Legislature(2003 - 2004)
03/01/2004 01:49 PM House FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
March 01, 2004
1:49 PM
TAPE HFC 04 - 34, Side A
TAPE HFC 04 - 34, Side B
TAPE HFC 04 - 35, Side A
CALL TO ORDER
Co-Chair Harris called the House Finance Committee meeting
to order at 1:49 PM.
MEMBERS PRESENT
Representative John Harris, Co-Chair
Representative Bill Williams, Co-Chair
Representative Kevin Meyer, Vice-Chair
Representative Eric Croft
Representative Hugh Fate
Representative Richard Foster
Representative Mike Hawker
Representative Reggie Joule
Representative Carl Moses
Representative Bill Stoltze
MEMBERS ABSENT
Representative Mike Chenault
ALSO PRESENT
Kurt Fredriksson, Deputy Commissioner, Department of
Environmental Conservation; Mike Maher, Director, Division
of Administrative Services, Department of Revenue; Joel
Gilbertson, Commissioner, Department of Health & Social
Services; Janet Clarke, Director, Division of Administrative
Services, Department of Health and Social Services; Ed
Fisher, Deputy Commissioner, Department of Labor and
Workforce Development; Kevin Brooks, Director, Division of
Administrative Services, Department of Fish and Game; Jim
Derringer, Staff, Representative Fate.
PRESENT VIA TELECONFERENCE
GENERAL SUBJECT(S):
Department Responses to HFC FY05 Budget Recommendations:
Environmental Conservation
Fish and Game
Health & Social Services
Labor
The following overview was taken in log note format. Tapes
and handouts will be on file with the House Finance
Committee through the 23rd Legislative Session, contact 465-
2156. After the 23rd Legislative Session they will be
available through the Legislative Library at 465-3808.
LOG SPEAKER DISCUSSION
TAPE HFC 04 - 34 DEPARTMENT OF ENVIRONMENTAL CONSERVATION
SIDE A
051 KURT FREDRIKSSON, Reviewed the impact of subcommittee
DEPUTY COMMISSIONER, recommendation to eliminate $539.7
DEPARTMENT OF thousand: $11.4 in general funds and the
ENVIRONMENTAL elimination of two positions.
CONSERVATION,
223 Mr. Fredriksson Noted that an increment to strengthen
water quality protection for $300 GF was
reduced to $200 thousand. This would
impact the underground injection program.
311 Mr. Fredriksson Discussed the drinking water section
reduction of $45.9 thousand. There are
1,700 Class C systems (smaller water
systems that serve 25 or more). The
program would be cut in half and phased
out.
416 Mr. Fredriksson Reviewed reductions for Class C solid
waste management for communities of 1,000
or less, 163 communities would be phased
out. An internet-based system would be
substituted.
525 Mr. Fredriksson Noted that there was a $56 thousand
switch to the Seafood Inspection Fund
from GF to receipts.
611 Representative Croft Clarified that the receipts would be from
seafood industry fees paid the state to
provide inspection services.
635 Co-Chair Harris Noted that the savings would go to the
General Fund.
657 Mr. Fredriksson Observed that there was an $18.8 general
fund reduction in travel.
737 Mr. Fredriksson Noted that the Subcommittee did not
accept the Governor's request for $80.5
GF for homeland security issues. The
Commissioner's office would have to
provide the support.
843 Mr. Fredriksson Observed that the worst impact would be
to the water quality programs. He
expressed concern that water protection
programs need to be strengthened. The
underground injection program would not
go forward.
917 Mr. Fredriksson Clarified, in response to a question by
Co-Chair Harris, that the full request
was for $300 thousand and three
positions: $100 thousand and one position
were denied.
1019 Representative Croft Asked for more information on the
Raindrops to Ocean Initiative.
1053 Mr. Fredriksson Explained that the initiative looks at
how water resources are managed. Water
quality, environmental health wastewater,
facilities construction and operation
(village safe water and sewage loans)
would be consolidated in a new water
section. He provided further information
regarding on the reorganization.
1145 Co-Chair Harris Spoke to the Governor's proposed
amendments and asked how many of the
amendments were taken care of by the
Subcommittee.
