Legislature(1995 - 1996)
03/28/1995 01:47 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
March 28, 1995
1:30 P.M.
TAPE HFC 95-66, Side 2, #000 - end.
TAPE HFC 95-67, Side 1, #000 - end.
TAPE HFC 95-67, Side 2, #000 - end.
TAPE HFC 95-68, Side 1, #000 - 525.
CALL TO ORDER
Co-Chair Mark Hanley called the House Finance Committee
meeting to order at 1:47 p.m.
PRESENT
Co-Chair Hanley Representative Martin
Co-Chair Foster Representative Mulder
Representative Brown Representative Navarre
Representative Grussendorf Representative Parnell
Representative Kelly Representative Therriault
Representative Kohring
ALSO PRESENT
Representative Ivan; Barbara Ritchie, Department of Law;
Nancy Slagle, Director, Division of Budget Review, Office of
the Management and Budget, Office of the Governor; Kristie
Leaf, Staff, Representative Kohring; Bill Legere, President,
Alaska Broadcasting Service; Douglas Samimi-Moore, Executive
Director, Alaska Broadcasting Commission; Rich McClear,
Southeast Media Consortium.
SUMMARY
HB 100 An Act making appropriations for the operating and
loan program expenses of state government and to
capitalize funds; making appropriations under art.
IX, sec. 17(c), Constitution of the State of
Alaska, from the constitutional budget reserve
fund; and providing for an effective date.
HB 100 was HELD in Committee for further
discussion.
HOUSE BILL NO. 100
"An Act making appropriations for the operating and
loan program expenses of state government and to
capitalize funds; making appropriations under art. IX,
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sec. 17(c), Constitution of the State of Alaska, from
the constitutional budget reserve fund; and providing
for an effective date."
(Copies of amendments will be on file with the House
Finance Committee Secretaries Office, Capital, Room
519, until the end of the Nineteenth Alaska State
Legislature. Copies of the amendments will be found at
the Legislative Library after the end of the Nineteenth
Alaska State Legislature.)
DEPARTMENT OF ADMINISTRATION
Representative Kohring MOVED to adopt Amendment DOA-1 (copy
on file). Representative Brown OBJECTED. Representative
Kohring explained that the amendment would delete $170.6
thousand dollars from Permanency Planning and $2,803.4
thousand dollars from the Public Broadcasting Commission;
and add $111.5 thousand dollars to the Public Broadcasting
Commission and $2,862.5 thousand dollars in Public
Broadcasting Radio Grants. He explained that the intent is
to maximize funding to sole service stations. He
recommended that separate appropriations be made to
individual stations.
Representative Grussendorf expressed concern with the line
item authorization of separate appropriations. He spoke in
support of allowing the Public Broadcasting Commission to
allocate grants based on services. He pointed out that even
though KCAW is not identified as a sole service station,
KCAW is the only source of news, weather and radio service
to many communities. He noted that the commercial station
only reaches to three miles outside of town. He emphasized
that area fisherman are dependent on KCAW.
RICH MCCLEAR, SOUTHEAST MEDIA CONSORTIUM stated that
regional consortiums have been created by individual
stations. The Alaska Public Broadcasting Commission has
aggregated $300.0 thousand dollars for statewide services.
He emphasized that these services provide more efficiencies
than could be created by individual stations. He stressed
that money can be saved through regionalization.
Representative Brown spoke against line item appropriations.
She suggested that a separate BRU could be identified for
radio. She pointed out that some public radio and
television stations have combined operations. She
emphasized that the elimination of public television will
effect the radio network. She spoke in support of providing
sufficient funding for public television to allow the
transition to privatization of television. She maintained
that public television could be consolidated into one
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station. She noted that there are alternatives to
eliminating television.
Representative Brown stated that she supports permanency
planning. She noted that permanency planning could be
funded through adoption of a fiscal note.
Representative Kohring agreed that the Permanency Planing
program can be funded through a fiscal note accompanying HB
92. He spoke in support of Amendment DOA-1. He noted that
the intent is to serve all communities. He stressed that
the amendment does not inhibit pooling of resources on a
regional basis.
