Legislature(1995 - 1996)

04/11/1995 06:20 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
  CS FOR HOUSE BILL NO. 100(FIN)                                               
                                                                               
       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,  from the constitutional budget                 
       reserve fund; and providing for an effective date.                      
                                                                               
  Upon convening the meeting, Co-chairman Frank announced that                 
  the  committee  would   commence  review  and  adoption   of                 
  subcommittee budgets  at this time and continue subcommittee                 
  presentations the  following  evening.   He further  advised                 
  that the subcommittee  for the  Dept. of Transportation  and                 
  Public Facilities had  not yet concluded  its work and  that                 
  the  budget for  the Dept.  of Fish  and  Game would  not be                 
  presented at this time.                                                      
                                                                               
  DEPT. OF EDUCATION                                                           
                                                                               
  Co-chairman  Frank directed  attention  to  a handout  (copy                 
  appended  to  these  minutes as  Attachment  A.   Additional                 
  information on all subcommittee presentations is included in                 
  the  Senate  Finance  Committee  master  file  for  HB  100,                 
  available through the  Legislative Finance  Division.).   He                 
  explained that  the handout contains the subcommittee report                 
  and  noted  that  the cover  sheet  evidences  the following                 
  changes from the Governor's budget:                                          
                                                                               
  School  Finance  Division -  Reduced  the school  bus safety                 
  program but maintained the inspection  program.  Reduced the                 
  division   director   to  range   24,  and   reduced  excess                 
  contractual funding.                                                         
                                                                               
  Education  Support  Program -  Made  a general  reduction of                 
  $10.0  for  personal services,  eliminated  close-up, future                 
  problem solving,  student leadership,  and the  rural school                 
  voc. ed. program.                                                            
                                                                               
  Executive Administration  - Reduced  a special assistant  to                 
  range  21, eliminated an  education associate  III position,                 
  reduced  general  funds  and  suggested  that  the  division                 
  collect  interagency   receipts  for  services   from  other                 
  divisions.                                                                   
                                                                               
                                                                               
  Commissions  and Boards -  Eliminated excess  general funds,                 
  denied increments for contractual and personal services, but                 
  maintained  ability  to capture  federal  funds.     The Co-                 
  chairman referenced need for  a technical amendment included                 
  within  Amendment  No.  1.   Co-chairman  Halford  MOVED for                 
  adoption of Amendment No.  1.  DANA LaTOUR,  fiscal analyst,                 
  Legislative Finance  Division, explained that  the amendment                 
  merely  corrects the funding.   The net effect  is zero.  No                 
  objection having been raised, Amendment No. 1 was ADOPTED.                   
                                                                               
  Kotzebue  Technical  Center  - A  general  reduction  of 8%,                 
  ($65.1) was taken.                                                           
                                                                               
  Mt. Edgecumbe Boarding School -  An increment to be achieved                 
  through transfer from boarding home  grants was denied based                 
  on  the expectation  that  the school  could continue  to be                 
  operated in the  residential program with the  current level                 
  of funding.                                                                  
                                                                               
  Alaska Vocational Technical Center -  A general reduction of                 
  $100.0 was made with intent language saying that the  center                 
  should aggressively develop additional program receipts  and                 
  seek  authority  to  receive  and  expend them  through  the                 
  Legislative  Budget and  Audit  Committee.   A corresponding                 
  personal  services reduction  of  $8.8 was  also made  for a                 
  division director.                                                           
                                                                               
  Vocational Rehabilitation  - The  small business  enterprise                 
  increment was  reduced based  upon an  expectation that  the                 
  project may not receive  that much in program receipts.   If                 
  the  total  of  anticipated  receipts  is  forthcoming,  the                 
  division  may  come  to  the  Legislative Budget  and  Audit                 
  Committee to receive and expend them.   A reduction was also                 
  made to division  directors in line with  the recommendation                 
  from the administration.   Excess program receipt  authority                 
  was  also  eliminated  in  the  Americans With  Disabilities                 
  section.                                                                     
                                                                               
  Alaska  State  Library  - An  administrative  assistant  and                 
  librarian  were eliminated, and travel, supplies, and grants                 
  were reduced as was  the range for a division  director.  An                 
  additional   library   assistant   in   archives  was   also                 
  eliminated.                                                                  
                                                                               
  Alaska State Museums  - The museum security  coordinator was                 
  eliminated,  and  travel,  contractual,  and  supplies  were                 
  reduced.                                                                     
                                                                               
  Alaska  Postsecondary  Education  Commission  -  Co-chairman                 
  Frank  referenced  last  year's policy  of  allowing  no new                 
  students in the  WICHE program.   Funding for FY 96  follows                 
  through on  that policy by  denial of the  $144.9 increment.                 
  That maintains  the commitment  to students  already in  the                 
                                                                               
                                                                               
  program but allows no new students.  The subcommittee denied                 
  the transfer from WICHE to WAMI.  A bill is presently before                 
  Senate Finance Committee with an  amendment to increase fees                 
  collected from  students to maintain the WAMI  program.  The                 
  budget denies  the increase in federal student aid grants as                 
  a transfer from WICHE.                                                       
                                                                               
  Senator Rieger raised a question regarding a $105.0 transfer                 
  from  WICHE  and the  $39.3  labeled "correct  transfer from                 
  WICHE."  Co-chairman Frank advised  that the department said                 
  it had excess  funds in WICHE that it wished  to transfer to                 
  WAMI and  federal  student aid.   The  department wanted  to                 
  increase federal student  aid grants.  The  subcommittee did                 
  not see fit to do that.   The plan is to statutorily  change                 
  ability to collect fees from WAMI students.                                  
                                                                               
  Co-chairman  Halford raised  a  question concerning  federal                 
  loans  and  forgiveness  available  to  doctors  willing  to                 
  practice in rural  areas.  Co-chairman Frank  explained that                 
  the subcommittee did  not "get into that  specifically."  He                 
  noted  that  both   Senator  Salo  and  Senator   Green  are                 
  "interested in looking at this area over the interim."                       
                                                                               
  Responding to a  comment by Co-chairman Halford  that $150.0                 
  was  passed  off to  the  capital budget,  Co-chairman Frank                 
  noted that  library  acquisition  moneys  are  traditionally                 
  funded in the capital budget.  While those moneys are not in                 
  the Governor's capital  budget this  year, the  subcommittee                 
  recognized need for ongoing subscriptions and acquisition of                 
  periodicals and books.  It  is appropriate that this  effort                 
  have  some level  of  funding.    Intent language  was  thus                 
  provided.                                                                    
                                                                               
  Co-chairman Frank next  directed attention to  the following                 
  intent:                                                                      
                                                                               
       Alaska Council on  the Arts - Requests that the council                 
       maximize grants and minimize overhead.                                  
                                                                               
       Library Operations -   Requests consideration of $150.0                 
       for acquisitions within the capital budget.                             
                                                                               
       Vocational Rehabilitation -  Directs that the  division                 
       request receipt  and  expenditure  authority  from  the                 
       Legislative  Budget and  Audit Committee  if additional                 
       federal receipts are forthcoming.                                       
                                                                               
       Alaska  Vocational Technical Center - Speaks to program                 
  receipt   authority per the preceding paragraph.                             
                                                                               
  Co-chairman  Halford MOVED for  adoption of intent language.                 
  No objection having been raised, the INTENT was ADOPTED.                     
                                                                               
  Co-chairman  Halford   then  MOVED   for  adoption   of  the                 
                                                                               
                                                                               
  subcommittee  recommendation  for  the  Dept. of  Education,                 
  excluding formula  funding.  Co-chairman  Frank acknowledged                 
  that funding of the  formula would be dealt with  at another                 
  time.   No objection  having been  raised, the  subcommittee                 
  budget  for  the   Dept.  of   Education  was  ADOPTED   for                 
  incorporation within HB 100.                                                 
                                                                               
  DEPT. OF CORRECTIONS                                                         
                                                                               
  Co-chairman   Frank   directed   attention   to  a   handout                 
  (Attachment  B)  and  explained  that  working  from  FY  95                 
  authorized, the subcommittee made the following changes:                     
                                                                               
