Legislature(2005 - 2006)HOUSE FINANCE 519
03/21/2006 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB232 | |
| HB365 || HB366 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 365 | TELECONFERENCED | |
| += | HB 366 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 232 | TELECONFERENCED | |
HOUSE FINANCE COMMITTEE
March 21, 2006
1:42 p.m.
CALL TO ORDER
Co-Chair Chenault called the House Finance Committee meeting
to order at 1:42:03 PM.
MEMBERS PRESENT
Representative Mike Chenault, Co-Chair
Representative Kevin Meyer, Co-Chair
Representative Bill Stoltze, Vice-Chair
Representative Richard Foster
Representative Mike Hawker
Representative Jim Holm
Representative Reggie Joule
Representative Mike Kelly
Representative Beth Kerttula
Representative Carl Moses
Representative Bruce Weyhrauch
MEMBERS ABSENT
None
ALSO PRESENT
Sharon Kelly, Staff, Co-Chair Chenault; Representative Mark
Newman; Mike Black, Director, Division of Community
Advocacy, Department of Commerce and Economic Development;
Nico Bus, Acting Director, Division of Administrative
Services, Department of Natural Resources; Sue Stancliff,
Staff, Representative Kelly; Dan Spencer, Director, Division
of Administrative Services, Department of Public Safety;
Chris Christensen, Staff Counsel, Alaska Court System
PRESENT VIA TELECONFERENCE
None
SUMMARY
CSSB 232(FIN)
"An Act making appropriations, supplemental
appropriations, and capital appropriations;
amending appropriations and funding sources;
making appropriations to capitalize funds; and
providing for an effective date."
CSSB 232 (FIN) was HEARD and HELD in committee for
further consideration.
HB 365 "An Act making appropriations for the operating
and loan program expenses of state government, for
certain programs, 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 365 was heard and HELD in Committee for further
consideration.
HB 366 "An Act making appropriations for the operating
and capital expenses of the state's integrated
comprehensive mental health program; and providing
for an effective date."
HB was heard and HELD in Committee for further
consideration.
AMENDMENTS:
Corrections
Department of Natural Resources
Public Safety
Alaska Court System
Legislature
1:42:16 PM
CS FOR SENATE BILL NO. 232(FIN)
"An Act making appropriations, supplemental
appropriations, and capital appropriations; amending
appropriations and funding sources; making
appropriations to capitalize funds; and providing for
an effective date."
Co-Chair Meyer MOVED to ADOPT work draft 24-GS2068\C,
Bailey, 3/20/06, as the version of the bill before the
committee. There being NO OBJECTION, it was so ordered.
1:44:10 PM
SHARON KELLY, STAFF, CO-CHAIR CHENAULT, highlighted the
differences between CSSB 232 the new House CS. She referred
to a document called "Multi-year Agency Summary" (copy on
file), which lists changes by department. She noted that
the final "Total" column on the right lists an addition of
$1 million to the Department of Administration for the
telephone system replacement and stabilization, phase one.
Under the Department of Commerce, Community and Economic
Development, $250,000 has been added to the Arctic Winter
Games. There have been no changes to the Department of
Corrections. The Department of Education and Early
Development had funds removed for Susitna Valley High School
repairs, pending further discussion by the committee. There
have been no changes to Department of Fish and Game or to
the Office of the Governor. In the Department of Law there
is a $700 change due to a typing error.
Ms. Kelly related that there were no changes to the
Department of Military and Veterans Affairs, the Department
of Natural Resources, the Department of Transportation and
Public Facilities, or to the Department of Revenue. Under
Fund Capitalization, $301 million has been added, of which
$300 million is to go to Alaska Housing Finance Corporation
and $1 million is for the fund capitalization for the
telephone system. Under the Public Education Fund, $350
million has been added with $300 million going to the Public
Education Fund and about $50 million for a sweep from the
general fund into the Public Education Fund at the end of
the year.
Ms. Kelly referred to two other documents for further
detail, the "Transaction Comparison - FY 2007 Operating
Budget - Senate Structure" and the "Project Detail by Agency
- FY 2007 Capital Budget" (copies on file.)
Ms. Kelly noted two other technical Fund Source Changes
(Section 11) in HCS CSSB 232. Commercial Fisheries Entry
Commission Receipts are substituted for the generic RSS code
in the Department of Fish and Game, and Special Vehicle
Registration Receipts are substituted for RSS in a DNR
capital project.
Ms. Kelly addressed several tracking changes regarding
Vehicle Rental Tax Receipts, a new fund code, which are
replacing certain General Funds.
Co-Chair Meyer reported that half of the savings have been
taken "off the table": $300 million has been put toward the
Alaska Housing Fund (AHFC), and $300 million to the Public
Education Fund, with the remaining $50-$80 million to be
swept into the Public Education Fund.
1:48:33 PM
Co-Chair Chenault spoke of the intent of taking $600 million
off the table as savings for future budgets and capital
projects. He emphasized the responsibility the legislature
has to the citizens of Alaska if oil revenue decreases in
future years.