1219 Mr. Fredriksson All the Governor's amendments were dealt
with in the Subcommittee except the
Homeland Security position, which would
operate at Fort Rich with the Department
of Military and Veterans Affairs for
security and response. The position would
provide preparedness planning as well as
response. The cost includes their entire
salary.
1356 Representative Croft Questioned why the Subcommittee decided
that the increment for vehicle inspection
and maintenance was not appropriate.
1456 Mr. Fredriksson Explained that there was a vote in
Fairbanks regarding the continuation of
the IMN program, which lead the
Department to the conclusion that the
program should be reviewed.
1600 Co-Chair Harris Asked how closely the Department works
with the Joint Pipeline Office.
1616 Mr. Fredriksson The Department works closely with the
Joint Pipeline Office.
1649 Co-Chair Harris Questioned if he knew if Alyeska was
paying for any joint positions in the
Pipeline Office.
1731 MIKE MAHER, Observed that Alyeska pays the state for
DIRECTOR, DIVISION functions, not specific positions.
OF ADMINISTRATIVE
SERVICES, DEPARTMENT
OF REVENUE
1752 Mr. Fredriksson A number of these positions would be
eliminated. The attention is to focus on
permitting and oversight. Coordination
would come from senior management. Staff
in water and other programs is dedicated
to oversight and the pipeline.
1855 Co-Chair Harris Expressed concern that the state of
Alaska not become complacent in regards
to spill prevention. He observed the
quality of Alaska's system and the
potential problems associated with oil
production.
2033 Representative Croft Questioned if the homeland security
position was a new position.
2044 Mr. Fredriksson Noted that the position is currently in
the FY 04 budget, it was recommended for
elimination but was restored.
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
2128 JOEL GILBERTSON, Noted that the FY05 budget was reduced by
COMMISSIONER, $35.6 million, which corresponds to the
DEPARTMENT OF HEALTH increment request for Medicaid. There is
& SOCIAL SERVICES, a commitment on the part of the
Department to reducing costs to the
Medicaid budget. He observed that the
Department's proposed FY05 budget for
Medicaid included $91.3 million in GF
savings through cost containment,
efficiencies and refinancing.
2403 Representative Clarified that an increment was not fully
Hawker funded. The program was not cut from the
previous fiscal year.
2469 Mr. Gilbertson Pointed out that the Medicaid budget is
driven by caseload. In response to a
question by Co-Chair Harris, Mr.
Gilbertson stated that the growth is not
a result of [coverage] expansion. The
caseload has increased. Denali Kid Care
is more effective in signing up clients.
The eligibility has not changed
drastically. Assumptions and changing
demographics account for most of the
growth, which is a national trend.
Seniors and disabled are driving the
program's cost, which is a national
trend.
2728 Representative Joule Questioned if the client growth applies
for Medicaid of services.
2801 Mr. Gilbertson Noted that Medicaid is a separate
application, but many are signed up
through Native health corporations. The
Department signs some individuals through
Adult Public Assistance.
2936 Mr. Gilbertson Stressed that the Department is working
to contain costs, but that grow is
continuing. The reduction would be very
challenging for the Department to
implement. Many savings require statutory
and regulatory change, and public
comment. The Department would be forced
to achieve the bulk of the savings in the
last 6 months of the year because of the
implementation time.
3137 Representative Questioned if it would be helpful to
Hawker begin the work in FY04.
3223 Mr. Gilbertson Agreed that it would be helpful to start
looking at optional service reductions.
Adult dental service would be one of the
earlier items to be eliminated, seniors
would lose speech, hearing and vision
care, and waivers would be eliminated,
along with personal care. The Department
would also have to look at rates. There
would be reductions of physician
reimbursement by 10 percent. Municipally
supported programs would be affected.
3438 Representative Questioned if legislation was needed to
Stoltze pro rate physician rates.
3455 Mr. Gilbertson Explained that reductions would occur by
regulations, but they would still require
a lengthy process.
3518 Representative Questioned if elimination of entire
Hawker programs are necessary.
3719 Mr. Gilbertson Fundamental changes need to occur through
statute. Maintained it would be
appropriate to have the public discourse:
what are the impacts to the individuals?
3857 Mr. Gilbertson Some of the growth has occurred through
Fair Share and has grown as a conscious
decision.