  Administration and Support  - Effected a transfer  of $387.7                 
  to  the Dept.  of  Administration for  a  building lease  in                 
  Anchorage, fully implemented telecommunications chargebacks,                 
  allowed an  increment for  transportation unit  overtime and                 
  allowed a partial increment for  the correctional academy to                 
  train new staff and recruits.                                                
                                                                               
  Statewide Operations - Included an increment of $1.5 million                 
  in inmate health care, allowed partial increments for inmate                 
  programs and correctional industries, included an  increment                 
  of  $4,798.7  in out-of-state  contractual  for 200  beds in                 
  Arizona, included an increment of  $725.9 for an anticipated                 
  inmate  population increase,  allowed an  increment of  $1.3                 
  million to reduce vacancy  from an average of 5.5%  to 3.3%,                 
  and  included   an  increment   on  the   telecommunications                 
  chargeback.                                                                  
                                                                               
  Co-chairman Frank referenced  a general fund offset  of $2.7                 
  million from SB 135.                                                         
                                                                               
  Addition changes include annualization of funding for 50 new                 
  beds at the Spring Creek Correctional Center, 59 new beds at                 
  Wildwood,  and  funding  for  new   CRC  beds  in  community                 
  corrections.  A corresponding offset  was made through upper                 
  level management salary reductions.                                          
                                                                               
  Community Jails  - Co-chairman Frank referenced  transfer of                 
  the component from the  Dept. of Public Safety to  the Dept.                 
  of Corrections.  The subcommittee  authorized one additional                 
  person to administer  contracts and provided a  partial one-                 
  half  increment in negotiated  contracts.  Co-chairman Frank                 
  called for  questions or  comments on  the budget  proposal.                 
  Senator Donley referenced a request from Senator Lincoln for                 
  a  proposed  amendment  relating   to  community  jails,  to                 
  partially  approved  renegotiated  contracts.    Co-chairman                 
  Frank  asked  that  amendments  be  held  for  consideration                 
  following presentation of all subcommittee budgets.                          
                                                                               
  Senator   Randy  Phillips   MOVED   for   adoption  of   the                 
  subcommittee report on the Dept. of Corrections budget.   No                 
  objection having  been raised,  the subcommittee  report was                 
                                                                               
                                                                               
  ADOPTED for incorporation within HB 100.                                     
                                                                               
  Senator Phillips next  MOVED for  adoption of the  following                 
  intent:                                                                      
                                                                               
       Inclusion of $155.8  in fire  and safety equipment  for                 
       community jails within the capital budget.                              
                                                                               
       Review of travel, per diem, and pay for new recruits at                 
       the  correctional  academy  in  an  attempt  to  reduce                 
       expenditures.                                                           
                                                                               
       Acknowledgment that funding  of $2,703,700 from  denied                 
       dividends from  the permanent  fund (SB  135) would  be                 
       one-time funding  and thereafter leave  a gap in  FY 97                 
       funding for statewide operations that  would have to be                 
       filled in that budget.                                                  
                                                                               
  Senator Donley raised  questions regarding the last  item of                 
  intent, noting that SB 135 has  not yet passed.  Co-chairman                 
  Halford advised that  the intent  provides justification  to                 
  the  Office of  Management and Budget  for inclusion  of the                 
  funding in the base for the FY 97 budget.                                    
                                                                               
  No objection having  been raised,  the foregoing intent  for                 
  the   Dept.   of   Corrections  budget   was   ADOPTED   for                 
  incorporation within HB 100.                                                 
                                                                               
  DEPT. OF LABOR                                                               
                                                                               
  Subcommittee Chairman,  Senator Phillips,  advised that  the                 
  Senate  general  fund  allocation  for  the  budget  totaled                 
  $9,133.5.  The subcommittee recommendation is slightly lower                 
  at $9,097.2.  That represents a reduction of five positions.                 
  He next spoke to the following general fund reductions:                      
                                                                               
  Data Processing                                   $ 89.2                     
  State Data Center (one-half of increment)           80.0                     
  OSHA, GF non-match                                 276.4                     
  OSHA, federal program resale                       182.3                     
  OSHA, publication technician                        26.4                     
  OSHA, sale of federal publications                   5.8                     
                                                                               
  Total reduction from the Governor's Budget        $660.1                     
                                                                               
  Senator  Phillips advised  that  the foregoing  represents a                 
  $280.5 reduction from FY 95.                                                 
                                                                               
  Senator Donley inquired  concerning the impact of  cuts upon                 
  OSHA.   JERRY BURNETTE,  aide to  Senator Phillips,  advised                 
  that "It reduces the  state's match to OSHA."   Only federal                 
  moneys  remain.    Senator Donley  voiced  concern  that the                 
  federal government would take over if  the state does not do                 
  an adequate job. Senator Phillips advised that with existing                 
                                                                               
                                                                               
  caps, there was  no other  way to proceed.   Senator  Donley                 
  attested to concern  regarding worker safety on  the job and                 
  asked that someone from the  department speak to the  issue.                 
  No  one  came forward.    The Senator  again  cautioned that                 
  funding below a  certain threshold  would result in  federal                 
  take over and stressed need to hear from the department.                     
                                                                               
  Co-chairman   Frank   suggested   that    the   subcommittee                 
  recommendation  be  adopted   with  the  understanding  that                 
  consideration would  revert to  it with  an opportunity  for                 
  amendment  if  necessary.    Co-chairman  Halford  MOVED for                 
  adoption of the subcommittee recommendation for the Dept. of                 
  Labor  budget.    Senator  Donley  OBJECTED, noting  that  a                 
  minority member of  the subcommittee,  Senator Zharoff,  was                 
  not  present to  articulate  concerns.    Co-chairman  Frank                 
  directed that the  budget be held  for consideration at  the                 
  next meeting.   Co-chairman Halford withdrew his  motion for                 
  adoption.                                                                    
                                                                               
  DEPT. OF MILITARY AND VETERANS AFFAIRS                                       
                                                                               
  Senator Phillips distributed a  handout (Attachement D)  and                 
  advised  that  the  Senate  general  funding allocation  was                 
  $6,785.8.    The  subcommittee budget  represents  an  $88.5                 
  reduction  from  FY  95 and  a  reduction  of one  position.                 
  Reductions consist of:                                                       
                                                                               
  Delete funding for disaster relief                                           
  $6,000.0                                                                     
  (Funding is considered formula and will                                      
  be dealt with later.)                                                        
                                                                               
  Delete veterans increment in Commissioner's Office                           
  45.0                                                                         
  (Leaves funding for new spec.assist. for veterans                            
  affairs.)                                                                    
                                                                               
  Delete increment for rural veteran outreach                                  
  30.0                                                                         
  (This was a new program requested by the Governor.)                          
                                                                               
  Delete grant for American Red Cross                                          
  75.0                                                                         
  (One-time grant, FY 95.)                                                     
                                                                               
  Reduced general fund in ADES                                                 
  30.0                                                                         
  (Reduced travel and staff development.)                                      
                                                                               
  Reduce general fund in Commissioner's Office                                 
  30.0                                                                         
  (Replace with $30 federal authorization.)                                    
                                                                               
  Reduce general fund in Army Guard                                            
                                                                               
                                                                               
  83.7                                                                         
  (Close Mountain View Armory, maintenance shortfall)                          
                                                                               
  Reduce veterans service officer grant program                                
  25.0                                                                         
                                                                               
  Total reductions                                                             
  $6,318.7                                                                     
                                                                               
  Co-chairman Halford voiced his understanding that the budget                 
  increased  federal receipts  while  reducing general  funds.                 
  Senator Phillips concurred.  Jerry Burnette advised that the                 
  department  testified that  it thought it  would be  able to                 
  capture the federal funds.  Senator Phillips further advised                 
  that  he sought  to include  the new  position for  veterans                 
  affairs as a range 21 special  assistant rather than a range                 
  26 director.                                                                 
                                                                               
  Senator  Phillips MOVED  for  adoption  of the  subcommittee                 
  recommendation for  the budget for  the Dept. of  Military &                 
  Veterans  Affairs.   No  objection  having been  raised, the                 
  budget was ADOPTED for incorporation within HB 100.                          
                                                                               
