Legislature(1993 - 1994)

03/18/1993 01:31 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         March 18, 1993                                        
                            1:31 P.M.                                          
                                                                               
  TAPE HFC 93 - 49, Side 2, #000 - end.                                        
  TAPE HFC 93 - 50, Side 1, #000 - end.                                        
  TAPE HFC 93 - 50, Side 2, #000 - #518.                                       
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Ron Larson called the meeting of the House  Finance                 
  Committee to order at 1:31 P.M.                                              
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Brown                           
  Co-Chair MacLean              Representative Foster                          
  Vice-Chair Hanley             Representative Grussendorf                     
  Representative Hoffman        Representative Martin                          
  Representative Navarre        Representative Parnell                         
  Representative Therriault                                                    
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative   Ed   Willis;   Representative  Tom   Brice;                 
  Representative  Jim  Nordlund;  Representative  Pat  Carney;                 
  Loren  Jones, Director,  Division  of  Alcoholism  and  Drug                 
  Abuse,  Department of Health  and Social  Services; Kimberly                 
  Busch, Director, Division of  Medical Assistance, Department                 
  of  Health  and  Social  Services;  Jan  Hansen,   Director,                 
  Division  of Public  Assistance,  Department  of Health  and                 
  Social Services;  Dwayne Peeples,  Health Program  Services,                 
  Division of Public  Health, Department of Health  and Social                 
  Services;  Randal  Heinze,  Division  of  Family  and  Youth                 
  Services, Department  of  Health and  Social Services;  Kent                 
  Swisher, Executive Director, Alaska Municipal League  (AML),                 
  Juneau; Gene Dowe, Legislative Officer, Veterans of  Foreign                 
  Wars (VFW), Juneau, Alaska.                                                  
                                                                               
  SUMMARY INFORMATION                                                          
  HB 55     An Act making appropriations for the operating and                 
            loan program  expenses of state government  and to                 
            capitalize funds; and  providing for an  effective                 
            date.                                                              
  HB 56     An   Act   making  appropriations   for  operating                 
            expenses for  certain programs for which the costs                 
            are  derived from  mandated formulas  or criteria,                 
            and for expenses for  certain leases and contracts                 
                                                                               
                                1                                              
                                                                               
                                                                               
            for state services  and operations; and  providing                 
            for an effective date.                                             
                                                                               
            SUBCOMMITTEE CLOSEOUTS:  Health & Social Services                  
                                     Governor's Office                         
                                     Legislature                               
                                     Labor                                     
                                                                               
            Incorporated the Subcommittee  recommendations for                 
  the       Department of Health & Social Services, Department                 
            of  Labor,   the   Governor's   Office   and   the                 
            Legislature into HB 55.                                            
  HB 66     An  Act   relating  to   municipal  property   tax                 
            exemptions for certain  residences and to property                 
            tax  equivalency  payments for  certain residents;                 
            and providing for an effective date.                               
                                                                               
            CS  HB 66 (FIN) was  held in Committee for further                 
            discussion.                                                        
  LEGISLATURE                                                                  
                                                                               
  The Legislature  Subcommittee was Chaired  by Representative                 
  Larson    and    Representative    MacLean   with    members                 
  Representative Barnes and Representative Grussendorf.                        
                                                                               
  The Committee was provided with handouts.  [Attachments #1 -                 
                                                                               
       *    Legislative  Audit  received  a  1.8%  restoration                 
            deletion in the amount of $49.5 thousand dollars.                  
                                                                               
       *    The Subcommittee recommended a  total decrement of                 
            $270.1 thousand dollars to the Legislative Finance                 
            component.                                                         
                                                                               
       *    Committee Expenses received a $20 thousand  dollar                 
            deletion   to   the   State  Office   Compensation                 
            Commission.                                                        
                                                                               
       *    Legislative   Council,  Executive   Administration                 
            received a 1.8% restoration deletion in the amount                 
            of $42.1 thousand dollars.                                         
                                                                               
       *    Public Services received an  unallocated reduction                 
            of $33.4 thousand dollars.                                         
                                                                               
       *    Administrative    Services    received    a   1.8%                 
            restoration  decrement  in  the  amount  of  $27.1                 
            thousand dollars.                                                  
                                                                               
                                                                               
                                2                                              
                                                                               
                                                                               
       *    Legal Services  also received  a 1.8%  restoration                 
            decrement in the amount of $41.4 thousand dollars.                 
                                                                               