3937 Representative What is the proportion of optional
Hawker services versus mandatory services?
4001 JANET CLARKE, Observed that the Division is: 60 percent
DIRECTOR, DIVISION optional and 40 percent mandatory.
OF ADMINISTRATIVE
SERVICES, DEPARTMENT
OF HEALTH AND SOCIAL
SERVICES
4022 Mr. Gilbertson Emphasized that Medicaid doesn't
distinguish between optional and
mandatory services the same way the
Department does. Under the Medicaid
structure prescription drugs are
optional, but the state recognizes that
they are still part of a core service.
4123 Representative Acknowledged that prescription drugs are
Hawker a critical part of the anticipated
growth. Referred to the Legislative
Budget and Audit Committee audit on the
Medicaid Program. The report felt that
there were unnecessary inefficiencies.
4245 Mr. Gilbertson Noted that the audit indicated that there
are number of programs that could be
improve. The Department has worked to
improve program integrity and strengthen
their own audit process. Did not know if
SB 41 would achieve the reductions.
4514 Representative Referred to the growth in personal care
Hawker attendants: from $8 to $56 million in
three years.
4641 Mr. Gilbertson Observed that the Personal Care
Attendance program has grown due to
regulations from the previous
administration.
TAPE HFC 04 - 34, Side B
4621 Mr. Gilbertson Pointed out that personal care can keep
clients out of long term nursing beds,
but acknowledged the need to assure the
use. He agreed that there is room for
savings. The Department has tried to
manage the Medicaid program as one
budget. There are grants for behavior
health, which will do no good without
vibrant Medicaid services, since the
clients are the same. There are common
clients across programs that need to be
considered.
4249 Mr. Gilbertson In response to a question by
Representative Croft, Mr. Gilbertson
noted that the Department proposed to
handle growth within the Department and
came forward with a number of savings
through efficiencies, refinancing and
cost containment, some of which were not
accepted. The Department proposed to use
the efficiencies to fund the growth of
Medicaid. The state of Alaska lost
federal financing in FY05.
3987 Representative Croft All but 5.6 of the efficiencies were
taken, but they were not applied to the
Medicaid growth. Additional $35.6 was
reduced in the Medicaid program. Referred
to reductions to family planning.
3909 Mr. Gilbertson Observed that federal funding was reduced
in the Subcommittee.
3899 Co-Chair Harris Questioned what services were reduced.
3852 Mr. Gilbertson Explained that family planning, not
abortion, was reduced. Counseling
services and contraceptive services were
reduced.
3844 Co-Chair Harris Questioned the need for the permanent
fund dividend hold harmless provision.
3823 Mr. Gilbertson There are a number of services that
provide assistance on a cash basis such
as TANF. The state by statute is required
to discount income earned by the
permanent fund dividend in the
distribution of these services. Money
from the Permanent Fund is used to
supplement for any loss benefits that
result in ineligibility for these
services. The cost comes from the
Permanent Fund.
3601 Ms. Clark Observed that the benefits are maintained
for one month in October.
3538 Representative Asked the Commissioner to discuss items
Hawker that were added back by the Subcommittee.
3445 Mr. Gilbertson Discussed transactions made by the
Subcommittee. He observed that the
Department would further examine
reductions for FY05.
3227 Mr. Gilbertson Referred to the reinstatement of $500
thousand in funds for Pioneer Homes.
There was a seven-year rate increase to
keep up with the cost of the homes. There
have been two years without a rate
increase. The proposal would continue the
effort to keep the rates up. This would
general fund return would replace the
savings that the Department would have
realized from a rate increase of pioneer
home residents.
3152 Mr. Gilbertson The second item is a reinstatement of
$500 thousand in GFMH; the reduction was
taken as part of the governor's budget
submission to eliminate the Alaska Youth
Initiative (AYI). The Department believes
the funds can better serve kids through
other programs. The reinstatement of $500
thousand was made at the Subcommittee
with language encouraging the Department
to use the funds toward support of the
Bring the Kids Home Initiative. This
would bring the 400 plus kids that are
currently out of state placements for
psychiatric treatment centers. There was
a decrement to the Alcohol Safety Program
for adults, with a desire to move toward
an offender finance system. The
Administration believes individuals must
take responsibility for their actions.
