Legislature(1993 - 1994)

05/10/1993 11:30 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                     HOUSE FINANCE COMMITTEE                                   
                          May 11, 1993                                         
                           11:30 p.m.                                          
                                                                               
  TAPE HFC 93-139, Side 2, #000 - end.                                         
  TAPE HFC 93-140, Side 1, #000 - 531.                                         
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson called the House  Finance Committee to order                 
  at 11:30 p.m.                                                                
                                                                               
  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                                                                 
                                                                               
  Representative  Barnes;  Mike Greany,  Director, Legislative                 
  Finance  Division;  Cheryl  Frasca,  Director,  Division  of                 
  Budget Review, Office of Management and Budget; Joan Kasson,                 
  Fiscal Analyst, Legislative  Finance Division; Nancy Slagle,                 
  Fiscal Analyst, Legislative Finance Division; Bill Lawrence,                 
  Anchorage  Wastewater  Utility;  John   Bitney,  Legislative                 
  Staff, Representative Larson.                                                
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  SB 165    "An Act  making an  appropriation  to the  Alyeska                 
            Settlement Fund and making appropriations from the                 
            Alyeska  Settlement  Fund;  and providing  for  an                 
            effective date."                                                   
                                                                               
            HCS CSSB 165  (FIN) was reported out  of Committee                 
            with "no recommendation".                                          
  SENATE BILL NO. 165                                                          
                                                                               
       "An   Act  making  an   appropriation  to  the  Alyeska                 
       Settlement  Fund  and  making appropriations  from  the                 
       Alyeska Settlement Fund; and providing for an effective                 
       date."                                                                  
                                                                               
  Co-Chair Larson provided  members with a sectional  analysis                 
  for CSSB 165 (FIN) am (Attachment 1).                                        
                                                                               
  Co-Chair  Larson  reviewed  Attachment  1.   He  noted  that                 
                                                                               
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  sections regarding  reappropriations were added to the bill.                 
  Co-Chair MacLean provided members with a  sectional analysis                 
  of sections containing reappropriations (Attachment 2).  She                 
  observed that  sections 6  -  58 are  identical to  sections                 
  passed by the House Finance Committee in SB 100.  Additional                 
  sections were added by the Senate.   The new sections are 59                 
  - 68  and 150.   Co-Chair  MacLean reviewed  reappropriation                 
  sections in Attachment 2, section by section.                                
                                                                               
  Representative Brown questioned section  60, Municipality of                 
  Anchorage, Ship Creek redevelopment.   She observed that the                 
  project  was  appropriated  in  1991.   She  noted  that the                 
  appropriation   was   contingent   on   private   investment                 
  commitments.  She stated that a Legislative Budget and Audit                 
  Committee audit found that the private investment commitment                 
  arranged  by  the   municipality  was   not  deemed  to   be                 
  sufficient.   She argued that  the project is  still viable.                 
  She pointed out that the money is not lapsing.                               
                                                                               
  Representative Brown asked  for more information  on section                 
  61,  Municipality  of  Anchorage Alyeska  Water  Improvement                 
  District.                                                                    
                                                                               
  BILL LAWRENCE,  ANCHORAGE WASTEWATER UTILITY  explained that                 
  $6.2 million dollars was appropriated in two  appropriations                 
  in 1991.   He stated that $350 thousand dollars of the funds                 
  appropriated   by   SB   488   are   inaccessible.      This                 
  reappropriation would complete  the project at the  original                 
  appropriation level.                                                         
                                                                               
  Co-Chair Larson reviewed each section of CSSB 165 (FIN)  am,                 
  starting on section 57  and asked if members had  objections                 
  or comments.                                                                 
                                                                               
  Representative Brown asked for further  clarification of the                 
  connection between  sections 64  and 63.   Co-Chair  MacLean                 
  explained that section  64 is a  contingency clause for  the                 
  reappropriation in section 63 of  $650.0 thousand dollars to                 
  the Rural Development Initiative Fund.                                       
                                                                               
  Representative  Brown  noted  that  section  66,  King  Cove                 
  hydroelectric  power  project,   was  not  in  the   House's                 
  supplemental or reappropriation bills.                                       
                                                                               
  REPRESENTATIVE RAMONA  BARNES clarified that section  66 was                 
  originally contained in the capital  appropriation bill.  It                 
  was  removed  to be  included  in the  reappropriation bill.                 
  Funding was not available through reappropriation.                           
                                                                               
  Co-Chair Larson  noted that section  67 is the  $4.0 million                 
  dollars   appropriated  from  the   General  Fund   for  the                 
  Department of Transportation  and Public Facilities,  Alaska                 
                                                                               
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  Marine Highway System.                                                       
                                                                               
  Co-Chair  Larson stated that  funding for  the vessel  is as                 
  follows:                                                                     
                                                                               
       *    Reduce general fund match by $2 million dollars;                   
                                                                               
       *    Add $2 million from the Vessel Replacement Fund;                   
                                                                               
       *    Transfer $7 million  dollars from Mitigation  Fund                 
            to the Vessel Replacement Fund;                                    
                                                                               
       *    Transfer  $4 million dollars in the Senate capital                 
            budget to the supplemental budget (SB 165).                        
                                                                               
  Representative Brown spoke in support of the House number of                 
  $616.4 thousand  dollars for  section 74,  Office of  Public                 
  Advocacy.                                                                    
                                                                               
