Legislature(2001 - 2002)

03/30/2001 09:16 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
     CS FOR HOUSE BILL NO. 103(FIN)(brf sup maj fld)                                                                            
     "An  Act  making appropriations   for the  operating  and  loan                                                            
     program  expenses of  state government,  for certain  programs,                                                            
     and to capitalize  funds; and providing for an effective date."                                                            
     CS FOR HOUSE BILL NO. 104(FIN)                                                                                             
     "An Act making appropriations for the operating and capital                                                                
     expenses of the state's integrated comprehensive mental health                                                             
     program; and providing for an effective date."                                                                             
Department of Natural Resources                                                                                               
Senator Leman, Chair                                                                                                            
Senator Phillips                                                                                                                
Senator Torgerson                                                                                                               
Senator Pearce                                                                                                                  
Senator Lincoln                                                                                                                 
Senator Leman  noted the larger membership  of this subcommittee  is                                                            
due to the "diversity of  issues" and their importance to the state.                                                            
Senator  Leman reminded  of  the previous  year allocation  to  this                                                            
department  of  $68.6 million  of  which  $37,371,100  were  general                                                            
funds. He  informed that  the governor requested  a greater  than $2                                                            
million increase for FY  02 and that the co-chair of this Committee,                                                            
Co-Chair  Donley,   instructed  the   subcommittee  to  provide   an                                                            
allocation  of $37.5 million general  funds. Senator Leman  reported                                                            
the subcommittee is giving  an actual recommendation of $37,252,500.                                                            
He noted that this amount  is below the limit, but cautioned against                                                            
planning other  uses for the remaining  funds saying there  might be                                                            
need for adjustments within this department.                                                                                    
Senator  Leman  continued   that  the  subcommittee  recommendation                                                             
increases  the department's  budget  by $2.1  million, although  the                                                            
general fund allocation is reduced.                                                                                             
Senator  Leman  expressed   that  the  budget  recommendations   are                                                            
consistent with  his and other members of the subcommittee's  goals.                                                            
He shared  that  these goals  are to  streamline  government and  to                                                            
allow the department to  pursue its mission to develop Alaska's land                                                            
and water resources.                                                                                                            
Senator Leman  listed the subcommittee  recommendations as  follows.                                                            
        · Approve all Line Item Transfers, position adjustments,                                                                
          transfers in and transfers out, One Time Items, and the                                                               
          FY 01 salary increases.                                                                                               
        · $825,000 increase at the request of the Division of Oil                                                               
          and Gas to address vacancy, recruitment and retention of                                                              
          technical personnel - part of this increase was funded                                                                
          with AHFC receipts.                                                                                                   
        · Approve   $300,000   general  fund   increment  to   Water                                                            
          Development  as part of  the solution to retool  the water                                                            
          permitting  program.  In  anticipation  of  statutory  and                                                            
          regulatory  changes,  language  is recommended  that  will                                                            
          appropriate   I/A  receipts  form  the  Federal  Non-Point                                                            
          Source  pollution funds in the Department of Environmental                                                            
          Conservation.   This funding  will  relieve  general  fund                                                            
          pressure  in this division for FY 02.  It may be necessary                                                            
          to  supplement  this  funding  with $90,000  general  fund                                                            
        · Authorizing  $248,000 from the State Land  Disposal Income                                                            
          Fund  to enable the Division of Mining,  Land and Water to                                                            
          survey new subdivisions and offer new land sales.                                                                     
        · Authorizing  $280,000 in timber receipts to support value-                                                            
          added timber sales.                                                                                                   
        · Including  language  allowing  the Department  of  Natural                                                            
          Resources   to   receive   federal   receipts   for   fire                                                            
          suppression   activities  above  the  budgeted  level,  if                                                            
        · Including  language  allowing  the Department  of  Natural                                                            
          Resources  to attempt a  pilot project in preparation  for                                                            
          this  year's fire  season. After  further consulting  with                                                            
          the  department,  my recommendation  to  the Committee  is                                                            
          that  we make this an FY 02 fire season  (April 15, 2002 -                                                            
          June 15, 2002).                                                                                                       
        · Replacing  $103,600 general  funds with AHFC Dividends  in                                                            
          the Fairbanks Office Building Chargeback component.                                                                   
Senator Leman next listed the items requested in the governor's                                                                 
budget but not recommended by the subcommittee.                                                                                 
        · $75,000  general  funds  for cartographer  in Information                                                             
