Legislature(2003 - 2004)

03/11/2003 09:07 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                                                                                                                                
     CS FOR HOUSE BILL NO. 100(FIN)                                                                                             
     "An Act making supplemental and other appropriations; amending                                                             
     appropriations; making appropriations to capitalize funds; and                                                             
     providing for an effective date."                                                                                          
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 101(FIN) am                                                                                          
     "An Act  making special appropriations  to promote the  opening                                                            
     of  the  Arctic  National  Wildlife  Refuge  for  oil  and  gas                                                            
     exploration  and development;  and providing  for an  effective                                                            
     date."                                                                                                                     
                                                                                                                                
                                                                                                                                
This  was  the first  hearing  for  HB  100 in  the  Senate  Finance                                                            
Committee, and the second hearing regarding HB 101.                                                                             
                                                                                                                                
Co-Chair Wilken  moved to adopt SCS CS HB 100(FIN),  23-GH1061\S, as                                                            
the working document.                                                                                                           
                                                                                                                                
Senator Hoffman objected for explanation.                                                                                       
                                                                                                                                
Co-Chair  Green  referred  the Committee  to  the  worksheet  titled                                                            
"Senate Finance  Committee Supplemental CS Worksheet  - Changes from                                                            
the HFC Committee Substitute  to the SFC Committee Substitute" [copy                                                            
on  file]. She  noted  that  the worksheet  depicts  the  Governor's                                                            
original   Supplemental  Budget   recommendations,   the  House   of                                                            
Representatives   committee  substitute  recommendations,   and  the                                                            
Senate committee substitute  recommendations. She specified that the                                                            
Senate worksheet budget  recommendations are included in the Version                                                            
"S" committee substitute.                                                                                                       
                                                                                                                                
     Section 1(a)                                                                                                               
     Department of Administration                                                                                               
     Office of Public Advocacy                                                                                                  
     Program  shortfunding was  estimated to  be $2,200,000  in May.                                                            
     Caseload   growth  has  added  an  additional  $1,100,000.   An                                                            
     additional  $2,473,500 is requested  to meet the total  need of                                                            
     $3,300,000.                                                                                                                
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
           $3,300,000 general funds                                                                                             
     House of Representative Committee Substitute:                                                                              
           $2,200,000 general funds                                                                                             
     Senate Committee Substitute:                                                                                               
           $3,300,000 general funds                                                                                             
                                                                                                                                
Co-chair Green  expressed that the  Senate committee substitute  has                                                            
adopted  the  Governor's  budget   for this   item.  Co-chair  Green                                                            
expressed  that, by  providing this  funding, the  Senate would  not                                                            
entertain  additional  supplemental requests  for  this program,  as                                                            
opposed to  the House position  of providing  a lesser supplemental                                                             
amount  with the  provision that  additional  supplemental  requests                                                            
would be entertained.                                                                                                           
                                                                                                                                
     Section 1(d)&(e)                                                                                                           
     Department of Administration                                                                                               
     Public Defender                                                                                                            
     Program shortfunding was estimated to be $1,000,000 in May.                                                                
     Caseload has added an additional $157,000. Funding is also                                                                 
      included to continue the mental health court attorney.                                                                    
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
          Total Funds: $1,230,000                                                                                               
                 $1,157,000 general funds                                                                                       
                 $   73,000 MHTAAR                                                                                              
     House of Representative Committee Substitute:                                                                              
           $1,000,000 general funds                                                                                             
           $   73,000 other funds                                                                                               
     Senate Committee Substitute:                                                                                               
          $1,000,000 general funds                                                                                              
          $   73,000 other funds                                                                                                
                                                                                                                                
Co-chair Green explained that through discussions with the Public                                                               
Defender's Agency, it has been determined that the House and Senate                                                             
funding levels would be adequate.                                                                                               
                                                                                                                                
     Department of Administration                                                                                               
     Senior Services                                                                                                            
     Caseload for general relief program is lower than anticipated.                                                             
     (Funds to help offset Finances' supplemental.)                                                                             
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
           ($300,000) general funds                                                                                             
     House of Representative Committee Substitute:                                                                              
          $0 funds                                                                                                              
     Senate Committee Substitute:                                                                                               
          $0 funds                                                                                                              
                                                                                                                                
Co-chair Green informed that the Senior Services program would                                                                  
lapse at the end of the current fiscal year.                                                                                    
                                                                                                                                
     Section 2(c)                                                                                                               
     Department of Community and Economic Development                                                                           
     Alaska Science and Technology Foundation                                                                                   
     Supplemental to appropriate grant repayments to the endowment                                                              
     principal.                                                                                                                 
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
           $0 funds                                                                                                             
     House of Representative Committee Substitute:                                                                              
           $130,000 other funds                                                                                                 
     Senate Committee Substitute:                                                                                               
           $130,000 other funds                                                                                                 
                                                                                                                                
     Section 2(d) & (e)                                                                                                         
     Department of Community and Economic Development                                                                           
     Alaska Science and Technology Foundation                                                                                   
     Income  is insufficient  to  fund  appropriation  due to  stock                                                            
     market  declines. Fund source  switch from income to  endowment                                                            
     and  a reduction of  $6,418,600 in  the appropriation,  leaving                                                            
     authorization of $4,100,000.                                                                                               
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
           ($6,418,600) Sci/Tech Endowment funds                                                                                
     House of Representative Committee Substitute:                                                                              
           $0 funds                                                                                                             
     Senate Committee Substitute:                                                                                               
           ($6,418,600) other funds                                                                                             
                                                                                                                                
Co-chair Green informed that a forthcoming amendment to the                                                                     
committee substitute  would retain  the original language  regarding                                                            
this section; however,  she noted, the intent language regarding the                                                            
funding would change.                                                                                                           
                                                                                                                                
Senator  Hoffman questioned  the rationale  for  funding the  Alaska                                                            
Science and Technology  Foundation while lapsing the  senior citizen                                                            
program.                                                                                                                        
                                                                                                                                
AT EASE 9:13 AM / 9:16 AM                                                                                                       
                                                                                                                                
DAVID  TEAL,   Legislative  Fiscal   Analyst,  Legislative   Finance                                                            
Division,  Legislative  Affairs  Agency, explained  that  the FY  02                                                            
Operating  budget  specified  approximately  $10  million  from  the                                                            
earnings  endowment for  the Alaska  Science  and Technology  Center                                                            
(ASTC)   operations   and   grant  funds   for   various   entities.                                                            
Unfortunately,  he continued,  as a  result of the  downturn  in the                                                            
Stock Market,  the foundation "actually  lost money during  the year                                                            
and none of the  $10 million materialized." He explained  that these                                                            
items would replace  the $10 million with $4,100,000  "straight from                                                            
the  endowment   itself"  to  fund   approximately  $1  million   in                                                            
operational expenses and $3 million worth of grants.                                                                            
                                                                                                                                
Senator Hoffman  asked the  reason for funding  the Center  when the                                                            
Governor intends to terminate it.                                                                                               
                                                                                                                                
Mr.  Teal  replied  that  this  funding   provides  for  the  FY  03                                                            
operational costs of the  program as well as the various grants that                                                            
have been awarded.  He expressed that a forthcoming  amendment would                                                            
clarify that the ASTF is "winding down."                                                                                        
                                                                                                                                
     Department of Community and Economic Development                                                                           
     International Trade                                                                                                        
     Authority to receive  and expend registration receipts from the                                                            
     Korea USA economic  conference. The 2002 conference was held in                                                            
     Korea;   2003  will   be   in  Anchorage.   Subsequent   years'                                                            
     conferences will be held in other western states.                                                                          
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
           $115,000 Statutory Designated Program Receipts                                                                       
     House of Representative Committee Substitute:                                                                              
           $ 0 funds                                                                                                            
     Senate Committee Substitute:                                                                                               
           $ 0 funds                                                                                                            
                                                                                                                                
Co-Chair  Green   informed  that  this  item  was   deleted  at  the                                                            
Department of Community and Economic Development's request.                                                                     
                                                                                                                                
     Section 3(c)                                                                                                               
     Department of Corrections                                                                                                  
     Inmate Health Care                                                                                                         
     Prior  year bill  for dialysis  services  for an  inmate in  FY                                                            
     2002.  The  vendor  inadvertently  billed  a  wrong  party  and                                                            
     recently  discovered the error.  An appropriation is  needed in                                                            
      order for the department to pay the bill of $187,680.05                                                                   
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
           $187,700 general funds                                                                                               
     House of Representative Committee Substitute:                                                                              
           $100,000 general funds                                                                                               
     Senate Committee Substitute:                                                                                               
           $100,000 general funds                                                                                               
                                                                                                                                
Co-chair Green noted that the Senate accepts the House of                                                                       
Representatives reduced funding level for this item.                                                                            
                                                                                                                                