The Department feels it can work with the
Courts to ensure DWI offenders are
accountable. The proposal acknowledges
that it will take time for the offender
finance system to be implemented and
therefore the Subcommittee reinstated 6
months.
2950 Representative Croft Put all back or only $408.0 to the
Pioneer Homes. Ms. Clarke replied that
the full amount was put back. The rate
increase will happen, but there is
recognition that the Department may not
receive all the funds due to nonpayment.
2903 Mr. Gilbertson Explained, in response to a question by
Representative Croft, that the Department
is not currently operating the AYI
program. The funds are being used for
other out patient services for troubled
youth. The AYI program served an
alarmingly small number of kids for the
amount of dollars invested. The
Department feels it can serve a much
larger number of kids through other
programs. The Department's objective is
to bring kids home from out of state and
provide residential services or
outpatient and direct kids toward lower
cost alternatives.
2744 Ms. Clarke Explained that the Department is trying
to change the nature of the funds, not
eliminate but refocus.
2719 Representative Croft Questioned what would happen if someone
offends but can't pay for alcohol
treatment. He questioned if there should
be some GF component left to fund those
who can't pay. Mr. Gilbertson replied
that it is in the Department's interest
to assure that whatever reimbursement
structure is used is able to finance the
system. The courts can hold individuals
accountable; they must attend treatment
and report back to court. An offender
payment structure would represent the
true costs. The Department believes in
individual accountability and that an
offender-financed system can be
successful. It is ultimately a
transaction between the court system and
offender. Treatment would not be paid
for; the funds go toward monitoring.
2523 Mr. Gilbertson Discussed alcohol treatment residential
beds. The Department has moved toward
outpatient services, taken a reduction of
$600 thousand GF savings from treatment
residential alcohol beds. The Governor's
budget proposed a $300 thousand reduction
GF in reducing the least effective
alcohol grants. This was restored in
Subcommittee.
2348 Representative Clarified this reinstatement of funds;
Hawker there was concern by rural members of the
subcommittee. There are $65 million of
program reductions.
2235 Ms. Clarke Explained that the Department had cut $50
thousand and the Subcommittee restored
$150 thousand for psychiatric emergency
services due to concern by the Alaska
Mental Health Trust Authority.
2207 Mr. Gilbertson Emphasized that the Department doesn't
believe the reductions are risky or
aggressive. The seventh item, which
moves toward utilization of targeting
case management, will be more difficult
to achieve. Legislation was proposed to
allow the Department to engage in
targeted case management. This would
allow the refinancing of approximately
$270 thousand GF. The Subcommittee did
not believe that the reduction could be
realized and restored the reduction.
2189 Mr. Gilbertson Noted that $220 thousand GF for day
treatment program in Kodiak. This was a
reduction in FY04.
2102 Representative Explained that there was an effort in the
Hawker prior budget to provide services through
identifying school districts as Medicaid
recipients. School district was not
qualified as Medicaid recipient.
2034 Mr. Gilbertson Discussed a GF decrement in the
Governor's budget regarding educational
costs for youths in out of state
placement. The Governor's budget pushed
for a $375 thousand cost savings, which
was reinstated by the Subcommittee.
1992 Mr. Gilbertson Noted that federal Title 10 grant money
for family planning was eliminated: $400
thousand for family services
1924 Representative Observed that a subcommittee member with
Hawker concerns brought the item forward. The
Subcommittee decided that the item needed
to be reassessed.
1857 Representative Croft Questioned what were the concerns.
Representative Hawker replied that the
concerned was that the money was not
being used as represented in Fairbanks.
1839 Mr. Gilbertson Pointed out that the Governor's budget
contained authorization for the receipt
of these funds for family planning
services.
1832 Mr. Gilbertson Observed that there was an increment of
$200 thousand for Youth Court funding,
which was the result of a change in
federal funding.
1713 Representative Clarified that the item was Subcommittee
Hawker initiative. He observed that funding for
youth courts has declined and stressed
the support for the program. Youth courts
were segregated and given an increment of
$200, which brings the aggregate to $500
thousand statewide. ($479 GF and $29
matching federal.) He noted that
Representative Ogg (who introduced
legislation to fund youth courts) is
happy with the appropriation. He
emphasized that money invested in the
front end of an issue saves downstream in
social costs.