Representative Joule asked about the $300 million going into
AHFC rather than into the Constitutional Budget Reserve
(CBR). Co-Chair Meyer replied that the CBR was discussed as
an option, but AHFC allows for more flexibility. The
interest rates earned are about the same in AHFC as in the
CBR. AHFC proposes to get a higher rate. The hope is to
save money.
1:52:21 PM
Representative Joule asked how the legislature could access
those funds at a future date. Co-Chair Meyer replied it is
set up as a sub-corporation within AHFC and, like any other
fund, can be accessed. Representative Joule pointed out
that funds drawn from the CBR allow for a discussion by the
whole legislature about how the money gets spent.
1:54:05 PM
Representative Stoltze MOVED to ADOPT Amendment A, 24-
GS2068\S.1, Bailey, 3/20/06:
Page 9, following line 13:
Insert a new subsection to read:
"(d) The sum of $3,850,000 is appropriated
from the general fund to the major maintenance grant
fund (AS 14.11.007) for payment as a grant under AS
14.11.015 for Susitna Valley High School roof
replacement and structural and safety repairs."
Co-Chair Meyer OBJECTED.
Representative Stoltze explained that Amendment A is for
$3.85 million for a roof replacement for Susitna Valley High
School. He termed it a safety issue. The requested amount
is 70 percent of the amount originally requested.
1:55:45 PM
REPRESENTATIVE MARK NEWMAN, discussed the
architect/engineer's report regarding the roof of Susitna
Valley High School, which showed violations of code
requirements, and ventilation and asbestos problems. The
dollar amount requested is a reduction from the original
$5.5 million proposed in the governor's budget. The matter
is urgent and the work needs to start the day school is out,
due to the short building season. He reported strong
community support for this project. He spoke of the high
expense to shovel the roof of the school. He termed it a
savings to the state in the long run.
Co-Chair Chenault noted that it costs about $3,000 a time to
shovel the roof. Co-Chair Meyer added that it is closer to
$3,600, each time, to shovel the roof. He did the math to
show savings by not replacing the roof. He spoke of the
70/30 split on maintenance projects. He said he feels more
apt to support this request now that this project is at 70
percent of the original amount requested. Representative
Newman spoke of the damage heavy snows or an earthquake
could cause.
Co-Chair Meyer asked for assurance that the original
architect or engineer not be used on this project.
Representative Newman assured the co-chair that would not
happen.
Representative Foster spoke of his experience shoveling the
roof of his school. Representative Newman described the
slope of the roof and its bad design. He reiterated it is a
time issue with the short construction season.
2:04:53 PM
Representative Hawker said he would have been against the
amendment if it had asked for 100 percent funding. He asked
for assurance that the community would come up with the 30
percent still needed. Representative Newman spoke to the
commitment made by his community. He noted problems with
past bond proposals. He addressed up-coming ballot
proposals.
Representative Hawker asked for assurance for evidence of a
public commitment before the bill reaches the House Floor.
Representative Newman said he would try to get that
information from the Mat-Su Assembly.
2:07:40 PM
Representative Weyhrauch asked about the bond issues
mentioned by Representative Newman. Representative Newman
responded that last fall there were many proposals and that
was overwhelming to voters.
Representative Joule wondered if the project was on the
Department of Education and Early Development's major
maintenance list. Representative Newman replied that he
contacted Department of Education and Early Development to
see if it could be included. It did not meet the standards
for emergency funding. They did approve 70 percent funding.
Co-Chair Meyer said he was assured by comments made during
the discussion and was convinced by Representative Newman's
arguments. He WITHDREW his OBJECTION to adopt Amendment A.
There being NO further OBJECTION, it was so ordered.
2:12:03 PM
Co-Chair Chenault MOVED to ADOPT Amendment B, 24-GS2068\C.1,
Bailey, 3/21/06:
Page 7, line 22, following "appropriated":
Insert "from the general fund"
Page 7, line 25, following "appropriate":
Insert "from the general fund"
Representative Stoltze OBJECTED. Co-Chair Chenault stated
that the amendment corrects a drafting error.
Representative Stoltze WITHDREW his OBJECTION. There being
NO further OBJECTION, it was so ordered.
2:12:30 PM
Co-Chair Chenault MOVED to ADOPT Amendment C, 24-GS2068\C.2,
Bailey, 3/21/06:
Page 12, line 8, following "projects":
Insert ",including financing expenses"
Page 12, following line 22:
Insert a new subsection to read:
"(c) The appropriation made by sec. 12 of this Act
lapses on June 30, 2016."
Representative Stoltze OBJECTED.
Ms. Kelly described the two changes in Amendment C. The
first broadens a clause on page five to include financing
expenses, which is the money that is being transferred to
AHFC. The second change is to insert a lapse date on page
12.
Representative Joule asked for a definition of lapse date.
Ms. Kelly said that Department of Law recommended the
change. Representative Joule asked what the affect would
be. Ms. Kelly replied that the money would go back to the
general fund on the lapse date. Representative Joule
summarized that if these funds are not used, they would
transfer back to the general fund in ten years.
Representative Stoltze WITHDREW his objection. There being
NO further OBJECTION, it was so ordered.
2:14:39 PM
Representative Joule MOVED to ADOPT Amendment 1, which would
add a new section:
POWER COST EQUALIZATION. (a) The sum of %5,459,900 is
appropriated from the general fund to the power cost
equalization and rural electric capitalization fund (AS
42.45.100).