     Section 5                                                                                                                  
     Division of Motor Vehicles                                                                                                 
     Disaster Relief Fund                                                                                                       
     Capitalize   the  fund  for   declared  disasters:   earthquake                                                            
     $5,086.4  GF and $14,848.1 Fed; interior flood  $1,268.0 GF and                                                            
     $4,541.2  Fed;  NW Arctic  Borough fall  sea  storm $851.0  GF;                                                            
     Kenai  Peninsula  flooding   $3,571.0  GF  and  $11,704.5  Fed.                                                            
     Funding for $830.0  GF and language for core emergency services                                                            
     was deleted with the  understanding it would be included in the                                                            
     FY04 operating budget.                                                                                                     
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
          Total Funds: 42,700,300                                                                                               
                $11,606,400 general funds                                                                                       
                $31,093,900 Federal funds                                                                                       
     House of Representative Committee Substitute:                                                                              
           $10,776,400 general funds                                                                                            
           $31,093,900 federal funds                                                                                            
     Senate Committee Substitute:                                                                                               
           $10,776,400 general funds                                                                                            
           $31,093,900 federal funds                                                                                            
                                                                                                                                
Co-chair  Green   noted  that  the  Senate  accepts   the  House  of                                                            
Representatives reduced  funding level for this item. She noted that                                                            
the  $851,000  general  fund  specified  in  the  Supplemental  need                                                            
language is identified  as FY 04 services and should not be included                                                            
in this request.                                                                                                                
                                                                                                                                
     Department of Education and Early Development                                                                              
     Foundation                                                                                                                 
     General   fund  reduction  due   to  preliminary  actuals   for                                                            
     foundation program that reconciles initial October student                                                                 
     count to the electronic data.                                                                                              
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
          ($6,728,800) general funds                                                                                            
     House of Representative Committee Substitute:                                                                              
           $0 general funds                                                                                                     
     Senate Committee Substitute:                                                                                               
           $0 general funds                                                                                                     
                                                                                                                                
Co-chair Green stated that this item would allow the funds to lapse                                                             
at the end of the fiscal year.                                                                                                  
                                                                                                                                
     Section 8(c)                                                                                                               
     Department of Health and Social Services                                                                                   
     Subsidized Adoptions & Guard                                                                                               
     Formula program shortfunding $2,000,000 and caseload growth                                                                
     $833,300. Current funds projected to be fully expended in                                                                  
     April.                                                                                                                     
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
          $2,833,300 general funds                                                                                              
     House of Representative Committee Substitute:                                                                              
          $2,000,000 general funds                                                                                              
     Senate Committee Substitute:                                                                                               
          $2,000,000 general funds                                                                                              
                                                                                                                                
Co-chair  Green  informed  that  the  Senate  committee   substitute                                                            
accepts  the  House  of Representative's   funding  allocation.  She                                                            
continued  that the  Department  has been  directed  to monitor  the                                                            
foster care program for further savings.                                                                                        
                                                                                                                                
     Section 8(h)                                                                                                               
     Department of Health and Social Services                                                                                   
     Vital Statistics                                                                                                           
     Operating  costs driven  by increased  number  of licenses  and                                                            
     certificates,  including non-permanent  positions to  deal with                                                            
     backlogs.  Also  covers  rent as  were able  to  move into  new                                                            
     facility earlier than anticipated.                                                                                         
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
          $ 195,000 Statutory Designated Program                                                                                
     House of Representative Committee Substitute:                                                                              
          $ 100,000 other funds                                                                                                 
     Senate Committee Substitute:                                                                                               
          $ 100,000 other funds                                                                                                 
                                                                                                                                
Co-chair Green stated that the Senate committee substitute accepts                                                              
the House of  Representatives reduced  funding level. She  explained                                                            
that while the increased  operating costs were approved, the $95,000                                                            
moving expense  was not. She stated that the Department  must absorb                                                            
that expense.                                                                                                                   
                                                                                                                                
     Section 8(i)                                                                                                               
     Department of Health and Social Services                                                                                   
     Medicaid Services                                                                                                          
     Claims growth and match rate adjustment                                                                                    
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
          Total Funds: 10,991,300                                                                                               
                $28,055,800 general funds                                                                                       
                ($16,064,500) federal funds                                                                                     
                ($1,000,000) Statutory Designated Program                                                                       
     House of Representative Committee Substitute:                                                                              
           $23,200,000 general funds                                                                                            
           ($16,064,500) federal funds                                                                                          
           ($ 1,000,000) other funds                                                                                            
     Senate Committee Substitute:                                                                                               
            $23,200,000 general funds                                                                                           
           ($16,064,500) federal funds                                                                                          
           ($ 1,000,000) other funds                                                                                            
                                                                                                                                
Co-chair Green expressed that the Senate accepted the House of                                                                  
Representatives' reduced funding level with the anticipation that                                                               
internal Department cost controls would make up the difference.                                                                 
                                                                                                                                
     Department of Health and Social Services                                                                                   
     Kenai Peninsula Youth Facility                                                                                             
     Funds to hire superintendent and unit leader and provide other                                                             
     operating funds needed to open the facility that will be                                                                   
     completed April 15, 2003                                                                                                   
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
          $ 155,200 general fund                                                                                                
     House of Representative Committee Substitute:                                                                              
          $ 0 funds                                                                                                             
     Senate Committee Substitute:                                                                                               
          $ 0 funds                                                                                                             
     Department of Health and Social Services                                                                                   
     McLaughlin Youth Facility                                                                                                  
     Population   increase  of  18.9%  has  resulted   in  increased                                                            
     overtime  of $16,7  and laundry,  food, and  clothing costs  of                                                            
     $9.1.  FY2002 average  population  was 179.6  while FY2003  has                                                            
     averaged 198.3                                                                                                             
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
          $ 25,800 general funds                                                                                                
     House of Representative Committee Substitute:                                                                              
          $  0 funds                                                                                                            
     Senate Committee Substitute:                                                                                               
          $  0 funds                                                                                                            
                                                                                                                                
     Department of Health and Social Services                                                                                   
     Fairbanks Youth Facility                                                                                                   
     Extraordinary medical costs including MRI, extensive brain                                                                 
     testing, weekly allergy shots, and surgery                                                                                 
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
          $ 20,000 general funds                                                                                                
     House of Representative Committee Substitute:                                                                              
          $  0 funds                                                                                                            
     Senate Committee Substitute:                                                                                               
          $  0 funds                                                                                                            
                                                                                                                                
     Department of Health and Social Services                                                                                   
     Johnson Youth Facility                                                                                                     
     Medical costs for physical therapy for 1 youth                                                                             
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
          $ 11,500 general funds                                                                                                
     House of Representative Committee Substitute:                                                                              
          $  0 funds                                                                                                            
     Senate Committee Substitute:                                                                                               
          $  0 funds                                                                                                            
                                                                                                                                
     Department of Health and Social Services                                                                                   
     Bethel Youth Facility                                                                                                      
     Population increased 34.7% over Fy2002 and extraordinary                                                                   
     medical costs estimated at $35.0                                                                                           
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
          $ 66,100 general fund                                                                                                 
     House of Representative Committee Substitute:                                                                              
          $  0 funds                                                                                                            
     Senate Committee Substitute:                                                                                               
          $  0 funds                                                                                                            
                                                                                                                                
Co-chair Green stated that both the House of Representatives and                                                                
the Senate denied the youth facility funding.                                                                                   
                                                                                                                                
     Department of Law                                                                                                          
     Fourth Judicial District                                                                                                   
     Fairbanks DA office had unexpected move and lease costs due to                                                             
     the Department of Transportation and Public Facility's closure                                                             
     of Fairbanks court building.                                                                                               
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
          $ 95,000 general fund                                                                                                 
     House of Representative Committee Substitute:                                                                              
          $ 0 funds                                                                                                             
     Senate Committee Substitute:                                                                                               
          $ 0 funds                                                                                                             
                                                                                                                                
Co-chair Green stated that the Senate joined with the House of                                                                  
Representatives in denying funding for this item.                                                                               
                                                                                                                                
     Section 14(a)                                                                                                              
     Department of Public Safety                                                                                                
     Fish and Wildlife Protection                                                                                               
     Increased costs for vehicle, heating oil, electricity,                                                                     
     airplane and helicopter fuel                                                                                               
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
           $229,300 general funds                                                                                               
     House of Representative Committee Substitute:                                                                              
           $189,100 general funds                                                                                               
     Senate Committee Substitute:                                                                                               
           $ 189,100 general funds                                                                                              
                                                                                                                                
Co-chair Green  voiced that the Senate committee substitute  concurs                                                            
with the House  of Representative budget reduction.  She stated that                                                            
the  Department  has  specified  that  this   amount  is  sufficient                                                            
provided that one vessel be dry-docked.                                                                                         
                                                                                                                                
