Legislature(1993 - 1994)
04/05/1994 03:08 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
April 5, 1994
3:08 p.m.
TAPE HFC 94-104, Side 1, #000 - end.
TAPE HFC 94-104, Side 2, #000 - end.
TAPE HFC 94-105, Side 1, #000 - 483.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee to order
at 3:08 p.m.
PRESENT
Co-Chair Larson Representative Hoffman
Co-Chair MacLean Representative Martin
Vice-Chair Hanley
Representative Brown Representative Parnell
Representative Foster Representative Therriault
Representative Grussendorf
Representative Navarre was not present for the meeting.
ALSO PRESENT
Representative Bettye Davis; Representative Tom Brice; Mike
Greany, Director, Legislative Finance Division; Nancy Bear-
Usera, Commissioner, Department of Administration; Sharon
Barton, Director, Department of Administration; Edgar
Blatchford Commissioner, Department of Community and
Regional Affairs; Remond Henderson, Director, Division of
Administrative Service, Department of Community and Regional
Affairs; Marilyn Webb, Director, Head Start, Department of
Community and Regional Affairs; Karen Rehfeld, Director,
Administrative Services, Department of Education; Nancy
Slagle, Director, Division of Budget Review, Office of the
Management and Budget, Office of the Governor; Bob Baradko,
Director, Division of Administrative Services, Department of
Revenue.
SUMMARY INFORMATION
HB 370 "An Act making appropriations for the operating
and loan program expenses of state government and
to capitalize funds; and providing for an
effective date."
HOUSE BILL NO. 370
"An Act making appropriations for the operating and
loan program expenses of state government and to
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capitalize funds; and providing for an effective date."
Co-Chair Larson reviewed amendments held open by the
Committee.
DEPARTMENT OF ADMINISTRATION
Co-Chair Larson noted that AMENDMENT 1 was held open as
amended to reinstate $106,762.0 thousand dollars for a
senior petroleum engineer position. He observed that the
amendment reinstates $43,238 thousand dollars to reflect the
true reduction of deputy commissioners in the Department of
Administration. There being NO OBJECTION, AMENDMENT 1 was
adopted.
Representative Brown MOVED to ADOPT AMENDMENT 16 (copy on
file).
SHARON, BARTON, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES explained that amendment 16 would delete $70.0
thousand dollars in interagency receipts for labor
relations, and added $205.2 thousand general fund dollars in
that component. She noted that the amendment would fully
fund the positions authorized in the Division of Personnel.
She maintained that labor relations is a core function that
should be funded with general fund dollars. She noted that
no new position would be added if the amendment is adopted.
Co-Chair Larson noted that amendment 16 would, in addition
to the fund source change, restore health premium increases
of $27.7 thousand dollars and add $107.5 thousand dollars to
reduce the vacancy factor. He spoke against the increment
and in favor of the fund source change of $70.0 thousand
dollars in interagency receipts to general fund dollars.
Co-Chair Larson MOVED to AMEND Amendment 16, delete "$205.2"
and insert "70.0" thousand general fund dollars. There
being NO OBJECTION, it was so ordered.
There being NO OBJECTION, amendment 16 was adopted as
amended.
Representative Brown MOVED to ADOPT AMENDMENT 17 (copy on
file).
NANCY BEAR-USERA, COMMISSIONER, DEPARTMENT OF ADMINISTRATION
explained that the amendment would add an increment of $68.5
thousand dollars in order to cover authorized personnel in
the Division of Finance. She asserted that the Division of
Finance is excepting too high a degree of risk in terms of
the ability to maintain systems. She noted that changes in
overtime rules have made it harder to meet deadlines.
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Co-Chair Larson recounted the Subcommittee's action in
regards to the increment.
Representative Martin OBJECTED to the motion to adopt
AMENDMENT 17. A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Brown
OPPOSED: Hoffman, Foster, Hanley, Martin, Parnell,
Therriault, MacLean, Larson
Representative Navarre was not present for the vote.
The MOTION FAILED (2-8).
Representative Brown MOVED to ADOPT AMENDMENT 18 (copy on
file). Commissioner Usera explained that amendment 18 would
restore the Governor's amended request for the General
Services component. She emphasized that leases are being
paid at a high premium monthly basis due to the lack of
resources to renegotiated leases.