(b) The sum of $5,817,900 is appropriated from the
power cost equalization and rural electric
capitalization fund (AS 42.45.100) to the Department of
Commerce, Community, and Economic Development, Alaska
Energy Authority power cost equalization, for full
payment of power cost equalization under AS 42.45.110
for the fiscal year ending June 30, 2006.
Representative Joule noted that rural Alaska is struggling
with high fuel costs. He requested that this amount be
restored and power cost equalization be fully funded.
Co-Chair Chenault agreed that fuel costs have increased
throughout Alaska, not just in rural Alaska. He brought up
equity issues. He spoke against Amendment 1 and suggested
that other methods would better address this issue.
2:19:27 PM
Representative Hawker stated that he would vote against any
amendment that deals with dedicating money for energy needs.
He emphasized that he wants pressure to stay on the
legislative body to put into place a community dividend or
revenue sharing program to deal with this issue. He
requested programs that would provide the maximum possible
local control dominion over how the money might be spent.
He spoke against Amendment 1 and in favor of "sharing of our
vast resource wealth with communities".
2:21:04 PM
Representative Kelly spoke as a former utility
representative. He agreed that there is a problem and a
need for energy assistance. He voiced concern that the
supplemental budgets now look like budgets and are out of
control. He related that funding for PCE was set last
session with an awareness to high costs. This year's
unsustainable supplemental makes last year's budgeting
process meaningless. He spoke against Amendment 1.
Representative Joule commented on the high kilowatt rates
and low employment opportunities in rural areas. He
maintained that Amendment 1 is needed until that changes.
A roll call vote was taken on the motion to Adopt Amendment
1.
IN FAVOR: Kerttula, Moses, Foster, Joule
OPPOSED: Kelly, Stoltze, Weyhrauch, Hawker, Holm, Meyer,
Chenault
The MOTION FAILED (4-7).
2:25:03 PM
Representative Joule MOVED to ADOPT Amendment 2, which would
add a new section:
The sum of $250.0 is appropriated from the general fund
to the Department of Commerce, Community and Economic
Development for payment as a grant under AS 37.05.315
to the City of Kaktovik for the participation of the
city in support of the education efforts and promotion
of opening the coastal plain of the Arctic National
Wildlife Refuge (ANWR) for oil and gas exploration and
development.
Representative Stoltze OBJECTED.
Representative Joule MOVED to AMEND Amendment 2 to change
$250,000 to $40,000. There being NO OBJECTION, it was so
ordered.
Representative Joule spoke to Amendment 2. He noted that
the city of Kaktovik serves as the gateway to ANWR and is
critical in assuring policy makers that local residents
support the opening of ANWR to responsible oil and gas
development. The community has requested this amount for
reimbursement for expenses.
2:27:32 PM
Co-Chair Meyer asked how much was budgeted for this last
year. Representative Joule responded about $100,000 split
between Kaktovik city and native village.
Representative Kelly commented in favor of Amendment 2. He
stated appreciation for Kaktovik's support.
Representative Foster spoke in favor of Amendment 2. He
thanked Representative Joule for bringing forth the
amendment to help this village.
Co-Chair Chenault WITHDREW his OBJECTION to adopting
Amendment 2. There being NO further OBJECTION, it was so
ordered.
2:30:07 PM
Representative Joule MOVED to ADOPT Amendment 3, which would
add a new section:
The sum of $8,800.0 general funds is appropriated to
the Department of Health and Social Services, Division
of Public Assistance, Energy Assistance Program for the
fiscal years ending June 30, 2006 and June 30, 2007.
Representative Chenault OBJECTED.
Representative Joule explained that Amendment 3 would
provide funds to low-income households throughout Alaska to
offset the high costs of home heating. He presented
statistics regarding the elderly and the poor. He shared
that 26 states are providing this type of aid. He related
how the increase in fuel costs and the decrease in buying
power have changed significantly. He shared information
about high costs in Kotzebue. He urged support for
Amendment 3.
Co-Chair Chenault MAINTAINED his OBJECTION.
A roll call vote was taken on the motion to adopt Amendment
3.
IN FAVOR: Joule, Kerttula, Moses, Foster
OPPOSED: Kelly, Stoltze, Weyhrauch, Hawker, Holm, Chenault,
Meyer
The MOTION FAILED (4-7).
2:35:40 PM
Representative Joule MOVED to ADOPT Amendment 4, which would
add a new section:
*Sec.___. BULK FUEL LOANS. The sum of $500,000 is
appropriated from the general fund to the Department of
Commerce, community and Economic Development, community
advocacy, for emergency bulk fuel loans to small
communities for the fiscal year ending June 30, 2006.
Representative Stoltze OBJECTED.
Representative Joule explained how the money would provide
emergency bulk fuel loans to small communities. He shared
statistics about the high costs of fuel in rural areas. He
maintained that this is not a "give away", but rather a
loan. He urged the committee to adopt the amendment.
Representative Stoltze MAINTAINED his OBJECTION to the
motion to adopt Amendment 3.
Representative Joule spoke of revenue sharing for this year,
not next year. He emphasized that this amendment is needed
for FY 06.
