Legislature(1999 - 2000)
05/16/1999 10:20 AM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
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HOUSE FINANCE COMMITTEE
May 16, 1999
10:20 A.M.
TAPE HFC 99 - 143, Side 1.
CALL TO ORDER
Vice Chair Bunde called the House Finance Committee meeting
to order at 10:20 A.M.
PRESENT
Co-Chair Mulder Representative Foster
Vice Chair Bunde Representative Grussendorf
Representative G. Davis Representative Kohring
Representative Austerman Representative Moses
Representative J. Davies Representative Williams
Representative Therriualt was not present for the meeting.
ALSO PRESENT
Senator Gary Wilken; Wendy Redman, Vice President,
University of Alaska, Fairbanks; Mary Gore, Staff, Senator
Mike Miller; David Essary, Director of Finance, Department
of Administration; Debbie Grundmann, Staff, Senator Sean
Parnell.
SUMMARY
SB 155 An Act relating to methods of payment of and
reports concerning certain state salaries and
business expenses.
CSSB 155(FIN) was reported out of Committee with
"no recommendation" and with a fiscal note by the
Department of Administration dated 5/7/99.
SB 167 An Act relating to scholarships to attend the
University of Alaska; establishing the Alaska
scholars program; and providing for an effective
date.
CSSB 167(FIN) was reported out of Committee with a
"do pass" recommendation and with a fiscal note by
the University of Alaska dated 5/7/99.
SB 169 An Act relating to missions and measures to be
applied to certain expenditures by the executive
branch of state government and the University of
Alaska from the state operating budget for the
fiscal year ending June 30, 2000; and providing
for an effective date.
CSSB 169(FIN) was reported out of Committee with a
"do pass" recommendation and a fiscal note by the
Office of the Governor dated 5/10/99.
CS FOR SENATE BILL NO. 167(FIN)
An Act relating to scholarships to attend the
University of Alaska; and providing for an effective
date.
SEANTOR GARY WILKEN commented that the University of Alaska
Board of Regents has established the Alaska Scholars
Program. Under the program, scholarships are awarded to the
top 10 percent of Alaska's high school students to attend
the University of Alaska. A recipient receives the
scholarship for up to four years, provided the student
successfully completes a full-time certificate or degree
program. The award in the amount of $1,350 per semester may
be used for tuition, fees, room, board, books,
transportation and other education expenses.
Senator Wilken noted that the legislation would guarantee
that the Alaska Scholars Program continue and that bright
and talented students will be encouraged to attend the
University of Alaska. He urged the Committee's support of
the bill.
In response to Representative Grussendorf, Senator Wilken
pointed out that the fiscal note indicates a scholarship for
$2,700/year for 4 years to the University of Alaska for
those students who met the criteria. The fiscal note
assumes that 25% of potentially eligible graduates will take
advantage of this program in FY00, and that 50% of
potentially eligible graduates will take advantage of the
program each year thereafter.
Representative Austerman spoke in support of the
legislation, however, voiced caution not to forget the
remaining 90% of high school students. He urged that those
graduating students should be encouraged to reach for higher
education and that perhaps community colleges should be
expanded. Senator Wilken hoped that the 10% group would act
as a magnet to their other school friends considering
college choices. He added that the K-14 initiative is a
project proposed by President Hamilton.
Co-Chair Mulder questioned language in Section 2, "Finance
notice and approval".
WENDY REDMAN, VICE PRESIDENT, UNIVERSITY OF ALASKA,
FAIRBANKS, explained that was a technical change. It refers
to Section 1, which changes nothing.
Representative J. Davies asked if the program was codified
any place in statute. Senator Wilken replied that the
original legislation spoke to general fund appropriations,
and that language had been removed. However, it is still
recognized through the presence of the bill.
Co-Chair Mulder asked how many full time employees (FTE)
were employed throughout the University of Alaska system.
Ms. Redman replied that there are about 16,000 FTE's system-
wide; in Anchorage there are 7,500, and Fairbanks with
4,000; the balance is spread throughout the system.
Baccalaureate tuition program costs are a little below the
national average; the community college programs are very
high, approximately double that of other western states.
Representative J. Davies advised that many students take
advantage of the lower division courses through the
community college system and that fees hikes are having a
dramatic effect in loss of students which the State is
experiencing. That is a serious issue.
Ms. Redman agreed with Representative J. Davies regarding
the cost crisis. The other big factor relative to the cost
in this State is that communities do not help pay. There is
no local participation or payment from either Anchorage or
Fairbanks. She recommended that issue be addressed.
Senator Wilken pointed out that the legislation was
supported by the Administration. Representative G. Davis
asked how the fiscal costs would be met. Ms. Redman replied
that it would be income earned from the Natural Resources
Fund, which currently was being spent on other projects. The
University has decided this is a higher priority.
Representative J. Davies MOVED to report CSSB 167(FIN) out
of Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CS SB 167(FIN) was reported out of Committee with a "do
pass" recommendation and with a fiscal note by the
University of Alaska dated 5/7/99.