1538 Vice-Chair Meyer Clarified that, under Representative
Ogg's legislation, money collected
through fines would go into the General
Fund.
1444 Mr. Gilbertson Reviewed an effort to align operations
and restructure administration,
management and some operations of the
public health nursing program. The intent
is to utilize other resources in
communities. The Department looked at
urban areas with other federally funded
provider services available. He noted
that there is an effort to work with
health care partners. The section chief
is working with communities to identify
some services that can be transitioned to
other providers and assure that the
transition is seamless transition. The
Department identified a 4-year savings,
which was reduced to a six-month savings.
There was reinstatement of $ 535 thousand
in GF and $370 in IA.
1234 Mr. Gilbertson Discussed the provision for exceptional
relief, which the Commissioner can grant
to health care facilities for additional
reimbursement. This allows continue
operations when there are deficits. The
Department believes that they must
continue to push on sustainability of the
infrastructure and eliminate redundant
infrastructure. The Department had
notified the State Hospital and Nursing
Home Association that they would no
longer grant exceptional relief requests.
This has always been discretionary item.
There are two or three facilities that
utilize the provision: Sitka, Wrangell
and Wesley.
1055 Mr. Gilbertson He noted that most of the facilities in
question have long-term and acute care.
The state has attempted to support
infrastructure by overpaying the long-
term care side. The State has paid $640
per day for long-term beds.
840 Mr. Gilbertson Observed that there is decreased demand
in some communities and that the state is
trying to identify what services can be
used for underutilized space. Local
governments own most facilities. He
emphasized that $700 a day (for long-term
beds) is not sustainable over the long
term.
713 Representative Croft Concluded that the state is overpaying
for some long-term care to keep hospitals
open.
620 Mr. Gilbertson Stressed that it is not the intention to
keep the costs from going out to smaller
communities. Cordova asked to be
identified as an underserved area.
Smaller facilities have more volatility
and higher costs. The designation allows
them more flexibility for operations.
454 Representative Observed that the intent is to facilitate
Hawker on going transitions.
407 Mr. Gilbertson The Department's assumptions were based
on historical data.
337 Ms. Clark Noted that the Subcommittee met with the
Alaska Mental Health Trust Authority and
agreed that general funds should be
expended to match their programs. Care
coordination and respite services were
increased by request of the Alaska Mental
Health Trust Authority.
246 Ms. Clark Continued that the cost containment
package included an aggressive
containment in the Medicaid program for
senior & disability. The Alaska Mental
Health Trust Authority asked for
restorations in this component. The
proposal does not match with the overall
reduction to Medicaid by the
Subcommittee.
144 Ms. Clark Observed that the Subcommittee recognized
a need for the capacity to address
problems if cost containment in the
Medicaid program is not realized.
126 Ms. Clark Pointed out that there was a request by
Alaska Mental Health Trust Authority to
add back $100 thousand in GFMH to restore
a grant for sexual offenders and victims,
which was a reduction in FY04.
054 Mr. Gilbertson Discussed the $250 thousand increment and
$250 thousand federal match for
assessment and planning with in the
Department to look at the Medicaid
program for long-term cost containment
and growth is at a responsible level.
TAPE HFC 04 - 35, Side A
054 Mr. Gilbertson Noted that Medicaid program is optional
and stressed the importance of finding
ways to make the program sustainable over
time. The Governor's proposal included no
reduction to the Human Service Community
matching grant. The first committee
substitute included a reduction to this
component. The final amendment would
restore the reduction to the FY04 level.
118 Mr. Gilbertson There is a total of $5.6 million in new
and restored increments. The
Administration feels that these
amendments are part of the prudent effort
to continue to control costs, refinance
and find efficiencies. It would be
impossible of achieving these savings on
July 1, 2004. The Department will need to
be aggressive in containing costs during
the second half of the fiscal year.
215 Representative Noted that all the proposed amendments
Hawker were incorporated into the Subcommittee
report, with the exception of items 61,
62 and 75, which pertain to the Tobacco
Cessation program.