A roll call vote was taken on the motion.
IN FAVOR: Kerttula, Moses, Foster, Joule
OPPOSED: Stoltze, Weyhrauch, Hawker, Holm, Kelly, Chenault,
Meyer
The MOTION FAILED (4-7).
2:41:19 PM
Representative Joule MOVED to ADOPT Amendment #5, which
would add a new section:
SMALL MUNICIPALITY ENERGY ASSISTANCE PROGRAM. The sum
of $6,405,208.55 is appropriated from the general fund
to the Department of Commerce, community, and Economic
Development, Division of Community Advocacy, for grants
under the small municipality energy assistance program,
for the fiscal years ending June 30, 2006 and June 30,
2007, to the following cities and boroughs, for the
repayment of any indebtedness of the city or borough to
the bulk fuel revolving loan fund (AS 43.25) and for
the purchase of fuel; the grants are to be in the
amounts stated, based upon 2004 population, with cities
and boroughs with up to 99 residents to receive
$22,395,83, cities and boroughs with 100-600 residents
to receive $44,791.67 and cities and boroughs with 601-
2,499 residents to receive $67,187.50.
Representative Stoltze OBJECTED.
Representative Joule explained that the amendment is a small
municipal energy assistance program that provides grants for
the repayment of any indebtedness to the bulk fuel revolving
loan fund, and for purchasing fuel.
Responding to a question by Co-Chair Chenault,
Representative Joule clarified that these communities cannot
apply for the bulk fuel program. Co-Chair Chenault asked
how they then could have a debt to the bulk fuel revolving
loan fund.
MIKE BLACK, DIRECTOR, DIVISION OF COMMUNITY ADVOCACY,
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, explained
that the small municipality energy assistance program
pertained only to municipalities and is a grant program.
Amendment 4 applies to both municipalities and
unincorporated communities and is a loan program.
2:45:10 PM
Co-Chair Chenault still sought clarification about whether a
municipality could borrow from one loan program and repay
with the grant.
Mr. Black noted that part of the conditions of the grant
program last year were that outstanding loan balances would
be retired to the Alaska Energy Authority revolving fuel oil
loan. That condition is still in this proposal. He pointed
out that that the revolving fuel loan is separate from the
bulk fuel bridge loan program, and only applicable for
communities not eligible for the other program.
2:46:33 PM
A Roll Call Vote was taken on Amendment 5:
Favor: Moses, Foster, Joule, Kerttula
Opposed: Stoltze, Weyhrauch, Hawker, Holm, Kelly, Meyer,
Chenault
The MOTION FAILED (4-7).
HCS SB 232 was heard and HELD in Committee for further
consideration.
2:48:11 PM
AT EASE.
3:08:57 PM
HOUSE BILL NO. 365
"An Act making appropriations for the operating and
loan program expenses of state government, for certain
programs, 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."
HOUSE BILL NO. 366
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing for
an effective date."
Co-Chair Chenault noted that public testimony had been
previously completed. He announced that today the Committee
would take up amendments from the departments of
Corrections, Natural Resources, Public Safety, Alaska Court
System, and the Legislature.
3:10:39 PM
Before the Committee were work drafts for HB 365 and HB 366,
labeled 24-GH2033\I, and 24-GH2035\G, Bailey, 3\13\06, and
adopted by the Committee on March 14, 2006.
Representative Kelly MOVED to ADOPT DNR Amendment 1:
DEPARTMENT: Department of Natural Resources
APPROPRIATION: Resource Development
ALLOCATION: RS 2477/Navigability Assertions and
Litigation Support
DELETE: [$100,000]
FUNDING SOURCE: General Funds
EXPLANATION:
I believe DNR needs to dial up the desire to assert and protect and defend the
Alaskan life style, when they do then I'll support funding.
In the meantime, I feel that the Legislative Budget and
Audit (LBA) committee has done a good job of
contracting with DNR and will support moving the money
to LBA.
Representative Stoltze OBJECTED.
Representative Kelly explained that the amendment deletes
$100,000 from DNR's general fund, reduces it to $70,000, and
transfers it to Legislative Budget and Audit (LB&A). He
noted that LB&A had been providing oversight of RS 2477, in
regarding rights of way for state and federal lands. He
pointed out that the land was not being utilized in the
Department of Natural Resources, while commending the
department for their work, but proposed that LB&A would
better use these funds.
Representative Kerttula asked whether this group had
completed the RS 2477 in the past, with whom LB&A had been
working.
NICO BUS, ACTING DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF NATURAL RESOURCES, responded that
the $100,000 was intended to pay for processing fees for
reporting features, as well as for archeology to provide
historical evidence in court to support claims.
Representative Kerttula noted that LB&A had not completed
actual filing. Mr. Bus reported that the LB&A was given the
appropriation and contracted with DNR to do the work. He
noted that the funds are needed to complete the project, and
if it came through LB&A, the process would be quicker and
require less oversight.
Representative Stoltze asked if Nancy Welch headed the
project in Anchorage. Mr. Bus noted that Ms. Welch does not
work for the department.
Representative Hawker commented that legislative oversight
seemed to function well in this circumstance.
