Legislature(1993 - 1994)
01/29/1993 01:30 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
January 29, 1993
1:30 p.m.
TAPE HFC 93-15, Side 1, #000 - 684.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee to order
at 1:30.
PRESENT
Co-Chair Larson Representative Hoffman
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Navarre
Representative Brown Representative Parnell
Representative Foster Representative Therriault
Representative Grussendorf
ALSO PRESENT
Charlot Thickstun, Director, Division of Elections, Office
of Lieutenant Governor;
SUMMARY INFORMATION
HB 68 An Act making a supplemental appropriation for
certain elections for regional educational
attendance area school boards and coastal resource
service area boards; and providing for an
effective date.
CSHB 68 (Fin) was reported out of Committee with a
"do pass" recommendation.
CHARLOT THICKSTUN, DIRECTOR, DIVISION OF ELECTIONS, OFFICE
OF THE GOVERNOR provided members with back-up material
pertaining to HB 68 (Attachment 1). She noted that costs,
mandates and descriptions of regional educational attendance
area (REAA) and coastal resource service area board
elections (CRSA) are contained in Attachment 1. She
emphasized that she had expressed concern that the Division
would not have sufficient funds to cover reapportionment
costs and perform the March 2, 1993 elections. Attachment 1
contains a letter to Shelby Stastny, Director, Office of
Budget and Management, dated June, 1992, in which Ms.
Thickstun summarized discussions pertaining to these issues.
She observed that the Division's request for additional
funding to cover reapportionment costs were not included in
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the agenda for the 2nd Special Session of the Seventeenth
Alaska Legislature. The Division's failure to receive
reapportionment funding caused other items in its budget to
be shifted. She stressed that Judge Weeks moved, on June 3,
1992, that the Division of Elections seek funding from the
State of Alaska for the REAA and CRSA elections.
Representative Navarre asked why the Division of Elections
has divided its supplemental requests into two vehicles, HB
68 and HB 94. Ms. Thickstun state that the Attorney General
suggested that the requests be divided in order to expedite
the election.
Representative Navarre asked if the Division had acquired
Legislative Budget and Audit Committee approval before
diverting funds allocated for REAA and CRSA elections. Ms.
Thickstun answered that she had addressed the situation in a
memorandum to Shelby Stastny, Director, Office of Budget and
Management.
Representative Navarre reminded Ms. Thickstun that the
Legislature, not the Office of Budget and Management, is the
agent of appropriation. He added that the Legislative
Budget and Audit Committee is the interim finance committee
for the Legislature. Ms. Thickstun recalled that the matter
was not brought before the Legislative Budget and Audit
Committee.
Representative Navarre expressed support for REAA and CRSA
elections but relayed concerns that the Division of Election
had misappropriated funds. He interjected that the
Legislature should have an understanding of how money
appropriated for REAA and CRSA elections were spent,
including money spent on reapportionment, legal fees and
Reimbursable Service Agreements to the Department of Law.
He reiterated that notification to the Legislature after the
fact constitutes a misappropriation of funds. He emphasized
that the Legislature's power of appropriation is a
constitutional power and responsibility.
Co-Chair Larson commented that the Legislative Budget and
Audit Committee is completing an audit of the Division of
Elections. He anticipated that the audit will be finished
in two weeks. He echoed Representative Navarre's concerns
regarding the Division of Election's over-spending for
reapportionment.
Representative Navarre emphasized that the Legislature did
fund the FY 93 REAA and CRSA elections.
Representative Martin noted his objection to general fund
appropriations by the Legislative Budget and Audit
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Committee. He asked if the State of Alaska would incur
additional costs by postponing the elections. He cited
litigation by citizens regarding reapportionment.
Representative Grussendorf noted that he supported FY 93
appropriations for REAA and CRSA elections. He observed
that the $90.0 thousand dollars appropriated for the
elections were diverted by the Division. He asked how the
Legislature can assure that supplemental appropriations,
contained in HB 68, will be used for the REAA and CRSA
elections. He repeated questions regarding how the first
appropriation was spent.
Ms. Thickstun assured him that the appropriation, contained
in HB 68, will go to fund REAA and CRSA elections. She
observed that FY 93 allocations are not budgeted by election
function. She stressed that the Department of Law confirmed
that the Division's FY 93 appropriation represents a total
allocation of all election related functions directed or
supervised by the Division of Elections.
Representative Brown referred to a letter from Ms. Thickstun
to Shelby Stastny, Director, Office of Budget and Management
(contained in Attachment 1). "We agreed the FY 92/FY 93
appropriation of $3.7 million dollars to the Division of
Elections was not intended to include the costs incurred to
accomplish and fully implement the effects of the
reapportionment." Representative Brown was under the
impression that funds were appropriated for reapportionment.
She noted that the Division's FY 93 budget was higher than
FY 92. She asked how such a substantial item as
reapportionment was not included. She continued to cite the
letter to Shelby Stastny, Director, Office of Budget and
Management, "our estimate of additional financial need for
FY 92/ FY 93 is $1.6 million." She asked why these known
costs were not included in the budget.
