Legislature(2003 - 2004)
07/08/2004 11:05 AM House BUD
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
JOINT COMMITTEE ON LEGISLATIVE BUDGET AND AUDIT
July 8, 2004
11:05 a.m.
MEMBERS PRESENT
Representative Ralph Samuels, Chair
Representative Mike Chenault
Representative Mike Hawker
Representative Vic Kohring (via teleconference)
Representative Beth Kerttula (via teleconference)
Senator Gene Therriault, Vice Chair (via teleconference)
Senator Ben Stevens
Senator Con Bunde
Senator Gary Wilken (via teleconference)
MEMBERS ABSENT
Senator Lyman Hoffman
COMMITTEE CALENDAR
APPROVAL OF MINUTES
RPL FOR THE ALASKA AVIATION SAFETY PROJECT
OTHER COMMITTEE BUSINESS
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
CHERYL FRASCA, Director
Office of Management & Budget (OMB)
Office of the Governor
Juneau, Alaska
POSITION STATEMENT: Presented the RPL 09-5-001 regarding the
Alaska Aviation Safety Project to the Joint Committee on
Legislative Budget and Audit.
JOHN CRAMER, Director
Administrative Services Division
Department of Military & Veterans' Affairs
Juneau, Alaska
POSITION STATEMENT: During discussion of the RPL 09-5-001
regarding the Alaska Aviation Safety Project, answered
questions.
DAVID TEAL
Legislative Fiscal Analyst
Legislative Finance Division
Juneau, Alaska
POSITION STATEMENT: Provided information to the Joint Committee
on Legislative Budget and Audit regarding RPL 09-5-001.
ACTION NARRATIVE
TAPE 04-12, SIDE A
Number 0001
CHAIR RALPH SAMUELS called the Joint Committee on Legislative
Budget and Audit meeting to order at 11:05 a.m. Representatives
Samuels, Chenault, Hawker, Kohring (via teleconference), and
Kerttula (via teleconference) and Senators Therriault (via
teleconference), Ben Stevens, Bunde, and Wilken (via
teleconference) were present at the call to order.
APPROVAL OF MINUTES
REPRESENTATIVE HAWKER made a motion to approve the minutes of
April 27, 2004, and the May 18, 2004. There being no objection,
the minutes from the meetings of April 27, 2004, and the May 18,
2004 were approved.
RPL FOR THE ALASKA AVIATION SAFETY PROJECT
REPRESENTATIVE HAWKER moved that the committee approve RPL 09-5-
0001, the Alaska Aviation Safety Project.
CHAIR SAMUELS objected.
CHERYL FRASCA, Director, Office of Management & Budget (OMB),
Office of the Governor, explained that the RPL is a request to
receive $2.8 million in federal funds from NASA in order to
continue a project that collects safety information to map
airline mountain passes. Recently, confirmation was received
that NASA has actually approved the grant funds. She indicated
that the confirmation had been provided to the Legislative
Finance Division. Timing, in regard to the longer daylight
hours and good weather, is important, and therefore the
committee's quick response is appreciated, she related.
CHAIR SAMUELS related that he has received many calls from the
private pilot community, which was concerned that any delay
would result in the loss of time to map some of the passes that
the private pilots use. This is a safety factor. He related
his appreciation and that of the private pilots for the work
that OMB has done.
REPRESENTATIVE KERTTULA recalled that OMB had questions on this
matter during special session [when this matter was originally
scheduled before the committee]. She inquired as to OMB's
concerns during special session.
MS. FRASCA explained that things happened so quickly that OMB
wanted to be sure that it had all the information. At the time
of the special session, the confirmation from NASA regarding
whether the funds would be awarded hadn't been received. That
confirmation has been received and thus the project can proceed.
Number 030
SENATOR THERRIAULT recalled that there was a question regarding
whether there will be the need for a fiscal year (FY) 06 capital
appropriation. Therefore, he asked if OMB anticipates
additional money coming forward. If so, will that be included
in the '06 capital submittal, he asked.