  Co-Chair  MacLean  stated   her  objection  to   the  Senate                 
  reduction in section  80, Department  of Law, judgement  and                 
  claims.                                                                      
                                                                               
  JOAN  KASSON, FISCAL  ANALYST, LEGISLATIVE  FINANCE DIVISION                 
  explained that the Senate figure  of $309.8 thousand dollars                 
  contains funding  for judgments not including  the judgement                 
  awarded to the Southeast Conference.                                         
                                                                               
  Co-Chair  MacLean   MOVED  to  delete  "$309.8"  and  insert                 
  "$1,436.6" million dollars.   There  being NO OBJECTION,  it                 
  was so ordered.                                                              
                                                                               
  Members discussed  section 55, Alcan Caravan  Alaska Highway                 
  Promotional Film.   Representative  Martin  MOVED to  delete                 
  section 55.  A roll call vote was taken on the motion.                       
                                                                               
  IN FAVOR: Brown,  Grussendorf,   Hoffman,  Foster,   Hanley,                 
                 Parnell, Therriault, MacLean, Larson                          
  OPPOSED:  Martin                                                             
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
  The MOTION PASSED (9-1).                                                     
                                                                               
  (Tape Change, HFC 93-140, Side 1)                                            
                                                                               
  Co-Chair Larson continued  to move through the  bill section                 
  by section, beginning with section 84.                                       
                                                                               
  Representative Therriault  noted the difference  between the                 
  House  and  Senate  numbers  for  section  126,  state  land                 
  selection activities.  He asked if the Department of Natural                 
                                                                               
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  Resources  can  cover  their publication  expenses  with the                 
  Senate figure of  $150.0 thousand dollars.   Co-Chair Larson                 
  thought that they could.                                                     
                                                                               
  Co-Chair MacLean observed  that the  Senate did not  include                 
  $23.1 thousand dollars  in legislative intent  language when                 
  the  House  had  adopted  regarding  funds  for  the  Alaska                 
  Psychiatric Institute (API) replacement facility.   Co-Chair                 
  Larson explained  that the  House set  aside $23.1  thousand                 
  dollars in medicaid reimbursement  until decisions regarding                 
  API are  complete.  He  pointed out that  additional funding                 
  for various hospitals  is included in section  137, $2,802.0                 
  million dollars.                                                             
                                                                               
  NANCY SLAGLE,  FISCAL ANALYST, LEGISLATIVE  FINANCE DIVISION                 
  clarified  that  no funding  is  appropriated to  API.   She                 
  stressed that the money is being set aside for appropriation                 
  at a later date.  Co-Chair  MacLean read the intent language                 
  contained in section 138 (b).                                                
                                                                               
  Co-Chair MacLean noted  that there  is a difference  between                 
  House  and   Senate  numbers   for  section  143,   prisoner                 
  transportation costs.  Representative Parnell noted that the                 
  House  Finance  Subcommittee  on the  Department  of  Public                 
  Safety felt  that $125.0 thousand  dollars represents actual                 
  prisoner transportation costs.  Representative Navarre MOVED                 
  in section  143, prisoner  transportation  costs, to  delete                 
  "$75.0" and insert  "$125.0" thousand dollars.   There being                 
  NO OBJECTION, it was so ordered.                                             
                                                                               
  Co-Chair Larson noted that the  Senate included section 146,                 
  Elections Division,  $297.7 thousand dollars.   Section  143                 
  was  a  request  by  Lieutenant  Governor Coghill  to  cover                 
  reapportionment costs.   Representative Brown observed  that                 
  the reapportionment expenditures are unnecessary.                            
                                                                               
  Ms. Slagle explained section 148,  HB 178, medicaid options.                 
  She stated that  HB 178 included  two portions.  House  Bill                 
  178 would have provided adoption services under medicaid and                 
  an  additional medicaid  option to  allow severely  disabled                 
  children to  be served in home and community based settings.                 
  She noted that SB 99 includes funding for adoption services.                 
  Funding for severely disabled children would be contained in                 
  section  148 of  CSSB  165 (FIN)  am.   Funding  is a  50/50                 
  federal/state match.                                                         
                                                                               
  Representative Hanley asked if language in the appropriation                 
  bill  is  expansive  enough  to  allow  the  expenditure  of                 
  funding.  Ms.  Slagle believed the bill  provided sufficient                 
  flexibility.     She  noted   that  the   language  in   the                 
  appropriation  bill,   CS  HB   55,  states   that  "to   be                 
  incorporated in some other measure".   She stressed that the                 
                                                                               
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  substance is included in HB 178.  Representative Brown asked                 
  the total appropriation  needed.   Ms. Slagle answered  that                 
  $17.7 thousand general fund dollars are not included.                        
                                                                               
  Representative  Brown  provided  members  with  AMENDMENT  1                 
  (Attachment 3).   She noted  that the amendment  pertains to                 
  section   60,   Municipality   of   Anchorage,  Ship   Creek                 
  redevelopment.  The amendment would extend the lapse date to                 
  1995  in order to allow private investment commitments to be                 
  obtained.  Representative Brown MOVED  to ADOPT AMENDMENT 1.                 
  There being NO OBJECTION, it was so ordered.                                 
                                                                               
  Co-Chair MacLean MOVED to  report HCS CSSB 165 (FIN)  out of                 
  Committee with individual recommendations.                                   
                                                                               
  HCS CSSB 165  (FIN) was reported  out of Committee with  "no                 
  recommendation".                                                             
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 1:00 a.m.                                           
                                                                               
                                                                               
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