. The  Judge's decision  timing was so  close to the  election                                                            
that it  actually jeopardized  the delivery  of ballots to  absentee                                                            
ballots. Therefore,  rather than challenge  the Judge's decision  to                                                            
the Supreme  Court,  the State  agreed  to reprint  the ballot  with                                                            
language that  was discussed by Trust the People and  the Lieutenant                                                            
Governor's  Office, and approved  by the Court.  He voiced  that, at                                                            
the  end, the  Court had  accepted  against continued  objection  by                                                            
Trust  the People,  the  language  that had  been developed  by  the                                                            
Lieutenant  Governor's office.  "The irony  is" that the outcome  of                                                            
the election  would not have been  significantly different  were the                                                            
original ballot  language allowed. However, "tremendous  cost to the                                                            
State" was incurred in  order "to satisfy whatever reason the people                                                            
who were  bringing this  suit" forwarded  it. He  declared that  the                                                            
lawsuit was unnecessary  and should not have happened.  It should be                                                            
recognized  that Courts  "are just  like us",  they  are made up  of                                                            
people, and  judges make their decisions  based on their  own biases                                                            
and  backgrounds.  What is  considered  fair  and impartial  to  one                                                            
person  might appear  otherwise  to another.  He  declared that  the                                                            
original ballot language  "was truthful and should have been allowed                                                            
to go forward."                                                                                                                 
                                                                                                                                
Senator  Hoffman  noted  that  the  backup  material   contains  two                                                            
different  Personal  Services  expenses:  a June  31,  2005  deficit                                                            
depicted as  $717,000 in the spreadsheet  and the $304,000  depicted                                                            
on the Division's memorandum.                                                                                                   
                                                                                                                                
Ms.  Glaiser clarified  that  the $304,000  amount  depicted on  the                                                            
memorandum  reflects the amount  the FY 04  election costs  exceeded                                                            
the 2002 election  cycle cost. The $717,000 amount  depicts real and                                                            
projected costs that include the $304,000.                                                                                      
                                                                                                                                
Senator  Hoffman understood  that the $304,000  amount reflects  the                                                            
increase  in  Temporary  Hire expenses  as  compared  to  the FY  02                                                            
election budget. He asked  that a breakout of the total $618,000 for                                                            
Personal  Services charge  be provided;  specifically  the  expenses                                                            
incurred by the hiring of the 13 additional workers.                                                                            
                                                                                                                                
Senator  Dyson stated  that the reprinting  of the  ballots was  "an                                                            
unfortunate  event." In regards  to what has  been learned  and what                                                            
could  be done in  order to  preclude this  sort of  thing from  re-                                                            
occurring,  he  asked  whether  a "formal  process"  with  a  finite                                                            
timeline  should  be established  through  which  petitioners  could                                                            
weight in on the ballot language.                                                                                               
                                                                                                                                
Lieutenant  Governor  Leman recalled  that approximately  ten  years                                                            
prior, a group called "FRANK"  gathered signatures for an initiative                                                            
relating  to campaign finances  and contributions.  The Legislature                                                             
also addressed  the issue  and, and as a  result of the Legislative                                                             
process through which issues  are discussed and refined, developed a                                                            
measure that was  similar in nature to the petition,  "but corrected                                                            
some  of the deficiencies  in  the initiative."  FRANK  was able  to                                                            
participate  in this  process,  accepted the  end  product as  being                                                            
substantially  similar, and did not contest the legislature.  In the                                                            
FY 04 situation,  one of the sponsors of the 2004  Initiative was on                                                            
the Conference  Committee and  had not objected  to the language  at                                                            
either the Conference Committee  or the Floor proceeding. Therefore,                                                            
it was assumed that the language was acceptable.                                                                                
                                                                                                                                
Lieutenant  Governor Leman  stated that had  he known the Court  was                                                            
going to apply  a different standard  than what had done  before, in                                                            
that the Legislature  should have adopted language  that was exactly                                                            
the same, then  his advice to the  Legislature would have  been, "If                                                            
you want this  to come off the ballot,  then pass it in a  different                                                            
format, deal with  the other issue later." Another  consideration is                                                            
that the Lieutenant  Governor's Office  could implement an  informal                                                            
review process  that would include  proponents and opponents;  whose                                                            
comments  would  be  taken  into  consideration  by  the  Lieutenant                                                            
Governor in regards to the proposed ballot language.                                                                            
                                                                                                                                