MS. FRASCA said that she would rely on John Cramer if there is
an expectation of additional money. She opined that the issue
was technical in nature. She reminded the committee that the
committee's authority is limited to approving increased funds
for projects for which the legislature as a whole has already
approved. The aforementioned was considered when determining
how the committee could receive the money and align it with a
capital appropriation in order to avoid a lapse. However, she
related her belief that now the money is associated with an
operating budget appropriation. The OMB will work through the
issues to determine whether it's necessary to address it next
session as either a supplemental appropriation, a
reappropriation, or an appropriation in FY 06.
REPRESENTATIVE KERTTULA related her assumption that there wasn't
a capital project with which this could be aligned, and
therefore the project has been placed in the operating side.
She asked if that created any problems for next session.
JOHN CRAMER, Director, Administrative Services Division,
Department of Military & Veterans' Affairs, confirmed that there
wasn't an existing capital project that this project could be
run through, and therefore it was placed in the operating
budget.
MS. FRASCA said that she wasn't aware of any problem that the
aforementioned placement might create.
REPRESENTATIVE KERTTULA related her understanding that this
project is going to be in the operating budget and will be
appropriated through the Joint Committee on Legislative Budget
and Audit back to the division for use.
MS. FRASCA explained that the issue is regarding whether the
funds would lapse at the end of the fiscal year. Capital
appropriations don't lapse at the end of the fiscal year and
thus some of the "logistical or paperwork" hurdles would have
been removed had this been attached to a capital appropriation.
However, no capital appropriation was found and due to the scope
of authority of the Joint Committee on Legislative Budget and
Audit it was necessary to find a related original appropriation
to which these funds could be added. The suggestion has been
made that next session the appropriation be re-categorized from
an operating appropriation to a capital appropriation, if it's
necessary. The Legislative Finance Division has indicated that
it may not be necessary, especially if the money is expended by
the end of the fiscal year.
REPRESENTATIVE CHENAULT noted that HB 375, which includes
appropriation authorities, hasn't been signed. He asked if
there will be any problems if this RPL is approved and the
[appropriation to which it's attached] is eliminated from the
budget.
MS. FRASCA said that she wasn't aware that the aforementioned
would create a problem.
Number 071
REPRESENTATIVE HAWKER turned to the second bullet under the
heading of Budgetary Issues on the RPL form. That second bullet
says, "This project is not applicable to current departmental
efficiency measures." He inquired as to the point of that
statement.
MS. FRASCA noted that these forms are prepared by the
departments and the instructions include a number of questions
that the department is asked to answer. The second bullet is in
response to the question regarding whether the project would
advance one of the department's efficiency or performance
measures.
DAVID TEAL, Legislative Fiscal Analyst, Legislative Finance
Division, returned to Representative Chenault's note that HB 375
hasn't been signed. Mr. Teal related that without the
[governor's] signature [on HB 375] there is no LB&A language and
no authority to review and no appropriation can be made.
Therefore, he suggested that the RPL be approved contingent upon
the governor's signature of HB 375.
SENATOR BUNDE said that he hasn't seen a list of the mountain
passes that would be mapped, and therefore he inquired as to the
specific passes this would address.
MR. CRAMER offered to provide that information to the committee.
Number 100
REPRESENTATIVE HAWKER amended his earlier motion by moving that
the committee approve RPL 09-5-001, with the effectiveness of
the RPL being contingent upon the signing of HB 375 to include
the provisions as referenced in the appropriation authority.
CHAIR SAMUELS removed his earlier objection and announced that
the RPL was approved.
OTHER BUSINESS
SENATOR WILKEN inquired as to the status of the purchase of the
Wood McKenzie study.
CHAIR SAMUELS answered that the Woods McKenzie study has been
purchased and it's expected to be [available] mid October or mid
November. He noted that there have been questions regarding
price points versus a range. He also noted that he is
continuing to look for other studies as other options. In
further response to Senator Wilken, Chair Samuels said that he
approved about roughly [$45,000 U.S.]
SENATOR WILKEN also asked if the status report for [American
Institutes for Research] study is available.
CHAIR SAMUELS said that the contract has been signed. He
related that the goal is to complete [the status report] by mid
December in order to be available in time for the next
legislative session. That timeframe seems to be [on course].
ADJOURNMENT
There being no further business before the committee, the Joint
Committee on Legislative Budget and Audit meeting was adjourned
at 11:20 a.m.
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