Representative Brown MOVED to AMEND Amendment 18, to reduce
the increment to $69.4 thousand dollars. There being NO
OBJECTION, it was so ordered. She spoke in support of the
amendment as amended. She maintained that the amendment
would result in cheaper leases.
A roll call vote was taken on the MOTION to adopt AMENDMENT
18 as amended.
IN FAVOR: Brown, Grussendorf, Hoffman
OPPOSED: Foster, Hanley, Martin, Parnell, Therriault,
MacLean, Larson
Representative Navarre was absent from the vote.
The MOTION FAILED (3-7).
Co-Chair MacLean MOVED to close the Department of
Administration's FY 95 operating budget. There being NO
OBJECTION, it was so ordered.
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
Co-Chair MacLean MOVED to close the Department of Military
and Veterans Affairs's FY 95 operating budget. There being
NO OBJECTION, it was so ordered.
DEPARTMENT OF LABOR
Co-Chair MacLean MOVED to close the Department of Labor's FY
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95 operating budget. There being NO OBJECTION, it was so
ordered.
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS
Representative Therriault WITHDREW AMENDMENT 7.
Co-Chair MacLean MOVED to RESCIND the Committee's action in
having adopted AMENDMENT 5. Representative Martin OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Hoffman, Therriault, Foster, Grussendorf, MacLe
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OPPOSED: Hanley, Martin, Parnell, Brown
Representative Navarre was absent from the vote.
The MOTION PASSED (6-4).
Co-Chair Larson noted that AMENDMENTS 3 and 4 were
previously adopted by the Committee.
Co-Chair MacLean provided members with an amendment to
AMENDMENT 5 (copy on file). She explained that amendment 5
would restore designated grants to: BBNA Health
Corporation, NSB Bowhead Census, Maniilaq Association,
Association of Stranded Rural Alaskans, and Fairbanks Native
Association Employment program.
Representative Hanley pointed out that the original
amendment 5 would delete all designated grants. He felt it
was inappropriate to amend amendment 5 to add the identified
designated grants.
Co-Chair MacLean WITHDREW her AMENDMENT to AMENDMENT 5. Co-
Chair Larson MOVED to ADOPT AMENDMENT 5. There being NO
OBJECTION, it was so ordered.
Representative Therriault WITHDREW AMENDMENTS 7 and 8.
Representative Brown MOVED to ADOPT AMENDMENT 9 (copy on
file). She noted that amendment 9 would add legislative
intent language directing the Department of Community and
Regional Affairs to revise the income levels and sliding fee
scales of parent income eligibility for the Day Care
Assistance Program.
Co-Chair MacLean MOVED to AMEND Amendment 9, to
proportionally share costs by all participants. She
maintained that amendment 9 would exclude 80 percent of the
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participants in the program.
Representative Brown spoke in opposition to the motion to
amend amendment 9. She stressed that those at the lowest
income level will be more likely to lose employment if their
participation requirement is raised.
REMOND HENDERSON, DIRECTOR, DIVISION OF ADMINISTRATION,
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS observed that a
statute change is required in order to effect those in the
97 percentile subsidy level. He noted that 80 percent of
the participants receive 97 percent of the subsidy. He
clarified that the program manager intends to take
reductions in all categories and adjust the sliding fee
scale.
(Tape Change, HFC 94-104, Side 2)
Representative Brown questioned the need for a statute
change. Mr. Henderson pointed out that regulations could
not be adopted soon enough to take reductions from the 97
percentile level in FY 95.
Discussion pursued in regards to the amendment's affect on
low income participants in the Day Care Assistance Program.
Mr. Henderson noted that there are 117 children at the 25
percentile level, costing $420.0 thousand dollars annually.
The 50 percentile level has an annual cost of $840.0
thousand dollars. The seventy-five percentile level has an
annual cost of $1.25 million dollars.
Representative Brown WITHDREW AMENDMENT 9. Co-Chair MacLean
WITHDREW the AMENDMENT to AMENDMENT 9.
Representative Brown MOVED to ADOPT AMENDMENT 10 (copy on
file). Amendment 10 would restore $100.0 thousand dollars
to the Day Care Assistance component to cover registration
fees of low-income parents.
REPRESENTATIVE TOM BRICE spoke in support of amendment 10.
He maintained that lower income families will drop-out of
the program if they cannot pay their registration fee.
Representative Brown urged adoption of amendment 10. A roll
call vote was taken on the MOTION.