389 Mr. Gilbertson Observed that the Governor's budget, in
error, did not include the restoration of
funding from the Tobacco Cessation
program. The amendment would realign the
FY05 budget proposal with FY04, which
would include the commitment of 20
percent of the funds from the settlement
to cessation efforts. In FY04,
legislative action redirected $1 million
of the tobacco funds toward the Medicaid
match. The FY05 budget, mistakenly
included the FY04 budget as passed, not
as requested by the Governor. The
amendment would direct the full amount to
tobacco control efforts, not toward the
Medicaid match.
527 Representative Clarified that there were three
Hawker adjustments. There is an increase and
decrease in tobacco cessation funds and
other funds of $1.61 million, which nets
out to general fund increase of $1.61
million.
643 Co-Chair Harris With the transactions the full 20 percent
is included.
703 Mr. Gilbertson Explained that the new general fund
amount would be required to replace the
$1 million of tobacco settlement funds
that were used for the Medicaid match.
The transactions restores the full 20
percent, but requires general funds for
funds used for Medicaid. The original
FY04 budget substitution occurred in the
Senate. The amendment fully restores the
commitment of 20 percent, which is
supported by the Administration.
DEPARTMENT OF LABOR AND WORKFORCE
DEVELOPMENT
952 ED FISHER, DEPUTY Provided a quick introduction to the
COMMISSIONER, Department of Labor and Workforce
DEPARTMENT OF LABOR Development. He noted that their general
AND WORKFORCE fund budget is 11 million, which is one
DEVELOPMENT half of one percent of the entire
Governor's budget. The majority of their
funding comes from federal and other
state funds. General funds are
concentrated in four programs, three that
require a state match. Observed that the
Subcommittee eliminated two positions:
one in the Alaska Labor Relations Agency
and one in Labor Standards and Safety.
The Subcommittee also reduced client
services in the Division of Occupational
Rehabilitation.
1129 Mr. Fisher The Alaska Labor Relations Agency is
facing a reduction of $42.6 thousand of
$362 thousand total budget. This would
require the layoff of a clerical person
(1 out of 4) in the Alaska Labor
Relations Agency. He stressed the
importance of the position.
1227 Mr. Fisher Observed that one of the two requested
positions in Wage & Hour technician would
be reduced. He noted that auditing and
the effort of Alaska hire would be would
be reduced by half. He observed that a
reduction by one position would result in
no auditing in either Anchorage or
Juneau. Each position audits 20 - 25
percent of certified payrolls. The
reduction would result in a waiting list.
1446 Mr. Fisher Noted that the Senior community services
employment program would be funded with
interagency receipts from the state
employment and training program. The
Department is proposing a reduction of
$100 thousand in GF, which would be
replaced with technical vocational and
educational program funds.
1547 Mr. Fisher Clarified that the Department does not
support the staffing reductions.
1622 Vice-Chair Meyer Referred to the Alaska hire program. He
noted that one-person was transferred to
the Governor's Office to market Alaska
hire. He felt that auditing could be done
on an as needed basis, as opposed to
auditing all of the payrolls.
1717 Co-Chair Harris Questioned how audits for out of state
hires are completed.
1734 Mr. Fisher Explained that the Department attempts to
match payrolls against permanent fund
dividend applications. If a person does
not apply for a permanent fund dividend
they would not be credited as an Alaska
resident. The permanent fund application
and dividend are evidence of a one-year
Alaska residence. The intent is to
enforce the Alaska hire provision.
1837 Mr. Fisher Noted that many commissioners have
declared the entire state to be
underemployed. If employers are not
meeting 90 percent Alaska hire, under
statute, there are enforcement penalties.
This only applies to state funded jobs.
2003 Vice-Chair Meyer Noted that the Independent Living
component was fully funded. The target
reduction was reached in the Department.
2042 Mr. Fisher Noted that there are two small amendments
that were not dealt with in the
Subcommittee: lease funds for Worker's
compensation and the Fish Fund (79, 81
and 83 in the Governor's operating
amendments).
2226 Co-Chair Harris Clarified that the leases are for
facilities. He maintained that the
function should be with the Department of
Administration.
2256 Vice-Chair Meyer Noted that the Department of Health and
Social Services also has an independent
living program.
2316 Mr. Fisher Observed that the programs are different.
The Department of Labor and Workforce
Development component is a federal
requirement. The focus is to help those
that are about to be institutionalized or
are institutionalized to remain in their
home. There is a savings in the long run.