       *    Co-Chair Larson  noted the only  increment to  the                 
            Legislative proposed  budget would  be to  Session                 
            Expenses. This would be a transfer from Department                 
            of  Public  Safety to  Legislative Council  in the                 
            amount of $73.2 thousand  dollars for the  funding                 
            of Security Services for the Capitol Building.                     
                                                                               
       *    General Services  received  a  1.8%  deletion  for                 
            restoration  in  the   amount  of  $33.8  thousand                 
            dollars.                                                           
                                                                               
       *    Legislative Research Agency also received the 1.8%                 
            restoration  reduction  in   the  amount  of   $14                 
            thousand dollars.                                                  
                                                                               
  Representative Brown asked which services  would be lost for                 
  the Legislature given  the proposed budget reductions.   Co-                 
  Chair Larson referenced  Attachment #1, Component Summary  -                 
  Operating  Budget.   He  noted  the  full reduction  to  the                 
  Legislature  would be $2.8  million dollars with significant                 
  reductions to the  LIO component and will  result in closing                 
  the Tok Office.                                                              
                                                                               
  Co-Chair  Larson   MOVED  to  incorporate   the  Legislative                 
  Subcommittee's recommendations into  HB 55.  There  being NO                 
  OBJECTION, it was incorporated.                                              
                                                                               
  OFFICE OF THE GOVERNOR                                                       
                                                                               
  The  Office  of  the Governor  Subcommittee  was  Chaired by                 
  Representative  Larson  and   Representative  MacLean   with                 
  members Representative Hanley and Representative Navarre.                    
                                                                               
  The Committee was provided with handouts.  [Attachments #4 &                 
  approved by the  Subcommittee was  the Governor's budget  as                 
  requested with one change.  Due to EO 84, which consolidates                 
  the Alaska  Women's Commission and Youth to a new Commission                 
  called the Alaska Human Rights  Commission, the Subcommittee                 
  transferred $60.7 thousand dollars to that new Commission.                   
                                                                               
  She  noted that  the  Subcommittee  accepted the  Governor's                 
  proposed  budget as  proposed  in all  remaining components.                 
  There is a reduction to the Governor's FY 94 request in  the                 
  amount of $3,111.7  thousand dollars general funds  from the                 
  FY  93 authorized  level.  The  reduction resulted  from the                 
  elimination of  funding for the Alaska Sentencing Commission                 
  which completed work as of 6/30/93.                                          
                                                                               
                                                                               
                                3                                              
                                                                               
                                                                               
  Co-Chair  MacLean  noted the  ANWR  funding deletion  in the                 
  amount   of  $1,279.2  thousand   dollars.     The  original                 
  appropriation  was  $3  million  dollars.     There  was  an                 
  additional  general  fund   deletion  for  the   contractual                 
  component  and  to  equipment in  the  Audit  and Management                 
  Services Division in the amount  of $289.9 thousand dollars.                 
                                                                               
                                                                               
  The only increment to the budget was $391.3 thousand dollars                 
  for the  continuation of  the Media  Center.  The  increment                 
  would supply the  Media Center with  five full time and  one                 
  part  time  employee.    The   Governor  has  requested  one                 
  additional  budget amendment for $580.6 thousand dollars for                 
  the Division  of Elections  (Attachment #5).   The  Division                 
  needs  these  funds   in  order   to  implement  the   final                 
  reapportionment plan after  it is  approved by the  Governor                 
  and the Department of Justice.                                               
                                                                               
  Representative Brown  asked the status of  the International                 
  Trade Office.  Co-Chair MacLean  stated that office would be                 
  transferred next fiscal year.                                                
                                                                               
  Co-Chair MacLean  MOVED to incorporated  the recommendations                 
  made by the Office of the  Governor Subcommittee into HB 55.                 
  Co-Chair Larson emphasized the importance of Attachment  #5,                 
  the  letter to  the  Division of  Elections  from the  House                 
  Finance  Co-Chairs.     There   being   NO  OBJECTION,   the                 
  recommendations were incorporated.                                           
                                                                               
  DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                     
                                                                               
  The Department  of Health and  Social Services  Subcommittee                 
  was   Chaired   by   Representative  Hanley   with   members                 
  Representative    Toohey,    Representative    Gail   Davis,                 
  Representative Nordlund and Representative Brice.                            
                                                                               