     Section 14(b)                                                                                                              
     Department of Public Safety                                                                                                
     Criminal Records                                                                                                           
     Decrement to offset DCED Div. Of Insurance Increment                                                                       
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
           Receipt Supported Services                                                                                           
     House of Representative Committee Substitute:                                                                              
           ($100,000) other funds                                                                                               
     Senate Committee Substitute:                                                                                               
           ($100,000) other funds                                                                                               
                                                                                                                                
Co-chair Green explained that this is an authorization to collect                                                               
and transfer fees to the Division of Insurance. She stated that the                                                             
Senate accepts the House of Representatives budget amount.                                                                      
                                                                                                                                
     Department of Public Safety                                                                                                
     Fish and Game Fund                                                                                                         
     Revise  language appropriating  criminal fines, penalties,  and                                                            
     forfeitures into the  Fish and Game Fund based upon an analysis                                                            
     conducted  by the  Department of  Public Safety  and the  Court                                                            
     System.                                                                                                                    
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
           $0 funds                                                                                                             
     House of Representative Committee Substitute:                                                                              
           $0 funds                                                                                                             
     Senate Committee Substitute:                                                                                               
           $0 funds                                                                                                             
                                                                                                                                
Co-chair Green reminded  the Committee of the Department's testimony                                                            
regarding  the  amount of  fines  and penalties  levied  verses  the                                                            
amount  collected  by  the Court  System.  She  specified  that  the                                                            
Department  should work  with the  Department of  Law and the  Court                                                            
System to determine the actual fine amounts collected.                                                                          
                                                                                                                                
     Section 16(o)                                                                                                              
     Department of Transportation and Public Facilities                                                                         
     Central Region Highways and Aviation                                                                                       
     Carry  forward excess  Whittier  Tunnel toll  revenue above  FY                                                            
     2002 appropriation  to comply  with federal code requiring  all                                                            
     toll revenue to be spent on the toll facility.                                                                             
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
           $819,100 Receipt Supported Services                                                                                  
     House of Representative Committee Substitute:                                                                              
           $819,100 general funds                                                                                               
     Senate Committee Substitute:                                                                                               
           $819,100 general funds                                                                                               
                                                                                                                                
Co-chair Green announced that the Senate restored the excess toll                                                               
money collected by the Whittier Tunnel operation and specified its                                                              
usage for tunnel maintenance.                                                                                                   
                                                                                                                                
     Section 16(q)                                                                                                              
     Department of Transportation and Public Facilities                                                                         
     Regional Admin Services                                                                                                    
     Increased  cost per negotiated  contract with the Confidential                                                             
     Employees  Association, retroactive to September  2001 and full                                                            
     FY 2003 costs.                                                                                                             
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
          Total funds: $72,600                                                                                                  
                $25,700 general funds                                                                                           
                $46,900 other funds                                                                                             
     House of Representative Committee Substitute:                                                                              
           $46,900 other funds                                                                                                  
     Senate Committee Substitute:                                                                                               
           $46,900 other funds                                                                                                  
                                                                                                                                
Co-chair Green noted that the Senate accepts the House of                                                                       
Representatives' reduction of $25,700.                                                                                          
                                                                                                                                
     Section 17(b)                                                                                                              
     State Debt                                                                                                                 
     Debt                                                                                                                       
     Reduce debt retirement fund appropriation for school debt                                                                  
     reimbursement by amount of FY2002 cigarette tax carry forward                                                              
     and increased tax collections.                                                                                             
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
           ($2,593,900) Debt RF                                                                                                 
     House of Representative Committee Substitute:                                                                              
           ($2,593,900) other funds                                                                                             
     Senate Committee Substitute:                                                                                               
           ($2,593,900) other funds                                                                                             
                                                                                                                                
     Section 17(b)                                                                                                              
     State Debt                                                                                                                 
     Debt                                                                                                                       
     Increase School Fund appropriation for school debt                                                                         
     reimbursement by amount of FY2002 cigarette tax carry forward                                                              
     and increased collections.                                                                                                 
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
           $2,593,900 School Fund                                                                                               
     House of Representative Committee Substitute:                                                                              
           $2,593,900 other funds                                                                                               
     Senate Committee Substitute:                                                                                               
           $2,593,900 other funds                                                                                               
                                                                                                                                
Co-chair Green explained that these items reflect "a duplication                                                                
and correcting entry."                                                                                                          
                                                                                                                                
     Section 18                                                                                                                 
     Miscellaneous Claims                                                                                                       
     Fish and Game                                                                                                              
     Admin Support                                                                                                              
     Miscellaneous Claims and Stale-dated Warrants $3,000.00.                                                                   
     Feb 25 Amd. Increase by $254.31 to $3,254.31                                                                               
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
           $3,300 general funds                                                                                                 
     House of Representative Committee Substitute:                                                                              
           3,300 general funds                                                                                                  
     Senate Committee Substitute:                                                                                               
           $3,300 general funds                                                                                                 
                                                                                                                                
Co-chair Green explained that this item addresses an additional                                                                 
claim that was presented.                                                                                                       
                                                                                                                                
     Section 20(b)                                                                                                              
     Department of Community and Economic Development                                                                           
     Named Recipient AS37.05.316                                                                                                
     Grant to Arctic Power for educational efforts to open ANWR                                                                 
                                                                                                                                
     Senate Committee Substitute:                                                                                               
           $1,100,000 general funds                                                                                             
                                                                                                                                
     Section 20(c)                                                                                                              
     Department of Community and Economic Development                                                                           
     Grant to Municipality AS37.05.315                                                                                          
     Grant to City of Kaktovik for educational efforts to open ANWR                                                             
                                                                                                                                
     Senate Committee Substitute:                                                                                               
      $50,000 general funds                                                                                                     
                                                                                                                                
     Section 20(d)                                                                                                              
     Department of Community and Economic Development                                                                           
     Named Recipient AS37.05.316                                                                                                
     Grant to Native Village of Kaktovik for educational efforts to                                                             
     open ANWR                                                                                                                  
                                                                                                                                
     Senate Committee Substitute:                                                                                               
           $50,000 general funds                                                                                                
                                                                                                                                
     Section 20(e)                                                                                                              
     Office of the Governor                                                                                                     
     Support for efforts to open ANWR                                                                                           
                                                                                                                                
     Senate Committee Substitute:                                                                                               
           $100,000 general funds                                                                                               
                                                                                                                                
Co-chair Green expressed that these four items have been                                                                        
incorporated into the Senate committee substitute with the intent                                                               
to fund Arctic Power in the supplemental budget.                                                                                
                                                                                                                                
Co-chair Green mentioned  that there is a technical error in Section                                                            
21  whereas the  date  should be  correctly  identified  as FY  2003                                                            
rather than FY  2002. She noted that this would be  corrected in the                                                            
forthcoming version of the bill.                                                                                                
                                                                                                                                
Senator   Hoffman  questioned   the  reason   the  increased   youth                                                            
population  at the  Nome Youth  Facility,  as specified  in  Section                                                            
8(g),  warranted funding,  while the  Bethel  Youth Facility,  which                                                            
similarly experienced  the same but  "substantially higher"  average                                                            
daily  population problem,  was denied  funding.  He opined that  if                                                            
Nome receives funding then  Bethel should be funded accordingly. The                                                            
identified sections read as follow.                                                                                             
                                                                                                                                
     Section 8(g)                                                                                                               
     Department of Health and Social Services                                                                                   
     Nome Youth Facility                                                                                                        
     Staff  for population  increase. Average  daily population  has                                                            
     increased  36% over FY  2002. Facility  capacity is 6.  Average                                                            
     population in FY 2002  was 6.9 while FY 2003 average population                                                            
     has been 9.3                                                                                                               
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
           $100,800 general funds                                                                                               
     House of Representative Committee Substitute:                                                                              
           $100,800 general funds                                                                                               
     Senate Committee Substitute:                                                                                               
           $ 100,800 general funds                                                                                              
                                                                                                                                
     Department of Health and Social Services                                                                                   
     Bethel Youth Facility                                                                                                      
     Population increased 34.7% over FY 2002 and extraordinary                                                                  
     medical costs estimated at $35.0                                                                                           
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
          $ 66,100 general fund                                                                                                 
     House of Representative Committee Substitute:                                                                              
          $ 0 funds                                                                                                             
     Senate Committee Substitute:                                                                                               
          $ 0 funds                                                                                                             
                                                                                                                                
Co-chair  Green declared  "that corrective  work"  on the  committee                                                            
substitute would begin once the committee substitute is adopted.                                                                
                                                                                                                                
Senator Hoffman withdrew  his objection to the committee substitute.                                                            
                                                                                                                                
There being  no further  objections, Committee  Substitute,  Version                                                            
"S" was ADOPTED as a working draft.                                                                                             
                                                                                                                                
Co-Chair  Green   restated  Senator   Hoffman's  concern,   and  she                                                            
explained that  the Bethel funding request was generated  by medical                                                            
treatment for a single youth.                                                                                                   
                                                                                                                                
