Legislature(1993 - 1994)
02/18/1993 01:40 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
February 18, 1993
1:40 p.m.
TAPE HFC 93-26, Side 1, #000 - end.
TAPE HFC 93-26, Side 2, #000 - 309.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee to order
at 1:40 p.m.
PRESENT
Co-Chair Larson
Representative Hoffman
Representative Martin
Representative Navarre
Representative Therriault
Representative Grussendorf
Representatives Brown, Foster, Hanley, Parnell, Therriault
and Co-Chair MacLean were absent from the meeting.
ALSO PRESENT
Cheryl Frasca, Division Director, Office of Management and
Budget, Office of the Governor; Duane Guiley, Finance
Director Department of Education; Janet Clarke, Director,
Division of Administrative Services, Department of Health
and Social Services; Jan Hansen, Director, Division of
Public Assistance, Department of Health and Social Services;
Richard Pegues, Director, Division of Administrative
Services, Department of Law; Rod R. Mourant, Special
Assistant, Department of Revenue.
SUMMARY
HB 135 "An Act making supplemental and special
appropriations for the expenses of state
government; making, amending, and repealing
capital and operating appropriations; and
providing for an effective date."
CHERYL FRASCA, DIVISION DIRECTOR, OFFICE OF MANAGEMENT AND
BUDGET, OFFICE OF THE GOVERNOR noted that the supplemental
request totals $40,500.0 million general fund dollars. She
reviewed HB 135 by section:
DEPARTMENT OF ADMINISTRATION
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* Sec. 1 Longevity Bonus - $1,340.3 million
dollars
Additional funds are requested to cover the cost
of increased applicants. The Governor's proposal
will not decrease appropriations until FY 96.
Representative Martin asked that Ms. Frasca identify which
supplemental requests have been adjusted into the FY 94
Operating Budget. (FY 93 Authorized and supplemental
appropriations have been added together for the FY 94
requested total.) Ms. Frasca noted that sec. 1 has been
adjusted for in the FY 94 budget.
* Sec. 2 Public Defender - $383.0 thousand
dollars
This represents operating costs unfunded in the
current budget. Sec. 2 has been adjusted for in
the FY 94 Operating Budget. Thirty percent of the
Public Defender's cases are civil. Criminal cases
represent 70 percent of the cases.
* Sec. 3 RATNET - $200.0 thousand dollars
Anticipated savings were not realized in the FY 93
Operating Budget. Competitive bids for uplink
services were delayed. Savings are anticipated in
FY 94. If the appropriation is not approved
service could be discontinued for the final two
months of fiscal year FY 93 or daily service could
be drastically curtailed.
* Sec. 4 Personnel Board - $64.0 thousand dollars
Increased hearings have resulted in a shortfall.
This appropriation will pay for special counsel
and a hearing officer.
* Sec. 5 Office of Public Advocacy - $616.4
thousand dollars
The Office of Public Advocacy caseload has
increased by 19 percent in FY 93. Sec. 5 has been
adjusted for in the FY 94 Operating Budget.
Co-Chair Larson noted that 18 percent of the cases are for
criminal defense and 82 percent are for child abuse cases.
Ms. Frasca observed that HB 65 contains provisions to alter
the Office of Public Advocacy's responsibilities. (See
section 2.)
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* Sec. 6 Elected Officials Retirement - $30.4
thousand dollars
There has been an increase in former elected
officials who have elected to collect retirement.
Increased health costs are also included.
Co-Chair Larson asked if the Legislators' retirement is
based on current salaries. Ms. Frasca was unable to answer.
Representative Navarre clarified that only legislators that
elected to join the system during the years 1974 -1976 are
included.
* Sec. 7 Leasing of State facilities - $642.9
thousand dollars
Representative Martin pointed out that agencies should be
encouraged to seek less expensive leasing space.
DEPARTMENT OF LAW
* Sec. 8 Prosecution - $400.0 thousand dollars
Reductions resulted in the elimination of three
prosecutors and three support staff positions.
The Governor felt that prosection activities would
be adversely affected and elected to seek
supplemental funding. Sec. 8 has been adjusted
for in the FY 94 Operating Budget.
* Sec. 9 Oil and Gas Litigation - $6.6 million
dollars
Representative Navarre observed that the Permanent Dividend
Fund pays 25 percent of litigation costs under the
assumption that the Fund will benefit from settlements. He
asked if 25 percent of the proceeds are returning to the
Fund.
Co-Chair Larson asked if additional litigation cases are
pending.
RICHARD PEGUES, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF LAW replied that all the potential
tax cases are not underway.
Representative Hoffman noted that the Department of Law has
a $8.8 million dollar reduction in FY 94. Ms. Frasca
stressed that it is impossible to project the actual level
of litigation. She observed that several cases have been
resolved.
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* Sec. 10 FCC Telephone Proceeding - $280.0
thousand dollars
The request will pay legal counsel in
telecommunications proceedings. Proceedings will
decide how long distance rates will be apportioned
between outside carriers.
