Legislature(1997 - 1998)

12/12/1997 09:38 AM House BUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
MINUTES                                                                        
ALASKA STATE LEGISLATURE                                                       
BUDGET AND AUDIT COMMITTEE                                                     
December 12, 1997                                                              
9:38 A.M.                                                                      
Legislative Information Office                                                 
Anchorage, Alaska                                                              
                                                                               
Tape LBA 97 - 1, Side 1                                                        
Tape LBA 97 - 1, Side 2                                                        
Tape LBA 97 - 2, Side 1                                                        
Tape LBA 97 - 2, Side 2                                                        
Tape LBA 97 - 3, Side 1                                                        
                                                                               
CALL TO ORDER                                                                  
                                                                               
Senator Randy Phillips convened the December 12, 1997,                         
meeting of the Legislative Budget and Audit Committee at                       
9:38 a.m. at the Fifth Floor Conference Room, Anchorage LIO,                   
Anchorage.                                                                     
                                                                               
PRESENT                                                                        
                                                                               
 SENATORS    REPRESENTATIVES                                                   
                                                                               
Sen. Phillips   Rep. Hanley                                                    
Sen. Adams    Rep. Croft                                                       
Sen. Donley   Rep. James                                                       
Sen. Halford   Rep. Therriault                                                 
Sen. Pearce                                                                    
                                                                               
Representative Martin was not present for the meeting.                         
                                                                               
Members present by teleconference:                                             
                                                                               
Sen. Torgerson   Rep.  Bunde                                                   
                                                                               
ALSO PRESENT                                                                   
                                                                               
Mike Greany, Director, Division of Legislative Finance;                        
Kevin Brooks, Director, Division of Administrative Services,                   
Department of Fish and Game; Dan Spencer, (Testified via                       
Teleconference), Chief Budget Analyst, Office of Management                    
and Budget, Office of the Governor; Janet Clarke, Director,                    
Division of Administrative Services, Department of Health                      
and Social Services; Eric Myers, Exxon Valdez Trustee                          
Council; Jack Cushing, Mayor, City of Homer, Homer; John                       
Bitney, Alaska Housing Finance Corporation, Anchorage; Vicki                   
Williams, Alaska Housing Finance Division, Anchorage;                          
Cecilia LaCara, Deputy Director, Division of Child Support                     
Enforcement, Department of Revenue; Wendy Lyford, Court                        
Administrator, Superior Court, Alaska Court System,                            
Anchorage; Suzanne Goodrich, Executive Director, Catholic                      
Community Services, Eagle River; Margaret Kirkland,                            
Anchorage; Randy Super, (Testified via Teleconference),                        
Department of Health and Social Services, Juneau; Annalee                      
McConnell, (Testified via Teleconference), Director, Office                    
of Management and Budget, Office of the Governor, Juneau;                      
Theresa Tanoury, Special Assistant to Commissioner Perdue,                     
Department of Health and Social Services;                                      
                                                                               
SUMMARY                                                                        
                                                                               
Senator Phillips announced that the minutes from previous                      
meetings would be addressed in Juneau at the beginning of                      
the next legislative session.                                                  
                                                                               
REVISED PROGRAM REQUESTS                                                       
                                                                               
RPL 11-8-0189 Department of Fish and Game, Habitat                             
BRU, Special Projects Component and                                            
Administration and Support BRU,                                                
Administrative Services Component                                              
                                                                               
$109,724 dollars in statutory designated receipts for review                   
of several industry development projects.                                      
                                                                               
MIKE GREANY, DIRECTOR, DIVISION OF LEGISLATIVE FINANCE,                        
recommended approval of the RPL which would use statutory                      
designated receipts.  He understood that to be the intent of                   
the Finance Committees when granting the agency authority to                   
seek funding during the interim.                                               
                                                                               
Senator Adams MOVED to approve the above listed RPL.  There                    
being NO OBJECTION, RPL 11-8-0189 was approved.                                
                                                                               
RPL 11-8-0190  Department of Fish and Game, Division of                        
Subsistence, Special Projects Component                                        
                                                                               
$85,000 dollars in federal receipts for travel reimbursement                   
for the Yukon River Panel and Joint Technical Committee                        
meetings.                                                                      
                                                                               
Mr. Greany noted that the Division of Legislative Finance                      
recommended approval of the proposed RPL, which was in line                    
with the Finance Committees legislative intent.                                
                                                                               
Senator Adams MOVED to approve the above listed RPL.  There                    
being NO OBJECTION, RPL 11-8-0190 was approved.                                
                                                                               
RPL 11-8-0193 Department of Fish and Game, Commercial                          
Fisheries Management and Development                                           
Division, Special Projects Component                                           
                                                                               
$463,800 dollars in test fish receipts for an experimental                     
open platform herring fishery in Sitka Sound.                                  
                                                                               
Mr. Greany noted that the RPL had not properly come before                     
the Legislative Budget and Audit Committee (LBA).  He stated                   
that the Committee did not have the authority to act on it                     
and recommended "no action" be taken.                                          
                                                                               
KEVIN BROOKS, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,                   
DEPARTMENT OF FISH AND GAME, responded that the Department                     
submitted the RPL as an opportunity to inform the LBA                          
Committee of a situation in Sitka regarding test fishery,                      
which must be addressed by mid March in order to contract                      
with the necessary vessels.  He continued, the Department                      
should award the bid by the end of January, 1998.  He                          
acknowledged that fish receipts had been included in SB 55,                    
although, not the statutory designed program receipts.                         
                                                                               
DAN SPENCER, (TESTIFIED VIA TELECONFERENCE), CHIEF BUDGET                      
ANALYST, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE                        
GOVERNOR, advised that the Office of Management and Budget                     
(OMB) was attempting to determine a way to educate Committee                   
members of the need.                                                           
                                                                               
Senator Adams agreed with the recommendation given with the                    
OMB Director, Annalee McConnell.  He pointed out that within                   
SB 55, the program receipts authorization language was broad                   
enough, and that the approval of the proposed RPL should be                    
available to the LBA Committee.  He reiterated, it was                         
authorized through SB 55.  Additionally, the timing issue is                   
important for Sitka.  He asked if the Department had further                   
test receipt authorization available at this time.                             
                                                                               
Mr. Brooks replied that the Commercial Fisheries Division                      
budget had $2.5 million dollars authorized for test fish                       
receipts in FY98.  To date, the Department has used $1.1                       
million dollars of that budget.  The remaining $1.4 million                    
dollars will be allocated to specific fisheries which will                     
occur during the remainder of the fiscal year.                                 
                                                                               