Senator Hoffman agreed  that medical treatment generated the $35,000                                                            
portion of the request;  however, he noted, the request additionally                                                            
includes $31,102 to provide  for expenses generated by the increased                                                            
facility  population.  He  stated that  "this  is exactly  the  same                                                            
justification" for funding  the Nome facility, which did not have as                                                            
great a percent  increase in occupants  as Bethel did. He  continued                                                            
that  the  Department  indicates  that  it  could  not  absorb  this                                                            
expense.                                                                                                                        
                                                                                                                                
Co-Chair Green announced  that Committee members' questions would be                                                            
entertained before any amendments would be presented.                                                                           
                                                                                                                                
Senator  Taylor inquired  regarding the Herbert  River pass  through                                                            
grant specified in Section 13(c) that reads as follows:                                                                         
                                                                                                                                
     Section 13(c)                                                                                                              
     Department of Natural Resources                                                                                            
     Capital                                                                                                                    
     National Coastal Wetlands Conservation grant pass thru to                                                                  
     Juneau for purchase of wetlands near Herbert River                                                                         
                                                                                                                                
     Governor's Supplemental Budget:                                                                                            
           $553,000 federal funds                                                                                               
     House of Representative Committee Substitute:                                                                              
           $553,000 federal funds                                                                                               
     Senate Committee Substitute:                                                                                               
           $553,000 federal funds                                                                                               
                                                                                                                                
Senator Bunde understood  that the City & Borough of Juneau (CBJ) is                                                            
providing a local match amount.                                                                                                 
                                                                                                                                
NICO BUS, Acting Director,  Division of Support Services, Department                                                            
of Natural Resources, informed  that this request involves a federal                                                            
pass through  grant to the  CBJ for the  sole purpose of  purchasing                                                            
this parcel  of land. He noted that  the Members' packets  contain a                                                            
letter  [copy on  file] addressed  to  Co-chair Green  and  Co-chair                                                            
Wilken, dated March 4,  2003 from the CBJ Mayor regarding this item,                                                            
and he  continued that  the CBJ  recently approved  the local  match                                                            
funds.                                                                                                                          
                                                                                                                                
Senator Taylor  asked for  further information  about the parcel  of                                                            
land being purchased.                                                                                                           
                                                                                                                                
Mr. Bus explained that  the CBJ was interested in acquiring the land                                                            
which adjoins  Amalga  Harbor and the  Boy Scout  Camp and that  the                                                            
local owner  was interested  in selling it.  He shared that  the CBJ                                                            
applied for and was awarded  a federal grant; however, he continued,                                                            
because this federal grant  money cannot be provided directly to the                                                            
City, the  arrangement  was made to  process the  grant through  the                                                            
Department of Natural Resources.                                                                                                
                                                                                                                                
Senator Taylor expressed  that this transfer would change the status                                                            
of  privately   owned,  municipal-taxable   land  to  public   land.                                                            
Additionally, he asked the size of the parcel of land.                                                                          
                                                                                                                                
Mr.  Bus replied  that  he is  unsure  of the  size of  the  parcel;                                                            
however,  he explained  that  when  the CBJ  originally  decided  to                                                            
expand  the Herbert  River Park System,  this small  parcel of  land                                                            
that is currently  owned by a local  contractor, was overlooked.  He                                                            
shared that local citizens  spoke against the private development of                                                            
this property,  as it is located within the park unit.  He continued                                                            
that the purchase  of the parcel would  allow the current  city park                                                            
to be expanded.                                                                                                                 
                                                                                                                                
Senator  Taylor asked for  confirmation that  the private  landowner                                                            
was prohibited from developing the land as he intended.                                                                         
                                                                                                                                
Mr. Bus responded  that, "the local government and  citizens decided                                                            
that development of the  land "was not the best use of the land." He                                                            
continued  that the  owner agreed  to sell  the land  to recoup  his                                                            
investment.                                                                                                                     
                                                                                                                                
Senator Taylor  proclaimed that were  the landowner prohibited  from                                                            
developing the  land "then the only option would be  to sell it." He                                                            
declared that inclusion  of this item indicates that the Legislature                                                            
is  supportive  of the  CBJ's  curtailment  of  private development                                                             
"wherever  it feels like  stopping development."  He voiced  that he                                                            
does not support this item.                                                                                                     
                                                                                                                                
Co-Chair Wilken  asked that the location  and size of the  parcel of                                                            
land be provided to the Committee.                                                                                              
                                                                                                                                
Co-Chair Green referenced the letter from the CBJ Mayor.                                                                        
                                                                                                                                
Senator Bunde  communicated that the parcel of land  is located near                                                            
Eagle Beach and comprises less than 100 acres.                                                                                  
                                                                                                                                
Senator  Taylor asked  that  the Department  of  Transportation  and                                                            
Public Facilities  provide further information regarding  the Juneau                                                            
West  Douglas Highway  Extension  specified  in Section  16(c)  that                                                            
reads as follows.                                                                                                               
                                                                                                                                
     Section 16(c)                                                                                                              
     Department of Transportation and Public Facilities                                                                         
     Capital                                                                                                                    
     Title change: Juneau West Douglas Highway Extension to Juneau:                                                             
     Gastineau Channel Second Crossing                                                                                          
                                                                                                                                
JOHN MACKINNON,  Deputy Director  of Highways  & Public Facilities,                                                             
Department  of Transportation and  Public Facilities responded  that                                                            
this request  transfers a $1,660,000  appropriation from  the Juneau                                                            
West  Douglas Highway  Extension  to  the Gastineau  Channel  Second                                                            
Crossing. He  stated that this money  was originally appropriated  a                                                            
few  years prior  to  allow  the Department  of  Transportation  and                                                            
Public  Facilities,  the CBJ,  and Goldbelt  Native  Corporation  to                                                            
cooperatively  develop  a  road in  order  to develop  West  Douglas                                                            
Island  land. He  stated that  a master  plan that  included a  road                                                            
right-of-way corridor and  other preliminary planning was developed.                                                            
However,  he  continued,  subsequent   to this  endeavor,   Goldbelt                                                            
determined that continuation  of the project was not the best use of                                                            
their resources  at  the time. Thus,  he specified,  the request  to                                                            
transfer  the  remaining  funds  to  the  Gastineau  Channel  Second                                                            
Crossing   Environmental   Impact   Statement  (EIS)   project   was                                                            
developed.                                                                                                                      
                                                                                                                                
Co-Chair  Green  concluded,   therefore,  that  this  request  is  a                                                            
language change.                                                                                                                
                                                                                                                                
Senator Taylor  asked why the Second Crossing was  chosen to receive                                                            
these  funds rather  than  the project  to  extend the  Juneau  road                                                            
system 3.5 miles to Cascade Point.                                                                                              
                                                                                                                                
Mr. MacKinnon  asked for clarification as to whether  Senator Taylor                                                            
was referring  to  the road  project or  to a project  EIS that  was                                                            
previously funded.                                                                                                              
                                                                                                                                
Senator Taylor  voiced uncertainty to the specifics  of the project;                                                            
however, he  continued, the project's  discussion included  the road                                                            
extension, ferries, and ferry terminals.                                                                                        
                                                                                                                                
Mr. MacKinnon  understood that the Cascade Point Road  extension EIS                                                            
has been  completed and "the  right-of-way  is laid out." He  stated                                                            
that were $5.8 million  funding provided, the project could proceed.                                                            
                                                                                                                                
Senator Taylor expressed  therefore, that rather than dedicating the                                                            
$1.6 million to  the Gastineau Channel Second Crossing,  that amount                                                            
could be transferred  to the Cascade Point Road extension.  He asked                                                            
whether  the Department  could identify  additional federal  funding                                                            
authority to support this effort.                                                                                               
                                                                                                                                
Mr. MacKinnon responded that he is unsure.                                                                                      
                                                                                                                                
Senator Taylor  expressed frustration  with the delay regarding  the                                                            
extension  of the Cascade  Point Road.  He asked  the Department  to                                                            
investigate  options toward developing  a ferry terminal  at Cascade                                                            
Point.                                                                                                                          
                                                                                                                                
Mr. MacKinnon  stated that updated information regarding  the status                                                            
of Cascade Point would be provided.                                                                                             
                                                                                                                                
Senator  Hoffman asked  "the logic"  of the  aforementioned  $40,000                                                            
reduction for Department of Public Safety in Section 14(a).                                                                     
                                                                                                                                
Co-Chair Green  restated the Department's position  that the reduced                                                            
budget  amount  would  be  sufficient  provided  that  a  Department                                                            
fishery enforcement boat were dry-docked.                                                                                       
                                                                                                                                