          Resource Management (House did not fund)                                                                              
        · $57,500  general funds for  position to increase  computer                                                            
          support/Interdepartmental    Data  Processing   Chargeback                                                            
          (House did not fund)                                                                                                  
        · $160,000  general  funds for Park  Ranger in Wood-Tikchik                                                             
          State Park (House did not fund)                                                                                       
        · $350,000  general funds for Mobile Initial Attack Force 20                                                            
          PPT state positions (House did not fund)                                                                              
        · Computer support                                                                                                      
        · Park ranger                                                                                                           
        · Mobile initial attack force                                                                                           
Senator Olson asked for further information regarding aircraft                                                                  
leasing maintenance.                                                                                                            
Senator  Leman  responded  that  he had  little  knowledge  of  this                                                            
Senator Olson  stated that he had no knowledge either  and suggested                                                            
that more  research  should be  done before  approving leasing  such                                                            
Senator Leman  assured that action  would not occur before  the next                                                            
fiscal year.  He noted that  other states  have used these  aircraft                                                            
and have been  satisfied. He stated  he would share the information                                                             
that he does have.                                                                                                              
Co-Chair  Donley suggested  that  in the  time before  this  program                                                            
begins  Senator Olson  would have  an opportunity  to work with  the                                                            
Senator  Austerman   expressed  appreciation   to  the  Division  of                                                            
Legislative  Finance  for  the  fiscal  analyst's   assistance  with                                                            
developing  the budgets  for the  departments which  he chaired  the                                                            
Department of Military and Veterans Affairs                                                                                   
Senator Austerman, Chair                                                                                                        
Senator Phillips                                                                                                                
Senator Therriault                                                                                                              
Senator Wilken                                                                                                                  
Senator Davis                                                                                                                   
Senator Austerman  shared that the governor requested  $1.12 million                                                            
over  the amount  allocated in  FY 01.  Included  in the  governor's                                                            
request, Senator Austerman listed 14 vacant positions.                                                                          
Senator Austerman relayed  concerns regarding $200,000 general funds                                                            
for disaster planning and  the state's emergency coordination, which                                                            
he noted the House  of Representatives approved. He  stated that the                                                            
subcommittee  does not recommend  this item  and instead  recommends                                                            
utilizing these funds in various other projects.                                                                                
Senator   Austerman  described   how  the   subcommittee   otherwise                                                            
allocated  the $200,000  general  funds  in its  recommendation.  He                                                            
stated  that  $21,000  would  be spent  for  grants,  $19,000  would                                                            
replace a reduction in  oil and hazardous material response funding,                                                            
and $140,000  would  fully fund the  increases to  the food  service                                                            
costs for the youth academy.                                                                                                    
Senator  Austerman compared  the FY  01 general  fund allocation  of                                                            
$7.7 million  to the $8.3 million  FY 02 general fund limit  imposed                                                            
by the  Senate Majority,  and the $8.4 million  general fund  budget                                                            
approved by the  House of Representatives. He stated  that while the                                                            
subcommittee  recommendation  is  $37,400  less  than the  House  of                                                            
Representative's allocation,  the amount is $478,000 above the limit                                                            
established by the Senate Majority.                                                                                             
Senator Leman  asked if the  intent of the  funding request  for the                                                            
state emergency coordination center is for 24-hour operation.                                                                   
Senator Austerman affirmed.                                                                                                     
Senator Leman  asked if the subcommittee chair had  considered using                                                            
contracted services to operate the system.                                                                                      
Senator Austerman explained  the "Christmas tree" method employed by                                                            
two  private corporations   in relaying  phone  calls  in a  pyramid                                                            
fashion. He learned that  this type of system is in operation on the                                                            
Kenai  Peninsula  and noted  that  the  subcommittee  had  contacted                                                            
representatives  for  feedback.  He  stated that  according  to  the                                                            
Department of  Military and Veterans Affairs, there  is no guarantee                                                            
that  contact would  be  made with  the  correct parties  during  an                                                            
emergency.  He said this is because  there is no method of  checking                                                            
that  the intended  parties  were contacted.  He  remarked that  the                                                            
subcommittee   was  still  considering  private  contracting   as  a                                                            
possibility because it is less expensive.                                                                                       
Department of Labor and Workforce Development                                                                                 
Senator Austerman, Chair                                                                                                        