Representative Stoltze asked who was running the project.
Mr. Bus noted that Dick Mylius, Acting Director of the
Division of Mining Land and Water, is overseeing the
project.
Representative Stoltze WITHDREW his OBJECTION . There being
NO further OBJECTION, DNR Amendment 1 was adopted.
Representative Kelly MOVED to ADOPT DNR Amendment 2:
DEPARTMENT: Department of Natural Resources
APPROPRIATION: Resource Development
ALLOCATION: Agricultural Development
ADD: $50,000
FUNDING SOURCE: General Funds
EXPLANATION:
Amendment provides minimal financial support for the Agricultural Export
Research and Testing Project at the University of Alaska Fairbanks. Alaska seed
potatoes (lab-tested, disease-free) have been exported to Taiwan since1996. Since
1995, Alaska Agricultural Development & Marketing, Inc. (AADAM) has
worked and achieved a stable market for Alaska seed potatoes in Taiwan. Except
for one year following a political change in Taiwan, AADAM has sold from one
to three 20-ton containers of seed potatoes from the 2005 Alaska crop.
Subcommittee started with the Adjusted Base of $58.2
million
The Governor's request for this department was $62.7
million
We were given a target of $60.4 million (asking us to
reduce GF spending by $2.3 million)
The subcommittee exceeded its target by reducing GF to
$60.1 million
This amount is $2.6 less than Governor's request
Co-Chair Chenault OBJECTED.
SUE STANCLIFF, STAFF, REPRESENTATIVE KELLY, spoke to the
Amendment.
3:18:27 PM
Ms. Stancliff noted that since 1994, the Agricultural Export
Research and Testing Project has been very actively
promoting the sale of the Alaska virus-free seed potato to
the Taiwanese government. She noted their successes in past
years. She also pointed out that an increment for this
project was contained in the governor's budget.
Representative Kerttula asked for clarification as to the
purpose of the $50,000 of funding. She asked if $532,800 in
inter-agency receipts was coming from the university to
support another project in Palmer.
Ms. Stancliff stated that the projects were not related.
Representative Kerttula asked if capital budget monies were
also directed toward the project. Ms. Stancliff responded
that the amount was $250,000. She noted that the $50,000
was an amount for operating expenses.
Co-Chair Meyer asked whether the project would require this
funding every year, and whether it belonged in the
Department of Natural Resources. Ms. Stancliff responded
that she was not sure if the project would be continued the
following year. She also noted that the project had
previously been under the Department of Commerce and
Economic Development, and had been housed at the university.
Co-Chair Meyer suggested that perhaps the project ought to
be funded on its own, or be contained in the capital budget.
3:22:44 PM
Representative Kelly agreed that if the amendment did not
succeed, perhaps it might be considered in the capital
budget.
A Roll Call Vote was taken on the motion to ADOPT DNR
Amendment 2:
IN FAVOR: Foster, Holm, Joule, Kelly, Kerttula, Moses
OPPOSED: Stoltze, Weyhrauch, Hawker, Chenault, Meyer
The MOTION PASSED (6-5).
Co-Chair Chenault called a brief at ease.
Representative Kerttula MOVED to ADOPT DNR Amendment 3:
DEPARTMENT: Department of Natural Resources
APPROPRIATION: Resource Development
ALLOCATION: Agricultural Development
ADD: $50.0
FUNDING SOURCE: General Fund code 1004
EXPLANATION:
This amendment restores the fifty thousand dollars cut
from the budget for virus free seed potato funding for
the Alaska Plant Materials Center (PMC) in Palmer. The
Alaska Plant Materials Center produces clean seed stock
free of the diseases and pests common to other parts of
North America. The PMC provides the seed to growers
who wish to try new varieties in order to discourage
importation of seed from outside the state.
Maintaining a stockpile of disease and pest free potato
seeds is crucial to the health of potato crops in
Alaska.
Co-Chair Chenault OBJECTED.
3:26:22 PM
Responding to a question by Representative Kerttula, Mr. Bus
stated that he was not sure that the work on the virus free
seed potato would be included in funding from inter-agency
receipts. He commented that he would provide further
information to the committee.
Representative Kerttula noted that distributing seed
potatoes to the state was also an important portion of the
project. She stated a desire to see future money fund the
Alaska Plant Materials Center in Palmer.
Representative Kerttula WITHDREW DNR Amendment 3.
Representative Kerttula MOVED to ADOPT DNR Amendment 4:
DEPARTMENT: Department of Natural Resources
APPROPRIATION: Resource Development
ALLOCATION: Alaska Coastal Management Program
ADD: $133.0
FUNDING SOURCE: General Fund
EXPLANATION:
The Alaska Coastal Management Districts are still in
the process of revising their new plans. Additional
revisions are still needed. The increment of 133.0 is
needed to allow the districts to continue their work
that includes printing and distribution of the proposed
new plans as well as consultant fees.
Co-Chair Chenault OBJECTED.
Representative Kerttula recalled the battle over the Alaska
Coastal Management Program two years ago, which completely
revised the program for 30 districts around the state. She
clarified that the money does not go to the districts, but
rather to DNR to review and approve the plans. She stated
that without the funding the districts and state would have
difficulty implementing the plans.