  Representative Hanley provided the  Committee with handouts.                 
  [Attachments #6 -11].  Representative  Hanley noted that the                 
  budget was separated into non-formula and non-Mental  Health                 
  Trust dollars  in order to reach the  $2,189 million dollars                 
  2% reduction.                                                                
                                                                               
  Representative   Hanley   referenced   Attachment   #6,   an                 
  explanation  summery  sheet  prepared  by  his   office  and                 
  Attachment #7, Transaction Summary for Governor to House.                    
                                                                               
       *    Medical Assistance - Medicaid-Facilities amendment                 
            from  Resident  Child  Care increment  for  $1,510                 
            million  dollars,  resulting  from  Mental  Health                 
            Trust dollars.                                                     
                                                                               
       *    Mental Health  Trust dollar  increment to  Waivers                 
                                                                               
                                4                                              
                                                                               
                                                                               
            Services for $1,664 million dollars.                               
                                                                               
       *    Public Assistance Administration received a travel                 
            reduction of 3% for $19.8 thousand dollars.                        
                                                                               
       *    Eligibility   Determination   received   a   total                 
            decrement  of  $868.7   thousand  dollars.     The                 
            component  consists   of  a  decrement   to  self-                 
            sufficiency  staff  for  $187.5 thousand  dollars;                 
            reduced  caseload  increment  for $245.8  thousand                 
            dollars; deny  under funding increment  for $415.4                 
            thousand  dollars;  and the  Commissioner's Office                 
            decrement for $20 thousand dollars.                                
                                                                               
       *    Alaska  Work Programs  -  Establishing child  care                 
            component decrement for $3,703.9 thousand dollars;                 
            JOBS Training increment for $200 thousand dollars;                 
            amendment - JOBS Supportive Services increment for                 
            $200 thousand dollars.                                             
                                                                               
       *    Public  Assistance  Data  Processing   which  will                 
            update  computer  systems total  increment  in the                 
            amount of $779.1 thousand dollars.                                 
                                                                               
       *    Child Care Benefits from the Alaska Work  Programs                 
            which  would be  a transfer  of $3,703.6  thousand                 
            dollars.                                                           
                                                                               
       *    Medical   Assistance   Administration   -  Medical                 
            Assistance  Central  Administration received  a 3%                 
            travel reduction  for a  total decrement  of $17.8                 
            thousand dollars.                                                  
                                                                               
       *    Claims Processing received  an amendment from  the                 
            Governor's Office which the  Subcommittee accepted                 
            for  the  Medicaid  Management Information  System                 
            decrement  in  the   amount  of  $911.8   thousand                 
            dollars.                                                           
                                                                               
       *    Certification  and  Licensing total  decrement for                 
            $228.1    thousand    dollars    to    the    CLIA                 
            Implementation.                                                    
                                                                               
       *    Medicaid  Rate  Advisory Commission  decrement for                 
            $198.9 thousand dollars.                                           
                                                                               
       *    Medicaid  Waivers  Authorization for  Better Match                 
            Rate for Nurses  would receive a 25/75  match from                 
            the federal  government for  nursing, which  would                 
            reduce  general  funds  in  the  amount  of  $15.9                 
            thousand dollars.                                                  
                                                                               
                                                                               
                                5                                              
                                                                               
                                                                               
       *    Purchased Services - Residential  Child Care total                 
            component  reduction  of  $1,510 thousand  dollars                 
            which  would affect  residential child  care.   He                 
            noted that Mental Health Trust beneficiaries would                 
            be identified  in the  program.   [Attachment #11]                 
            which is  a  letter  to  Janet  Clarke,  Director,                 
            Division of Administrative  Services from  Deborah                 
            Wing  regarding  Mental  Health  Dollars  and  the                 
            Foster Care Component.                                             
                                                                               
       *    Southcentral Region  - Family  and Youth  Services                 
            received  a  $10.1   thousand  dollar   decrement.                 
            Northern Region  received a  $7.2 thousand  dollar                 
            decrement.   Southeastern Region  received a  $3.1                 
            thousand dollar decrement.   The Central Office  -                 
            Division of Family and Youth Services  received an                 
            increment  of   $100  thousand  dollars   for  the                 
            permanency planning  RSA/DOA.  The  Central Office                 
            received  a  travel  reduction  of $44.1  thousand                 
            dollars and  a  reduction  to  the  Commissioner's                 
            Office for $9.9 thousand dollars.                                  
                                                                               