Senator Torgerson                                                                                                               
Senator Elton                                                                                                                   
Senator Austerman  detailed the differences  between the  governor's                                                            
request  of $986,000  for  12  new positions  and  the subcommittee                                                             
recommendation  for  the FY  02 Department  of Labor  and  Workforce                                                            
Development operating budget.                                                                                                   
Senator Austerman  relayed the two items that differ  from the House                                                            
of Representative's version:                                                                                                    
   · A fund change of $90,000 from general funds match to STEP                                                                  
     funds in Employment Services                                                                                               
   · A $90,000 increment of general funds for Vocational                                                                        
Senator    Austerman   stated    the    subcommittee's    allocation                                                            
recommendation  is  the same  amount  as approved  by  the House  of                                                            
Representatives  and also meets the  allocation limit issued  by the                                                            
Senate Majority.                                                                                                                
Senator   Austerman   noted  that   the  general   fund   allocation                                                            
recommended  by the subcommittee for  FY 02 is less then  the amount                                                            
allocated  in FY 01. He  explained this is  primarily the result  of                                                            
provisions from HB 387  of the twenty-first legislative session that                                                            
shifted   funds   from   the   Occupational    Safety   and   Health                                                            
Administration (OSHA) funds and workers compensation funds.                                                                     
Department of Public Safety                                                                                                   
Senator Austerman, Chair                                                                                                        
Senator Green, Vice-Chair                                                                                                       
Senator Cowdery                                                                                                                 
Senator Taylor                                                                                                                  
Senator Lincoln                                                                                                                 
Senator Austerman detailed three changes                                                                                        
        · Under Alaska State Trooper Detachments $250,000 was                                                                   
          approved with I/A receipts from the governor's budget.                                                                
        · Under Fish and Wildlife Protection $250,000 was approved                                                              
           with I/A receipts from the governor's budget.                                                                        
        · An additional $140,000 was approved from the general fund                                                             
          to go toward funding another state trooper.                                                                           
Senator  Austerman  spoke  of a  question  raised by  Senator  Robin                                                            
Taylor  regarding interagency  receipts  and the  governor's use  of                                                            
aircraft  belonging  to the  Department  of Public  Safety.  Senator                                                            
Austerman informed  that flight logs indicate two-thirds  of the use                                                            
of the aircraft  stationed in Juneau  has been for transporting  the                                                            
governor  instead of conducting  Alaska State  Trooper business.  He                                                            
cited  a  figure  of  $800  per  hour  as  the  cost  of  using  and                                                            
maintaining  this aircraft.  He calculated  the total  cost for  the                                                            
governor's  use to be over  $600,000. He  referenced an interagency                                                             
(I/A) receipt  agreement between the Office of the  Governor and the                                                            
Department of Public Safety  whereby $155,000 was provided for these                                                            
expenses.  Therefore,  he stated,  the aforementioned  subcommittee                                                             
recommendations  provide the remaining funds to cover  the expenses.                                                            
Senator Austerman  addressed the $140,000  increment for  new Alaska                                                            
State Troopers and Wildlife  Protection Officers explaining that the                                                            
subcommittee  recommends   additional  positions   over  the  number                                                            
approved by the House of Representatives.                                                                                       
Senator  Austerman pointed  out the $790,000  general fund  increase                                                            
over   the  FY  01   appropriation   in  the   FY  02  subcommittee                                                             
recommendation  and  compared   this  to  the  $5 million   increase                                                            
requested by the governor.                                                                                                      
Senator Leman  noted the Senate Majority-provided  allocation  limit                                                            
was exceeded by exactly  $140,000, which he noted is the same amount                                                            
as the  additional state  trooper positions  item. He asked  if this                                                            
was deliberate.                                                                                                                 
Senator Austerman  stated that  it was not  and explained the  total                                                            
cost of the additional  trooper positions is approximately  $600,000                                                            
and  that the  I/A  receipts  transferred  from  the Office  of  the                                                            
Governor are used to offset all but $140,000 of that expense.                                                                   
Senator Leman  next asked whether  the I/A receipts from  the Office                                                            
of the Governor  budget could be increased by $140,000  to cover the                                                            
entire cost of the additional positions.                                                                                        
Senator Austerman answered that it could be done.                                                                               
Senator Leman  wanted to know if this would be reasonable  using the                                                            
calculations for the aircraft usage.                                                                                            
Senator  Austerman   responded  that   it  would  depend   upon  the                                                            
calculation  of the number  of hours  the aircraft  was used  by the                                                            