  UNIVERSITY OF ALASKA                                                         
                                                                               
  Senator  Rieger  explained  that   in  keeping  with  Senate                 
  practice  over  the last  few  years,  the  regents and  the                 
  university  administration  would  prefer  to work  with  an                 
  unallocated reduction.  That reduction has been administered                 
  fairly in the past.  The subcommittee recommendation is thus                 
  to take the  assigned cap as  an unallocated reduction  from                 
  the Governor's recommendation.   The statewide FY  96 number                 
  would thus be $167,412.2.                                                    
                                                                               
  Senator Rieger next directed attention to intent relating to                 
  development of  the health  sciences curriculum  at the  UAA                 
  campus.   Co-chairman  Halford asked  if  intent  containing                 
  reference to WAMI was consistent with the Dept. of Education                 
  budget.  Co-chairman Frank voiced  his understanding that it                 
  is  not inconsistent.   He stressed  need to  get WAMI  on a                 
  paying basis  by increasing fees  from students.   That does                 
  not impact intent  within the  University of Alaska  budget.                 
  Senator  Rieger noted  that the  health  sciences curriculum                 
  goes beyond WAMI.   He advised that it also  provides one of                 
  the opportunities  for research, an important  component for                 
  all  campuses.    Intent  would  encourage  development   of                 
  research at the UAA campus.                                                  
                                                                               
  Senator Rieger MOVED  for incorporation of the  subcommittee                 
  recommendation for the University of Alaska budget within HB                 
  100.  No objection having been raised, IT WAS SO ORDERED.                    
                                                                               
  Dept. of Community and Regional Affairs                                      
                                                                               
                                                                               
  Senator  Phillips  advised  that  the  Senate  general  fund                 
  allocation  was  $30,456.0.   The  subcommittee is  lower at                 
  $30,425.4.  The  reduction from FY  95 is $2,678.2 and  five                 
  positions.  Reductions consist of:                                           
                                                                               
  Alaska Legal Services (eliminate grant)                $                     
  421.0                                                                        
  Admin. Services (personal services reduction)                                
  77.0                                                                         
  Commissioner's Office (eliminate designated grants)                          
  576.9                                                                        
  Local Gov. Assistance (personal services reduction)                          
  126.9                                                                        
  Local Gov. Assistance (travel reduction)                                     
  25.0                                                                         
  Local Gov. Assistance (eliminate AFN grant)                                  
  145.0                                                                        
  Child  Care  (pers.serv.reduction two  grant administrators)                 
  125.0                                                                        
  Child Care (grantee training)                                                
  20.0                                                                         
  Day Care Assistance (deny increment)                                         
  400.0                                                                        
  Rural Development Mini Grants (grant reduction)                              
  150.0                                                                        
  Rural Development Assist.Grants (grant reduction)                            
  251.3                                                                        
  Community Development (personal services)                                    
  86.3                                                                         
  Community Development Circumpolar (eliminate grant)                          
  75.0                                                                         
  Community Development CDQ (eliminate grant)                                  
  25.0                                                                         
  Community Development, DC&ED, CDQ (deny increment)                           
  32.6                                                                         
  Community Development, BSFA/CDQ (deny increment)                             
  100.0                                                                        
  Community Development,contractual  (line item reduction)                     
  7.0                                                                          
  Energy Operations (personal services reduction)                              
  238.1                                                                        
  Energy Operations (reduction of contractual line)                            
  30.0                                                                         
                                                                               
  Total reductions from Governor's Amended                                     
  $2,909.5                                                                     
                                                                               
  Senator Phillips  advised that  senior  citizen tax  relief,                 
  municipal  assistance,  and revenue  sharing would  be dealt                 
  with differently.   Co-chairman  Frank concurred that  those                 
  items would be handled in full committee at a later time.                    
                                                                               
  Co-chairman  Halford  voiced  his  understanding  that   CDQ                 
  funding was reduced but not eliminated.  LaMAR COTTON, Dept.                 
                                                                               
                                                                               
  of Community  and Regional  Affairs, advised  of $281.0  for                 
  needed  positions.   The $30.0  which was  eliminated was  a                 
  special grant increment  requested by the Dept.  of Commerce                 
  and  Economic  Development.   The  $25.0 was  an unspecified                 
  grant.  Funding allowing continuation of the program remains                 
  in the budget.                                                               
                                                                               
  Senator Donley registered concern on behalf of Senator Adams                 
  regarding deletion of funding for Alaska Legal Services.  He                 
  then referenced a possible amendment  to restore funding and                 
  asked  that that  item  of the  budget be  held  open.   Co-                 
  chairman  Frank  voiced  a preference  for  adoption  of the                 
  subcommittee  report with opportunity to offer amendments at                 
  a subsequent meeting.                                                        
                                                                               
  Senator  Phillips  MOVED for  incorporation  of subcommittee                 
  recommendations for the  budget for  the Dept. of  Community                 
  and Regional  Affairs within  HB 100.   No objection  having                 
  been raised, IT WAS DO ORDERED.                                              
                                                                               
  End:      SFC-95, #27, Side 1                                                
  Begin:    SFC-95, #27, Side 2                                                
                                                                               
  DEPT. OF COMMERCE AND ECONOMIC DEVELOPMENT                                   
                                                                               
  Senator Sharp advised that the  subcommittee met the general                 
  fund spending cap of $37,448.7.  Changes include:                            
                                                                               
  Insurance  - Approved  $164.6  GF/PR  increment  and  denied                 
  increment of $356.6 GF/PR.                                                   
                                                                               
  Alaska Public  Utilities Commission -  Deleted two analysts,                 
  $119.9, and denied increment of $93.2.                                       
                                                                               
  Commissioner's Office - Deleted special assistant I, $69.1.                  
                                                                               
  Economic  Development  -  Reduced   ARDORs  $400.0,  reduced                 
  "Marketing Alaska" $50.0, and denied $74.2 increment.                        
                                                                               
  International Trade -  Reduced a director  from range 26  to                 
  range 24,  $15.0, and reduced funding for the Northern Forum                 
  by $35.0.                                                                    
                                                                               
  Fish  Enhancement Tax - Reduced to  equal receipts and moved                 
  from the department budget to the front section.                             
                                                                               
  Tourism Development-  Deleted $200.0 for  visitor statistics                 
  (end of a three-year program) and denied transfers.                          
                                                                               
  Alaska Tourism Marketing Council - Increased marketing by $1                 
  million and reduced  $277.6 in  excess general fund  program                 
  receipts.                                                                    
                                                                               
  Alaska  Seafood Marketing  Institute -  $200.0 reduction  in                 
                                                                               
                                                                               
  general fund match  from $1  million to $800.0  to match  $6                 
  million  in  federal funding  down  from  $7 million.    The                 
  subcommittee  also  effected  a $1.2  million  reduction  in                 
  general fund program  receipt authority  and a reduction  of                 
  $860.0 in general  fund program  receipts for the  Off-shore                 
  Processor Tax, since funding is not likely to be forthcoming                 
  in FY 96  due to ongoing  litigation.  An additional  $200.0                 
  reduction  was  made  in  Seattle  personal services.    The                 
  subcommittee took exception  to the fact that over  half the                 
  staff is located  in Washington State.  Intent requests that                 
  ASMI consider moving those people back to Alaska.  The total                 
  general fund reduction is $2,462.0.   Total general fund  is                 
  $37,086.1.                                                                   
                                                                               
  Senator Rieger  asked if  general funds  remain in  the ASMI                 
  budget, aside  from  voluntary assessments.   Senator  Sharp                 
  responded,  "$800.0."   Senator  Rieger  asked if  voluntary                 
  assessments could be  used for match moneys.   Senator Sharp                 
  said he was unsure.   He subsequently advised that  fish tax                 
  moneys are "passed through by statute."                                      
                                                                               