Representative Navarre asked the definition of "sole
service". Representative Kohring responded that "sole
service" refers to a community that only has a public
facility, there is no commercial radio facility.
Representative Navarre noted that Kenai is listed as a sole
service station.
Representative Martin pointed out that Kenai can pick up
radio singles from Anchorage.
Representative Brown expressed concern that stations that
are not being fully funded are taking a larger (35%)
reduction. She stressed that many stations are close to the
edge of being able to capture federal funds. She emphasized
that larger stations serve areas that do not have other
services. She observed that the Anchorage station also
provides service to Prudhoe Bay and Unalaska. She felt that
attempts to regionalize would be undermined. She emphasized
that public radio is a fundamental core service that has
huge impacts on people.
Representative Kohring maintained that no stations will go
off the air. He stressed that reductions must be made.
Representative Brown responded that several stations will
loose federal funding if the proposed level of reduction is
made. She alleged that even though the total appropriation
will be larger than the original recommendation, some
stations will receive deeper cuts. She stated that a dozen
stations will be reduced to local access repeaters and loose
most of their federal dollars.
Representative Kohring observed that sole service stations
will not be reduced. Other stations would be reduced by 35
percent. He acknowledged that the amendment would reduce
the amount that non-sole service stations would be cut.
Co-Chair Hanley clarified that the Subcommittee's
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recommendation would have provided a 25 percent reduction to
public radio with the intention that sole service stations
would be held harmless. Non-sole service stations would
have received a 45 - 50 percent reduction. He noted concern
that the Public Broadcasting Commission would shut down or
drastically reduce some of the sole service stations.
Representative Grussendorf emphasized that stations running
repeaters are dependent on the "mother" stations. He
reiterated the dependency of fishers on radio service. He
repeated his concern for the allocation of designated
grants.
Representative Kohring stated that $111.5 thousand dollars
will remain for staff and travel expenses. Co-Chair Hanley
clarified that there is $170.6 dollars more in the total
component.
Representative Kohring stressed that the intent of separate
appropriations is that public radio service be maintained at
all stations.
Representative Navarre summarized that separate
appropriations will result in the elimination of statewide
news programs and the loss of some federal grant funding.
KRISTIE LEAF, STAFF, REPRESENTATIVE KOHRING stated that the
Department of Administration did not indicate that any
public radio stations would go off the air as a result of
the reduction of state funding. She maintained that radio
stations will receive an additional $25.0 thousand dollars
due to a reduction in staff and travel.
Representative Grussendorf MOVED to AMEND Amendment DOA-1,
to grant $2,974.0 million dollars to the Public Broadcasting
Commission. He stated the intent would be for the
Commission to administer the grants. After a brief at ease
Representative Grussendorf MOVED to WITHDRAW his amendment
to Amendment DOA-1.
Representative Kohring MOVED to AMEND Amendment DOA-1, by
deleting the itemization of grants to individual stations
and to appropriate $2,974.0 million dollars to the Public
Broadcasting Commission. He stated that the amendment will
give the Commission an opportunity to allocate the funding
in a manner that is fair and allows stations to remain open.
He noted that a letter of intent will be drafted.
There being NO OBJECTION, the amendment to Amendment DOA-1
was adopted. There being NO OBJECTION, Amendment DOA-1 was
adopted.
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Co-Chair Foster MOVED to adopt Amendment DOA-2 (copy on
file). Representative Kohring OBJECTED. Co-Chair Foster
explained that the amendment will pay $200.0 thousand
dollars for staffing of the Rural Alaska Television Network
(RATNet). He noted that the uplink is funded for RATNet
without an staff.
Representative Kohring stated that RATNet's budget was
reduced by 25 percent.
(Tape Change, HFC 95-67, Side 1)
The amendment would reduce the Office of the Commissioner,
Department of Administration by $50.0 thousand dollars;
Agricultural Development, Department of Natural Resources by
$100.0 thousand dollars and Personnel/Equal Employment
Opportunity, Department of Administration by $50.0 thousand
dollars. He spoke in support of the amendment.