Office of the Governor versus the cost of operation.                                                                            
Senator  Wilken  asked  how  many  positions  are  included  in  the                                                            
personnel increase.                                                                                                             
Senator Austerman  replied the increase  would consist of  four Fish                                                            
and Wildlife  Protection  Officers "brown  shirts" and three  Alaska                                                            
State Troopers  "blue shirts"  using general  funds and five  Alaska                                                            
State Troopers using federal funds totaling 12 new positions.                                                                   
Senator  Olson asked  the  total amount  of  aircraft  owned by  the                                                            
department and how many of those are helicopters.                                                                               
Senator  Austerman  estimated  there  to  be 46  aircraft  and  five                                                            
Senator Olson  asked what  happens with attrition  due to  accidents                                                            
and  if  the  department  could  purchase  replacements   under  the                                                            
provisions of this budget.                                                                                                      
Senator Austerman  replied that this  budget does not contain  funds                                                            
for new acquisitions or replacements.                                                                                           
Co-Chair Donley  explained that the  department obtains aircraft  in                                                            
several   ways:  confiscation,   "gifts"  from   the  federal   Drug                                                            
Enforcement  Administration, purchases  through the capital  budget,                                                            
and contractual  purchases.  He offered to  work with Senator  Olson                                                            
over the  interim to  further detail  this matter  as he stated  the                                                            
Committee  could benefit  from Senator Olson's  expertise  regarding                                                            
aircraft.  Co-Chair  Donley  clarified  that  funds to  purchase  an                                                            
aircraft would be capital budget expenditure.                                                                                   
Senator Austerman was reminded  of conversations with the Department                                                            
of Fish and Game about  the contractual purchase of aircraft, and it                                                            
was determined the item would be a capital expenditure.                                                                         
Senator  Green referenced  funding  for additional  personnel  other                                                            
then public safety officers.                                                                                                    
Co-Chair Donley  expounded the subcommittee recommendation  includes                                                            
funding for  two additional positions  in the crime lab for  the DNA                                                            
database development.                                                                                                           
Senator Austerman  noted this item was inserted when  the budget was                                                            
being considered in the House of Representatives.                                                                               
Senator Green  commented the number of additional  personnel in this                                                            
department is "impressive".                                                                                                     
Department of Transportation and Public Facilities                                                                            
Senator Ward, Chair                                                                                                             
Senator Cowdery                                                                                                                 
Senator Taylor                                                                                                                  
Senator Hoffman                                                                                                                 
Senator Ward  stated the subcommittee  recommendation replaces  one-                                                            
time funding used for salary  increases. He noted the recommendation                                                            
"added capital  improvement projects  receipt authority request"  to                                                            
better account  for indirect costs of the federal  capital projects.                                                            
Senator Ward  informed that the recommendation  includes  increments                                                            
for  state  general  funds  to  match federal  capital  improvement                                                             
project  (CIP)  funds  for  the  purpose  of increasing   engineer's                                                            
salaries to improve retention and recruitment.                                                                                  
Senator Ward  continued that the recommendation  adds general  funds                                                            
for increased  rural  airport maintenance  in both  the Central  and                                                            
Northern Regions.                                                                                                               
Senator  Ward noted  the subcommittee  recommendation  replaces  the                                                            
public  building  funds  and  highway  working  capital  funds  with                                                            
general funds for highway station maintenance.                                                                                  
Senator  Ward  stated  the  recommendation   grants  the  additional                                                            
positions  requested for  the Ted Stevens  International Airport  in                                                            
Anchorage and the Fairbanks International Airport.                                                                              
Senator Ward listed  the inclusion of Alaska Marine  Highway receipt                                                            
authority in the subcommittee recommendation.                                                                                   
Senator Ward stated the  recommendation reduces the general funds in                                                            
the Administration and Support appropriation by three-percent.                                                                  
Senator Ward read  intent language recommended by  the subcommittee,                                                            
"It is  the intent  of the  legislature that  three-percent  general                                                            
funds reduction in Administration  and Support [undecipherable] more                                                            
efficient  administrative   function  and  be  spread   amongst  all                                                            
administrative [undecipherable] with this appropriation."                                                                       
Senator  Ward  informed  that  the  recommendation   also  transfers                                                            
funding of 14 positions  from the Southeast Region Facilities to the                                                            
Department  of Administration allocating  for the administration  of                                                            
the state  facilities  located  in the  region. He  noted this  fund                                                            