Ms. Thickstun reviewed the reapportionment process. She
noted that the Division was granted a supplemental for
mapping. Mapping began in October of 1992. She emphasized
that litigation required the Division to repeat its mapping
process. She stressed that the litigation resulted in an
increase in costs associated with delays, deadlines and
overtime requirements.
Representative Brown requested a breakdown of the Division's
expenditures. She asked if shortfalls were caused by
increases in salaries within the Division. Ms. Thickstun
felt that upgrades within the Division did not add to the
Division's shortfall. Representative Brown asked for a
breakdown of employee upgrades and hires. The Division did
not have a Reimbursable Service Agreement (RSA) with the
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Department of Law.
Representative Navarre reiterated that appropriation of
funds is the responsibility of the Legislature. He
suggested that HB 68 should be amended to establish that the
FY 93 REAA and CRSA elections were funded by the
Legislature.
Representative Martin noted that Judge Larry R. Weeks ruled
that, "In light of the circumstances, the court is concerned
about the Division of Elections' ability to provide for
elections in a timely, orderly manner with its current
funding. The state is ordered to request supplemental
funding to ensure that elections are properly prepared and
held on time" (contained in Attachment 1).
Ms. Thickstun clarified that only the regularly elected
regional educational attendance area school boards would be
funded. Ms. Thickstun described coastal resource service
area boards. Co-Chair Larson concluded that they are
elected service areas.
Representative Brown reiterated that Judge Weeks ordered the
State of Alaska, on June 2, 1992, to request funding for
REAA and CRSA elections. She asked why the request was not
included in the second special session. Ms. Thickstun
replied that the Division of Election prepared a request for
funding. The Governor chose not to include this item on the
agenda of the second special session.
Co-Chair Larson asked if the Division's budget contained
contingency money. Ms. Thickstun pointed out that the
Office of the Governor provided $25.0 thousand dollars as a
RSA.
Representative Hoffman referred to a letter by Ms.
Thickstun, to Attorney General Charles Cole (contained in
Attachment 1). She stated, "When there is no money to do
what we are statutorily mandated to do, where do the funds
come from to hold the REAA/CRSA elections in order not to
disenfranchise the voters in these jurisdictions...the
Department of Justice would censure the State of Alaska for
disenfranchising". Representative Hoffman asked Ms.
Thickstun what censuring would take place.
Ms. Thickstun replied that the Department of Justice could
initiate litigation against the State of Alaska or appoint a
panel to perform the elections.
Representative Hoffman asked if Ms. Thickstun had considered
the Division's options should the Legislature refuse funding
of the supplemental request. He also asked if Ms. Thickstun
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worked with the Department of Law to provide supporting
materials for their request. Ms. Thickstun replied that the
Division did work with the Department of Law to provide
documentation for the request of additional funding. She
discussed the need for funding with the Lieutenant Governor
and Department of Law staff. Representative Hoffman
asserted that the Administration spent the funds for
reapportionment knowing that the Legislature would
reappropriate funds for the elections.
Co-Chair Larson noted that the existing bill title will
assure that the appropriation will be spent for regional
educational attendance area school boards and coastal
resource service area boards elections. Representative
Martin agreed.
Representative Martin noted the possibility of litigation
resulting from the failure to fund elections. He asserted
that such litigation could be costly.
Representative Grussendorf agreed that appropriations to a
Budget Request Unit (BRU) was shuffled by the Administration
to force the Legislature to supply additional funds.
Representative Navarre suggested that the title be changed
to delete "regional educational attendance area school
boards and coastal resource service area boards" and add,
"to the Division of Elections." He further suggested HB 68
be amended to read, "The sum of $90,000 is appropriated from
the general fund to the Office of the Governor, division of
elections, to replace funds appropriated in FY 93, diverted
for other purposes. This appropriation is to be used to pay
for the costs of the March, 2, 1993 regional educational
attendance area school boards and coastal resource service
area boards for the fiscal year ending June 30, 1993. An
effective date clause was included.
Members discussed the need for a title change.
Representative Navarre concluded that a title change was not
necessary.
Representative Navarre MOVED to adopt AMENDMENT NO. 1, add
on line 6, "replace funds appropriated in FY 93, diverted
for other purposes. This appropriation is to be used to".
Representative Martin OBJECTED. Representative Martin
supported the underlying message of the amendment but not
its inclusion in HB 68. Members discussed the March 2, 1993
election date.
A roll call vote was taken on the motion to adopt AMENDMENT
NO.1.
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IN FAVOR: Brown, Foster, Grussendorf, Hanley, Hoffman,
Navarre, Parnell, Therriault, Larson, MacLean
OPPOSED: Martin
The MOTION PASSED (10-1).
Representative Navarre MOVED to report CSHB 68 (FIN) out of
Committee with individual recommendations. There being NO
OBJECTION, it was so ordered.
CSHB 68 (Fin) was reported out of Committee with a "do pass"
recommendation.
ADJOURNMENT
The meeting adjourned at 2:30 p.m.
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