Representative Brown noted that she supports the addition
but not the reduction to the Personnel/Equal Employment
Opportunity, Department of Administration by $50.0 thousand
dollars. She stressed that grievances not handled
administratively could end up in court.
Representative Therriault expressed concern with the $100.0
thousand dollars reduction to Department of Natural
Resources.
Representative Grussendorf suggested that another revenue
source be considered.
Co-Chair Foster WITHDREW Amendment DOA-2.
Representative Brown MOVED to adopt Amendment DOA-3 (copy on
file). Representative Kohring OBJECTED. The amendment
would add $309.9 thousand dollars to RATNet and $3,067.8
million dollars for the Public Broadcasting Commission from
the Mitigation Account. Representative Brown explained that
the Mitigation Account consists of fines and penalties
collected by the Department of Law for money owed the State.
She noted proposals to appropriate funding from the
Mitigation Account to the Underground Storage Tank program
and Oil and Hazardous Substance Release Response Fund. She
stressed that the money in the Mitigation Account is general
fund revenue. She stressed the importance of RATNet and
public broadcasting. She maintained that storage tank clean
up is not the most pressing environmental problem that the
State faces. She emphasized that RATNet is an integral part
of the state emergency broadcasting system.
Co-Chair Foster MOVED to divide the question.
Representative Martin spoke against using the Mitigation
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Account as a funding source. There being NO OBJECTION,
Amendment DOA-3 was divided.
Co-Chair Foster MOVED to adopt Amendment DOA-3A, add $309.9
thousand dollars to RATNet from the Mitigation Account.
Representative Therriault asked if the funds would be taken
from section 20(a) or 20(b). He stated that funding in 20
(a) that is not transferred to the Underground Storage
Assistance Fund will lapse into the Oil and Hazardous
Substance Release Prevention and Response Fund. He noted
that the Oil and Hazardous Substance Release Prevention and
Response Fund pays for operations of the Division of Spill
Prevention and Response.
Representative Brown stated that the reduction would come
from section 20(b). Representative Therriault stressed that
the money contained in 20(b) would have to be transferred to
the General Fund before it can be appropriated.
Representative Brown observed that she is attempting to
target the $3.5 million dollars that would be transferred
from the Mitigation Account to the Storage Tank Assistance
Fund. She observed that there is no legal restriction on
spending from the Mitigation Account.
Representative Therriault spoke against the amendment. He
emphasized the importance of clean drinking water.
Representative Martin agreed with Representative Therriault.
Representative Brown stressed that she also supports clean
drinking water. She maintained that the money in the
Storage Tank Assistance Fund subsidizes private corporate
entities. She noted that Chevron, Tesoro, MarkAir, PTI,
Delta Airlines, Alaska Airlines, Mat-Su Telephone, and
Alaska Federal Credit Union are among the beneficiaries of
the Fund.
Representative Grussendorf spoke in support of funding for
RATNet. He asked suggestions for a more agreeable funding
source.
A roll call vote was taken on the MOTION to adopt Amendment
DOA-3A.
IN FAVOR: Brown, Grussendorf, Navarre, Foster
OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell,
Therriault, Hanley
The MOTION FAILED (4-7).
Representative Brown MOVED to adopt Amendment DOA-3B.
Representative Kohring OBJECTED.
6
BILL LEGERE, PRESIDENT, ALASKA BROADCASTING SERVICE
discussed a plan to phase out state support for public
television over a three year period. He provided members
with a handout describing the phase out plan (copy on file
with Amendment DOA-3B). He stressed that the infrastructure
created by the State would be jeopardized by the elimination
of state support in FY 96.
Representative Brown MOVED to AMEND Amendment DOA-3B by
reducing the appropriation amount to $2.8 million dollars.
DOUGLAS SAMIMI-MOORE, EXECUTIVE DIRECTOR, ALASKA PUBLIC
BROADCASTING COMMISSION assured members that it is not the
intent of the Commissioner to shut down any radio stations.
He stressed that a number of stations risk loosing their
federal matching funds at the current appropriation level.