transfer was requested.                                                                                                         
Senator  Ward cited  the  total appropriation  as  $327,510,500.  He                                                            
noted the Senate  Majority target was $97,451,000  general funds and                                                            
the subcommittee recommended  an allocation of $97,430,900, which is                                                            
$20,000  below the limit.   He also  pointed out  that enough  state                                                            
matching funds  are included to secure all available  federal funds.                                                            
Department of Corrections                                                                                                     
Senator Ward, Chair                                                                                                             
Senator Cowdery                                                                                                                 
Senator Therriault                                                                                                              
Senator Lincoln                                                                                                                 
Senator Ward told that  the subcommittee created a new appropriation                                                            
category   for  the  Division   of  Institutions,   and   recommends                                                            
transferring  funding for  the director's  office  of this  division                                                            
into that component.                                                                                                            
Senator Ward  noted the subcommittee  recommendation also  moves the                                                            
out-of-state contracts  into the funding component  for the Division                                                            
of Institutions,  Director's office. He explained  this is primarily                                                            
the private prison facility  in Arizona, which currently houses some                                                            
Alaskan inmates for the state.                                                                                                  
Senator Ward  stated that the subcommittee  also recommends  funding                                                            
the Point  Mackenzie Farm  Program under a  new Budget Request  Unit                                                            
Senator Ward  noted the subcommittee  recommends creating  a new BRU                                                            
for the Parole Board and reduce funding for travel by the board.                                                                
Senator   Ward   shared  that   the   recommendation   reduces   the                                                            
Administration  and Operations  BRU  by 1.5 percent.  He stated  the                                                            
intent  is  the reduction  would  be  absorbed  within  the  various                                                            
institutions   through   identification    and   implementation   of                                                            
Senator  Ward  stated  the  recommendation  eliminates  funding  for                                                            
positions  including  a  strategic  planner,  a court  monitor,  the                                                            
Alaska  Judicial  Council  special  assistant  and  the legislative                                                             
Senator Ward pointed  out the subcommittee recommendation  increases                                                            
funding from  the amount  approved by the  House of Representatives                                                             
for the Sixth Avenue Jail.  He relayed that the department "made the                                                            
case"  that the  facility would  be unable  to begin  operations  as                                                            
scheduled  with  the amount  of funding  provided  by  the House  of                                                            
Representatives.  He stated that this appropriation  would allow the                                                            
department to  consolidate the majority of the prison  population in                                                            
Anchorage   as  opposed   to  transferring   inmates   to   outlying                                                            
facilities,  including the private  prison in Arizona. He  noted the                                                            
subcommittee  recommends fully funding  the facility for  six months                                                            
compared  to the four  months of  funding proposed  by the House  of                                                            
Senator  Ward announced  the subcommittee's  recommended  allocation                                                            
for the department  is a total of  $173,526,600. Of this  amount, he                                                            
listed  the  general  funds  comprise  $145,251,600  and  the  limit                                                            
imposed by the  Senate Majority is $146,001,000. He  stated that the                                                            
subcommittee allocation is $848,400 below the limit.                                                                            
Senator Hoffman asked the  cost to operate the Sixth Avenue Jail for                                                            
six months.                                                                                                                     
Senator   Ward  responded   the   recommendation   appropriates   an                                                            
additional  $200,000 to  the $400,000  recommended  by the House  of                                                            
Representatives. He stressed  that by opening the Anchorage facility                                                            
on  schedule, fewer  Alaskan  inmates  would need  to  be housed  in                                                            
Senator Hoffman  wanted to know the system-wide "vacancy  factor" as                                                            
submitted by the department.                                                                                                    
Senator  Ward stated  that the  department estimates  the  projected                                                            
growth at three-percent,  which he  remarked is not the growth  rate                                                            
"that  the  subcommittee  gave  them."   He said  the  subcommittee                                                             
anticipates a lower growth rate.                                                                                                
Senator Olson  asked the cost of the  contracts with private  prison                                                            
corporations and asked  if the state contracted any facilities other                                                            
then the one located in Florence, Arizona.                                                                                      
Senator Ward  replied that the Arizona  prison is the one  the state                                                            
has contracted  with.  He listed  the total  appropriation for  this                                                            
contract  is approximately  $20  million.  He pointed  out that  the                                                            
department  and the subcommittee  forecast  a lower amount  for this                                                            
facility  once inmates  are transferred  from Arizona  to the  Sixth                                                            
Avenue  Jail. He  noted that  not all  inmates housed  out of  state                                                            
would be returned.                                                                                                              
Senator Austerman  asked if the subcommittee had a  discussion about                                                            
whether the  opening of the Anchorage  facility would eliminate  the                                                            