  Co-chairman Halford voiced concern over  the increase in the                 
  tourism budget,  noting  that general  funds were  increased                 
  here while the budget for ASMI was decreased.  He voiced his                 
  belief  that  both  are   nonresident-owned,  "outside-based                 
  industries that  we get  a piece  of."   However, the  state                 
  never  "seems to  get enough  of either  one of  them."   He                 
  suggested it was  inconsistent to cut  one and increase  the                 
  other.   Senator  Phillips  suggested  that  the  department                 
  budget be  closed  with the  exception  of both  the  Alaska                 
  Tourism Marketing Council and Alaska Seafood Marketing.  Co-                 
  chairman  Frank  called for  objections  to adoption  of the                 
  subcommittee report for  the Dept. of Commerce  and Economic                 
  Development while holding ATMC and ASMI  open.  No objection                 
  having  been  raised,  the Dept.  of  Commerce  and Economic                 
  Development budget with  the exception of ATMC and  ASMI was                 
  ADOPTED for incorporation within HB 100.                                     
                                                                               
  DEPT. OF REVENUE                                                             
                                                                               
  Senator Sharp  distributed a  handout (Attachement  H).   He                 
  then advised of the following changes from FY 95:                            
                                                                               
  Child  Support  Enforcement  -  Increased  general funds  by                 
  $164.7 to match $1,159.5 in federal funds.                                   
                                                                               
  Income and Excise  Audit -  Effected an $87.6  miscellaneous                 
  reduction because the department wished to increase funds to                 
  child support enforcement and treasury.                                      
                                                                               
  Oil and Gas Audit - Deletion  of $155.3 in miscellaneous and                 
  contractual to increase funds  for child support enforcement                 
  and treasury.                                                                
                                                                               
                                                                               
  Oil and Gas Litigation  Audit - Reduction of $265.0.   FY 95                 
  funds were  transferred to income  and excise audit  and oil                 
  and gas.                                                                     
                                                                               
  Treasury  Management  -  Received  an  increment  of  $278.4                 
  because  of  the increased  cost  of  custodial fees.    The                 
  subcommittee  denied  the   $94.1  for   the  bond   advisor                 
  increment.                                                                   
                                                                               
  Charitable Gaming - Effected a reduction of $8.2 by reducing                 
  the director position from range 26 to 24.                                   
                                                                               
  Commissioner's Office -  Provided a $90.3 increase  to allow                 
  deletion of oil and gas tax review case funding.                             
                                                                               
  Oil and Gas Tax  Case Review - The subcommittee  worked with                 
  the Commissioner and staff to delete the $292.8.                             
                                                                               
  The Senate cap was met with a reduction of $275.0.                           
                                                                               
  Directing  attention  to  the second  page  of  the handout,                 
  Senator Sharp noted that substantial increments are all non-                 
  general fund.  He then highlighted the following changes:                    
                                                                               
  Child Support  Enforcement -  Increase of  federal funds  of                 
  $2.6 million.                                                                
                                                                               
  Alaska Permanent Fund Corporation - Increase of $6.4 million                 
  for portfolio  management.   Greater investment in  equities                 
  requires more active management.                                             
                                                                               
  Alaska  Housing  Finance  -  Reduction  of $2.5  million  in                 
  corporate receipts and a reduction of twenty-nine positions.                 
                                                                               
  Alaska Mental Health Authority - Increase of $952.8 to fully                 
  fund the new board's request.                                                
                                                                               
  Alaska State  Pension Investment  Board -  Increase of  $2.5                 
  million for fund handling.                                                   
                                                                               
  Additional funding totals $9.3 million.                                      
                                                                               
  Senator Rieger asked what the House did in terms of treasury                 
  management to  produce "such a  low number."   Senator Sharp                 
  advised  that the  House  proposes  "taking several  hundred                 
  thousand dollars out of the CBR."                                            
                                                                               
  Senator   Sharp   MOVED   for   adoption   of   subcommittee                 
  recommendations  on  the   Dept.  of   Revenue  budget   for                 
  incorporation  within  HB  100.   No  objection  having been                 
  raised, IT WAS SO ORDERED.                                                   
                                                                               
  DEPT. OF ENVIRONMENTAL CONSERVATION                                          
                                                                               
                                                                               
  Co-chairman Frank directed attention to pages 2 and 3 of the                 
  subcommittee  report  (Attachment  I)  and  advised  of  the                 
  following changes:                                                           
                                                                               
  Office  of  the  Commissioner  -  Effected  a  general  fund                 
  reduction of $140.0.                                                         
                                                                               
  Information  and  Administrative  Services  -  Reduction  of                 
  $100.0.                                                                      
                                                                               
  Public Services  - This  component was  combined with  a new                 
  component.  Regional management  was eliminated but response                 
  funds remain in tact.                                                        
                                                                               
  Response Fund  Administration -  Reduced funds  for DMVA  by                 
  $100.0 to the level the department  said it could live with,                 
  $500.0.  Eliminated funds for  the hazardous substance spill                 
  technology review council since it is sunsetting.                            
                                                                               
  Regional Management -  Reduced funding  by $262.3 and  added                 
  $45.5 and $90.0 to public services (above).                                  
                                                                               
  Environmental  Quality - Eliminated  $69.8 in  general funds                 
  and $25.0 in  general fund program  receipts for a total  of                 
  $94.8.                                                                       
                                                                               
  Monitoring  and Lab Support - Effected a reduction of $187.7                 
  in  general funds  and provided  intent relating  to  use of                 
  interagency receipts of $211.0.                                              
                                                                               
  Drinking Water - Effected a general reduction of $30.9.                      
                                                                               
  Wastewater & Water Treatment -  Effected a general reduction                 
  of $56.8.                                                                    
                                                                               
  Solid and  Hazardous  Waste Management    - Made  a  general                 
  reduction of $85.4  plus denial of  the increment for  solid                 
  waste.                                                                       
                                                                               
  Air Quality  Management - Made a general  reduction of $66.7                 
  and denied the increment of $1.1 million.                                    
                                                                               
  Water  Quality  Management  - Made  a  general  reduction of                 
  $34.1.                                                                       
                                                                               
  Environmental Health BRU - Effected an unallocated reduction                 
  of $111.0.                                                                   
                                                                               
  Facilities  &  Construction -  Made  a general  reduction of                 
  $75.0 and a shift of $93.7 to CIP funds.                                     
                                                                               
  Co-chairman  Frank advised  that  many  of the  subcommittee                 
  changes are consistent with those made by the House.                         
                                                                               
                                                                               
  Senator  Donley attested  to concern  regarding  air quality                 
  mandates  and   suggested   that  an   amendment  might   be                 
  forthcoming.  He expressed further concern regarding funding                 
  in the underground  storage tank program, saying  that while                 
  it is authorized to  come from response funds and  the spill                 
  settlement, it is  instead funded from the  3-cent surcharge                 
  (general  funds).    That also  may  be  the  subject of  an                 
  amendment.                                                                   
                                                                               
  Co-chairman  Halford  MOVED  for  adoption  of  subcommittee                 
  recommendations for the Dept. of Environmental  Conservation                 
  budget for incorporation within HB 100.  No objection having                 
  been raised, IT WAS SO ORDERED.                                              
                                                                               
  Senator Phillips inquired concerning  intent language.   Co-                 
  chairman Frank directed attention to the following items:                    
                                                                               
       Environmental Quality, Laboratory Support Component                     
       Intent requests  that staff  finish projects  currently                 
       under way and  replace matching funds  with interagency                 
       receipts.                                                               
                                                                               
       Environmental Quality, Air Quality & Solid Waste                        
       Intent requests that  the department reassess requested                 
       positions to reduce  them to  the absolute minimum  and                 
       then seek authority from Legislative Budget and Audit.                  
                                                                               
       Environmental Quality, Water Quality                                    
       Intent requests that the department make  certification                 
       of wetland permits a priority.                                          
                                                                               
  The Co-chairman explained that in including intent regarding                 
  air quality he sought to  give the new commissioner adequate                 
  time to reassess staffing.   He questioned need for  ten new                 
  positions  in  addition  to  the   present  forty-three  and                 
  suggested  that the job  could be done  with existing staff.                 
  Co-chairman Frank  stressed need  to retain  primacy.   That                 
  should  be  done  with the  greatest  efficiency,  the least                 
  amount of  people,  and the  smallest  fees on  the  private                 
  sector.                                                                      
                                                                               
  Senator Phillips MOVED for adoption  of the foregoing intent                 
  for incorporation within HB  100.  No objection  having been                 
  raised, IT WAS SO ORDERED.                                                   
                                                                               