CS FOR SENATE BILL NO. 155(FIN)
An Act relating to methods of payment of and reports
concerning certain state salaries and business
expenses.
MARY GORE, STAFF, SENATOR MIKE MILLER, explained that the
proposed bill would expand the number of state entities, in
addition to the Legislature, annually required to report
travel and compensation. Detailed information for the
previous calendar year of the salaries, per diem, travel
expenses, relocation expenses and any additional allowances
received would be the required from the following people:
* Governor and Lt. Governor;
* Chiefs of Staff of the above;
* Supreme Court Justices & Court of Appeals Judges;
* Administrative director of the Court:
* Legislative Affairs Executive Director;
* President & Vice President of the University;
* Commissioners and Deputy Commissioners and
Division Directors; and
* Executive Heads of public corporations.
Representative J. Davies questioned the need for the
proposed legislation given the expense it would incur.
Representative Kohring also spoke to the expense associated
with the legislation.
DAVID ESSARY, DIRECTOR OF FINANCE, DEPARTMENT OF
ADMINISTRATION, stated that the fiscal note reflects efforts
for personal services to prepare a report containing
detailed information on salaries, per diem, travel expenses,
relocation expense for all the above listed State employees.
To compile the information will require gathering wage
information from the payroll system, as well as gathering
travel information for each individual's records. The
Department estimates that this will take the equivalent of
approximately three months time for an Accountant IV.
Representative Kohring recommended that the information be
made available through the Internet, which he believed would
save costs. Representative Bunde observed that many people
do not have computer access.
Representative Grussendorf pointed out that the information
would be required of approximately 125 employees.
Representative J. Davies added that costs would be for
distribution and assembling information. He noted that he
objected to all the costs associated with the legislation.
He exclaimed that there will be a need to educate why these
costs were incurred. Representative Austerman also voiced
his concern with the costs associated with the program.
Representative J. Davies pointed out that currently the
information is available for each department through the
budget detail books. Representative Bunde countered that
the public's right to know is paramount. Mr. Essary agreed
that everyone has the right to know. The Division of
Legislative Audit has conducted some of this type work on a
smaller scale. The proposed legislation would remove the
responsibility from that Division to the Department of
Administration.
Representative Austerman inquired if someone requested this
information now would the Department provide it. Mr. Essary
explained that they would, however, under the Public
Information Act, information made available is provided at
no charge. Any information that would require time
gathering, as under this bill, the Department would be
allowed to charge for.
Mr. Essary stated that the Division of Legislative Audit has
previously done a portion of this task; he voiced was
concerned that if the bill does not pass, there could be a
conflict between the two agencies.
In response to Representative G. Davis, Ms. Gore replied
that no sunset clause had been proposed.
Representative Foster MOVED to report CSSB 155 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note. Representative Kohring OBJECTED.
Representative J. Davies suggested that the money requested
in the fiscal note could be used on many more important
projects. He foresaw that $18 thousand dollars would only be
the beginning of requested funds to run the program.
Representative J. Davies stressed that this was not
responsible spending.
Representative Kohring observed that if reporting was not
being requested for the Legislature, it should not be
required for the other branches of government. He
reiterated comments to place information on the Internet.
Representative Williams voiced additional concern with the
fiscal costs associated with the legislation.
A roll call vote was taken on the motion to MOVED the bill.
IN FAVOR: Foster, Kohring, Williams, Austerman, Bunde,
G. Davis
OPPOSED Grussendorf, Moses, J. Davies
Representatives Mulder and Therriault were not present for
the vote.
The MOTION PASSED (6-3).
CSSB 155 (FIN) was reported out of Committee with "no
recommendation" and with a fiscal note by Department of
Administration dated 5/7/99.
CS FOR SENATE BILL NO. 169(FIN)
An Act relating to missions and measures to be applied
to certain expenditures by the executive branch of
state government and the University of Alaska from the
state operating budget for the fiscal year ending June
30, 2000; and providing for an effective date.
DEBBIE GRUNDMANN, STAFF, SENATOR SEAN PARNELL, stated that
SB 169 would continue legislative progress toward results
based budgeting by enacting missions and measures for the
FY00 operating budget. She pointed out that House and
Senate subcommittees had worked with the various departments
to adopt missions for the departments and divisions.
Existing missions and measures adopted for FY99 programs
were also refined and that those recommendations have been
incorporated into SB 169. It would apply only to FY00
appropriations and would reflect substantial compliance with
the results based budgeting requirements of the Executive
Budget Act.
Representative Grussendorf MOVED to report CSSB 169 (FIN)
out of Committee out of Committee with individual
recommendations and with the accompanying fiscal note.
There being NO OBJECTION, it was so ordered.
CSSB 169(FIN) was reported out of Committee with a "do pass"
recommendations and with a fiscal note by the Office of the
Governor dated 5/10/99.
ADJOURNMENT
The meeting adjourned at 11:05 a.m.
H.F.C. 6 5/16/99 a.m.
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