need  to  house  any inmates  in  the  private  Arizona  prison.  He                                                            
understood  there to be a significant  turnover rate in the  inmates                                                            
at the Arizona  facility, partly due  to court activities.  He asked                                                            
if the Sixth Avenue Jail  facility would reduce the amount of travel                                                            
and transfer costs to and from Arizona.                                                                                         
Senator  Ward stated  that  testimony  presented by  the  department                                                            
assures him  that placing  all institution  funding in the  new BRU,                                                            
would allow the department  to limit inmate transfers to the Arizona                                                            
facility  to  convicts  with  over six  months  of  their  sentences                                                            
remaining.  He stressed  that it would  still be  necessary to  send                                                            
some  inmates to  the  private facility  after  the  opening of  the                                                            
Anchorage jail. He shared  that an application has been submitted to                                                            
the court requesting  the state be  released from the provisions  in                                                            
the Cleary vs. State of  Alaska ruling. He remarked that funding for                                                          
correctional  institutions has increased  since this court  decision                                                            
was issued.                                                                                                                     
Senator Hoffman  shared that there  have been complaints  there have                                                            
been no increases  for contract jails  for five years and  asked how                                                            
the subcommittee recommendation addressed this.                                                                                 
Senator  Ward responded,  "It  doesn't  really do  very  much."   He                                                            
elaborated  that the contract  jails across  the state are  "at very                                                            
best  a  status  quo".   He  stressed  the  subcommittee   had  many                                                            
discussions  on the issue  as well  as the need  to address  capital                                                            
improvements  to these contract jails.  He shared that according  to                                                            
maintenance reports,  these facilities are no longer  sufficient and                                                            
that the conditions  are resulting  in increased operational  costs.                                                            
He indicated  that he plans  on addressing,  in the capital  budget,                                                            
the  matter of  bringing  the facilities  up  to state  and  federal                                                            
requirements.   He  remarked  that further  consolidations  are  not                                                            
possible  until these  facilities are  brought up  to the  necessary                                                            
Senator Hoffman added that  the communities operating these contract                                                            
jails are  facing increased  operational costs  of ten-percent  over                                                            
the past five  years in addition to increased payroll  expenses.  He                                                            
stressed that these communities  complain that housing these inmates                                                            
is the responsibility  of the state but the communities  are instead                                                            
subsidizing the costs.                                                                                                          
Senator  Ward did not  disagree with Senator  Hoffman's statements,                                                             
but stressed  that the funds "were  allocated in such a manner  that                                                            
they have enough  funds to operate  the community jails right  now."                                                            
Senator  Ward admitted  that this  does not eliminate  the need  for                                                            
capital  funds  to  address  the condition  of  the  facilities.  He                                                            
suggested  that general obligation  bonds was  one mean in  which to                                                            
generate the necessary funds.                                                                                                   
Senator Austerman  asked for  clarification  of "status quo"  in the                                                            
funding of the operating  costs of the community jails. He wanted to                                                            
know if the House of Representatives increased the allocation.                                                                  
Senator Ward answered that  the governor's budget requested $400,000                                                            
and the House  of Representatives provided a $200,000  increment. He                                                            
noted that  subcommittee recommends  a $200,000 allocation  less the                                                            
1.5 percent reduction for  administration and operating expenses. He                                                            
stressed that  even the full amount does not address  the situations                                                            
in some  jails of  doors falling  off hinges  and other maintenance                                                             
Department of Administration                                                                                                  
Senator Ward, Chair                                                                                                             
Senator Taylor                                                                                                                  
Senator Elton                                                                                                                   
Senator Ward  stated the subcommittee  recommendation for  the FY 02                                                            
operating  budget  provides a  1.1 percent  increase  of  $1,644,000                                                            
general  funds, which  he  said totals  $150,996,600.  He noted  the                                                            
Senate Majority  imposed allocation  limit  is $151 million  and the                                                            
subcommittee recommendation is $3,400 below that amount.                                                                        
Senator Ward informed that  available federal receipts had increased                                                            
by 20.3 percent  in the amount of $1,589,000, bringing  the total of                                                            
federal receipts to $9,404,100.                                                                                                 
Senator Ward  remarked that other  funding sources increased  by 1.9                                                            
percent in the amount of  $2,193,000, totaling $118,840,400 in other                                                            
Senator  Ward listed  the  total funding  increase  from  the FY  01                                                            
allocation to be $279,241,100.                                                                                                  
Senator Ward noted that  all costs of the negotiated labor contracts                                                            
held  the   previous  year  are  included   in  the  subcommittee's                                                             