He noted that the federal match requires that there be five
full time professional staff not paid by federal funds at
each station applying for a match. Most of the stations
that would be turned into local access repeaters would not
qualify under this restriction. He pointed out that
commercial radio may not provide the same service as public
radio stations. He observed that a significant reduction of
state support would result in the loss of the Alaska Public
Radio Network's statewide news coverage. He reiterated that
10 to 12 stations would loose their federal funding and be
reduced from a full service station to a local access
repeater.
Representative Kohring pointed out that the Public
Broadcasting Endowment can raise money. He maintained that
the public will pay for public radio and television if they
want the service to continue. He did not feel that it is
the role of government to subsidize radio and television.
Representative Brown maintained that there is a high degree
of public interest and concern. She alleged that the State
should be involved in emergency broadcasting and educational
programing.
A roll call vote was taken on the MOTION to adopt Amendment
3B.
IN FAVOR: Brown, Grussendorf, Navarre, Foster
OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell,
Therriault, Hanley
The MOTION FAILED (4-7).
Representative Brown MOVED to adopt Amendment DOA-4 (copy on
file). Representative Kohring OBJECTED. Amendment DOA-4
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would add $100 to the Personnel/Equal Employment Opportunity
BRU from the Mitigation Account. Representative Brown
observed that there is a current backlog of six months. She
maintained that if cases are not settled in arbitrations the
State will face an increase in court cases.
A roll call vote was taken on the MOTION to adopt Amendment
DOA-4.
IN FAVOR: Brown, Grussendorf, Navarre
OPPOSED: Kohring, Martin, Parnell, Therriault, Foster,
Hanley
Representatives Kelly and Mulder were absent for the vote.
The MOTION FAILED (3-6).
Representative Brown MOVED to adopt Amendment DOA-5 (copy on
file). Representative Kohring OBJECTED. Amendment DOA-5
would fund the Public Defender Agency at $460.0 thousand
dollars and the Office of Public Advocacy at $780.0 thousand
dollars. Representative Brown explained that the amendment
would fund the activities of the Public Defender Agency and
the Office of Public Advocacy for the next year. She asked
how members could justify not funding these requirements.
She noted that by June 30, 1995 the Office of Public
Advocacy expects to have 60 cases that must be continued.
She maintained that 57 of the cases are for felonies.
Representative Grussendorf spoke in support of the
amendment. He emphasized the constitutional responsibility
for representation. He maintained that the size of the
purse should not determine the quality of justice received.
Representative Kohring pointed out that funding has
increased from the FY 95 authorized level. He suggested
that the Prosecuting Attorney's Office and the Department of
Law be equally reduced.
Representative Brown noted that if these agencies are to
have less cases there needs to be less crime laws. She
suggested that these programs be funded in relationship to
the rest of the criminal justice system.
Representative Navarre pointed out that the Department of
Law has the ability to determine which cases they are going
to prosecute. The Public Defender Agency does not have the
discretion to reject cases referred to them. He noted that
the Office of Public Advocacy takes child protection cases.
He observed that these agencies have been consistently
under-funded.
8
Representative Brown maintained that the FY 96 proposed
funding level for the Public Defender Agency is $300.0
thousand dollars less than the FY 95 authorized when the RPL
approved by the Legislative Budget and Audit Committee is
included. The Office of Public Advocacy will receive $100.0
thousand dollars less than the total FY 95 authorized level
including RPL's.
Representative Navarre emphasized that inadequate funding
will result in a supplemental.
Representative Kohring stressed that he would welcome
working with the Administration for long term solutions.
A roll call vote was taken on the MOTION to adopt Amendment
DOA-5.
IN FAVOR: Brown, Grussendorf, Navarre
OPPOSED: Kohring, Martin, Mulder, Parnell, Therriault,
Foster, Hanley
Representative Mulder was absent from the vote.
The MOTION FAILED (3-7).
(Tape Change, HFC 95-67, Side 2)
Co-Chair Hanley MOVED to adopt Intent Language DOA-1 and
DOA-2 on behalf of Representative Austerman (copies on
file). He noted that the intent language would direct the
Administration to move towards privatization of public radio
and television. Representative Brown suggested that the
intent language is inconsistent with the actions of the
Committee. She noted that RATNet is not included in the
Endowment Trust.