KAREN  MORGAN,  Director,   Division  of  Administrative   Services,                                                            
Department  of Public  Safety  agreed  that were  the  FY 04  budget                                                            
approved,  additional money  would not required,  provided  that the                                                            
fisheries  patrol vessel,  the P/V Woldstad,  is dry-docked  "at the                                                            
end  of   the  season."   She   communicated  that   the  House   of                                                            
Representatives  budget proposal specifies  that additional  funding                                                            
would be considered for  the Department "at the end of session" were                                                            
the Governor's budget proposal for this item not adopted.                                                                       
                                                                                                                                
Senator  Olson asked for  further information  regarding the  marine                                                            
component funding as the  backup material for this item specifically                                                            
mentions aircraft and vehicles  without mention of marine equipment.                                                            
                                                                                                                                
Ms. Morgan  acknowledged that  this is correct.  She explained  that                                                            
interagency  transfers  would be  required  to transfer  the  marine                                                            
equipment funding to the vehicle and aviation components.                                                                       
                                                                                                                                
Senator  Hoffman  asked  how  "the  necessary  enforcement"  of  the                                                            
fisheries  "in the vast area"  of the Bering  Sea would be  provided                                                            
were the P/V Woldstad dry-docked on a long-term basis.                                                                          
                                                                                                                                
Ms. Morgan  replied that sufficient  fuel funding would be  provided                                                            
for  other  vessels,  including  the P/V  Stimson,  to  provide  the                                                            
fishery's enforcement  coverage. However,  she expressed,  that were                                                            
the  P/V  Woldstad   dry-docked,  some  areas'  coverage   would  be                                                            
negatively   affected,  and   she  continued,   the  Department   is                                                            
developing plans to determine  "which fisheries would be covered and                                                            
which ones would not be."                                                                                                       
                                                                                                                                
Senator  Hoffman  asked the  length  of time  required  for the  P/V                                                            
Stimson to travel from Kodiak to the Pribilof Island area.                                                                      
                                                                                                                                
Ms. Morgan  voiced uncertainty to  the length of the trip;  however,                                                            
she specified  that  this issue would  be addressed  in the  fishery                                                            
enforcement planning discussion.                                                                                                
                                                                                                                                
Senator  Hoffman  declared  that  because  of  the  large  fisheries                                                            
enforcement coverage  area, the Department's plan  to use one patrol                                                            
vessel "does not  make sense." He stressed that "the  vast distance"                                                            
between Kodiak  and the Pribilof area  is an argument in  support of                                                            
maintaining two patrol vessels rather than one.                                                                                 
                                                                                                                                
Senator  B.  Stevens informed  that  a  voyage  from Kodiak  to  the                                                            
Pribilofs  would take  approximately  five days.  He voiced  concern                                                            
regarding  the  Department's  plan  to  transfer   marine  equipment                                                            
component funding to vehicle, heating oil, and aviation.                                                                        
                                                                                                                                
Ms. Morgan verified that  it is correct that available monies in the                                                            
marine component would be transferred to the other components.                                                                  
                                                                                                                                
Senator B. Stevens surmised  that dry-docking the P/V Woldstad prior                                                            
to the  end  of the  FY 03  fiscal year  would save  the  Department                                                            
approximately $40,000 in  budgeted refueling expenses. Therefore, he                                                            
continued, this is the  amount of funds that would be transferred to                                                            
the other components.                                                                                                           
                                                                                                                                
Ms. Morgan  confirmed  that the  boat would  be dry-docked  "empty;"                                                            
however,  she informed that  rather than  dry-docking the vessel  on                                                            
       th                                                                                                                       
June 30,  the process  would be coordinated with fishery openings in                                                            
the region.  Therefore, she clarified,  the dry-docking could  occur                                                            
prior to that date.                                                                                                             
                                                                                                                                
Senator Olson  asked whether normal  dry-docking procedures  include                                                            
dry-docking a boat void of fuel.                                                                                                
                                                                                                                                
Ms. Morgan understood this to be normal procedure.                                                                              
                                                                                                                                
Senator  B. Stevens  communicated  that this  practice is  typically                                                            
referred  to  as "mothballing"  rather  than  "dry-docking"  as  the                                                            
latter term signifies that  a vessel would be undergoing maintenance                                                            
and repair work.                                                                                                                
                                                                                                                                
Ms. Morgan concurred.                                                                                                           
                                                                                                                                
Senator Olson  expressed that rather  than storing a vessel  without                                                            
fuel, in his experience,  the preference is to store a vessel fueled                                                            
in order  to avoid condensation  and other  problems in the  fueling                                                            
system.                                                                                                                         
                                                                                                                                
Senator Taylor  opined that the Department "appears"  to be planning                                                            
to eliminate a boat.                                                                                                            
                                                                                                                                
Ms. Morgan responded  that the Department would be  considering this                                                            
option during the upcoming  evaluation process of Department vessels                                                            
and aircraft to determine  the best use of equipment for air and sea                                                            
patrols.                                                                                                                        
                                                                                                                                
Co-Chair  Green informed  the  Committee that  each  of the  State's                                                            
departments  has been requested by  the Murkowski Administration  to                                                            
conduct a complete equipment  inventory to verify that each piece of                                                            
equipment  is  efficiently  used  and  maintained.  She  noted  that                                                            
inventory  reductions  as well  as lease  and  contractual  services                                                            
would be considered  as options. She  clarified that the  Department                                                            
of Natural  Resources has not, as  yet, determined that a  fisheries                                                            
enforcement  vessel  should be  eliminated,  but rather  that it  is                                                            
being considered as part of the inventory evaluation process.                                                                   
                                                                                                                                
Senator Hoffman stated  that this legislation does not provide funds                                                            
for leasing. He  asked whether mothballing the vessel  would produce                                                            
additional savings, specifically personnel savings.                                                                             
                                                                                                                                
Co-Chair   Green   specified   that,  initially,   the   review   is                                                            
concentrating on an equipment review.                                                                                           
                                                                                                                                
Senator  Hoffman  understood,  but he  furthered  that encompassing                                                             
conversations  should  be conducted  prior  to, rather  than  after,                                                            
decisions are made.                                                                                                             
                                                                                                                                
Co-Chair  Green   specified  that   these  conversations   would  be                                                            
conducted  during   FY  04  budget  sessions  rather   than  at  the                                                            
supplemental budget meetings.                                                                                                   
                                                                                                                                
Ms.  Morgan asked  that the  Senate  provide consideration,  as  the                                                            
House of Representatives  has, for  additional funding "if  the plan                                                            
does not move  forward" and it is proven infeasible  to dry-dock the                                                            
vessel.                                                                                                                         
                                                                                                                                
Co-Chair Green declared, "this is a reasonable request."                                                                        
                                                                                                                                
Co-Chair  Green announced  for clarification,  that HB 101  has been                                                            
incorporated into HB 100.                                                                                                       
                                                                                                                                
Co-chair  Green stated that  public testimony,  with a three-minute                                                             
time limit, would be taken.                                                                                                     
                                                                                                                                
JIM SYKES,  testified via teleconference  from Mat-Su, and  cited an                                                            
article titled  "Pulling Strings From  Afar" from the February  2003                                                            
AARP  Bulletin  [copy  on  file]  that  conveys  that  Arctic  Power                                                            
"contributed  $181,000 to  a drug industry  front group to  generate                                                            
some letters  of support for the opening  of the Arctic Refuge."  He                                                            
voiced that  rather than being the  recipient of more public  money,                                                            
Arctic Power should  be audited. He likened funding  of Arctic Power                                                            
to funding  "Microsoft  to  sell software…"  He noted  that  British                                                            
Petroleum (BP)  is not financially  supporting Arctic Power,  and he                                                            
asserted that BP, Exxon  Mobile and Conoco Phillips, combined, "have                                                            
more money  for public  relations and lobbying  activities  than any                                                            
company or industry  on earth." He voiced that the  Committee should                                                            
fund  alcohol,  drug abuse  and  health care  programs  rather  than                                                            
Arctic  Power,  and  he voiced  support  of  developing  a  Windfall                                                            
Profits tax system  and the development of State land  and resources                                                            
rather than contributing funds to Arctic Power.                                                                                 
                                                                                                                                
FRED  G. BROWN,  Fairbanks  Central  Labor  Council,  testified  via                                                            
teleconference  from Fairbanks, in support of funding  Arctic Power.                                                            
He stated that  citizens and labor groups throughout  the State have                                                            
worked in  support of opening  ANWR for oil  exploration. He  opined                                                            
that  the  growing  national  support  of  this  endeavor  could  be                                                            
attributed to the educational efforts of Arctic Power.                                                                          
                                                                                                                                
DEBBIE MILLER testified  via teleconference from Fairbanks and spoke                                                            
in opposition to funding  Arctic Power. She stated that this funding                                                            
would be better utilized to fund "true" K-12 educational needs.                                                                 
                                                                                                                                