A roll call vote was taken on the motion.
IN FAVOR: Foster, Joule, Kerttula, Moses
OPPOSED: Hawker, Holm, Kelly, Stoltze, Meyer, Chenault
The MOTION FAILED (4-6).
Representative Stoltze MOVED to ADOPT DPS Amendment 1:
Insert a new section
Sec. DEPARTMENT OF PUBLIC SAFETY. (a) The sum of
$1,393,200 is appropriated from the general fund to the
Department of Public Safety, division of Alaska State
Troopers, narcotics task force, for drug and alcohol
enforcement efforts during the fiscal year ending June
30, 2007.
(b) If the amount of federal receipts received by the
department from the Justice Assistance Grant program
for drug and alcohol enforcement efforts exceeds
$1,289,100, the appropriation in (a) of this section is
reduced by the equivalent amount.
EXPLANATION: Fully fund drug enforcement efforts
The committee substitute for HB 365 eliminates general
fund increments totaling $1,393,200 to replace lost
federal funding. The committee substitute also restores
a related reduction in federal receipts; the federal
receipt authority was reduced because there is no
expectation that the department will receive that level
of finding from federal grants
This amendment restores full funding for drug
enforcement efforts by appropriating general funds to
replace lost federal funding. The amendment leaves in
place the "empty" federal receipts authority added by
the subcommittee. If future federal funding for this
program is unexpectedly increased, then this extra
federal receipts authority will be used and a
corresponding amount of general funds will be reduced
from the appropriation
A discussion of the implications of not fully funding
this program follows.
Narcotics Task Force (958.9):
Addressing drug and illegal alcohol trafficking and use
across Alaska is one of the six core missions of the
Alaska State Troopers. The loss of funding would have a
devastating effect on the drug and alcohol operations.
Because of the importance to the overall safety and
quality of life and the progress that the department
has made in the past three years, it is important for
the department to continue drug and alcohol
investigative activities. If this funding is not
restored, the department would reallocate funding to
efforts outside the core missions, with reduced funding
most likely to urban patrol operations. Given that the
urban patrol functions (Mat-Su, Fairbanks,
Soldotna/Kenai, Girdwood) are stretched exceedingly
thin, the department most likely would reduce services
policies for minor crimes such as misdemeanor theft and
vandalisms.
Narcotics Task Force-Cooperative Operations with
Municipalities (300.0) The department has striven to
provide the maximum amount of existing federal funding
to municipal partners to promote viable drug unit
partnerships. While the department cannot speak for
the municipal partners, it is likely that, without this
funding, some of the joint drug units will cease to
exist. Once disbanded, the units are difficult to
reconstitute both in terms of agency commitment and
expertise. To attempt to maintain at least the same
level of operations, the department would need to back
fill the lost municipal positions with troopers, which
only exacerbates the effects described above.
Records and Identification (88.5)
This funding will be provided to the Records and
Identification unit (via a reimbursable services
agreement) to continue to fully fund two positions that
are essential to ensuring compliance with state and
federal law. Without these positions, the data quality
in the state and national criminal history, wanted
person, missing person, vehicle protection order and
sex offender registry files will decline. The
department is currently already suffering backlogs in
virtually every section of the repository.
Records and Identification (45.8):
This funding will be provided to the state crime lab
(via a reimbursable services agreement) to continue to
fully fund a latent fingerprint examiner position. When
these scientific analyses of evidence are not performed
in a timely manner, cases cannot proceed. Without these
funds, the lab will need to lay off or leave vacant a
position somewhere in the crime lab. Which position
would he affected depends on which backlogs have the
least priority at that time.
Co-Chair Meyer OBJECTED.
Representative Stoltze said that after conversations between
the committee, Office of Budget and Management, and
Commissioner William Tandeske, Commissioner, Department of
Public Safety, the decision was made to replace the money to
fully fund drug enforcement efforts.
3:30:07 PM
DAN SPENCER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF PUBLIC SAFETY, confirmed that federal funding
has declined, including a year when it was zeroed out. He
explained that the amendment would provide for funds if
federal funding increases this year and would be returned to
the General Fund.
Co-Chair Meyer WITHDREW his OBJECTION to adopt DPS Amendment
1. There being NO further OBJECTION, it was so ordered.
3:32:13 PM
Representative Joule MOVED to ADOPT DPS Amendment 2:
DEPARTMENT: Department of Public Safety
APPROPRIATION: Council on Domestic Violence and Sexual
Assault
ALLOCATION: Council on Domestic Violence and Sexual
Assault
ADD: $100.0
FUNDING SOURCE: TANF
EXPLANATION:
Last year the center received $350,000 in funding
through the Department of Health and Social Services.
This year the center applied for funding through the
Council on Domestic Violence and Sexual Assault and
unfortunately received no funding for their operations
for the next fiscal year. Therefore, we are
requesting that the center receive an additional
$100,000 in funding to fully fund the program. Funding
the center in this manner will insure that the vital
services they provide to the region can continue
unhampered
Co-Chair Chenault OBJECTED.