Co-Chair Hanley WITHDREW Intent Language DOA-1 and DOA-2.
There being NO OBJECTION, it was so ordered.
Representative Brown HELD Intent Language DOA-3.
Representative Kohring MOVED to adopt Intent Language DOA-4
(copy on file). The intent language provided that no sole
service stations be closed, that state funding not be
provided to public television, and that the issue be re-
visited in one year. There being NO OBJECTION, it was so
ordered.
NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF
MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR requested that
"Commission" be deleted from Amendment DOA-1 in order to
allow the Administration flexibility to provide that the
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Public Broadcasting Endowment Trust or the Public
Broadcasting Commission administer the funds.
Representative Martin spoke against the suggestion. He
maintained that an amendment to delete "Commission" would
amount to using an appropriation for legislative change.
Ms. Slagle emphasized that the intent would be to privatize
public broadcasting and would not require statutory language
changes. Co-Chair Hanley noted that the Trust is already
established in law. He questioned if the suggested
amendment would allow the Administration to distribute the
funding without going through the Public Broadcasting
Commission or the Public Broadcasting Endowment Trust. Ms.
Slagle assured Co-Chair Hanley that the appropriation would
be directed either through the Public Broadcasting
Commission or the Public Broadcasting Endowment Trust.
The amendment was not offered.
Representative Brown referred to Intent Language DOA-3. She
deleted "and RATNet" from the third paragraph of the
amendment. She MOVED to adopt Intent Language DOA-3. The
intent language would direct the Administration to reduce
general fund support for RATNet, to privatize public
broadcasting through the Public Broadcasting Endowment
Trust, and to consolidate the public television stations
into one station.
Representative Kohring spoke against government
subsidization of public broadcasting. Discussion ensued
regarding privatization of publIc broadcasting.
Representative Brown asserted that private media is absent
from much of the State due to the size of the market. She
suggested that there meeds to be some level of government
funding in rural Alaska. She emphasized that stations
should be encouraged to create an organization that is able
to solicit private funds.
Representative Martin suggested that private enterprise may
feel that they cannot compete against a government
subsidized entity.
Representative Navarre noted that commercial stations are
primarily funded through advertising. He maintained that
advertising dollars to support commercial broadcasting are
not available.
Representative Kohring reiterated his belief that the public
will pay for public broadcasting if they want it to
continue. He asserted that "big bird is not going to go
away."
10
In response to a question by Representative Martin,
Representative Brown clarified that the Public Broadcasting
Endowment Trust has been legally created.
Representative Navarre noted problems in his district
regarding commercial station broadcasting.
A roll call vote was taken on the MOTION to adopt Intent
Language DOA-3.
IN FAVOR: Brown, Grussendorf, Navarre, Kohring, Martin,
Parnell, Therriault, Hanley
OPPOSED: Mulder
Representatives Foster and Kelly was absent from the vote.
The MOTION PASSED (8-1).
DEPARTMENT OF LAW
Representative Parnell MOVED to adopt Amendment LAW-1 (copy
on file). Co-Chair Hanley explained that the amendment
would add funding for the Department of Law, Legal Services.
Funding would be provided from the Department of Health &
Social Services. He explained that $1.0 million dollars
would be take from the Department of Health & Social
Services and transferred to the Department of Law. The
Waivers Services Component would be reduced by $588.0
thousand dollars. He stated that this would not affect the
number of waivers applied. He noted that a $488.0 thousand
dollar savings was realized in this component due to
additional slowing of the Older Alaskans waiver. The base
was adjusted by $140.0 thousand dollars to correct an error.
He added that Medicaid Non-facility, Medicaid Facility and
General Relief Medial will be reduced by 10.6 percent for a
savings of $412.0 thousand dollars.
Representative Parnell explained that $1.5 million dollars
would be added back to Legal Services, Department of Law.
He added that transfers would be made from the Environmental
Law and Environmental Compliance Components to Legal
Services. This would allow funding in areas of child
protection and natural resources.
In response to a question by Representative Brown,
Representative Parnell explained that at the request of the
Office of Management and Budget, 470 funds were withdrawn
from the Department of Law's base. The Department of Law
will bill the Department of Environmental Conservation for
services associated with 470 funds.