10:19:47 AM                                                                                                                   
                                                                                                                                
Lieutenant  Governor Leman  shared that  former Lieutenant  Governor                                                            
Fran  Ulmer had  called  him when  he was  a Senator  regarding  the                                                            
wording of several  different ballot initiatives she  had developed.                                                            
While he  had "differed  with her"  on the  initiative wording,  and                                                            
stated that  it was "not a fair characterization  of the  language",                                                            
she chose not to accept  his language, and he chose not to challenge                                                            
her position as Lieutenant Governor to write the language.                                                                      
                                                                                                                                
Senator Dyson  asked whether there should there be  "a date certain"                                                            
formal process  in which petitioners could weight  in on whether the                                                            
Legislature's  effort was substantially the same as  the petition as                                                            
well as  whether the  ballot language  was substantially  the  same.                                                            
Were  their  challenge  presented  after  a  specific  date,  "their                                                            
objections  would be precluded." This  would assist in avoiding  the                                                            
situation that recently occurred.                                                                                               
                                                                                                                                
Lieutenant Governor Leman  commented that, "that would probably be a                                                            
fine thing  to do." He  quoted former Legislator  Ramona Barnes  who                                                            
had stated that,  "All you have here as Legislators  is your trust."                                                            
If it were believed that  someone would not honor a trust agreement,                                                            
then  this would  be good  public policy.  This  would still  allow,                                                            
according to Statute,  the Lieutenant Governor to  continue "to have                                                            
deference  in  writing the  language.  Even  the Court  agrees  with                                                            
that."  A formal  review process  "would help  eliminate  situations                                                            
like this in the future."                                                                                                       
                                                                                                                                
Senator  Dyson understood  that  "the  Administration  would not  be                                                            
initiating legislation to formalize this process."                                                                              
                                                                                                                                
Lieutenant  Governor  Leman responded  that  while it  might not  be                                                            
submitted as a Governor's  bill, were the Legislature to propose it,                                                            
the Administration  would work  to further  it. He allowed  that his                                                            
advice to the  Governor had been to reduce the number  of Governor's                                                            
bills.                                                                                                                          
                                                                                                                                
Senator Bunde understood  that the final ballot language was similar                                                            
to the original  language. He warned that even were  a formal review                                                            
process developed,  it might not preclude a third  party from suing.                                                            
He avowed that  the purpose of the  2004 lawsuit was to "perpetuate                                                             
headlines" as well as to change actual language.                                                                                
                                                                                                                                
Lieutenant Governor Leman  responded that numerous conclusions could                                                            
be reached in  regards to what the motivations were.  He read from a                                                            
letter  he  had  sent to  Representative  Eric  Croft,  one  of  the                                                            
sponsors  of the Initiative  [copy not provided]  as follows.  "I am                                                            
reticent to question your  motives because I do not like it when you                                                            
question mine.  However, when I look at your entire  track record on                                                            
this initiative,  I conclude  that you could  be more interested  in                                                            
politicizing  this  initiative  rather  than  enacting  good  public                                                            
policy."                                                                                                                        
                                                                                                                                
Senator  Hoffman  asked regarding  the  urgency of  this  particular                                                            
legislation;  specifically  whether  other fast  track supplemental                                                             
legislation  would  be  forthcoming.  He questioned  how  not  fast-                                                            
tracking this legislation would affect the Division.                                                                            
                                                                                                                                
Co-Chair Wilken  responded that this legislation is  on "a very fast                                                            
track" as the Division's  funding would conclude at end of February.                                                            
Presenting  this appropriation  as a single  item would allow  it to                                                            
move forward  without  being "entangled"  with  other issues.  Other                                                            
fast track legislation would be forthcoming.                                                                                    
                                                                                                                                
10:27:47 AM                                                                                                                   
                                                                                                                                
Senator Hoffman  understood therefore that this legislation  is on a                                                            
real fast track.                                                                                                                
                                                                                                                                
Co-Chair Wilken concurred.                                                                                                      
                                                                                                                                
Senator Hoffman asked regarding the Department of Law's legal costs                                                             
that are included in the bill.                                                                                                  
                                                                                                                                
Lieutenant Governor Leman responded that the legal costs were                                                                   
associated with the independent legal counsel relating to the                                                                   
Senator Scott Ogan recall.                                                                                                      
                                                                                                                                
Co-Chair Green moved to report the bill from Committee with                                                                     
individual recommendations.                                                                                                     
                                                                                                                                
There being no objection, SB 62 REPORTED from Committee.                                                                        

Document Name Date/Time Subjects