Senator Adams asked which projects could be held until the                     
Legislature meets in Juneau in 1998, so that the remaining                     
$500 thousand dollars could be given authority during the                      
supplemental process.  Mr. Brooks explained that December                      
was a slow month for test fisheries and that by spring the                     
Department would be in "full swing".  Given the typical                        
supplemental bill approved in May, chances are, the                            
Department would have exceeded its authority by that time.                     
                                                                               
Mr. Spencer emphasized that "timing" is essential because                      
the fishery begins in middle March.                                            
                                                                               
Mr. Greany reiterated that the concern was addressed in SB
55 with new fund sources created in that legislation.  The                     
test fisheries were created as their own separate funding                      
source and were not enumerated upon in the front section of                    
the appropriation bill.  He suggested that the Department                      
could qualify for other authorization for this need that                       
could be replaced through a supplemental appropriation.                        
                                                                               
Representative Therriault questioned if the funds were                         
granted would they be considered general fund expenditures                     
in the supplemental or would it be a creation of a new                         
funding source.  Mr. Greany explained that the front section                   
of the general appropriation bill did not give the LBA                         
Committee the authority to deal with that funding source.                      
It would be a non-general fund source.                                         
                                                                               
Senator Adams noted that if the request was approved, it                       
could provide for an additional supplemental bill with                         
another program use for those program receipts.  Mr. Greany                    
explained that the manner in which the test fishery receipts                   
were appropriated was generic.  They were available to the                     
Department to determine where they should be spent.  He                        
advised that the Legislature should be specific in                             
determining how these funds are spent.                                         
                                                                               
Mr. Spencer elaborated a major concern is that if the                          
Department uses this existing authority, all the funds could                   
be used prior to the Legislature passing a supplemental                        
funding.                                                                       
                                                                               
Mr. Greany reiterated that the LBA Committee take "no                          
action" on the request, while at the same time, adopt a                        
motion to provide communication to the Finance Committees to                   
consider inclusion of intent in the early supplemental                         
appropriation bill.  Senator Adams reiterated his concern                      
that Sitka might loose the opportunity to participate in the                   
herring fishery.                                                               
                                                                               
Representative James MOVED to adopt the recommendation                         
suggested by Mr. Greany.  Senator Adams OBJECTED to the                        
MOTION, noting that it would delay the Sitka herring                           
fishery.  Mr. Greany understood that the bid would need to                     
be submitted by early January.                                                 
                                                                               
Representative Hanley pointed out that the Department has                      
the flexibility to go forward with the proposal and that the                   
Department would go forward if they had the guarantee that                     
the matter would be considered in the Legislative Finance                      
Committees.  Mr. Spencer agreed that if the LBA Committee                      
recommended that the matter would be considered in the                         
Legislative Finance Committees, the Department could then                      
address Sitka's situation.                                                     
                                                                               
Representative Therriault noted that he was not comfortable                    
automatically granting an increase to the test fisheries                       
budget through the Finance Committees.  Mr. Spencer                            
recognized that the LBA Committee could not bind the Finance                   
Committees, although, asked that the LBA Committee urge the                    
Finance Committees to favorably recommend the proposal.                        
                                                                               
Senator Halford understood the recommendation was that the                     
Finance Committees would review the proposal for possible                      
inclusion for supplemental funding.  Senator Adams believed                    
that format would delay the project.  He asked if the                          
current motion would provide the Department, authorization                     
to continue with the bidding process for the test fishery in                   
Sitka.  Mr. Spencer replied that the Department was                            
comfortable with the motion.  Senator Adams WITHDREW his                       
OBJECTION.  There being NO further OBJECTION, the MOTION was                   
PASSED as recommended by Mr. Greany.                                           
                                                                               
RPL 01-8-8024 Office of the Governor, Office of                                
Management and Budget, Division of                                             
Governmental Coordination                                                      
                                                                               
$195,000 dollars in federal receipts for the Alaska Coastal                    
Management Program.                                                            
                                                                               
Mr. Greany stated that the Legislative Finance Division                        
approved of the request for two purposes:  To finalize the                     
most recent regulations and to support a consistency review                    
of the Prince William Sound vessel contingency plan.                           
                                                                               
Senator Adams MOVED to approve RPL 01-8-08024.  There being                    
NO OBJECTION, it was adopted.                                                  
                                                                               
RPL 01-8-8025 Office of the Governor, Human Rights                             
Commission                                                                     
                                                                               
$80,466 in federal receipts for investigation and public                       
hearings.                                                                      
                                                                               
Mr. Greany noted that the Division of Legislative Finance                      
recommended approval of the federal funds.  The funds would                    
be used for current legal cases and to update the State's                      
word processing standards.                                                     
                                                                               
Representative Croft MOVED to adopt RPL 01-8-8025.  There                      
being NO OBJECTION, it was adopted.                                            
                                                                               
RPL 06-8-0152 Department of Health and Social                                  
Services, Medical Assistance BRU, Women,                                       
Infants, and Children Component                                                
                                                                               
$3,750,000 dollars in federal receipts for Medicaid coverage                   
for native clients.                                                            
                                                                               
Mr. Greany provided Committee members information addressing                   
the policy adopted by the Finance Committee and the LBA                        
Committee leadership to OMB, March, 1997.  The handout                         
provides ground rule information on how RPL requests are to                    
be handled during the interim.  He described language which                    
stipulates that the LBA action should be used to restore                       
budget reductions from a past session or for program                           
enhancements.  Mr. Greany added, this policy was used when                     
reviewing requests submitted by the Department of Health and                   
Social Services.                                                               
                                                                               
Mr. Greany recommended that RPL 06-8-0152 be deferred to the                   
Legislative Finance Committees. Because of the appropriation                   
allocation structure within the Department of Health and                       
Social Services, a mixture of federal and state funds allows                   
the Department some latitude to transfer money within.  He                     
stated that new money affecting the proposed RPL from the                      
State receiving money from services provided through the                       
education services would be subsequently reimbursed through                    
Medicaid.  The Department is proposing to take these                           
additional monies to improve different activities.  He                         
pointed out that the medical reimbursement funds are claims                    
for short terms and are interchangeable.  Mr. Greany                           
recommended that the full Legislature should have the                          
opportunity to review these needs.                                             
                                                                               
Senator Adams asked if Mr. Greany's concerns would be                          
satisfied if the federal receipts were used only for the                       
proposed request.  Mr. Greany replied that regardless of                       
additional authority requested or approved, the Department                     
does have the ability to move funds around.  He concluded                      
that there are policy issues involved in how the money                         
should be used.                                                                
                                                                               
JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,                   
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, commented that the                   
Department understood that there would be a lot of                             
discussion with the Medicaid budget because of the federal                     
match changes.  The Department's intention in requesting the                   
proposed revised program was to inform Committee members of                    
the situation and initially, lay out the increased need for                    
Indian Health Service funds.  She emphasized that the                          
Department's intent was not to circumvent the full                             
legislature.  These requests are to a subsequent request to                    
a portion of the sole-based-claims that came into the State                    
with an aggressive matching need.  Part of these receipts                      
are unrestricted federal funds which can be used for a                         
number of programs.                                                            
                                                                               
She continued, $1.3 million dollars of receipts of the $3.7                    
million dollar request will return to the Department of                        
Education.  Part of the money has already been RSA'd to that                   
Department so that school districts can award grants while                     
the schools are still in session to establish programs.                        
Currently, there is $2 million dollars budgeted to the                         
Department for use in the school base claim.  Based on                         
agreements with the federal government, that claim should                      
increase to $4.6 million dollars.  Ms. Clarke agreed that                      
this was an involved situation. She added that the Indian                      
Health Service was 100% federally funded with Medicaid                         
dollars and has no match requirements from the State.                          
                                                                               
Representative Croft inquired if the LBA Committee had the                     
authority to address this request.  Mr. Greany replied that                    
the Committee had the statutory authority to grant the                         
request, but that the Division of Legislative Finance did                      
not support the policy authority for the request. He                           
commented that the issues are intertwined.  Representative                     
Croft pointed out that the Committee did have the statutory                    
authority to address issues of an emergency nature.  He                        
urged the Committee to contemplate if the situation was an                     
"emergency" or not.  Mr. Greany agreed.                                        
                                                                               
Representative Croft pointed out that the money addressed in                   
the request is purely contractual funds and that there would                   
be no new state employees hired.  Mr. Greany pointed out                       
that there are times when the State does not have the legal                    
obligation to continue a program, although, expectations are                   
created and difficult to change. He concluded that all needs                   
can not be funded.                                                             
                                                                               
Senator Pearce stated that the request does not fall into                      
the category of "emergency".  She voiced frustration with                      
the Department and how confusing it was to determine                           
specific needs with the number of transfers occurring.  She                    
MOVED to place RPL 06-8-0152, RPL 06-8-0155 and RPL 06-8-                      
0171, at the "bottom of the calendar".                                         
                                                                               
Representative James added that this was a public policy                       
issue.  She voiced hesitation in maximizing the use of                         
federal funding especially for schools.  Representative                        
James stressed that the State has done this in the past and                    
it has created an administrative over-load.  She urged that                    
the entire Legislature address the concern.                                    
                                                                               
There being NO OBJECTION, Senator Pearce's MOTION to move                      
the RPL's to the "bottom of the calendar" was adopted.                         
                                                                               
RPL 06-8-0154 Department of Health and Social                                  
Services, State Health Services BRU,                                           
Women, Infants, and Children Component                                         
                                                                               
$1,000,000 dollars in statutory designated program receipts                    
to cover the anticipated increase in the infant formula                        
rebate contract with private industry.                                         
                                                                               
Mr. Greany noted that the Division of Legislative Finance                      
recommended approval of the request.  The funds are part of                    
the statutory designated receipt category.                                     
                                                                               
Senator Pearce MOVED to approve the above listed RPL.  There                   
being NO OBJECTION, RPL 06-8-0154 was APPROVED.                                
                                                                               
RPL 09-8-0039 Department of Military and Veterans                              
Affairs, Division of Emergency Services                                        
                                                                               
$25,000 dollars in federal receipts for a grant from the                       
National Earthquake Hazards Reeducation Program to conduct a                   
regional earthquake/tsunami conference.                                        
                                                                               
Mr. Greany stated that that the Division of Legislative                        
Finance recommended approval of the request.  The source of                    
federal funds is Federal Emergency Management Agency (FEMA).                   
                                                                               
Representative Hanley MOVED to approve the above listed RPL.                   
There being NO OBJECTION, RPL 09-8-0039 was APPROVED.                          
                                                                               
RPL 10-8-4016 Department of Natural Resources,                                 
Resources Development, Pipeline                                                
Coordinator                                                                    
                                                                               
$296,865 dollars in statutory designated program receipts to                   
process applications for pipeline right-of-way leases for                      
the proposed Liberty Island sales oil pipeline and utility                     
oil pipeline.                                                                  
                                                                               
Mr. Greany recommended that the RPL be approved.                               
                                                                               
Representative James MOVED to approve the above listed RPL.                    
There being NO OBJECTION, RPL 09-8-0039 was APPROVED.                          
                                                                               
RPL 10-8-4018 Department of Natural Resources,                                 
Management and Administration, Trustee                                         
Council Projects                                                               
                                                                               
$996,100 dollars in Exxon Valdez oil spill settlement funds                    
for the acquisition of land located within the City of                         
Homer.                                                                         
                                                                               
Mr. Greany noted that the Division of Legislative Finance                      
recommended approval of the request for land acquisition.                      
Senator Pearce asked if the plans were threatened by other                     
usage.                                                                         
                                                                               
(Tape Change 97-1, Side 2).                                                    
                                                                               
ERIC MYERS, EXXON VALDEZ TRUSTEE COUNCIL, ANCHORAGE,                           
explained that the lands had been proposed to the Trustee                      
Council for consideration resulting from discussions                           
regarding public lands and possible use options.  The                          
options will expire the beginning of next year.  He added,                     
there is pressure on the Homer Spit and the City of Homer to                   
get this process rolling.  The program would provide an                        
opportunity for various landowners to work on a voluntary                      
basis with the City of Homer.                                                  
                                                                               
Senator Torgerson pointed out that the property was a first                    
parcel purchase by Exxon Valdez to be turned over to a local                   
government.  He did not know of a competing interest for                       
development, and recommended approval of the measure.                          
                                                                               
Senator Adams MOVED to approve the above mentioned RPL.                        
Senator Pearce OBJECTED.  Senator Halford asked what would                     
happen if the decision was held until the full Legislative                     
session.                                                                       
                                                                               
Mr. Myers replied that the trust for public land established                   
a package of land, involving multiple landowners, with the                     
support of local government.  There exists an opportunity                      
resulting from these efforts to purchase the land                              
collectively under the proposal.  The options will expire as                   
early as January, 1998.  At the point the options expire,                      
there will be no clear opportunity to put the package back                     
together.                                                                      
                                                                               
Representative Therriault asked if currently there were                        
competing buyers or was it feared that the price would                         
increase.  Mr. Myers acknowledged there was fear that the                      
price would increase.  He added, there are pressures that                      
the shoreline could be developed.  If the option does                          
expire, it is assumed that the price will increase.                            
                                                                               