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Representative Brown asked if there would be a reduction in
the level of effort for collecting fines, damages and
penalties associated with violations.
BARBARA RITCHIE, DEPUTY ATTORNEY GENERAL, CIVIL DIVISION,
DEPARTMENT OF LAW acknowledged that there would be a
reduction in the recouping of fines. She estimated that the
reduction in personnel cost would result in a loss of
revenues which would exceeded the savings by over $100.0
thousand dollars in fines.
Representative Parnell explained that the Department of Law
made the decision to share the reductions across the
Department.
Co-Chair Hanley further explained the savings realized in
the Waivers Services Component. He noted that the waiting
list has been reduced.
There being NO OBJECTION, Amendment LAW-1 was adopted.
Representative Brown WITHDREW Amendment LAW-2 (copy on
file).
DEPARTMENT OF REVENUE
Co-Chair Hanley MOVED to adopt Amendment REV-1 (copy on
file). He explained that the amendment would add $952.8
thousand dollars for the Mental Health Trust Authority. The
amendment also contained intent language directing the
Authority to prepare a comprehensive mental health program
budget.
Representative Martin emphasized that money spent in
administration reduces funding available for clients. He
maintained that the Authority needs to have legislative
oversight. Co-Chair Hanley pointed out that they must
submit their budget to the legislature. He observed that
the amount was requested by the Authority. He noted that
four positions are statutorily required.
Representative Brown maintained that the Authority believes
it has the ability to spend dollars from the Mental Health
Trust Income Account. She expressed concern that the intent
language would run counter to the understanding of the
settlement.
Co-Chair Hanley MOVED to divide the question. He explained
that the intent language would be considered separately.
There being NO OBJECTION, it was so ordered.
In response to a question by Representative Navarre, Co-
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Chair Hanley noted that the staff and range information was
not provided.
There being NO OBJECTION, Amendment REV-1A was adopted.
Representative Brown summarized that it is not the intent to
preclude the Mental Health Trust Authority from exercising
their statutory authority and make expenditures consistent
with the statute out of the Mental Health Trust Income
Account. Co-Chair Hanley stressed that he only wanted to
have the Authority submit a list of planned expenditures.
Representative Brown WITHDREW her objections. There being
NO OBJECTION, Amendment REV-1B was adopted.
Representative Martin MOVED to adopt Amendment REV-2 (copy
on file). The amendment would delete $600.0 thousand
dollars from the Department of Revenue, Oil and Gas Audit.
(Tape Change, HFC 95-68, Side 1)
Representative Grussendorf spoke against the amendment. He
noted that the amendment would reduce an auditor position.
He pointed out that each auditor is capable of bringing in
millions of dollars. Co-Chair Hanley and Representative
Brown spoke against adoption of the amendment.
A roll call vote was taken on the MOTION.
IN FAVOR: Therriault, Martin, Mulder, Foster
OPPOSED: Brown, Grussendorf, Navarre, Parnell, Kelly,
Kohring, Hanley
The MOTION FAILED (4-7).
Representative Brown MOVED to adopt Amendment REV-3 (copy on
file). Representative Martin OBJECTED. Representative
Brown explained that the amendment would add $140.0 thousand
dollars to Treasury Management Safekeeping Fees from the
Constitutional Budget Reserve Fund. She argued that the
this component needs to be represented "on budget".
Representative Martin objected to the use of the
Constitutional Budget Reserve as the funding source. He
MOVED to AMEND Amendment REV-3, delete "Constitutional
Budget Reserve Fund" and insert "general funds".
Representative Therriault noted that the amendment to the
amendment would raise the cap of the Department of Revenue.
Co-Chair Hanley expressed support for using the
Constitutional Budget Reserve Fund as the funding source.
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He stressed that the funds are used to manage the
Constitutional Budget Reserve Fund.
Representative Martin cautioned that interest will have to
be paid on money borrowed from the Constitutional Budget
Reserve Fund.
A roll call vote was taken on the MOTION to amend the
amendment.