IN FAVOR: Brown, Foster, Grussendorf, Hoffman
OPPOSED: Hanley, Martin, Parnell, Therriault, MacLean,
Larson
Representative Navarre was absent from the vote.
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The MOTION FAILED (4-6).
Representative Brown MOVED to ADOPT AMENDMENT 11 (copy on
file). Amendment 11 would restore $300.0 thousand dollars
to the Day Care Assistance Program to allow for payment
during holidays.
Representative Brice spoke in support of amendment 11. He
pointed out that day care providers are not paid high
salaries.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Foster, Grussendorf, Hoffman
OPPOSED: Hanley, Martin, Parnell, Therriault, MacLean,
Larson
Representative Navarre was absent from the vote.
The MOTION FAILED (4-6).
Representative Brown MOVED to ADOPT AMENDMENT 12 (copy on
file). Amendment 12 would add $886.0 thousand dollars for
child care subsidies. She noted that program demand has
increased. She asserted that fewer people will be able to
work if amendment 12 is not adopted. She emphasized the
need to empower low-income parents.
Representative Therriault OBJECTED. A roll call vote was
taken on the MOTION.
IN FAVOR: Brown, Foster, Grussendorf, Hoffman
OPPOSED: Hanley, Martin, Parnell, Therriault, MacLean,
Larson
Representative Navarre was absent from the vote.
The MOTION FAILED (4-6).
Representative Therriault MOVED to ADOPT AMENDMENT 13 (copy
on file). Amendment 13 would add legislative intent to
clarify that once the 20 percent federal match requirements
are met that remaining state funds be distributed to Head
Start programs through a competitive process. He maintained
that some programs receive more state funds than are needed
to leverage federal matches.
MARILYN WEB, DIRECTOR, HEAD START PROGRAM, DEPARTMENT OF
HEALTH AND SOCIAL SERVICES assured members that all the
current Head Start programs received sufficient funding to
capture federal money. Discussion pursued regarding the
required state/federal match and the department's process
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for distribution of Head Start funding. Representative
Brown emphasized that existing programs are not sufficient
to cover the needs of all the eligible children.
Mr. Henderson noted that 12 head start grantees receive all
available state/federal funds. He summarize that the intent
language would attempt to spread funding to more programs.
Ms. Web stated that the amendment would result in a
reduction in services for some of the programs. Mr.
Henderson noted that the amount of children served would not
change. However, more areas of the state could be served if
the number of programs were expanded.
Ms. Web stressed that there is no guarantee that the
redistribution of state money would capture more federal
funds. She observed that there was one non-profit that
indicated that they would apply, but were unable to organize
the administration of a program. She was unaware of other
potential programs.
A roll call vote was taken on the MOTION to adopt AMENDMENT
13.
IN FAVOR: Hanley, Martin, Parnell, Therriault, Larson
OPPOSED: Brown, Foster, Grussendorf, Hoffman, MacLean
Representative Navarre was absent from the vote.
The MOTION FAILED (5-5).
REPRESENTATIVE BETTYE DAVIS observed that amendments to
restore child care funding failed. She suggested that
funding saved through elimination of designated grants be
redirected to restore child care grants.
Co-Chair MacLean MOVED to close the Department of Community
and Regional Affairs's FY 95 operating budget.
Representative Hoffman OBJECTED. A roll call vote was taken
on the MOTION.
IN FAVOR: Brown, Foster, Hanley, Martin, Parnell,
Therriault, MacLean, Larson
OPPOSED: Hoffman, Grussendorf
Representative Navarre was absent from the vote.
The MOTION PASSED (8-2).
DEPARTMENT OF EDUCATION
Ms. Slagle discussed funding for the Libraries, Archives and
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Museums component. She requested that $138.0 thousand
dollars in interagency receipts be replaced with general
fund dollars.
(Tape Change, HFC 94-105, Side 1)
Representative Grussendorf MOVED to ADOPT a fund source
change for the archives and records management service,
Department of Education.
KAREN REHFELD, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF EDUCATION explained that the
amendment would allow the Department of Education to
continue the archives and records management service without
assessing a charge back to the agencies. She stressed that
the Administration believes that this is a core function.
Representative Hanley OBJECTED to the motion for a fund
source change for the archives and records management
service, Department of Education. A roll call vote was
taken on the MOTION.