Senator Pearce suggested that since the area was all                           
wetlands, the chances of development were slim.  She                           
questioned what the trust would be restoring, enhancing or                     
rehabilitating in that area.  Mr. Myers pointed out that                       
since the program's inception, there had been three hundred                    
land nominations in the area of properties.  Only a small                      
fraction (10%) of those lands was of interest to the                           
Council.  He stressed that these lands had fair market                         
appraisals.                                                                    
                                                                               
JACK CUSHING, MAYOR, CITY OF HOMER, HOMER, commented that                      
these lands are very threatened by purchasers.  There has                      
never been a core permit denied on that side of the Spit.                      
This popular program has been in the making for ten years.                     
Zoning has remained the same.  Land owners have been                           
encouraged to participate for the "over-all" good of the                       
City of Homer as land is one of the biggest tourist draws in                   
that area and it needs to be preserved for the economic                        
development of that growth industry.                                           
                                                                               
Senator Halford asked what would occur if nothing was                          
addressed for sixty days when the entire Legislature could                     
consider it.  Mayor Cushing understood that the options                        
would begin to expire, which would then complicate matters.                    
Mr. Myers added that the Spit package involves four                            
contiguous parcels, each of which has one or more owners.                      
Bringing that amount of people to the table at the same time                   
took a tremendous amount of energy.  Each arrangement                          
consists of individual options that the trust had to                           
establish which begins to expire in January, 1998.                             
                                                                               
Representative Croft emphasized that this area is threatened                   
and that money had been set-aside for this purpose.  He                        
added, the Chamber of Commerce in Homer, their local senator                   
and the municipal body supported the proposal.  The people                     
in that area want this land to be used for this practice.                      
He reechoed support for the purchase.                                          
                                                                               
Senator Pearce questioned why the Trustee Council had not                      
requested an option which would extend time into the next                      
legislative session.  She voiced her frustration with the                      
way in which the Council was running this business.  She                       
pointed out that the process had been in the making for the                    
last ten years and questioned why the expediential rush                        
given the merits of the program.  She recommended that it                      
was time for the full Legislature to look at the overall                       
purchasing of the Trustee Council as she stressed the impact                   
to that land.                                                                  
                                                                               
Mayor Cushing replied that this has been a 10-year                             
comprehensive plan.  A land-use and comprehensive plan is                      
not a land ordinance.  It was not until the funds became                       
available that there was a qualification.  The six votes                       
from the Trustee Council had to be determined.  The Trustee                    
Council had concerns regarding the comprehensive package.                      
The City of Homer was not sure that they had the six votes                     
from that entity until it was worked out to a comfortable                      
level for all those involved.                                                  
                                                                               
Mayor Cushing added that the City of Homer had added sixty                     
acres of land to each side of the Spit parcels.  That action                   
required incredible deliberation.  He assured the Committee                    
that this was a classic real estate transaction, taking                        
advantage of an opportunity which exists right now.                            
                                                                               
Representative James believed the issue was too big to                         
address in the LBA Committee.                                                  
                                                                               
Mr. Myers noted that the terms of the options were not                         
negotiated by the Trustee Council or the Restoration Office.                   
They were negotiated by a private entity on behalf of the                      
City of Homer.  Those options expire in January, 1998.  He                     
feared that if the time limit is exceeded, the compromise                      
will not be reestablished.                                                     
                                                                               
Representative James MOVED to adopt RPL 10-8-4018.  Senator                    
Adams OBJECTED, pointing out that he made the motion before                    
Representative James.  Senator Adams MOVED to approve this                     
RPL.  He stated that in the past the LBA Committee has                         
approved similar motions and that the requested amount was                     
"peanuts" for the Committee.                                                   
                                                                               
A roll call vote was taken on the MOTION to adopt RPL 10-8-                    
4018.                                                                          
                                                                               
IN FAVOR:     Adams, Torgerson, Croft, Therriault                              
OPPOSED:      Phillips, Halford, Pearce, James, Hanley                         
                                                                               
Senator Donley, Representative Martin, and Representative                      
Bunde were not present for the vote.                                           
                                                                               
The MOTION FAILED (4-5).                                                       
                                                                               
Senator Adams requested that the Trustee Council get back to                   
the LBA Committee and let them know when the options run                       
out.  If the options do not run out by January 12, 1998,                       
another LBA Committee meeting is scheduled at that time and                    
it can be readdressed then.                                                    
                                                                               
RPL 10-8-4022  Department of Natural Resources,                                
Agricultural Development, Agricultural                                         
Development                                                                    
                                                                               
$50,000 in federal receipts from the U.S. Department of                        
Agriculture for agricultural marketing.                                        
                                                                               
Mr. Greany noted that the Division of Legislative Finance                      
did recommend approval of the request, which is in line with                   
the agricultural marketing efforts.                                            
                                                                               
Representative James MOVED to approve the above listed RPL.                    
There being NO OBJECTION, RPL 10-8-4022 was APPROVED.                          
                                                                               
RPL 10-8-4023  Department of Natural Resources,                                
Agricultural  Development, Agricultural                                        
Development                                                                    
                                                                               
$18,300 dollars in federal receipts from the Conservation                      
Reserve Program for the maintenance of agricultural parcels                    
now owned by the State.                                                        
                                                                               
Mr. Greany noted that the Legislative Finance Division                         
recommended approval of the request to be directed for the                     
use of agricultural parcels before they are foreclosed.                        
                                                                               
Senator Halford asked what would happen to CRP contracts                       
when the State repossesses a piece of property.  He believed                   
that the incomes on the repossessed property could provide a                   
way for agriculture to pay its own way.  Mr. Greany                            
understood that the money was the revenue generated on the                     
estimated resale of the properties.  He acknowledged that                      
there was value to the CRP contracts.                                          
                                                                               
Representative James MOVED to approve the above listed RPL.                    
There being NO OBJECTION, RPL 10-8-4023 was APPROVED.                          
                                                                               
RPL 10-8-4024  Department of Natural Resources,                                
Agricultural Development, Agricultural                                         
Development                                                                    
                                                                               
$6,500 dollars in federal receipts from the Agricultural                       
Market Transition Act Program for the maintenance of                           
agricultural parcels now owned by the State.                                   
                                                                               
Mr. Greany noted that the Division of Legislative Finance                      
recommended approval of the above mentioned RPL, federal                       
monies to enhance agricultural efforts.                                        
                                                                               
Representative James MOVED to approve the above mentioned                      
RPL.  There being NO OBJECTION, RPL 10-8-4024 was APPROVED.                    
                                                                               