  Co-chairman Halford restated his motion  for adoption of the                 
  subcommittee  report  on   the  budget  for  the   Dept.  of                 
  Environmental Conservation, including  intent.  No objection                 
  having been raised, IT WAS SO ORDERED.                                       
                                                                               
  DEPT. OF NATURAL RESOURCES                                                   
                                                                               
  Co-chairman Frank directed attention to page 2 of  a handout                 
  (Attachment J) and advised of the following changes:                         
                                                                               
                                                                               
  Administrative Services  -  Deleted two  accountants and  an                 
  assistant director.                                                          
                                                                               
  Recorder's  Office  -  Deleted a  range  18  assistant state                 
  recorder.                                                                    
                                                                               
  Information Resources  Management  -  Effected  a  reduction                 
  requested by the  Governor, after submission of  his budget,                 
  reducing program receipts  by $300.0.   Made a reduction  in                 
  general funds  and a corresponding  increase to  interagency                 
  receipts.                                                                    
                                                                               
  Resource Development, Land  - Made  a miscellaneous  general                 
  fund reduction and  a corresponding CIP reduction  of $407.0                 
  requested by the administration.                                             
                                                                               
  Forest Management - Effected a general reduction of $100.0.                  
                                                                               
  Oil and Gas Development - Made a general reduction of $100.0                 
  for  presale  analysis.    The  Co-chairman  said  he  would                 
  subsequently offer an amendment to change the reduction from                 
  presale   analysis  to  a   general  reduction  to  maximize                 
  flexibility.                                                                 
                                                                               
  Geological  Development -  Effected a  general reduction  of                 
  general  funds in the  director's office and  a reduction in                 
  general fund program  receipts due to an unrealized level of                 
  receipts.                                                                    
                                                                               
  Water Development - Made a  general reduction and eliminated                 
  the  navigability  project  that should  be  handled  by the                 
  division of lands.                                                           
                                                                               
  Pipeline Coordinator -  Funding for Badami was  changed from                 
  general fund program receipts to other funds.                                
                                                                               
  Information Resource Management - Funding was transferred to                 
  the management and administration BRU.                                       
                                                                               
  Agricultural Development  -  Made  a  general  reduction  in                 
  program receipts  and effected  an $80.0  increase from  the                 
  agricultural  revolving loan  fund.    Effected  a  straight                 
  general fund reduction of $80.0  from the director's office,                 
  shifted $48.9 to  the agricultural revolving loan  fund, and                 
  reduced  the  appropriation  authorization   for  collateral                 
  protection  from the  agricultural  revolving  loan fund  by                 
  $239.0.    An additional  $100.0  for the  Northern Latitude                 
  Plant  Center  was   shifted  from  general  funds   to  the                 
  agricultural revolving loan fund,  and permitting funds  for                 
  the Fort Knox  Gold Mine  and Valdez Creek  were shifted  to                 
  other  funds.    Funding  for  the  inter-departmental  data                 
  processing chargeback  and  the  Fairbanks  Office  Building                 
  chargeback   were   transferred   to  the   management   and                 
                                                                               
                                                                               
  administration BRU.                                                          
                                                                               
  Parks  and  Recreation -  Effected  an overall  reduction of                 
  $104.1  in  the  director's  office  and  authorized program                 
  receipt  authority  and "then  we took  half  of it  back in                 
  general funds . . . ."                                                       
                                                                               
  Agricultural Development  BRU -  Transferred funding to  the                 
  development  BRU  along with  forest,  oil and  gas, mining,                 
  geological and water development.                                            
                                                                               
  Fire  Suppression  -   Funded  an  amount  of   fixed  cost,                 
  recognizing that  a supplemental  would accommodate  funding                 
  needs  for actual fires  once that need  is known.   The Co-                 
  chairman advised that  he would later offer  an amendment to                 
  change the format  to one  preferred by  the department,  to                 
  provide greater flexibility.                                                 
                                                                               
  Co-chairman Frank  next directed attention to  the following                 
  intent:                                                                      
                                                                               
       Parks  and  Recreation  Management -  Requires  that if                 
       parks are closed,  closure occur  in a fair,  statewide                 
       manner rather than concentrated in a particular area of                 
       the state.                                                              
                                                                               
       Statewide  Fire Suppression - Relates to expectation of                 
       a   supplemental   appropriation   for    actual   fire                 
       suppression costs.                                                      
                                                                               
  Senator  Rieger  inquired  concerning  procurement of  water                 
  rights.  Co-chairman Frank referenced water development.                     
                                                                               
  Senator  Rieger  voiced  concern  regarding  park  fees  and                 
  withdrawal of commensurate general funds.  Co-chairman Frank                 
  concurred in  the concern,  acknowledging that the  division                 
  should be able to keep part of what it raises.  The proposed                 
  budget would allow parks  to keep 50 cents of  every dollar.                 
  The  subcommittee approved  the  Governor's program  receipt                 
  increment  of  $600.0 but  deleted half  of  it back  in the                 
  $319.0 deletion  of general  funds.   Senator Phillips  also                 
  concurred in comments by Senator  Rieger.  Co-chairman Frank                 
  reiterated that the budget allows parks to increase fees and                 
  keep  half  of what  they make.    He acknowledged  that the                 
  division was not held harmless from general fund reductions.                 
                                                                               
                                                                               
  Co-chairman Halford MOVED  for adoption of  the subcommittee                 
  report  and letters  of  intent  for  the Dept.  of  Natural                 
  Resources  budget for    incorporation within  HB  100.   No                 
  objection having been raised, IT WAS SO ORDERED.                             
                                                                               
  DEPT. OF ADMINISTRATION                                                      
                                                                               
                                                                               
  Senator Randy  Phillips distributed a handout (Attachment K)                 
  and advised that the goal  was $169,601.6.  The subcommittee                 
  met the goal and effected a total reduction of $6,854.5 from                 
  FY 95 funding.   A  total of seventeen  positions were  also                 
  reduced.  The subcommittee budget  consists of the following                 
  general fund reductions:                                                     
                                                                               
  Longevity Bonus (revised estimates)                    $                     
  450.0                                                                        
  Senior Services  Admin. (pers.ser.,  travel, contractual)                    
  60.3                                                                         
  Senior Services Senior Residential Grant (Kotzebue                           
       Senior Center, Medicaid eligibility)                                    
  120.0                                                                        
  Senior Services funding change (204 GF to 204 GF/PR                          
       increase rates effective February, 1996)                                
  0.0                                                                          
  Public Defender Agency (consistent with supp.funding)                        
  73.1                                                                         
  Office of  Public Advocacy  (216.6 above  FY 95  with supp.)                 
  125.0                                                                        
  Office of the Commissioner (personal services)                               
  100.0                                                                        
  Permanency Planning (funding in fiscal note, HB 66)                          
  170.6                                                                        
  Personnel (deny increment)                                                   
  404.0                                                                        
  Retirement & Benefits, EPORS (denied portion of                              
       increment, retirements uncertain)                                       
  25.0                                                                         
  Oil and Gas Conservation Commission (denied increment)                       
  9.0                                                                          
  Alaska Public Offices Commission (denied increment                           
       reduce to FY 94 level, nonelection year)                                
  14.4 RATNET (transferred to new component)                                   
  $1,129.7                                                                     
  Public Broadcasting (25% reduction, first year                               
       of three-year phaseout, see intent)                                     
  $1,467.9                                                                     
  Leasing (5% reduction)                                                       
  $1,219.5                                                                     
                                                                               
  Co-chairman Frank inquired  concerning the $120.0  reduction                 
  for   Kotzebue.    Jerry   Burnette  advised  of  department                 
  testimony that  Medicaid  would cover  the  cost.   The  Co-                 
  chairman  further inquired  regarding  funding for  both the                 
  Public Defender and Office of Public Advocacy, asking if the                 
  agencies  were funded at  the FY 95  level plus supplemental                 
  funding.  Senator Phillips concurred in that understanding.                  
                                                                               
  Senator Donley  advised  of contact  from  Senator  Duncan's                 
  office  and  interest in  restoring  funding for  RATNET and                 
  public  broadcasting.   Co-chairman  Frank advised  that  it                 
  would be helpful to hear comments from the agencies relating                 
                                                                               