IN FAVOR: Brown, Grussendorf, Hoffman
OPPOSED: Hanley, Martin, Parnell, Therriault, MacLean,
Larson
Representatives Foster and Navarre was absent from the vote.
The MOTION FAILED (3-6).
Representative Therriault referred to amendment 2. He
observed that the reduction to the Alaska State Council on
the Arts will result in a loss of funding from the National
Endowment of the Arts.
Representative Therriault MOVED to RESCIND the Committee's
action in adopting AMENDMENT 2. Representative Martin
OBJECTED. A roll call vote was taken on the MOTION.
IN FAVOR: Foster, Hoffman, Therriault, Brown
OPPOSED: Grussendorf, Hanley, Martin, Parnell, MacLean,
Larson
The MOTION FAILED (4-6).
Representative Hanley MOVED to ADOPT AMENDMENT 7 (copy on
file). He explained that amendment 7 would add intent
language directing the Department of Education to work with
school districts to establish the maximum amount needed for
eligibility under the Medicaid program for special
education. There being NO OBJECTION, it was so ordered.
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Representative Martin MOVED to ADOPT AMENDMENT 8 (copy on
file). He explained that amendment 8 would reduce Personal
Services by $50.0 thousand dollars and take an unallocated
miscellaneous reduction of $50.0 thousand dollars; and add
$100.0 thousand dollars for Independent Living
Rehabilitation grants.
Ms. Rehfeld noted that Administration Services is a small
component. She observed that the component has basic core
functions to provide, such as payroll, data processing,
accounting and supply.
Representative Foster MOVED to AMEND Amendment 8 to delete
"Department of Education" and insert "University of Alaska".
Representative Martin spoke against the amendment to the
amendment.
A roll call vote was taken on the MOTION to AMEND AMENDMENT
8.
IN FAVOR: Brown, Grussendorf, Hoffman, Parnell, Therriault,
Foster, MacLean
OPPOSED: Hanley, Hoffman, Martin, Larson
Representative Navarre was absent from the vote.
The MOTION PASSED (6-4).
Representative Martin MOVED to WITHDRAW AMENDMENT 8.
Representative Brown OBJECTED. A roll call vote was taken
on the MOTION.
IN FAVOR: Hanley, Martin, Parnell, Therriault, MacLean,
Larson
OPPOSED: Grussendorf, Foster, Brown
Representative Navarre was absent from the vote.
The MOTION PASSED (7-3).
Co-Chair MacLean MOVED to close the Department of
Education's FY 95 operating budget. There being NO
OBJECTION, it was so ordered.
DEPARTMENT OF REVENUE
Co-Chair Larson noted that the adoption of the previous
motion by Representative Parnell to delete $54.8 thousand
dollars for the Alaska Blue Book resulted in a negative
$200.0 hundred dollar reduction. Co-Chair Larson MOVED to
amend the Committee's action by deleting "$54.8" and
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inserting "$54.6" thousand dollars. There being NO
OBJECTION, it was so ordered.
Representative Grussendorf MOVED to RESCIND the Committee's
action in failing to adopt amendment 3 (copy on file). He
explained that the amendment would result in a normal 4
percent vacancy factor for the Division of Oil and Gas
Audit.
Representative Martin OBJECTED to the motion to rescind the
Committee's action regarding amendment 3. Representative
Brown spoke in support of the motion to rescind. A roll
call vote was taken on the MOTION.
IN FAVOR: Brown, Grussendorf, Hoffman, Parnell, Foster,
Hanley, Larson, MacLean
OPPOSED: Martin, Therriault, Hanley
Representative Navarre was absent from the vote.
The MOTION PASSED (7-3).
Representative Grussendorf MOVED to ADOPT AMENDMENT 3. He
noted that each audit position saves the state approximately
$10.0 million dollars in taxes.
BOB BARADKO, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF REVENUE reiterated that reductions in auditors
will result in a loss of $10.0 million state dollars.
Representative Martin OBJECTED to the motion to adopt
AMENDMENT 3. A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Grussendorf, Hoffman, Foster, MacLean,
Larson
OPPOSED: Hanley, Martin, Parnell, Therriault
Representative Navarre was absent from the vote.
The MOTION PASSED (6-4).
Co-Chair MacLean MOVED to close the Department of Revenue's
FY 95 operating budget. There being NO OBJECTION, it was so
ordered.
ADJOURNMENT
The meeting adjourned at 5:36 p.m.
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