                                                                                                                                
SFC 03 # 17, Side B 09:58 AM                                                                                                    
                                                                                                                                
                                                                                                                                
Ms. Miller  continued that Arctic  Power's lobbying efforts  have "a                                                            
poor  track record"  with  money being  spent on  "direct  lobbying"                                                            
rather than educational  efforts. She stated that she is not opposed                                                            
to funding  development efforts  on State  land and other  specified                                                            
national land  areas; however, she is opposed to oil  exploration in                                                            
the Arctic  Refuge. She stressed that  no money should go  to Arctic                                                            
Power.                                                                                                                          
                                                                                                                                
MATTHEW FAGNANI, Employee,  NANA Development Corporation and Member,                                                            
Arctic Power Board  of Directors, testified via teleconference  from                                                            
Anchorage and  voiced support of funding  Arctic Power, as  it would                                                            
be beneficial to Alaska.  He stated that development of Area 1002 of                                                            
ANWR would  create jobs,  allow "the  resource State  of Alaska"  to                                                            
develop  and  explore  its  natural  resources,  provide  lease  and                                                            
royalty  payments  to the  State's  budget,  and contribute  to  the                                                            
nation's  need for oil. He  stated that the  support of opening  the                                                            
1002  area of ANWR  is growing  and  funding of  Arctic Power  would                                                            
further support the goal of opening the area.                                                                                   
                                                                                                                                
BARBARA   HUFF-TUCKNESS,   Legislative  Director   of  Governmental                                                             
Affairs,  Teamsters Local  959,  testified via  teleconference  from                                                            
Anchorage to voice support  of funding Arctic Power on behalf of the                                                            
7,000 Teamster  members in the State and the many  non-union workers                                                            
who  would  be affected   by the  ANWR  issue.  She  commented  that                                                            
providing jobs  by encouraging development of the  State's resources                                                            
would provide  revenue the State needs  to operate. She stated  that                                                            
Arctic Power's  education efforts,  even with a limited budget,  are                                                            
effective.                                                                                                                      
                                                                                                                                
GARVAN BUCARIA, testified  via teleconference from Mat-Su and voiced                                                            
opposition  to the  use  of public  funds  to further  the  lobbying                                                            
efforts  of Arctic  Power. He avowed  that Arctic  Power's  lobbying                                                            
efforts, that have "consumed  $8.3 million of public funds, to date,                                                            
is a  waste  of public  funds." He  noted  that in  addition to  the                                                            
National  Petroleum  Reserve  -Alaska   (NPRA),  oil  companies  are                                                            
furthering  exploration   efforts  on  a  global  scale,   and  "the                                                            
likelihood   of   oil   companies   to  explore   here   [ANWR]   is                                                            
questionable."                                                                                                                  
                                                                                                                                
Co-Chair Wilken chaired the following portion of the meeting.                                                                   
                                                                                                                                
KIM  DUKE,   Executive   Director,  Arctic   Power,  testified   via                                                            
teleconference  from Anchorage and affirmed "Arctic  Power has fully                                                            
complied  with all State  requirements with  our funding to  provide                                                            
monthly  reports and  yearly audits."  She stated  that "the  single                                                            
mission"  specified  for the  organization  when it  was founded  in                                                            
1992, was "to open the  coastal plain of ANWR." She stated that upon                                                            
completion of  this mission, "the organization would  be dissolved."                                                            
She reminded  the Committee  that oil pipeline  flow from the  North                                                            
Slope is  currently at  half capacity  and that  the industry  is in                                                            
decline.  She stated that  the goal of developing  the resources  of                                                            
ANWR would change  this trend and provide the State  with additional                                                            
funding.                                                                                                                        
                                                                                                                                
AT EASE 10:09 AM / 10:11 AM                                                                                                     
                                                                                                                                
Co-chair Green resumed chairing the meeting.                                                                                    
                                                                                                                                
Amendment #1: This amendment  inserts a new section into the bill on                                                            
page  2, between  lines  29 and  30. The  intent language  reads  as                                                            
follows.                                                                                                                        
                                                                                                                                
     This  amended  appropriation   funds  the  Alaska  Science  and                                                            
     Technology  Foundation program through May 15,  2003. It is the                                                            
     intent  of the  Legislature that  all grants  and contracts  be                                                            
     terminated  promptly  and  that payments  be settled  and  made                                                            
     prior  to May 15, in order to  facilitate the shutdown  of ASTF                                                            
     program operations by May 15, 2003.                                                                                        
                                                                                                                                
Co-Chair Wilken moved for the adoption of Amendment #1.                                                                         
                                                                                                                                
Co-Chair Green explained  that, at the request of the Governor, this                                                            
amendment  provides  for the  "wind down  and shutdown  of the  ASTF                                                            
program by May 15, 2003."                                                                                                       
                                                                                                                                
Amendment #1 was ADOPTED without objection.                                                                                     
                                                                                                                                
Amendment #2:  This amendment adds  a new subsection to the  bill on                                                            
page 4, line 22. The new language reads as follows.                                                                             
                                                                                                                                
     The  sum of $66,100  is appropriated from  the general  fund to                                                            
     the  Department of  Health and  Social Services,  Bethel  Youth                                                            
     Facility,  for  the  fiscal  year  ending June  30,  2003,  for                                                            
     additional operating costs.                                                                                                
                                                                                                                                
Senator Hoffman moved for adoption of Amendment #2.                                                                             
                                                                                                                                
Co-Chair  Green objected  for explanation;  however, she noted  that                                                            
this amendment addresses  Senator Hoffman's earlier concern that the                                                            
Bethel  Youth Facility,  which  incurred increased  occupancy  rates                                                            
similar to  the Nome Youth  Facility, was  insufficiently funded  to                                                            
provide for increased occupancy operational expenses.                                                                           
                                                                                                                                
JANET  CLARKE,  Director,   Division  of  Administrative   Services,                                                            
Department  of  Health   and  Social  Services,  explained   that  a                                                            
Department  memorandum  [copy  on file],  dated  March  3, 2003  and                                                            
addressed  to  the  Co-Chairs,  provides  answers  to a  variety  of                                                            
                                         rd                                                                                     
questions that arose during the March 3 meeting.                                                                                
                                                                                                                                
Ms. Clarke  commented that both the  Nome and Bethel Youth  Facility                                                            
Resident Bed Count  issue is addressed on page three  of the letter.                                                            
She  expressed that  the  Bethel Bed  Count  reflects  a 46  percent                                                            
increase over  the previous year and  the Nome Bed Count  reflects a                                                            
44 percent increase.  She voiced that the overcrowding  situation at                                                            
these  facilities  is of  concern;  particularly  as  the  eight-bed                                                            
detention and  eleven-bed treatment  facility at Bethel houses  some                                                            
"very serious crimes against  persons" offenders. She voiced support                                                            
for the amendment.                                                                                                              
                                                                                                                                
Co-chair  Green  asked  whether  the  youth   who required   medical                                                            
assistance while at the  Bethel facility qualified for Native Health                                                            
coverage.                                                                                                                       
                                                                                                                                
AT EASE 10:14 AM / 10:17 AM                                                                                                     
                                                                                                                                
Ms. Clarke responded that  this issue is addressed, on page three of                                                            
the memorandum, which reads as follows.                                                                                         
                                                                                                                                
     Is DJJ obligated to pay for what ever a youth in detention                                                                 
     needs?  Is there a medical review  group that makes  a decision                                                            
     on  what DJJ will  pay for? What  is the  policy on paying  for                                                            
     medical items? Aren't  most of the kids in Bethel covered under                                                            
     IHS (not Medicaid  IHS, but regular IHS); why do we have to pay                                                            
     for the medical care?                                                                                                      
                                                                                                                                
     DJJ  pursues other forms  of payment  for resident health  care                                                            
     if/when possible,  including checking with parents to determine                                                            
     if  they  have  health  insurance  to  pick up  the  cost.  The                                                            
     division's  facilities do not  have a medical review  team that                                                            
     makes a decision on  what we will pay for. The system that each                                                            
     facility  utilizes is  to have the DJJ  facility nurse  examine                                                            
     the youth  to determine if there  is a medical problem.  If the                                                            
     nurse determines  that there is a serious medical  concern that                                                            
     requires  physician follow-up,  the nurse  refers the  youth to                                                            
     the contracted medical  doctor. Each DJJ youth facility adheres                                                            
     to a set of policies  and procedures. Although there are slight                                                            
     variations  in wording for the  different facility policies,  I                                                            
     have  included  the relevant  medical  policies  from both  the                                                            
     Bethel  Youth  Facility  and  the  McLaughlin   Youth  Center's                                                            
     policies and procedure manual.                                                                                             
                                                                                                                                