recommendation.  He explained  that one-time  labor costs have  been                                                            
replaced with general funds, totaling approximately $599,300.                                                                   
Senator Ward  gave the subcommittee's  recommendation to  accept all                                                            
agency transfers  as requested, which  is a $1,092,000 general  fund                                                            
increase  to the Department  of Administration.  He elaborated  that                                                            
this  completes the  reorganization  of public  facilities  programs                                                            
from the Department  of Transportation and Public  Facilities to the                                                            
Department  of Administration.   He pointed  out the  Department  of                                                            
Administration  received a net increase of 19 full-time,  five part-                                                            
time, and one temporary positions.                                                                                              
Senator Ward listed information  shown on the subcommittee report as                                                            
     Retirement and Benefits:                                                                                                   
     $713,900 Additions to the Division of Retirement and Benefits                                                              
                for various systems enhancements and increases due                                                              
                to retiree and benefit programs (other funds)                                                                   
     Group Health Insurance:                                                                                                    
     $ 53,800 Increase for retirement systems litigation (other                                                                 
     State Owned Facilities:                                                                                                    
     $148,800 State Owned Facilities Public Building Operations                                                                 
                Costs (other funds)                                                                                             
     Alaska Longevity Programs Management:                                                                                      
      $604,500 Upgrade Pioneer's Homes Nurses, Nurses Aide or                                                                   
                Nurses Assistant positions (Alaska Housing Finance                                                              
                Corporation (AHFC) dividends)                                                                                   
     Senior Services: $774,100 general funds; $1,589,300 federal                                                                
                     receipts; $959,600 other funds                                                                             
     $444,400 Assisted Living Rate Increase (general fund portion)                                                              
                (partial funding of $572,400)                                                                                 
     $118,400 Improve Medicaid Waiver processing (general fund                                                                  
SFC 01 # 58, Side B 10:03 AM                                                                                                    
     $100,000 Long Term Care Ombudsman Position (general funds)                                                                 
     $100,000 Assisted Living Licensing (general funds)                                                                         
       $564,300 Grants to Support Family Caregivers (federal                                                                    
     $100,000 Robert Wood Johnson Foundation Grant Award (other                                                                 
     $708,600   Increases for substance abuse treatment for seniors,                                                            
                innovative respite, family caregiver support, ADRD                                                              
           training for in-home providers, and adult day                                                                        
                quality improvements (other funds)                                                                              
     $120,000   Increase grants to  fund additional cost  for Senior                                                            
                Employment statewide                                                                                            
     Alaska Oil and Gas Conservation Commission:                                                                                
     $500,100 Increases for lease costs, database development,                                                                  
                implementation, data management, and administrative                                                             
                costs as well as funding for engineer and geologist                                                             
                salaries (other funds)                                                                                          
     Office of Public Advocacy:                                                                                                 
     $250,000   Increase for Child in Need of  Aid caseload (general                                                            
     $100,000 Trust Fund Accounting (other funds)                                                                               
     Department  of Motor Vehicles:  Structural changes made  to the                                                            
     leases  through individual  appropriations  for Anchorage  area                                                            
     DMV  leases. Transfers  from  within the  Leases Appropriation                                                             
     will  fund  the  new  appropriations  and  no  new  funding  is                                                            
     $118,500 Private Partner Audits (AHFC dividends)                                                                           
     $200,000 Replace one-time funding of Investment Loss Trust                                                                 
                Funds (ILTF)-non contract costs (AHFC dividends)                                                                
     $170,000 Polaroid Contract Increase (general funds)                                                                        
Senator  Leman inquired  about the  transfer of  personnel from  the                                                            
Department  of Transportation and  Public Facilities. He  remembered                                                            
14  positions  reported  in the  Department  of  Transportation  and                                                            
Public  Facilities,  but  noted  the  Department  of Administration                                                             
reports 25 positions.                                                                                                           
Senator Ward replied  that the same number of positions  transferred                                                            
from the Department  of Transportation  and Public Facilities  would                                                            
transfer  to the Department  of  Administration.  He added that  the                                                            
Department   of  Administration  would   be  attempting   to  reduce                                                            
maintenance cost  by consolidating efforts and these  savings should                                                            
be reflected in the next year's budget.                                                                                         
Senator  Leman  next  asked  if  the Department   of Administration                                                             
discussed  the  cost  of  upgrading  the  outside  of  State  Office                                                            
Building in Juneau  and whether this work could be  performed within                                                            
the existing budget.                                                                                                            