RPL 10-8-4025  Department of Natural Resources,                                
Agricultural Development, North Latitude                                       
Plant Material Center                                                          
                                                                               
$27,000 dollars in statutory designated program receipts to                    
accomplish additional work on the contract with the                            
Anchorage Water & Wastewater Utility for the revegitation                      
requirements of the Anchorage Loop Water Transmission Main                     
project.                                                                       
                                                                               
Mr. Greany noted that the Division of Legislative Finance                      
supported the proposed RPL.                                                    
                                                                               
Representative James MOVED to approve RPL 10-8-4025.  There                    
being NO OBJECTION, it was so APPROVED.                                        
                                                                               
RPL 12-8-0071  Department of Public Safety, Alaska                             
State Troopers, Narcotics Task Force                                           
                                                                               
$325,900 dollars in federal receipts for continuation of the                   
Narcotics Task Force Program.                                                  
                                                                               
Mr. Greany commented that the Division of Legislative                          
Finance would recommend that the request be approved.  Much                    
of the money will be used to reimburse claims by the local                     
jurisdictions involved in the narcotic efforts.  In order to                   
make the grants available, the full authority must be                          
authorized.                                                                    
                                                                               
Representative Hanley MOVED to approve RPL 12-8-0071.  There                   
being NO OBJECTION, it was APPROVED.                                           
                                                                               
RPL 4-8-0009  CIP-Department of Revenue, Alaska                                
Housing Finance Corporation, Public                                            
Housing CIP                                                                    
                                                                               
$240,000 dollars in AHFC corporate receipts to closeout the                    
Cedar Park reconstruction project.  (This RPL falls under                      
the FY95 guidelines for Legislative Budget and Audit                           
Committee review similar to RPL 04-7-0032 for the Department                   
of Revenue which was approved under the FY97 guidelines at                     
the August 21, 1997 meeting).                                                  
                                                                               
Mr. Greany explained that the request was for the approval                     
of additional corporate receipts.  The general appropriation                   
of the bill would not provide the Committee authority to                       
deal with corporate receipts for FY98 appropriations.  He                      
pointed out that this is a capital project which was enacted                   
by the 1994 Legislative Session.  The authority of the                         
project has not lapsed; it needs authority to increase                         
corporate receipts.  He believed that the Committee did have                   
the legal authority to act on the above mentioned RPL.  The                    
Legislative Finance Division recommends that if the LBA                        
Committee acknowledges the urgency to act upon the measure,                    
that they would have the legal authority to do that.                           
                                                                               
Senator Adams MOVED to approve RPL 4-8-0009.  He noted that                    
Cedar Park has been worked on for years and believed that it                   
would be to the State's advantage to have it approved and                      
finished.                                                                      
                                                                               
Representative Hanley questioned the emergency need time                       
line.                                                                          
                                                                               
JOHN BITNEY, CONSTRUCTION PROJECT DIRECTOR, ALASKA HOUSING                     
FINANCE CORPORATION, ANCHORAGE, explained that the project                     
was being closed-out and that the contractor needed to be                      
paid off.  Unpaid claims accrue interest at 10.5% interest.                    
The final amount settled with the contractor is $32,000                        
dollars higher than the initial request.                                       
                                                                               
Senator Adams questioned recovering a portion of the money                     
from the architect.  Mr. Bitney responded that the architect                   
acknowledged that a mistake had been made which lead to a                      
claim; AHFC is in the process of going forward with the                        
claims.  At this point, the architect has made an offer of                     
$150,000 dollars, AHFC rejected that offer.  The total                         
amount that AHFC will seek from that claim should be closer                    
to $500,000 dollars.                                                           
                                                                               
VICKI WILLIAMS, ALASKA HOUSING FINANCE DIVISION, ANCHORAGE,                    
noted that AHFC has a good chance of recovering that money.                    
Each claim cost will be analyzed.  There is substantial                        
evidence indicating problems.                                                  
                                                                               
Senator Adams questioned how the additional $32,000 dollars                    
would be recovered for the contractor and the interest                         
resulting from lack of payment.  Mr. Bitney stated that AHFC                   
would pay the claim rather than let it accrue interest.  He                    
added that AHFC is requesting the authority to do that at                      
this time so that the claim does not accrue interest.                          
                                                                               
Representative Therriault asked if there existed any other                     
authority from which to pay the claim.  Mr. Bitney replied                     
that AHFC could take money from an appropriation to pay the                    
accounts, however, claims are sought against the                               
architectural firm which made the mistakes leading to the                      
additional costs on the projects.  AHFC is requesting                          
authority on part of those claims to pay off the contractor.                   
If payment was delayed, another project would be interrupted                   
and then there would be a need to seek a supplemental down                     
the road to capture the needed funds.                                          
                                                                               
Mr. Greany noted that this was a specific capital project                      
being addressed.  Unless the agency had capital projects                       
encompassing a broader title to allow the use of these                         
funds, then this is the only one being addressed at this                       
time.  He pointed out that the revised request would bring                     
the amount to $272,099 dollars.                                                
                                                                               
There being NO OBJECTION to the motion to approve, RPL 4-8-                    
0009 was ADOPTED.                                                              
                                                                               
RPL 04-8-0010  Department of Revenue, Child Support                            
Enforcement                                                                    
                                                                               
$50,000 dollars in federal receipts for programs to                            
facilitate non-custodial parents' access to and visitation                     
of their children.                                                             
                                                                               
Mr. Greany explained that the funds would be used by the                       
Child Support Enforcement Division (CSED) and will go to the                   
Alaska Court System to reimburse a service agreement.  Those                   
funds will be spent on mediation services for child support                    
effort.                                                                        
                                                                               
Senator Adams MOVED to approve RPL 04-8-0010.                                  
Representative Therriault asked if the mediation would be                      
used at the time custody was decided.                                          
                                                                               
CECILIA LACARA, DEPUTY DIRECTOR, DIVISION OF CHILD SUPPORT                     
ENFORCEMENT, DEPARTMENT OF REVENUE, suggested that the Court                   
System could better answer that question.                                      
                                                                               
WENDY LYFORD, AREA COURT ADMINISTRATOR, SUPERIOR COURT,                        
ALASKA COURT SYSTEM, ANCHORAGE, explained that the Court                       
System would envision having the mediator available in any                     
court decision involving minor children where custody was an                   
issue.                                                                         
                                                                               
There being NO OBJECTION, RPL 04-8-0010 was APPROVED.                          
                                                                               
RPL 25-8-1058  Department of Transportation and Public                         
Facilities, Division of Weights and                                            
Measures                                                                       
                                                                               