                                                                               
  to reductions.   He suggested that  discussion occur at  the                 
  next meeting.  Senator Phillips  said he worked closely with                 
  the department  in preparation  of the  subcommittee budget.                 
  The  other body  reduced public broadcasting  by 100%.   The                 
  Senate subcommittee recommends a 25%  reduction and a three-                 
  year  phase out.    The hope  is that  both  the public  and                 
  private sector will respond in  providing dollars for public                 
  broadcasting.  He  acknowledged that the situation  would be                 
  difficult but not unmanageable.                                              
                                                                               
  MARK  BADGER, Director  of  Information Services,  Dept.  of                 
  Administration,   and   DOUGLAS    SAMIMI-MOORE,   Executive                 
  Director,   Public   Broadcasting   Commission,   Dept.   of                 
  Administration, came before committee.  Mr. Badger explained                 
  that distinctions between RATNET and public broadcasting are                 
  somewhat  misleading.  He  referenced the  phaseout approach                 
  for public  broadcasting and advised that  funding continues                 
  to  be needed for  public television, public  radio, and the                 
  rural  Alaska television  network.   Mr. Moore  acknowledged                 
  that  the  Senate budget  restores  "some funding  to public                 
  television," when compared to the House number.  At the same                 
  time,   funding   and   expenses   associated  with   RATNET                 
  transmission  and  services  have  been  moved to  statewide                 
  communication  services.    RATNET, public  television,  and                 
  public radio are to be operated from this new appropriation.                 
  Transponder  costs associated  with  RATNET  are "more  than                 
  $800.0 a year."   It  is unlikely, if  not impossible,  that                 
  both  RATNET  and   public  television  services  could   be                 
  delivered    without    some   appropriation    for   RATNET                 
  transmissions over the transponder.                                          
                                                                               
  Mr. Moore acknowledged that technological fixes could result                 
  in significantly  less operating  costs.   However, with  no                 
  capital to make those changes in  previous years, the system                 
  "is not there yet."  Given the high cost  of transmission of                 
  RATNET and public  television, the proposed budget  will not                 
  allow the department to "do both."                                           
                                                                               
  Senator Rieger referenced diagrams accompanying subcommittee                 
  budget materials and  requested an explanation.   Mr. Badger                 
  said they evidence "a potential way to create some economies                 
  while maintaining   services."  A  plan was endorsed by  the                 
  telecommunications   information   council   that   strongly                 
  endorses  RATNET service.  It should  be understood that the                 
  rural  Alaska television network, as it has existed over the                 
  past few years, must evolve and change.  People accept that.                 
  The information highway  has a  place in Alaska.   The  thin                 
  infrastructure   now   in  place   is   reliant  on   public                 
  broadcasting and the rural Alaska television network as well                 
  as  commercial telephone  providers.   Mr.  Badger suggested                 
  that dismantling the system with  nothing in its place would                 
  increase the task of "keeping Alaskans connected."  He urged                 
  that the evolving system be given an opportunity  to fulfill                 
  its full potential.                                                          
                                                                               
                                                                               
  Co-chairman  Halford  referenced  a  proposal  to  create  a                 
  private endowment  and channel  funding through  that entity                 
  rather  than    public  broadcasting.    He  then  asked  if                 
  subcommittee  changes are  intended to  make that  possible.                 
  Senator Phillips suggested  that use of a  private endowment                 
  reflects a policy decision to be made by committee.  At this                 
  point, subcommittee funding  is "with the commission."   Co-                 
  chairman   Halford  voiced   his   understanding  that   the                 
  appropriation is "to the  public broadcasting commission for                 
  radio and t.v. services."  Senator Phillips concurred.                       
                                                                               
  Discussion followed between Co-chairman Frank and Mr. Badger                 
  regarding a  department proposal submitted  to subcommittee.                 
  Mr.  Badger  advised  that   the  department  approach   was                 
  contingent  upon "some funding  for the RATNET transponder."                 
  The $800.0 number is unyielding.   Transmission requires the                 
  skylink.  The  Senate budget does not contain  that funding.                 
  Co-chairman Halford suggested  that the public  broadcasting                 
  commission  take the  $800.0  from the  $1.4  million.   Mr.                 
  Badger  explained  that  funding  for public  television  is                 
  necessary to be able to provide  service to the rural Alaska                 
  television network.   Mr.  Moore clarified  that the  $800.0                 
  relates to lease of the transponder without any expenditures                 
  for the tape delay center which takes programs from stations                 
  in  Anchorage  and  retransmits  them  "out  of  the  RATNET                 
  system."    The  $800.0  merely  relates  to  space  on  the                 
  transponder.   It does  not include  programming.  The  $1.4                 
  million set aside for public  television is a reduction from                 
  $2.1   that  presently  flows   to  four  public  television                 
  grantees.  The  commission will  have to come  up with  some                 
  form  of grant  allocation to  maintain some type  of public                 
  television service in Alaska.   It is difficult to determine                 
  how  the  commission  will provide  both  RATNET  and public                 
  television,  given lack of the $800.0  needed for RATNET and                 
  the  above-noted reduction  of  public  television  to  $1.4                 
  million.   Mr.  Badger added,  "It will  not  work.   One is                 
  contingent on the other."                                                    
                                                                               
  Mr.  Badger  explained that  the  $309.0 reduction  in House                 
  numbers  for  RATNET  eliminates the  tape  delay  center in                 
  Anchorage  which  combines  all  the Anchorage  signals  and                 
  retransmits them.   It removes  a big portion  of the  rural                 
  Alaska television network.   To  supplant that service,  one                 
  must have a service that provides  a programming line.  That                 
  is  what public television would  do.  But public television                 
  must be funded in order to be able to "pull that  off."  The                 
  two are interlinked.                                                         
                                                                               
  Senator  Donley asked  if  the problem  would  be solved  if                 
  Senate  numbers were  added to  the $978.0  provided by  the                 
  House for RATNET.   Mr. Badger and Mr. Moore  both responded                 
  affirmatively.                                                               
                                                                               
                                                                               
  Co-chairman Frank expressed a preference for adoption of the                 
  subcommittee report  with the  understanding that  attention                 
  could revert to  RATNET and public television  after further                 
  clarification.  Senator  Phillips MOVED for adoption  of the                 
  subcommittee report  for the Dept. of  Administration budget                 
  for incorporation within  HB 100.  No  objection having been                 
  raised, IT WAS SO ORDERED.                                                   
                                                                               
  Senator Phillips  next  referenced the  following  items  of                 
  intent:                                                                      
                                                                               
       Public Broadcasting - Requested to  seek new sources of                 
       support as state  support is phased  out over the  next                 
       three  years  by  a  25%  reduction  in FY  96,  a  35%                 
       reduction in FY 97, and a 40% reduction in FY 98.                       
                                                                               
       Requested  to  allocate  funds to  assure  survival  of                 
       stations which  provide the sole  broadcast service  to                 
       one or more communities.                                                
                                                                               
       Requested to coordinate  and maximize cost savings  and                 
       efficiencies  for  public  television  and that  public                 
       broadcasting   deliver   essential   communications  to                 
       underserviced regions of Alaska.                                        
                                                                               
  Co-chairman Halford voiced his  understanding that all rural                 
  radio stations that  are the  only station in  an area  will                 
  "stay on the  air."  Senator Phillips concurred, advising of                 
  a  priority  for  radio over  television.    Referencing the                 
  second item of  intent, Senator  Rieger asked if  it was  in                 
  keeping with systems involving  a shared programming station                 
  which relays  electronically to other  broadcast stations in                 
  other  communities.    Mr.  Moore  acknowledged that  it  is                 
  consistent  in  the sense  that  the mission  of  the public                 
  broadcasting  commission is to fund and  develop a system of                 
  public   broadcasting   that    serves   the    educational,                 
  informational,  entertainment,  and  cultural  needs and  to                 
  provide public  broadcasting services  to people  in Alaska.                 
  He added that virtually every  public radio station provides                 
  some  level of sole  service.  As an  example, he noted that                 
  Sitka   provides  service   to  Kake,  Yakutat,   and  other                 
  locations.                                                                   
                                                                               