     As  for  whether  Alaska  Native  residents   in  secure  youth                                                            
     facilities  are covered by the  Indian Health Service,  we have                                                            
     verified  that "IHS is payer  of last resort under federal  law                                                            
     (including  Medicaid).  The  basic  concept  is  that  American                                                            
     Indians and  Alaska Natives (AI/AN) are state  residents in the                                                            
     manner as  others living in a state and so if  the state covers                                                            
     health care for other  residents (state facilities - like API -                                                            
     corrections,   juvenile   justice,   CAMA)   that   the   AI/AN                                                            
     populations must be  treated as others are treated and that IHS                                                            
     is not required to  pay for health care." This information from                                                            
     Medical Assistance  is consistent with DJJ's  experience, which                                                            
     has been  that Indian Health Service does not  pay for resident                                                            
     care when they are in secure youth facilities.                                                                             
                                                                                                                                
Senator Hoffman asked whether the child requiring medical treatment                                                             
was Alaska Native.                                                                                                              
                                                                                                                                
Ms. Clarke believed the youth to be Alaska Native, but stated she                                                               
would verify the information.                                                                                                   
                                                                                                                                
Ms.  Clarke informed  the  Committee  that the  memorandum  provides                                                            
additional  information regarding  the bed  count for both  Nome and                                                            
Bethel.  She reiterated  that the  Department  considers the  Bethel                                                            
occupancy situation as "serious."                                                                                               
                                                                                                                                
Ms. Clark continued that, while the Department has, at times,                                                                   
transferred  youth  from an  over-capacitated  facility  to  another                                                            
facility, the  expense of transporting  youth and their escort  back                                                            
to Bethel for required court dates "is not cost effective."                                                                     
                                                                                                                                
Co-Chair Green withdrew the objection.                                                                                          
                                                                                                                                
Without further objection, Amendment #2 was ADOPTED.                                                                            
                                                                                                                                
Co-Chair Wilken  moved to report SCS  for CS HB 100(FIN),  Version S                                                            
from Committee  with individual recommendations and  attached fiscal                                                            
notes.                                                                                                                          
                                                                                                                                
Senator  Taylor   objected.  He  voiced  dissatisfaction   with  the                                                            
responses to his concerns  regarding the Herbert River land transfer                                                            
or  the title  change  request  for  the West  Douglas  Island  road                                                            
extension to the Gastineau Channel Second Crossing.                                                                             
                                                                                                                                
[Note:  The motion  to report  the bill  from Committee  is  removed                                                            
later in the hearing.]                                                                                                          
                                                                                                                                
Amendment 3: This amendment deletes Sections 13(c) and 16(c).                                                                   
                                                                                                                                
Senator Taylor moved for adoption of Amendment 3.                                                                               
                                                                                                                                
Senator Green objected for explanation.                                                                                         
                                                                                                                                
Senator Hoffman  requested that the amendment be divided  to address                                                            
each section separately.                                                                                                        
                                                                                                                                
Senator Taylor agreed.                                                                                                          
                                                                                                                                
[Note:  Rather than  dividing the  amendment, it  was replaced  with                                                            
Amendments 3 and 4.]                                                                                                            
                                                                                                                                
Amendment #3 (as  amended): This amendment deletes  Section 13(c) of                                                            
the bill that reads as follows.                                                                                                 
                                                                                                                                
     (c) The sum  of $553,000 is appropriated from  federal receipts                                                            
     to  the Department  of Natural  Resources for  a United  States                                                            
     Department of the  Interior coastal wetlands grant to be passed                                                            
     through  to the City  and Borough  of Juneau  to go toward  the                                                            
     purchase of a Herbert River parcel.                                                                                        
                                                                                                                                
Senator Taylor moved for adoption of Amendment #3 as amended.                                                                   
                                                                                                                                
Senator Olson  inquired as to whether prohibiting  this pass-through                                                            
grant would benefit the State.                                                                                                  
                                                                                                                                
Senator Taylor clarified  that rather than preventing the grant from                                                            
occurring,  he is requesting that  the grant be addressed  in the FY                                                            
04  regular capital  budget  rather than  in  the fast  track FY  03                                                            
supplemental  budget. He stated that  this delay would provide  time                                                            
to  receive  further information   regarding  the reason  to  remove                                                            
private land from  the municipal tax roll in addition  to the reason                                                            
for prohibiting the owner to develop the land.                                                                                  
                                                                                                                                
Senator  Bunde  asked for  confirmation  that  both the  fast  track                                                            
supplemental  request and the regular  supplemental request  are now                                                            
incorporated into one bill.                                                                                                     
                                                                                                                                
Co-chair Green affirmed that this is correct.                                                                                   
                                                                                                                                
Senator  Bunde objected  to Amendment  #3.  He stated  that he  is a                                                            
strong proponent of local  government control and if the citizens of                                                            
Juneau wish  to proceed with this  project, he could not  oppose it.                                                            
                                                                                                                                
Senator Hoffman  voiced support of local control;  however, he noted                                                            
that Senator Taylor's  question should be "satisfactorily"  answered                                                            
before the project should proceed.                                                                                              
                                                                                                                                
AT EASE 10:24 AM / 10:28 AM                                                                                                     
                                                                                                                                
REPRESENTATIVE  BRUCE WEYHRAUCH  shared that  the federal grant  for                                                            
this property  results  from efforts  of the  Southeast Alaska  Land                                                            
Trust efforts,  and that the CBJ recently  appropriated its  portion                                                            
of the  funds required to  purchase the property  from "the  willing                                                            
seller." He stressed  that this transaction is not  the result "of a                                                            
forced  sale." He voiced  that the  purchase of  the property  would                                                            
allow the area to be developed  for more recreational opportunities,                                                            
and  he stated  that the  City  has identified  this  purchase as  a                                                            
priority.                                                                                                                       
                                                                                                                                
Senator Taylor inquired  as to the title-holder of the Herbert River                                                            
parcel of land.                                                                                                                 
                                                                                                                                
Representative  Weyhrauch responded  that Mr.  Tonsgard and  Channel                                                            
Construction Company own the land.                                                                                              
                                                                                                                                
Senator Taylor asked how Mr. Tonsgard has used the land.                                                                        
                                                                                                                                
Representative  Weyhrauch understood that logging  has occurred on a                                                            
portion of the property.                                                                                                        
                                                                                                                                
Senator  Taylor   inquired  as  to   whether  the  owner   submitted                                                            
development plans to the CBJ.                                                                                                   
                                                                                                                                
Representative  Weyhrauch   responded  that  other  than  a  dispute                                                            
between the City and Mr.  Tonsgard regarding access to the Boy Scout                                                            
Camp, he  is unaware of  any development  plans being submitted.  He                                                            
stated that  acquisition of this land  has been a long-term  goal of                                                            
the City.                                                                                                                       
                                                                                                                                
Co-chair Green asked when Mr. Tonsgard acquired the property.                                                                   
                                                                                                                                
Representative  Weyhrauch was unaware  of the acquisition  date, but                                                            
commented that the date could be provided to the Committee.                                                                     
                                                                                                                                
Senator Olson understood  that, rather than removing the item in its                                                            
entirety from the budget,  the intent of the amendment is to clarify                                                            
the  reason for  including  this  item in  the  supplemental  budget                                                            
rather than in the FY 04 budget.                                                                                                
                                                                                                                                
Representative  Weyhrauch replied, "time was of the  essence to move                                                            
this forward"  as the acquisition  hinged on a number of  variables.                                                            
He stated  that the  acquisition  was previously  delayed until  the                                                            
federal  funding  was  secured.  Now  that  that  is  in  place,  he                                                            
continued, the City is moving quickly to finalize the purchase.                                                                 
                                                                                                                                
Co-Chair Green asked whether  a federal grant lapse issue or another                                                            
similar issue  is the primary  reason this  item is included  in the                                                            
supplemental budget rather than in the FY 04 budget.                                                                            
                                                                                                                                
Representative  Weyhrauch  replied that  this information  would  be                                                            
forthcoming.                                                                                                                    
                                                                                                                                
Senator Hoffman informed  that the backup information specifies that                                                            
Channel  Construction has  applied  for permits  to harvest  timber,                                                            
extract gravel,  and process minerals on site as well  as a land use                                                            
zoning change. He stated  that the requests remain "under the City's                                                            
preview."                                                                                                                       
                                                                                                                                
Senator Taylor requested  that additional review time be allowed for                                                            
this item,  and he voiced  that its inclusion  in the FY 04  capital                                                            
budget rather than in the  supplemental budget would be appropriate.                                                            
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator  Hoffman, Senator Olson, Senator  Taylor, Co-chair                                                            
Wilken and Co-chair Green                                                                                                       
                                                                                                                                
OPPOSED: Senator Bunde and Senator B. Stevens                                                                                   
                                                                                                                                
The motion PASSED (5-2)                                                                                                         
                                                                                                                                
Amendment #3 was ADOPTED.                                                                                                       
                                                                                                                                
Co-chair Green  reminded the Committee  that the Herbert  River item                                                            
is a conferential item and is subject to amendment on the floor.                                                                
                                                                                                                                