Representative Joule spoke to the amendment. He recounted
experiences in Kotzebue with the Family Crisis Center, when
it was determined it should run out of Public Safety. He
noted that the Center had received $350,000 last year. He
pointed out that the Center has been operating since 1979,
providing services to women and children in need of
protection and shelter from domestic violence. He requested
that the committee fund their needed operating expenses.
A roll call vote was taken on the motion.
IN FAVOR: Foster, Joule, Kerttula, Moses
OPPOSED: Hawker, Holm, Kelly, Stoltze, Wehyrauch, Meyer,
Chenault
The MOTION FAILED (4-7).
Representative Joule MOVED to ADOPT DPS Amendment 3:
DEPARTMENT: Public Safety
APPROPRIATION: Alaska State Troopers
ALLOCATION: AK Bureau of Wildlife Enforcement, Aircraft
Section, and Marine Enforcement
ADD INTENT LANGUAGE:
It is the intent of the legislature that the funding
source change in these allocations from Fish and Game
Fines (Fish and Game Fund) to direct appropriation of
General Funds will not result in reduction of the
department's fish and wildlife enforcement efforts.
EXPLANATION:
Currently, certain fines for fish and wildlife
violations are appropriated into the Fish and Game Fund
and then used as a funding source for portions of the
Public Safety Budget. Since funds generated by fines
are actually General Fund, this year's budget proposes
to skip the extra steps of appropriating those funds
into the Fish and Game Fund and then back out to Public
Safety. The legislature wants to ensure that this loss
of one motivation for generating fines does not reduce
the department's emphasis on enforcing fish and
wildlife laws and regulations.
Representative Weyhrauch OBJECTED.
Representative Joule pointed out that no funding was
attached to the amendment. He stressed that it was
necessary to ensure that adequate game management was
present at certain "hot spots". He concluded that the
intention of the amendment is to ensure continued emphasis
by the Department on enforcement of fish and wildlife
protection.
Mr. Spencer said that the Department does not object to
Amendment 3, or the underlying fund source change. It is
possible that the change could make more money available.
He assured the committee that overall enforcement would not
be affected, regardless of the funding source.
3:38:05 PM
Representative Weyhrauch WITHDREW his OBJECTION to the
motion to adopt DPS Amendment 3. There being NO further
OBJECTION, it was so ordered.
Representative Kerttula MOVED to ADOPT Court Amendment 1:
DEPARTMENT: Alaska Court System
APPROPRIATION: Alaska Court System
ALLOCATION: Trial Courts, Bethel Court Security System
ADD: $75,000 (restore to $150,000 funding)
FUNDING SOURCE: General Fund
EXPLANATION:
The courts subcommittee funded half of the $150,000
requested by the court system. However, half the
requested funds will not allow security at the Bethel
courthouse to be adequately upgraded. This will ensure
the safety of the Bethel courthouse to the same extent
as other state courthouses.
Co-Chair Chenault OBJECTED.
Representative Kerttula explained that the original amount
requested for security at the Bethel courthouse was
$150,000. The request now is for $75,000.
CHRIS CHRISTENSEN, STAFF COUNSEL, ALASKA COURT SYSTEM
related that the court system has more people coming through
its doors every day than any other governmental institution,
except for public schools. A large percentage of those
people are violent and emotional. He maintained that the
court system has a duty to ensure the safety of its
employees, jurors, witnesses, and others ordered to appear.
Over the last ten years, screening stations have been
provided in some courthouses. Bethel is next on the list to
receive this protection. Bethel is one of the largest court
facilities in the state and has a disproportionate number of
violent felonies being tried. The courts subcommittee
funded half of the amount needed. The equipment has already
been purchased, but security guards are needed to operate
the equipment.
3:41:14 PM
Co-Chair Chenault asked why it costs twice as much in Bethel
as in Kenai or Anchorage.
Mr. Christensen pointed out that it is also more expensive
in Juneau. There are contract security companies in the
larger cities, which makes it cheaper.
3:42:24 PM
Representative Kelly asked if there have been problems with
security in Bethel. Mr. Christensen reported that there
have been a number of minor incidents. He noted that one of
the main issues is failure to show up for court duty. There
is a need to protect those who are subpoenaed to court. He
pointed out that 85 percent of the court system's non-
judicial employees are female, and they are constantly
dealing with threats.
Co-Chair Chenault MAINTAINED his OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Joule, Kerttula, Moses, Foster
OPPOSED: Hawker, Holm, Kelly, Stoltze, Weyhrauch, Chenault,
Meyer
The MOTION FAILED (4-7).
3:45:14 PM
Representative Kerttula MOVED to ADOPT Court Amendment 2:
DEPARTMENT: Alaska Court System
APPROPRIATION: Alaska Court System
ALLOCATION: Administration and Support, expand court
salary schedule to include "G" step.
ADD: $109,500
FUNDING SOURCE: General Fund
ALLOCATION: Appellate Courts, expand court salary
schedule to include "G" step.
ADD: $39,500
FUNDING SOURCE: General Fund
ALLOCATION: Trial Courts, expand court salary
schedule to include "G" step.
ADD: $426,000
FUNDING SOURCE: General Fund
EXPLANATION:
This amendment would allow court employees to attain a
"G" step, like the GGU executive branch employees have.