Senator  Ward   responded  that  the   subcommittee  requested   the                                                            
department do  this within the existing budget. However,  he was not                                                            
sure if it was possible.                                                                                                        
Senator Leman referenced  the subcommittee report on the Division of                                                            
Motor  Vehicles, particularly  regarding  leases  for facilities  in                                                            
Anchorage.  He  asked if  it  were correct  there  would  be no  net                                                            
increase for  these lease expenses.  He stated that these  satellite                                                            
offices have proven successful.                                                                                                 
Senator   Ward  affirmed   and   explained  how   the  subcommittee                                                             
specifically  identified each Division  of Motor Vehicles  satellite                                                            
locations  to  make  it clear  that  these  stations  could  not  be                                                            
Senator Leman  predicted the new facility  located on Spenard  Road,                                                            
would  incur increased  costs.  He asked  how the  department  would                                                            
address this expense.                                                                                                           
Senator Ward replied  that the subcommittee recommends  denying this                                                            
particular  budget request because  it decided that a facility  this                                                            
large was unnecessary.                                                                                                          
Co-Chair Donley added this  is consistent with the budget adopted by                                                            
the House of Representatives.                                                                                                   
Senator  Ward  expressed  that customers  are  appreciative  of  the                                                            
satellite offices due to shorter waiting times.                                                                                 
Senator Wilken asked if  the issue regarding the satellite structure                                                            
of the public radio and  television stations that was raised earlier                                                            
in the  session had  been resolved  by the subcommittee  and  if so,                                                            
Senator Ward  responded the subcommittee  recommends increasing  the                                                            
allocation approved by the House of Representatives.                                                                            
Senator  Wilken recalled  an  increased need  for  over one  million                                                            
Senator  Ward assured  the subcommittee  recommendation  is  funding                                                            
this request at "the appropriate amount" to meet its need.                                                                      
Senator Wilken  referred to  the Public Defenders  Agency and  asked                                                            
how the subcommittee's addressed the budget of this division.                                                                   
Senator Ward answered this  division was funded at the same level as                                                            
it was in FY 01 in the subcommittee recommendation.                                                                             
Co-Chair  Donley pointed  out the subcommittee's  recommendation  to                                                            
increase funding to the Office of Public Advocacy.                                                                              
Senator  Green asked  if  funds for  the  Long Term  Care  Ombudsman                                                            
budget  were transferred  from  the  Mental Health  Trust  Authority                                                            
(MHTA) in the subcommittee recommendation.                                                                                      
Senator Ward  responded the recommendation  is to increase  the Long                                                            
Term Care Ombudsman budget by $100,000.                                                                                         
Senator Green clarified  this office was being moved from Department                                                            
of Administration.                                                                                                              
Senator Ward affirmed.                                                                                                          
Senator  Hoffman  asked  for  a  comparison  of  the subcommittee's                                                             
recommendation for leases funding to the governor's request.                                                                    
Senator Ward answered  this item is recommended to  be funded at the                                                            
same level as requested in the governor's proposed budget.                                                                      
Department of Health and Social Services                                                                                      
Senator Green  clarified the action of the budget  subcommittee. She                                                            
cited a memorandum  from herself, as chair of this  subcommittee, to                                                            
Co-Chair Donley dated March 28, 2001 [copy on file] as follows.                                                                 
     In the Medical Assistance/Medicaid Services component all                                                                  
     state funds are to be shown as general funds (GF)/match.                                                                   
     In addition to GF/match 1003, the House Budget shows:                                                                      
          $10,354,500 GF             1004                                                                                       
              364,000 GF/Prgm        1005                                                                                       
           29,333,100 GF/MH          1037                                                                                       
            13,379,100 Tobacco Setl  1119                                                                                       
     The intent  of the subcommittee is for the funds  to be derived                                                            
     from  the sources shown  by the House  and to be identified  as                                                            
     matching  funds  for  the  federal   receipts  in  this  budget                                                            
AT EASE 10:14 AM / 10:22 AM                                                                                                     
Senator Ward moved to adopt the budget subcommittee reports and the                                                             
Department of Health and Social Services subcommittee clarification                                                             
There was no objection and the subcommittee reports and                                                                         
clarification were ADOPTED.                                                                                                     
Senator Ward moved to adopt the governor's proposed budget of                                                                   
$50,564,000 for pupil transportation.                                                                                           
The governor's recommended pupil transportation budget was ADOPTED                                                              
without objection.                                                                                                              

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