$30,000 dollars in federal receipts for development of                         
strategic, intelligent transportation system/commercial                        
vehicle operations, business plan and for participation in                     
State and multi-State forms.                                                   
                                                                               
Mr. Greany explained that the Division of Legislative                          
Finance would recommend approval of the requested RPL.                         
                                                                               
Representative James MOVED approval of RPL 25-8-1058.  There                   
being NO OBJECTION, it was APPROVED.                                           
                                                                               
RPL 41-8-0031  Alaska Court System                                             
                                                                               
$41,700 dollars in federal receipts for a project to reduce                    
barriers faced by Native Americans who must have contact                       
with the Court System.                                                         
                                                                               
Mr. Greany noted that the Division of Legislative Finance                      
supported approval of the above mentioned RPL.                                 
                                                                               
Representative James MOVED to approve RPL 41-8-0031.  There                    
being NO OBJECTION, it was APPROVED.                                           
                                                                               
RPL 06-8-0152  Department of Health and Social                                 
Services, Medical Assistance BRU, Indian                                       
Health Service Component                                                       
                                                                               
$3,750,000 dollars in federal receipts for Medicaid coverage                   
for native clients.                                                            
                                                                               
                                                                               
RPL 06-8-0155  Department of Health and Social                                 
Services, Public Assistance                                                    
Administration BRU, Child Care Benefits                                        
Component                                                                      
                                                                               
$875,000 in federal receipts for welfare to work                               
transitional child care assistance.                                            
                                                                               
RPL 06-8-0171  Department of Health and Social                                 
Services, Medicaid State Programs                                              
                                                                               
$1,300,000 dollars in federal receipts available through the                   
Medicaid school-based claim program to be used to address                      
the backlog of children waiting for adoption.                                  
                                                                               
Representative Hanley commented that all requests from the                     
Department should be addressed as a package.  He requested                     
more information regarding the appropriation.  He pointed                      
out that the request would provide an appropriation beyond                     
the current year.  He questioned the extended levels of                        
funding which would move out of the request and increase                       
Medicaid applications.                                                         
                                                                               
(Tape Change LBA 97-2, Side 1).                                                
                                                                               
Representative Hanley spoke to the magnitude of the proposal                   
noting the multiple changes proposed to the Medicaid                           
program.                                                                       
                                                                               
Senator Adams voiced concern with all the programs which                       
would be discontinued without passage of the proposed                          
package.  He recommended that each program be analyzed on an                   
individual basis.                                                              
                                                                               
SUZANNE GOODRICH, EXECUTIVE DIRECTOR, CATHOLIC SOCIAL                          
SERVICES (CSS), EAGLE RIVER, spoke to RPL 06-8-0171.  She                      
explained that Catholic Social Services, which is part of a                    
national program, shares the cost of finding adoptive homes                    
for children.  This service is a strong advocate for the                       
Adoption Reform Bill at the congressional level. CSS has                       
been in close contact with the Department of Health and                        
Human Services requesting response for the urgent need of                      
children for adoptive families.  In consideration of the                       
children, she urged Committee members to consider and                          
support of this RPL.  Ms. Goodrich stressed that this is an                    
urgent matter.                                                                 
                                                                               
MARGARET KIRKLAND, ANCHORAGE, spoke to Committee members of                    
her own trauma of being a foster child for many of years,                      
and the power of the Committee to help alleviate that fate                     
for the children today.                                                        
                                                                               
RANDY SUPER, (TESTIFIED VIA TELECONFRENCE), DEPARTMENT OF                      
HEALTH AND SOCIAL SERVCIES, offered to answer questions of                     
Committee members regarding the technicalities of the school                   
administrative training.  He pointed out that the                              
Legislature has discussed the policy level of identification                   
of use of the funds.  Mr. Super noted that the initial                         
request to the federal government was $2 million dollars.                      
Through subsequent negotiations, it was increased.  He                         
listed the priorities the Department has for the use of                        
funds in the adoption program.  The funds would additionally                   
be used as grants to the school districts.  If the proposal                    
is delayed for legislative consideration, the availability                     
of the funds not being released until May, would make it                       
difficult to effectively spend for specific purposes.                          
                                                                               
Mr. Super stressed that the costs could be used to                             
accommodate clients this year, as funds are available.  The                    
Department is attempting to manage the program, while                          
meeting the needs as the dynamic health care environment                       
changes.                                                                       
                                                                               
Ms. Clarke stressed that there are three separate RPL's                        
being proposed by the Department.  She stressed that each                      
one is individual and distinct within itself.                                  
                                                                               
She advised that the Department would not be able to                           
complete the work in addressing the backlog of 400 children                    
in a six-month period.  Consequently, the Department has                       
requested the LBA Committee to extend the lapse date for                       
those special identified children.                                             
                                                                               
Senator Phillips pointed out that the RPL was not received                     
by his office until one-week prior and was concerned with                      
the way in which it was presented.  He added that the                          
Legislative Finance Division had recommended that the                          
consideration be deferred until the upcoming legislative                       
session.                                                                       
                                                                               
ANNALEE MCCONNELL, (TESTIFIED VIA TELECONFERENCE), DIRECTOR,                   
OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR,                       
JUNEAU, apologized to Senator Phillips that the RPL had not                    
been faxed earlier.  She reiterated that the Department is                     
trying to use this one-time federal money to deal with the                     
backlog.  The Department believes that the opportunity is                      
present for the LBA Committee to make it possible for                          
private agencies to move children through the system in                        
order that they can be placed into permanent homes.                            
                                                                               
Senator Pearce commented that she had seen the backlog list                    
and noted her sympathy for those children, although, she was                   
not willing to support an RPL which would create a "vacuum".                   
She asked if there was any money in the current budget for                     
home study.  She did not understand how RSA'd funds could                      
fix the problem.  Senator Pearce questioned if this funding                    
would be a guarantee that the 400 children would receive the                   
funds rather than they being distributed to "other" needs                      
within the Administration.                                                     
                                                                               
Ms. Clarke explained that the Department currently spends                      
funds on adoption through subsidization.  She added, little                    
money is spent on home studies. At this point, the                             
Commissioner of the Department has identified that spending                    
money on the proposed issue is the highest priority and best                   
used of those funds.                                                           
                                                                               
Ms. Clarke continued, the Court System intends to bring a                      
retired judge back to service to deal with these kind of                       
cases.  If the Court System should need more money, the                        
Department would try to reallocate within other agencies.                      
                                                                               