  Through strategic planning  over the  last three years,  the                 
  system is moving toward a regional grouping of stations such                 
  that they can consolidate efforts, realize economies through                 
  closer  coordination,  and free  up  resources at  the local                 
  level  for  local  news and  information  services.   Intent                 
  language in paragraph two is not in conflict with that.  Co-                 
  chairman Halford voiced his understanding that FY 95 funding                 
  was approximately $7  million.  The House  funded $4 million                 
  and the Senate $4.4.  Department representatives concurred.                  
                                                                               
  Senator Phillips MOVED for adoption  of the foregoing intent                 
                                                                               
                                                                               
  items, for incorporation within HB 100.  No objection having                 
  been raised, IT WAS SO ORDERED.                                              
                                                                               
  DEPT. OF PUBLIC SAFETY                                                       
                                                                               
  Senator Rieger  distributed a  handout  (Attachement L)  and                 
  explained that attaining the  budget cap involved "a  lot of                 
  little decrements."  He then commenced the following review:                 
                                                                               
  Fish and Wildlife Protection                                                 
                                                                               
  Enforcement -  Reduced an  increment of  $150.0 in  personal                 
  services, $15.0 in travel, $10.0 in contractual, and $4.0 in                 
  commodities.  There  was also  a switch of  $1 million  from                 
  general funds to  the fish  and game fund.   Senator  Rieger                 
  said he would subsequently offer an  amendment to change the                 
  latter amount, based on  the actual balance in the  fish and                 
  game fund.                                                                   
                                                                               
  Director's  Office  - Reduced  personal  services $14.0  and                 
  travel $1.0.                                                                 
                                                                               
  Aircraft Section - Misc. operational reduction of $30.0 plus                 
  $42.0 in personal services.                                                  
                                                                               
  Marine  Enforcement -  Reduced personal  services $25.0  and                 
  $10.0 in misc. operations.                                                   
                                                                               
  Fire Prevention                                                              
                                                                               
  Operations - Denied  a $184.6  increment, $90.0 in  personal                 
  services,  and $73.8  in  general funds  to  be offset  with                 
  program receipts through institution of fees.                                
                                                                               
  Fire Service Training - Denied the $204.1 increment.                         
                                                                               
  Highway Safety Planning                                                      
                                                                               
  Operations- Effected a $5.0 reduction in personal services.                  
                                                                               
  Motor Vehicles                                                               
                                                                               
  Field  Services  -  Reduced  $300.0  in  general  funds  and                 
  replaced them with $300.0 in program receipts.                               
                                                                               
  Administration - Reduced personal services by $50.0.                         
                                                                               
  Alaska State Troopers                                                        
                                                                               
  Detachments -  Denied a  $700.0 increment.   Reduced  travel                 
  $30.0, contractual  $87.0, commodities $5.0,  equipment $9.3                 
  and overall personal  services reduction of $1,845.9.   Both                 
  the  House  and  the  Senate  subcommittees  reduced program                 
  receipts for the concealed weapons program by $228.5.                        
                                                                               
                                                                               
  Special Projects -  This new  component was funded  $1,600.0                 
  from interagency  receipts from the highway  safety planning                 
  agency (helmet  bill money).  There is  intent language that                 
  funds  the  school   bus  safety  program  referred   to  as                 
  interagency receipts in the Dept. of Education budget.                       
                                                                               
  Criminal Investigation  Bureau -  Reduced personal  services                 
  $84.0, contractual $32.4, and commodities $6.0.                              
                                                                               
  Director's  Office   -  Reduced  personal   services  $45.0,                 
  contractual $1.0, and commodities $1.0.                                      
                                                                               
  Judicial  Services  - Reduced  personal  services  $35.0 and                 
  contractual $5.0.                                                            
                                                                               
  Prisoner Transportation - Reduced travel $50.0.                              
                                                                               
  Search & Rescue - Miscellaneous reduction of $8.0.                           
                                                                               
  Rural Trooper Housing  - Miscellaneous  reduction of  $38.0,                 
  plus intent  language directing  the department to  increase                 
  program receipts in FY  97 and move the program  toward full                 
  self-support via program receipts.                                           
                                                                               
  Narcotics Task Force - Miscellaneous reduction of $100.0.                    
                                                                               
  Commercial Vehicle Enforcement -  Miscellaneous reduction of                 
  $30.0.                                                                       
                                                                               
  V.P.S.O.                                                                     
                                                                               
  Contracts  - Denied  the  $219.2  increment and  transferred                 
  $35.0 from VPSO support to contracts.                                        
                                                                               
  Alaska Police Standards Council                                              
                                                                               
  Took a miscellaneous reduction of $259.1.                                    
                                                                               
  Violent Crimes Compensation Board                                            
                                                                               
  Reduced  $100.0  from  day  fines  but added  front  section                 
  language that extends the lapse for day fines moneys from FY                 
  95.                                                                          
                                                                               
  Domestic Violence and Sexual Assault                                         
                                                                               
  Replaced   $325.0  in  general  funds  with  permanent  fund                 
  dividends.    Deleted day  fines  of $100.0,  and  the $87.9                 
  increment for shelter grants.                                                
                                                                               
  Statewide Support                                                            
                                                                               
  Training Academy- Took a miscellaneous reduction of $10.0.                   
                                                                               
                                                                               
  Administrative Services - Reduced personal services $40.0.                   
                                                                               
  Public  Safety   Information  Network  -   Denied  a  $267.8                 
  increment.                                                                   
                                                                               
  Alaska Criminal Records and Identification  - Denied a $36.6                 
  increment  and  reduced  $100.0  in  general  funds  program                 
  receipts from the concealed weapons permit program.                          
                                                                               
  The subcommittee  budget totals $81,447.5  in general funds.                 
  That is  sufficiently  under the  cap to  allow the  funding                 
  source correction to the fish and game fund.  Senator Rieger                 
  advised that he would suggest a $1 million funding switch to                 
  $445.5 in general  funds and $555.5  from the fish and  game                 
  fund.  In response  to a question from  Co-chairman Halford,                 
  Senator  Rieger  explained  that the  fund  is  derived from                 
  forfeitures and penalties.   The balance rolls  forward, and                 
  some  of  it is  used  in  the department  budget.   Pending                 
  legislation which would  double fines could have  a dramatic                 
  impact on the forfeiture and penalties component.                            
                                                                               
  Senator Rieger next directed attention to intent items:                      
                                                                               
       Highway Safety Planning -  Expresses legislative intent                 
       that grants include $50.8 for the school bus inspection                 
       program in the Dept. of Education.                                      
                                                                               
       Expresses legislative  intent that grants  include $1.6                 
       million for safety programs administered by the special                 
       projects component of the Alaska State Troopers.                        
                                                                               
       Motor  Vehicles -  Requests  that  the division  assess                 
       methods of increasing availability  of commercial motor                 
       vehicle license testing around the state.                               
                                                                               
       Alaska State Troopers, Rural Trooper Housing - Requests                 
       that  the program  eventually be  totally supported  by                 
       rent receipts.    For FY  97,  rental receipts  are  to                 
       increase by at least an additional $63,100 over the  FY                 
       96 figure.                                                              
                                                                               
  Senator Donley voiced his  understanding that rural  trooper                 
  housing was  part  of the  collective  bargaining  contract.                 
  Senator Rieger concurred.  He then explained that intent has                 
  been placed in the budget in advance so that  it will become                 
  part of the  next bargaining  package.  Discussion  followed                 
  regarding the impact of intent upon future negotiations.                     
                                                                               
  Discussion followed between Senator Sharp and Senator Rieger                 
  regarding aircraft  operations within trooper  detachments.                  
  Senator Rieger noted  that funding  is shown in  contractual                 
  lines.   The program is  much smaller than  that of fish and                 
  wildlife protection.  It consists of two helicopters (one in                 
                                                                               
                                                                               
  Anchorage and one  in Fairbanks) used for search and rescue.                 
  Senator Rieger  advised that  the aircraft  is owned  rather                 
  than leased.   Considerable subcommittee  discussion focused                 
  on the issue.                                                                
                                                                               