IN FAVOR: Brown, Martin
OPPOSED: Grussendorf, Navarre, Kelly, Kohring, Parnell,
Therriault, Foster, Hanley
The MOTION FAILED (2-8).
There being NO OBJECTION, Amendment REV-3 was adopted.
Representative Grussendorf MOVED to adopt Amendment REV-4
(copy on file). He explained that funding would be
transferred from Gaming to Child Support Enforcement. He
spoke in support of the amendment. He pointed out that
child support payments which would result from the amendment
would surpass the cost of the amendment.
Representative Martin pointed out that the Child Support
Enforcement Division is receiving an increase from FY 95.
He argued against the amendment. He noted that not all of
the approved positions have been filled. He stressed the
importance of the Gaming Component.
Representative Grussendorf acknowledged the importance of
Gaming. He emphasized that a $90.0 thousand dollar transfer
into the Child Support Enforcement Division would capture up
to $800.0 thousand dollars in federal matching funds.
Representative Parnell expressed concern with the funding
source. Representative Grussendorf stressed that the
funding source reflects the priorities of the Department of
Revenue.
Representative Brown spoke in support of the amendment. She
observed that the Legislative Budget and Audit Committee
approved additional positions without approving the
necessary funding to implement the positions. She
reiterated that federal matching funds would be gained. She
added that the State would benefit from the increase in
child support payments.
Co-Chair Hanley noted that the amendment would drop Gaming
to the FY 95 level. The Child Support Enforcement Division
would be $600.0 thousand dollars above FY 95.
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A roll call vote was taken on the MOTION to adopt Amendment
REV-4.
IN FAVOR: Brown, Grussendorf, Navarre
OPPOSED: Kelly, Kohring, Martin, Parnell, Therriault,
Foster, Hanley
Representative Mulder was absent from the vote.
The MOTION FAILED (3-7).
Representative Grussendorf MOVED to adopt Amendment REV-5
(copy on file). He explained that the amendment would add
an investigators position to the Alcohol Beverage Control
Board.
Representative Navarre stressed that the increase would be
offset by an increase in program receipts. He stressed the
effects of alcohol on social programs.
Representative Martin observed that the increase in program
fees comes from taxes paid by tavern and bar owners.
Representative Navarre declared a conflict of interest.
Representative Parnell declared a conflict of interest.
Both were excused and expected to vote.
A roll call vote was taken on the MOTION to adopt Amendment
REV-5.
IN FAVOR: Brown, Grussendorf, Kelly, Navarre
OPPOSED: Kohring, Martin, Parnell, Therriault, Foster,
Hanley
Representative Mulder was absent from the vote.
The MOTION FAILED (4-6).
Representative Brown MOVED to adopt Amendment REV-6 (copy on
file). Representative Martin OBJECTED. Representative
Brown explained that the amendment would restore funding to
the Divisions of Oil and Gas Audit and Income and Excise
Audit, and the Office of the Commissioner. She maintained
that it does not make sense to reduce areas of the budget
that are responsible for collection of monies owed to the
State. She stressed that the Commissioner serves on 24
state boards with major responsibility. The reduction in
the Commissioner's Office would result in a loss of 2 of 4
positions.
Representative Martin spoke against the amendment. He
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alleged that there are diminishing returns on funding spent
on audits. He stressed that the level is an increase over
Governor Hickel's request. He acknowledged that the funding
level is below Governor Knowles' request.
Representative Brown pointed out that $265 thousand dollars
was deleted from the front section for oil and gas
litigation. She noted other reductions. She maintained
that there is a significant reduction in these areas.
Representative Martin maintained that the front section
appropriation amounted to a "slush fund". Representative
Brown argued that the front section appropriated funded
items related to major oil and gas cases, expert witnesses
and auditor travel.
A roll call vote was taken on the MOTION to adopt Amendment
REV-6.
IN FAVOR: Brown, Grussendorf, Navarre
OPPOSED: Kelly, Kohring, Martin, Parnell, Therriault,
Foster, Hanley
Representative Mulder was absent from the vote.
The MOTION FAILED (3-7).
ADJOURNMENT
The meeting adjourned at 5:05 p.m.
16
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