Representative James voiced her opposition to the                              
proposition RPL 06-8-0152 and RPL 06-8-06-8-0171.  She noted                   
that to place money into an existing policy would be                           
difficult.  This condition arises because the State has not                    
had a policy which moves easily through the system.  She                       
feared placing additional funds into the pot without making                    
some policy or statutory changes and that the extra funds                      
would not solve the overall problems.                                          
                                                                               
Representative Croft voiced his support for the funding.  He                   
commented that this was an innovative response to an                           
emergency situation as requested by the Legislature.  The                      
Department came through as requested, and now response is                      
being delayed.  He stressed that this was an appropriate                       
response to an emergency situation which does not use                          
general funds and does not hire additional state employees.                    
He warned that by re-studying the situation, 400 children                      
would be placed at risk once again.                                            
                                                                               
Senator Adams noted that federal funds are always                              
accompanied with policies and guidelines for qualification.                    
He supported giving the Administration as many tools as                        
possible to help get children out of foster care and into                      
loving homes.                                                                  
                                                                               
Senator Phillips asked Senator Pearce's opinion regarding                      
the best way to address the concerns of the three RPL's.                       
Senator Pearce recommended that a motion be made to address                    
each concern separately.  She voiced discomfort making large                   
decisions and transfers of programs within departments                         
without the Finance Committees participating in that                           
decision.  She added, she was comfortable with transfers to                    
the childcare component which she understood would help                        
address the waiting list.                                                      
                                                                               
Senator Adams MOVED to approve RPL 06-8-0152.  Senator                         
Pearce OBJECTED.  Representative Therriault asked for                          
clarification of the request.  Ms. Clarke replied that RPL                     