Amendment  #4: This amendment  deletes Section  16(c) that  reads as                                                            
follows.                                                                                                                        
                                                                                                                                
     (c) Section 1, ch.135, SLA 2000, page 33, lines 15 and 16, is                                                              
     amended to read:                                                                                                           
     ALLOCATIONS                                                                                                                
     Juneau: Gastineau Channel Second Crossing [WEST DOUGLAS                                                                    
     HIGHWAY EXTENSION] (ED 3-4) $1,660,000                                                                                     
                                                                                                                                
Senator  Taylor moved  for adoption  of Amendment  #4. He  explained                                                            
that as presented,  this item would  allow funding allocated  to the                                                            
extension of the  North Douglas Highway to be transferred  to fund a                                                            
study  for a  second  crossing  on Gastineau  Channel;  however,  he                                                            
requested  that   inclusion  of  this  item  be  removed   from  the                                                            
supplemental budget  and considered as a FY 04 capital  budget item.                                                            
                                                                                                                                
Co-chair  Green  asked  the  Department   whether  this  is  a  time                                                            
sensitive item.                                                                                                                 
                                                                                                                                
NANCY  SLAGLE,  Director,   Division  of  Administrative   Services,                                                            
Department of  Transportation and Public Facilities  explained "that                                                            
this  name change  would  bring the  appropriation  in  line with  a                                                            
Congressional  high priority,"  earmarked project.  She stated  that                                                            
the CBJ is  currently undertaking  preliminary design work  for this                                                            
project, and she  informed that $600,000 funding was  made available                                                            
for the  project  in FY 03  in a similar  name  change process.  She                                                            
stated that  this funding  would provide for  a continuation  of the                                                            
process, without delay.                                                                                                         
                                                                                                                                
Co-Chair  Green  asked  the  status  of  the  West  Douglas  Highway                                                            
extension.                                                                                                                      
                                                                                                                                
Senator Taylor responded  that due to the Native Corporation's shift                                                            
in project emphasis, the  road is not an immediate need. He asserted                                                            
that  "expediting"  the  extension  of  the Juneau  road  system  to                                                            
Cascade  Point should  be a  top priority  as it  would provide  new                                                            
jobs, a  better Southeast  Alaska transportation  system, and  would                                                            
reduce ferry  system expenses by allowing  two round trips  daily up                                                            
northern Lynn  Canal. He stressed  that this is more important  than                                                            
providing convenience to the residents of Douglas Island.                                                                       
                                                                                                                                
Ms. Slagle clarified that  the road extension to Cascade Point is on                                                            
hold until  completion  of the  Juneau Access  Environmental  Impact                                                            
Statement  (EIS) fragmenting  the project  would jeopardize  federal                                                            
highway funding,  and therefore she  declared, the Department  could                                                            
not  proceed with  the project.  However,  she advised,  the  Native                                                            
Corporation  could  proceed. She  stated  that while  the  Gastineau                                                            
Channel  Crossing is  on the  CBJ project  list,  the Cascade  Point                                                            
project is not.                                                                                                                 
                                                                                                                                
Senator Taylor  asked for verification  that the funds appropriated                                                             
by the  Legislature  to the Cascade  Point Road  approximately  four                                                            
years earlier,  could not be utilized  until the entire EIS,  "which                                                            
includes a  90-mile road via Lynn  Canal to Skagway," is  completed.                                                            
                                                                                                                                
Ms.  Slagle  affirmed   that  the  Federal  Highway  Administration                                                             
mandates that  an EIS be completed  before construction could  begin                                                            
on any portion  of the project. She  stressed that any construction                                                             
"would taint"  the project by implying that the Department  has make                                                            
decisions  regarding   the  project  in  advance  of  an  EIS  being                                                            
finalized.                                                                                                                      
                                                                                                                                
Ms. Slagle stated  that the legislative Cascade Point  appropriation                                                            
"is still  sitting there,"  and has not been  incorporated  into the                                                            
Statewide Transportation Improvement Program (STIP).                                                                            
                                                                                                                                
JEFF  OTTESEN,  Acting Director,  Division  of  Statewide  Planning,                                                            
Department  of Transportation and  Public Facilities confirmed  that                                                            
the project  is pending upon completion  of the federal requirement                                                             
for  an  EIS. However,  he  noted  the  Juneau  Access  project  has                                                            
recently  "been reactivated,"  and he attested,  upon completion  of                                                            
the  EIS, the  Department  would appropriate  funds  for design  and                                                            
development.                                                                                                                    
                                                                                                                                
As a point of  order, Co-Chair Wilken withdrew the  motion to report                                                            
the bill from Committee.                                                                                                        
                                                                                                                                
There   being   no  objection,   the   motion   was   removed   from                                                            
consideration.                                                                                                                  
                                                                                                                                
Co-chair Green  stated that the bill  and amendments are  before the                                                            
Committee for discussion.                                                                                                       
                                                                                                                                
Co-Chair Wilken  asked whether a Gastineau  Channel Second  Crossing                                                            
EIS is being conducted.                                                                                                         
                                                                                                                                
Mr. Ottesen stated  that a Request for Proposal (RFP)  for an EIS is                                                            
currently being conducted.                                                                                                      
                                                                                                                                
Co-chair Wilken  asked the anticipated completion  date for the EIS.                                                            
                                                                                                                                
Mr. Ottesen  responded that  typically a  project of this  magnitude                                                            
would take up to three years to be completed.                                                                                   
                                                                                                                                
Senator Taylor  further questioned  the inclusion of the  project in                                                            
the supplemental  fast track  request, considering  that the  EIS on                                                            
the  second bridge  crossing  would  not  be completed  for  several                                                            
years.                                                                                                                          
                                                                                                                                
Ms. Slagle  clarified that  this funding would  provide for  the EIS                                                            
process.                                                                                                                        
                                                                                                                                
Co-Chair Green asked whether  this item could be addressed in the FY                                                            
04 budget.                                                                                                                      
                                                                                                                                
Ms. Slagle informed  that this item is included in  the Supplemental                                                            
Budget at  the request of  the CBJ in order  to receive the  funding                                                            
authority and  continue the EIS process. She expressed  that this is                                                            
an "appropriate" item for the supplemental.                                                                                     
                                                                                                                                
AT EASE: 10:31 AM / 10:31 AM                                                                                                    
                                                                                                                                
Senator Bunde  opined that the Anchorage Coastal Trial  is a similar                                                            
situation, and he urged support for local preference.                                                                           
                                                                                                                                
Amendment to Amendment  #4: This amendment additionally  deletes the                                                            
project  title  change  section  involving   the Nondalton   Airport                                                            
project,  the  Anchorage Muldoon  Road  Landscaping  and  Pedestrian                                                            
Improvements  project,   and  the  Nunapitchuk  Airport   Relocation                                                            
project as specified in Sections 16 (a)(b)(d) and (e).                                                                          
                                                                                                                                
Senator B.  Stevens moved  to amend Amendment  #4. He asserted  that                                                            
were the Committee  to eliminate one project title  change item then                                                            
consideration  should be given "to  remove all title changes  in the                                                            
supplemental budget."                                                                                                           
                                                                                                                                
Senator Olson  objected. He stated  that some of these projects  are                                                            
time critical.                                                                                                                  
                                                                                                                                
AT EASE: 10:34 AM / 10:34 AM.                                                                                                   
                                                                                                                                
A roll call was taken on the motion to amend Amendment #4.                                                                      
                                                                                                                                
IN FAVOR: Senator B. Stevens, Senator Bunde, and Senator Hoffman                                                                
                                                                                                                                
OPPOSED:  Senator Olson,  Senator Taylor,  Co-chair Wilken,  and Co-                                                            
chair Green                                                                                                                     
                                                                                                                                
The motion FAILED (3-4)                                                                                                         
                                                                                                                                
The motion to amend Amendment #4 FAILED.                                                                                        
                                                                                                                                
Amendment #4 was again before the Committee.                                                                                    
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Taylor and Co-chair Green                                                                                     
                                                                                                                                
OPPOSED:  Senator  Hoffman,  Senator   Olson,  Senator  B.  Stevens,                                                            
Senator Bunde, and Co-chair Wilken                                                                                              
                                                                                                                                
The motion FAILED (2-5)                                                                                                         
                                                                                                                                
Amendment #4 FAILED to be adopted.                                                                                              
                                                                                                                                
Co-chair Wilken moved to  report SCS CS HB 100, Version 23-GH1061\S,                                                            
as amended, from Committee with individual recommendations.                                                                     
                                                                                                                                
There  being  no  objection,  SCS  CS HB  100  (FIN)  reported  from                                                            
Committee.                                                                                                                      
                                                                                                                                
AT EASE 10:40 AM / 10:42 AM                                                                                                     
                                                                                                                                

Document Name Date/Time Subjects