* Sec. 11 Subsistence Legislation - $35.0 thousand
dollars
This will pay for the enactment of subsistence
legislation which was paid for during the Second
Special Session of the Seventeenth Legislative
Session. Regulations will be drafted and
implemented to reflect the subsistence
legislation.
* Sec. 12 Judgement and Claims - $1,087.7 million
dollars
The Southeast Conference judgement award is
included in this request.
DEPARTMENT OF REVENUE
* Sec. 13 Income & Excise - $325.0 thousand
dollars
Unallocated reductions resulted in a backlog of
cases. Sec. 13 has been adjusted for in the FY 94
Operating Budget.
ROD MORANT, ASSISTANT COMMISSIONER, DEPARTMENT OF REVENUE
clarified that five positions were eliminated in FY 93. He
observed that $50.0 thousand dollars will go to personal
services, $25.0 thousand dollars for travel and $250.0
thousand dollars in contractual costs for additional
researchers. Returns beyond 1985 and 1986 have not been
audited. Issues in oil and gas that need to be researched
go back to 1976. Older audits will be forgone without
funding. Mr. Morant agreed that there are additional cases
to be instigated.
DEPARTMENT OF EDUCATION
* Sec. 14 Foundation Program - $6,427.1 million
dollars
This represents an increase in enrollment in
grades K - 12.
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Co-Chairman Larson noted that as enrollment in special
education and vocational education increases that school
districts enrollments are not being met.
DUANE GUILEY, FINANCE DIRECTOR, DEPARTMENT OF EDUCATION
noted that the federal definition of special education is
expanding. The State of Alaska services gifted and talented
and handicapped students as special education students.
Increases to the Special Education Program represents
$5,184.0 million dollars. Of this amount, $5,141.7 million
dollars go to Anchorage, Fairbanks and Juneau. There has
been a 184 student decrease in enrollment based upon school
district projections. He acknowledged that school districts
also receive federal funds directly.
* Sec. 15 Postsecondary Commission - $98.5
thousand dollars
The WAMI Program is short funded due to an
accounting error. A FY 92 billing was paid out of
FY 93 accounts. The amount was lapsed from FY 92.
* Sec. 16 Ratification and amendment of prior year
expenditures - $0
Errors resulting from conversions in the state
accounting system in 1985 will be cleared.
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
* Sec. 17 Aid to Families with Dependent Children
(AFDC) - $3,203.5 million dollars
This request will cover shortfalls due to caseload
increases and the Cost of Living Allowance (COLA).
Legislation to suspend the COLA failed to pass the
Second Session of the Seventeenth Legislature.
JAN HANSEN, DIRECTOR, PUBLIC ASSISTANCE, DEPARTMENT OF
HEALTH AND SOCIAL SERVICES pointed out that HB 67 contains
provisions to suspend the COLA for one year.
* Sec. 18 Adult Public Assistance (APA) - $1,671.1
million dollars
This request will cover shortfalls due to caseload
increases and the Cost of Living Allowance (COLA).
Legislation to suspend the COLA failed to pass the
Second Session of the Seventeenth Legislature.
(Tape Change, HFC 93-26, Side 2)
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Ms. Hansen interjected that of those receiving AFDC benefits
nine percent have been in the State for less than one year.
In 1985, six percent of those receiving AFDC benefits had
been in the State less than one year. Of those applying for
benefits 15 - 20 percent have been in the State for less
than one year. She observed that surveys by the Department
of Health and Social Services showed that the primary reason
new clients moved to the State was to seek employment.
Ms. Hansen stressed that funds were not transferred from
this BRU to the Commissioner's Office for travel. Ms.
Hansen observed that AFDC makes an average of 12,485 monthly
payments to households. APA average monthly payments reach
8,908 households.
* Sec. 19 Medicaid Facilities - <3,808.9 million
dollars>
This amount will return to the General Fund due to
a caseload decrease.
* Sec. 20 Public Assistance eligibility
Determination - $77.9 thousand dollars
There has been an increase in caseload.
* Sec. 21 JOBS Program - $195.0 thousand dollars
This request will pay for child-care costs while
Public Assistance clients are engaged in
education, training and employment related
activities.
* Sec. 22 Public Assistance Data Processing -
$174.0
This is the result of increased use of the State's
mainframe computer system as a result of increased
caseloads.
* Sec. 23 Medical Assistance Administration -
$187.5 thousand dollars
The State has reduced medicare dollars through
increased screening. There has been an increase
in administrative costs associated with the
screening process.
* Sec. 24 Foster Care - $1,100.0 million dollars
Four hundred thousand dollars are the result of an
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increased number of placements. In addition,
there has been a delay in the start of anticipated
federal programs that will subsidize state costs.
Savings will be realized in FY 94.
* Sec. 25 McLaughlin Youth Center - $110.0
thousand dollars
This request is the result of an increase of
contractual costs due to the expansion of
facilities.
* Sec. 26 Post Mortem Exams - $229.6 thousand
dollars
This is the result of an increased number of court
ordered autopsies.
* Sec. 27 Bloodborne Pathogens - $155.9 thousand
dollars
This is the result of the implementation of
federal requirements.
HB 135 was HELD in Committee.
ADJOURNMENT
The meeting adjourned at 2:40 p.m.
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