0152 would address the portion of the school-based claims which would go back to the Department of Education. Representative James questioned the administrative burden that this would place on the school districts. Ms. Clarke clarified that the funds would not direct the schools to do more work. The schools have agreed to do a time study based on an administrative check sheet. To continue that administrative burden, the Department has agreed to contribute half the amount back to the school district. Representative James was not convinced that the school system would want this responsibility placed on their backs. Representative Croft pointed out that the State is now serving Medicaid students and deserves to receive that money, suggesting that every avenue be pursued for reimbursement. In response to Representative James' concern, Ms. McConnell noted that the State was not mandating that every school provides a time study. It would be provided on a voluntary basis. The districts are then reimbursed for their time and energy. Ms. McConnell concluded that this would not be an unfounded mandate. A roll call vote was taken on the motion. IN FAVOR: Adams, Croft, Therriault OPPOSED: Phillips, Donley, Pearce, Torgerson, Bunde Senator Halford, Representative Martin, Representative James and Representative Hanley were not present for the vote. The MOTION FAILED (3-5). Senator Adams MOVED to approve RPL 06-8-0155. There being NO OBJECTION, it was so ordered. Senator Adams MOVED to approve RPL 06-8-0171. Senator Pearce OBJECTED. She asked if the Department planned to offer a supplemental request in any budget area. Ms. Clarke replied that the Department is attempting to avoid supplemental requesting, particularly in the Medicaid area. Although, there are intricacies in the Legislature front section contingency language which will require supplemental language. Ms. McConnell agreed that there are some technical issues which need to be addressed for the federal Medicaid rate change. Federal matching had not been under consideration by Congress when the budget was being passed. She noted that the Department would want to handle this consideration in a spring supplemental. She emphasized that the backlog of children must be addressed. Senator Pearce understood that these funds could be used for anything. She pointed out that they were unrestricted general funds, given the highest priority of the Department. She recommended that if there is going to be a supplemental, the $1.3 million dollars should be used toward those concerns with a new program brought before the full Legislator in January. She reiterated her concern regarding the 400 foster children. Representative Therriault questioned the Court System's involvement and probability of hiring retired judges to address these concerns. Representative Croft acknowledged the frustration of those involved in government to do what everyone knows need to be accomplished. (Tape Change, LBA 97-2, Side 2). Representative Croft urged members to consider if this is an appropriate proposal and problem. He believed that retired judges would be willing to consider such a position. Mr. Greany listed options to approve the concerns. The obvious option would be to approve the request as presented. Another option would be to defer the request in order that the Finance Committees could consider it. The Committees could determine if it was a worthwhile idea and then address it by giving LBA an indication to approve the RPL expeditiously. Senator Pearce inquired the amount of money which could reasonably be spent in a ninety-day period on the concern. Ms. Clarke replied that cash flow analysis had not yet been performed and that problems arise when the State partners with a non-profit agency. She believed that the Department of Law and the Alaska Court System would require a quick RSA for the amount obligated. She agreed that all the funds could not be spent in six months and that probably eighteen months would be needed to adequately address the concern. Ms. McConnell added, the approach was determined by referencing the entire list of children to decide what would be needed for the "total" home study as opposed to caring for only some of the children. Representative Therriualt questioned the idea of an eighteen-month proposal. He questioned why the LBA Committee should make a decision to amend the current year fiscal plan and the following year's plan. Ms. Clarke recognized that it would take the full Legislature to extend the program to the entire eighteen months. Ms. McConnell acknowledged that the Administration recognized that LBA does have the authority to make decisions in the interim particularly when there are unanticipated federal funds available. She reiterated that these are one-time funds and only the FY98 portion was being addressed in the request. Representative Therriault indicated that most often a grant is used for a specific purpose. Representative Croft requested more information on the categories listed. THERESA TANOURY, SPECIAL ASSISTANT TO COMMISSIONER PERDUE, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, spoke to the code for special needs as listed on number #4 (direct recognized risk with physical or mental needs) and #9 (court delay). The departmental adoption specialists determined that any additional money would go to the courts to speed up the hearing process for each child and to more experientially match a home with a child. Ms. Goodrich reiterated that at Catholic Social Services, there are ten families ready to adopt children. Representative Therriault noted the frustration in the Fairbanks area with the Foster Care Review Panel and it's funding make-up. He recommended that funding be given to these types groups. Representative Therriault believed that to obligate the entire funds to the Division of Family and Youth Services (DFYS) would not be beneficial. Senator Donley voiced concern that the LBA Committee was being requested to obligate the entire funding for the eighteen-month period. He asked to see the money used for its best use and not just what the Executive Branch assumed necessary. Ms. Goodrich replied that all the groups involved understand that there are fiscal considerations to be addressed. The quicker the children are moved through the system, the less the cost to the State and the less emotional cost to the child. She pointed out, it is important to understand that foster homes are only one part of the entire system. The sooner the child is moved from foster care to adoptive homes, more space is freed up for new children entering into the program. She urged member's favorable consideration of the requested RPL. Senator Halford questioned the effect of approving only one third of the request. Mr. Greany replied that the Committee had the authority to make such a move. He warned that the membership must consider the "severability" concern. Mr. Greany pointed out that are 400 children who would be at stake. Providing only one-third would make it be difficult to identify the effectiveness of dealing with the list and the program. Ms. Clarke added that the Department is currently undertaking on-going planning addressing the adoption aspect of the program. The money is not to go to planning. The list identifies over 100 children who are legally free to go to adoption. Some of the technicalities of getting them placed have to do with home studies. She stressed that for this RPL, the Department has done a tremendous amount of research in identifying the individual circumstances of the children through working with tribal organizations. She emphasized that the Department has worked diligently to come up with an innovative proposal to address certain needs. Ms. Clarke repeated that this is an urgent situation. Senator Adams asked if one third of the funding was granted how long would the Department be able to draw upon those funds before requiring the additional monies. Ms. McConnell replied that obviously, the Administration would prefer to help some children rather than no children, but would prefer to move immediately to help as many children as possible. She believed that this Committee would want to see that each child be placed. The question is when they can be placed. Senator Halford stated that it was unconscionable for the Administration to come to the LBA Committee with an eighteen-month program, thirty days before the Legislature was to commence. He noted that he supported the intent and added that he would like to see a partial component which could get it started before the Legislature begins, although, he was not willing to use the LBA Committee to circumvent the entire Legislative process. Senator Pearce commented that it was "not good" that the Legislature had not been previously informed about the number of children waiting and available for placement. She questioned if money should be used to establish an entire new program one-month before session begins. Senator Pearce asked if it was common in other states that the state be responsible to pick up the cost for the home study or should the adoptive parents be responsible for those services rendered. Ms. Clarke explained that the program was based on a model used in the State of Oregon for those children in state custody. Ms. Tanoury added, situations vary because many times a multiple of home studies must be done to match the child to right family. Sometimes families come prepared to pay, although, often times they are not able to. The funding would allow our State to move quickly on the home study aspect. Senator Halford MOVED TO AMEND the original motion to one third (1/3) the amount requested. A roll call vote was taken on the motion. IN FAVOR: Phillips, Adams, Donley, Halford, Torgerson, Bunde, Croft, Therriault OPPOSED: 0 Senator Pearce, Representative Martin, Representative James and Representative Hanley were not present for the vote. The MOTION PASSED (8-0). Senator Donley recommended that particular interest be placed to the RSA's to the Department of Law billing purposes. He emphasized that the money be used for the appropriate services for specific purposes. Representative Croft asked how the Department of Law would be allocated the funds or if they would be granted on a contractual basis. Ms. Clarke replied that the Department of Law has indicated that they would use contract attorneys to do the work. Senator Phillips asked if there were objections to the amended RPL 06-8-0171. There being NO OBJECTIONS, the amended to one-third the full amount RPL was APPROVED. 45 DAY RULE DISCUSSION Mr. Greany stated that this was entire list of RPL's to come before the Committee for action. He spoke to the 45-day rule which stipulates that if the Committee turns down a RPL, the Governor can legally proceed with it 45 days later as that money would have been appropriated in the front section of the general appropriations bill. Mr. Greany understood that the LBA Committee was looking for ways in which to address this concern. Mr. Greany explained, following discussion with Tamara Cook, Director, Alaska Legal Services, it was concluded that, Option #2, extending the waiting period from 45 days to a time placing it into a specified time of the next session, would hold the most merit. That option would give the Legislature the opportunity to "dis" appropriate the funding approval. All options would require legislation which could result in litigation. He recommended Option #2, which the Legislature could address statutorily and could stand a good chance in a legal challenge. Senator Donley MOVED that the Chair of the Committee request legislation which adopts Option #2. Senator Adams OBJECTED. He questioned who controls the agenda as put before the LBA Committee. Mr. Greany understood that the Office of Management and Budget (OMB) controls the agenda of the LBA Committee. Representative Croft stated that Option #2 was unconstitutional under the statutory code. Mr. Greany pointed out that there was an attached legal analysis provided by Legal Services discussing possible legal challenges and separation of powers. He suggested that this issue be reviewed during the session. Senator Halford asked for clarification, suggesting that if the front section were not included in the budget, if the Legislature would be on sound ground assuming that the Governor could not spend those monies. Mr. Greany agreed, pointing out that would correspond with Option #3. Senator Halford commented that in every other option, the Governor could veto. He reiterated that the only choice "of strength" for the Legislature would be to change the appropriation in the front section. Mr. Greany added that Option #3 would put the LBA Committee "out of business" as far as the ability to be involved in additional expenditure authority. Senator Halford noted that unless the Legislature is willing to implement that, the Governor would never go along with a change to his authority. (Tape Change LBA 97-3, Side 1). Senator Halford and Mr. Greany continued discussion on options to the 45-day rule. Representative Therriault suggested that the Committee "hold-off" on action regarding a decision. Senator Pearce applauded the LBA Committee for encouraging the Finance Committees to look at the questions of additional spending through the bigger picture. Senator Phillips advised that given the Committee reviewal of the list, when the following Legislative Session commences in January, the Committee meet to discuss these options. Senator Donley WITHDREW the MOTION to adopt Option #2. There being NO OBJECTION, it was APPROVED. EXECUTIVE SESSION Senator Pearce MOVED that the Committee meet in EXECUTIVE SESSION for the purpose of consideration of audits and other items related to the Committee's finances. There being NO OBJECTION, the Committee met in EXECUTIVE SESSION. REGULAR SESSION The Committee reconvened in REGULAR SESSION. Senator Pearce MOVED to move the Department of Fish and Game's audit to that Department for response. There being NO OBJECTION, it was APPROVED. Senator Pearce MOVED to direct audit staff to depose university personnel. There being NO OBJECTION, it was APPROVED. SPECIAL AUDIT REQUESTS Senator Donley MOVED to approve all the audit requests except those of Senator Taylor and Representative Hanley. There being NO OBJECTION, it was APPROVED. Senator Phillips noted that both he and Representative Hanley would request that priority be given on the audit for work to be completed by March, 1998. Senator Donley asked that LBA stress that Representative Hanley's request be moved to the top priority of the auditor's work. Senator Pearce requested a copy of the list of backlogged projects. Senator Phillips commented that the McDowell report would be available on January 30, 1998. Senator Phillips asked to create a committee for the selection of Director for the Legislator Audit Division. Committee volunteers were: Senator Halford, Senator Pearce, Senator Adams, Representative Therriault, Representative Hanley, and with Senator Phillips as Chair of the Committee. He asked that resumes be sent to all members of the LBA Committee. ADJOURNMENT The meeting adjourned. LBA 1 12/12/97

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