The additional step would help the court system retain
experienced non-judicial employees. The retention of
these employees is very important for the
administration of justice, because the current turnover
for court clerical employees is 50% after five years,
an unacceptably high rate. Such a high turnover
dramatically increases the cost of training and the
number of supervisors. It also leads to greater
inefficiency.
Co-Chair Chenault OBJECTED.
Representative Kerttula explained that this amendment would
allow court employees to attain a "G" step like the GGU
executive branch employees. Its purpose is to aid retention
of experienced non-judicial employees. The current turnover
for court clerical employees is 50 percent after five years,
which is unacceptable.
Mr. Christensen referred to a statute in Title 22, which
deals with court employee salaries. They must be compared
to those in the executive branch. He suggested that court
employees are very aware of what is going on with salaries
in the executive branch. He related inequities between the
two systems. He explained that the amendment is in the
interest of fairness. He mentioned the high turnover rate
and excessive costs related to low pay.
Representative Kerttula noted that these are the people
behind the counter. She argued that a whole body of
knowledge is lost when they quit. She asked for support for
the amendment.
Co-Chair Chenault MAINTAINED his OBJECTION.
Representative Kelly asked if there is another way of
solving this problem and if this is a bandaid approach.
Representative Kerttula said that 25 years ago it was a good
salary, however court salaries have been held static. This
amendment should change it.
Representative Kelly referred to other areas that are having
problems retaining employees. He questioned whether this
would solve the problem.
3:51:27 PM
A roll call vote was taken on the motion.
IN FAVOR: Joule, Kerttula, Moses
OPPOSED: Hawker, Holm, Kelly, Stoltze, Weyhrauch, Chenault,
Meyer, Foster
The MOTION FAILED (3-8).
There was a brief at-ease.
3:53:06 PM
Representative Kerttula WITHDREW Court Amendment 3.
Representative Kerttula MOVED to ADOPT Court Amendment 4:
DEPARTMENT: Alaska Court System
APPROPRIATION: Judicial Council
ALLOCATION: Judicial Council, evaluation of retired
judges serving pro tem and surveys of
the performance of magistrates and
standing masters.
ADD: $40,500
FUNDING SOURCE: General Fund
EXPLANATION:
Under Alaska Administrative Rule of Court 23, retired
judges can be appointed temporarily (pro tem) to hear
motions, hold settlement conferences, and conduct
trials. This relieves court congestion by utilizing
highly experienced judges. Some pro tem judges sit
regularly. Currently they are not evaluated like other
judges. This appropriation will allow them to be
evaluated by the bench and bar to ensure that future
pro tem appointments are made from the most qualified
retired judges.
Magistrates and standing masters, like judges, should
be periodically evaluated. Magistrates are the only
judicial officers throughout much of the Bush.
Standing (permanent full-time) masters handle many
interim family law motions and hearings, as well as
most probate matters in urban courts. Unlike judges,
they are not now evaluated. The bench and bar have no
formal process to review their performance. This
amendment will allow such a review, so the presiding
judges and the Supreme Court can adequately review how
well they are performing.
Co-Chair Chenault OBJECTED.
Representative Kerttula explained that the amendment is for
a small amount, but would have a significant impact. The
Alaska Judicial Council does the analysis for the evaluation
of judges. They currently do not evaluate magistrates or
retired judges acting as pro tems. This amendment allows
for funds for an evaluation of retired judges serving pro
tem and surveys of the performance of magistrates and
standing masters. She argued that it results in excellent
studies about judge retention.
Mr. Christensen pointed out that this is something that the
Supreme Court would like the Judicial Council to do. Judges
have extensive reviews done of their work and so should
magistrates, pro tems, and standing masters.
3:57:45 PM
Representative Weyhrauch asked if the evaluations would be
required. He asked for assurances that they would be done.
Mr. Christensen thought that the Judicial Council is asking
that the money would be used specifically for this purpose.
Representative Kerttula agreed.
Representative Kelly noted that reviewing judges is a
difficult task. He wanted to be clear that the money will
be used to review those permissions.
Representative Kerttula said this group is very motivated
and organized and would do the reports. That is what the
money is to be used for. Representative Kelly clarified
that the reviews need to be done. Representative Kerttula
assured the committee of the sincerity of the group.
Mr. Christensen repeated that the Supreme Court is
requesting this information. He assured the committee that
it would get done and be used.
Co-Chair Chenault WITHDREW his OBJECTION to the motion to
adopt Court Amendment 4. There being NO further OBJECTION,
it was so ordered.
4:01:42 PM
Representative Kelly MOVED to ADOPT Legislature Amendment 1:
DEPARTMENT: Legislature
APPROPRIATION: Legislative Budget and Audit Committee
ALLOCATION: Committee Expenses
ADD: $70,000
FUNDING SOURCE: General Funds
EXPLANATION:
This increment shall be used for contracts with the
Department of Natural Resources for the purpose of
gathering and preparing data regarding potential
navigable water and RS 2477 rights-of-way.
There being NO OBJECTION, it was so ordered.
CSHB 365 (FIN) and CSHB 366 (FIN) were heard and HELD in
Committee for further consideration.
ADJOURNMENT
The meeting was adjourned at 4:02 PM.
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