  Senator  Donley  voiced  concern  regarding  enforcement  of                 
  mandatory auto insurance and  financial responsibility acts.                 
  He noted  that when the  laws were enacted,  the legislature                 
  provided  additional fees to  pay for them.   The department                 
  asserts that over the years those fees have been bled off to                 
  other parts of the general fund.  He then inquired regarding                 
  the impact of cuts in program receipts in the field services                 
  section of  the division of motor vehicles.   Senator Rieger                 
  advised  that  the  subcommittee  budget  provides  a  $38.0                 
  program receipt increment  for field services.   The Senator                 
  acknowledged  that  had the  cap not  been so  difficult, he                 
  would  have  provided  a  further   increase.    He  further                 
  acknowledged complaints about lines at  field offices.  Over                 
  the past  several years,  the Legislative  Budget and  Audit                 
  Committee has allowed a "small  number of extra positions in                 
  DMV field services, funded by program receipts . . . ."                      
                                                                               
  Senator  Rieger   next  referenced   a  proposed   amendment                 
  containing  a  change of  funding  of  $444.5 for  fish  and                 
  wildlife protection, enforcement and investigative services,                 
  from  the  fish  and  game  fund  to general  funding.    He                 
  explained that  he  learned of  need  for the  change  after                 
  subcommittee  closeouts.    As  a   further  explanation  he                 
  referenced a subcommittee  switch of  $1 million in  funding                 
  from general fund to the fish and game fund.   The amendment                 
  would be a reduction  of $555.5 from the fish  and game fund                 
  and an increase of $444.5 in  general funds.  Senator Rieger                 
  then MOVED  for adoption  of the  proposed amendment  to the                 
  subcommittee  recommendation.    No  objection  having  been                 
  raised, the AMENDMENT was ADOPTED.                                           
                                                                               
  Co-chairman Frank advised that front section items would not                 
  be dealt with at this time.                                                  
                                                                               
  Senator   Rieger  MOVED   for   adoption   of  the   amended                 
  subcommittee  budget,  including intent,  for  the Dept.  of                 
  Public  Safety  for incorporation  within  HB 100.   Senator                 
  Sharp warned of  the possibility of comment  from commercial                 
  fishing interests that have traditionally utilized  the fish                 
  and game fund.   Co-chairman Halford referenced  funding for                 
  fish and wildlife protection and  troopers when he commented                 
  that funding for the department appears to be about the same                 
  as last  year.  The budget appears to contain an increase in                 
  federal funds to match a decrease in general funds.  Senator                 
  Rieger noted real reductions in  almost every component with                 
  the  exception of enforcement  where the subcommittee sought                 
  to ensure that  the number of  blue and brown shirts  in the                 
  field would not be  decreased.  To a further  comment by the                 
  Co-chairman, noting that federal moneys increased from $6 to                 
                                                                               
                                                                               
  $9 million, Senator  Rieger explained  that not all  federal                 
  receipts accrue to public safety.  Aside from an increase in                 
  federal  dollars for the  narcotics task force,  the bulk of                 
  the increase is  helmet money which is  subsequently granted                 
  to  municipalities  or  other   state  agencies  for  safety                 
  programs.   No  objection  to the  motion  for adoption  and                 
  incorporation having been raised, IT WAS SO ORDERED.                         
                                                                               
  DEPT. OF LAW                                                                 
                                                                               
  Co-chairman  Halford advised  that  the subcommittee  budget                 
  meets  the $19,556.8 general  fund cap.   He  explained that                 
  funding  holds prosecution harmless, thus providing the same                 
  funding as the House and the Governor's amended budget. Cuts                 
  were allocated through  other areas of the  department.  The                 
  Co-chairman noted the following changes:                                     
                                                                               
  Fair  Business Practice  -  Eliminated $150.0  and personnel                 
  engaged solely in antitrust activities.  Seed money was left                 
  to maintain some antitrust activity through private counsel.                 
                                                                               
                                                                               
  Operations -  Components were  reduced 1%  below  the FY  95                 
  authorized level.                                                            
                                                                               
  Mental Health Lands - The Senate recommendation is  the same                 
  as that of the House.                                                        
                                                                               
  Operations/Time Keeping  - The subcommittee concurred in the                 
  Governor's  decision  to  move  time   keeping  out  of  the                 
  operations BRU.  That reduced the operations base to $919.1.                 
  The subcommittee then applied an additional 15% reduction to                 
  $769.8.                                                                      
                                                                               
  Oil and Gas  Litigation -  The subcommittee reduced  funding                 
  from  $24  million to  $20  million.   That  amount  is more                 
  current in terms of ongoing litigation.                                      
                                                                               
  Environmental Compliance - The subcommittee agreed with  the                 
  administration's  request   to  remove  the  $655.2   to  be                 
  appropriated from  the 470 fund.   That funding  will remain                 
  available through  the Dept. of  Environmental Conservation.                 
  Much of the legal services provided by the department can be                 
  charged  to  other  departments  and  paid   by  interagency                 
  receipts.  The bulk of funding  for this component should be                 
  derived by that means.                                                       
                                                                               
  Exxon Valdez  Litigation -  The subcommittee  took the  same                 
  approach as the  House and agreed with  the administration's                 
  request  to remove  $100.0 to  be appropriated from  the 470                 
  fund.  That funding  will be available through the  Dept. of                 
  Environmental Conservation.                                                  
                                                                               
  The  subcommittee  budget   also  minimized  allocations  to                 
                                                                               
                                                                               
  provide maximum flexibility within the department.                           
                                                                               
  Co-chairman Halford  MOVED for adoption of  the subcommittee                 
  budget for the Dept. of Law for incorporation within HB 100.                 
  No objection having been raised, IT WAS SO ORDERED.                          
                                                                               
  LEGISLATURE                                                                  
                                                                               
  Co-chairman Frank explained that the budget meets the cap of                 
  $29,045.6.  He then conducted the following review:                          
                                                                               
  Budget & Audit Committee                                                     
  Legislature Audit - Funded at the FY 94 actual level.                        
  Legislative Finance - Funded at $2.7 million.                                
  Committee Expenses - Funded at $175.0.                                       
                                                                               
  Legislative Council                                                          
  Salaries & Allowances - Funded at last year's authorization,                 
  $3.7                         million.                                        
  Administrative Services - Slight reduction to $7.0 million.                  
                                                                               
  End:      SFC-95, #29, Side 1                                                
  Begin:    SFC-95, #29, Side 2                                                
                                                                               
  Session Expenses - Funded at $5.5 million.                                   
  Legislative Council - Funded at $434.0, a decrease  from the                 
  FY 94                                                                        
                        actual.                                                
  Legal & Research - Combined the  agencies and funded them at                 
  $2.0                    million,  a  decrease  from   FY  94                 
  actual.                                                                      
  Leadership - Funding is  reduced to $4,056.9 from the  FY 94                 
  actual                                                                       
               of $4.5 million.                                                
                                                                               
  Ombudsman - Funded at $700.0.  That is a decrease from  last                 
  year's                                                                       
              conference committee funding of $975.0 and FY 95                 
              authorization of $1,041.4.                                       
                                                                               
  In response to  a question from Senator  Donley, Co-chairman                 
  Frank explained that FY 94 actual numbers represent the best                 
  comparison for FY 96 funding.   Areas where reductions in FY                 
  94 actual funding were taken  include Legislative Finance, a                 
  reduction  from $3 million to $2.7.  The Ombudsman sustained                 
  a significant reduction from  both FY 94 and FY  95 funding.                 
  Legislative  Leadership  accounts  are  "down  by   $500.0."                 
  Combination  of  legal and  research  services results  in a                 
  reduction of approximately $250.0.   Senator Donley inquired                 
  concerning legal  and research  capabilities at the  reduced                 
  level.    Co-chairman  Frank  acknowledged  a  reduction  in                 
  personnel due to  the consolidation.  He  stressed, however,                 
  that  it  was logical  to combine  the  two and  reduce both                 
  personnel and overhead.                                                      
                                                                               
                                                                               
  Senator  Randy   Phillips   MOVED  for   adoption   of   the                 
  subcommittee   recommendation  for   the   budget  for   the                 
  Legislature for incorporation  within HB 100.   No objection                 
  having been raised, IT WAS SO ORDERED.                                       
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting was adjourned at approximately 8:55 p.m.                         
                                                                               

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