2437 Representative Croft Doesn't support the elimination of the
wage and hour position, but did not
propose an amendment at that time.
DEPARTMENT OF FISH AND GAME
2612 KEVIN BROOKS, Discussed impacts of the Subcommittee's
DIRECTOR, DIVISION work on the Department's budget. Observed
OF ADMINISTRATIVE that the departments overall budget
SERVICES, DEPARTMENT proposed by the Governor were just over
OF FISH AND GAME $138 million. The GF portion is 20
percent or $26 million. Discussions on GF
reductions centered on the Commercial
Fisheries Revolving Loan Fund (CFRLF).
There was an attempt to restore items in
the Governor's budget and move Commercial
Fisheries Revolving Loan Fund monies into
other areas. There was a transfer of
CFRLF funds to Commercial Fisheries.
2955 Mr. Brooks Observed that an additional $1.377.9
million was transferred into the
Commercial Fisheries Revolving Loan Funds
(CFRLF) component. A transfer was made
from subsistence and replaced with
general funds. There was a reduction for
test fish receipt authority of $350
thousand.
3006 Co-Chair Harris Asked for an explanation how the CFRLF
has been developed.
3030 Mr. Brooks Explained that the Division of
Investments in the Department of
Community and Economic Development
manages the CFRLF program. The earnings
are being used; the Fund is stable.
Testimony of fishers indicates that they
support the use of the funds in the
Division of Commercial Fisheries.
3133 Representative Croft Questioned if the viability of the loan
Fund would be affected.
3148 Representative Fate Noted that there are surplus funds.
3197 Mr. Brooks Observed that the use of $2.2 million
would not jeopardize the corpus of fund.
3228 JIM DERRINGER, Explained that the CFRLF has a cash
STAFF, balance of $20 million. The Funds
REPRESENTATIVE FATE receives $13 - $14 million in payback.
Each year $3 million is used to fund the
Division of Investments. Any excess
earnings are available for other budgets.
He observed that $184 thousand was going
to Department of Community and Economic
Development and $180 thousand was going
to Department of Environmental
Conservation. The intent was to
consolidate these funds. The amount that
can be used without affecting the Fund is
$2.5 million. The Subcommittee decided
that $2.2 million could be used.
3402 Co-Chair Harris Referred to the Agricultural Revolving
Loan Fund, which is being depleted. He
expressed concern that the uses of funds
for Commercial Fisheries not adversely
affect the CFRLF.
3443 Mr. Derringer Noted that the Agricultural Revolving
Loan Fund does not earn as much in
interest. Only earnings are being used
from the CFRLF.
3520 Mr. Brooks Noted that the interagency receipts of
$200 thousand were added in each of the
Commercial Fisheries and Sport Fish
components. The feeling was that there
are projects that would benefit both
recreation and commercial fisherman.
3622 Co-Chair Harris Asked what occurred in the Subsistence
component.
3630 Representative Fate Explained that the revolving fund was
moved to commercial fisheries and
asserted back general funds. There was
discussion regarding the need for
subsistence funding at that level. The
Department stated that without state
funding and co-management that the state
would not have input in regulation
development. The state would lose its
voice in co-management with out the
funding. Observed that the Division of
Subsistence was funded with general
funds.
3756 Mr. Brooks Explained that three years ago the
Division of Subsistence general fund
support was zeroed ($1 million) and
replaced with Alaska Industrial
Development and Export Authority dividend
receipts. Last year $800 thousand of the
million was replaced by the CFRLF, which
had the effect of a 20 percent reduction.
Now that money is being switched for
general funds and the CFRLF dollars are
being placed into the Division of
Commercial Fisheries. The result is an
increase of $1.4 million.
3928 Mr. Brooks Observed that there were a number of
technical amendments. Funding is based on
an assessment of interagency receipts
from all departments. The mail clerk
position had to be created before it
could be transferred, since it was
deleted in their original submission.
4119 Mr. Brooks Continued to review technical amendments.
He observed that there was a million
dollar transfer for leasing to assess
reductions.
4214 ADJOURNMENT The meeting was adjourned at 4:10 PM
| Document Name | Date/Time | Subjects |
|---|