       *    McLaughlin Youth Center - Youth Facility  Services                 
            received a 3% travel reduction component decrement                 
            in the amount of $85 thousand dollars.                             
                                                                               
       *    Fairbanks Youth  Facility received a  decrement of                 
            $2.7 thousand dollars.   The  Nome Youth  Facility                 
            received  a   decrement  in  the  amount  of  $1.3                 
            thousand  dollars.     The  Johnson  Youth  Center                 
            received an increment of  $27 thousand dollars for                 
            the  Juneau  school  district  to  hire  a   youth                 
            counselor  at  that  facility.     The  same  line                 
            received  a decrement for $1.3 thousand dollars to                 
            the  Commissioner's  Office.    The  Bethel  Youth                 
            Facility  received   a  total  reduction   of  $77                 
            thousand dollars which will eliminate treatment at                 
            that center and ten employee positions.                            
                                                                               
       *    The  Human  Services   Community  Matching   Grant                 
            received  a 5% reduction of $100 thousand dollars,                 
            and will encourage the local  communities to match                 
            with 10%.                                                          
                                                                               
       *    Public  Health   Services-Community  Health   Aide                 
            Training has received a 3% reduction to  Maniilaq,                 
            Norton  Sound,  SEARHC, Tanana  Chiefs Conference,                 
            Yukon-Kuskokwin Health Corporation.                                
                                                                               
       *    State  Health  Services  received  reduced  Public                 
            Health Services for a total component reduction of                 
            $171.3 thousand  dollars.  The Women,  Infants and                 
                                                                               
                                6                                              
                                                                               
                                                                               
            Children component would  receive an increment  in                 
            the amount of $600 thousand dollars federal funds.                 
            The  Maternal, Child  and Family  Health component                 
            would  move  six  kids  to  the  Waivers   Program                 
            resulting  in  a  decrement  of  $127.4   thousand                 
            dollars.  Laboratory Services received a decrement                 
            of $4.9 thousand dollars.                                          
                                                                               
       *    Public Health Administrative  Services received  a                 
            federal  fund   increment  to   amend  the   Toxic                 
            Substance Disease Regulations for  $205.8 thousand                 
            dollars.  Epidemiology  -Hemophilus B Program will                 
            absorb a three  year federal grant  for hepatitis.                 
            The Commissioner's Office will receive a decrement                 
            of $8.1 thousand dollars.                                          
                                                                               
       *    EMS Training & Licensing total reduction of $116.8                 
            thousand dollars.  The Bureau of Vital  Statistics                 
            received a reduction of $2.5 thousand dollars.                     
                                                                               
       *    Health Services/Medicaid component would receive a                 
            reduction  to  the  Commissioner's  Office in  the                 
            amount of  $4.3  thousand dollars.    Post  Mortem                 
            Examinations  amendment  of funding  for autopsies                 
            would  receive  an  increment   of  $340  thousand                 
            dollars.     Home  Health   Services  received   a                 
            reduction in the amount of $1.1 thousand dollars.                  
                                                                               
       *    Health Grants  for Community Health  Aide Training                 
            reduction of $19 thousand dollars.                                 
                                                                               
       *    Alcohol & Drug Abuse Services received a decrement                 
            to  the Administration  component for  $7 thousand                 
            dollars and  an Alcohol/Drug  Grants reduction  in                 
            the amount of $442 thousand dollars.                               
                                                                               
       *    Community     Mental      Health     Grants      -                 
            Services/Chronically Mentally Ill  component total                 
            reduction of $288 thousand dollars.                                
                                                                               
  (Tape Change, HFC 93-50, Side 1).                                            
                                                                               
  Representative Hanley continued:                                             
                                                                               
       *    Community DD  Grants received  a reduction  in the                 
            amount of $1,428.4 thousand dollars.                               
                                                                               
       *    Institutions & Administration  - Mental  Health/DD                 
            Administration   RSA   OAC   -Treatment   Services                 
            increment  for   $200  thousand   dollars  and   a                 
            decrement  to  the  Commissioner's Office  in  the                 
            amount  of $39.5  thousand  dollars.   The  Alaska                 
                                                                               
                                7                                              
                                                                               
                                                                               
            Psychiatric   Institute   reduction   to  personal                 
            services  for   $100  thousand   dollars  and   an                 
            increment to the Psychiatrists from the Department                 
            of Corrections  in the amount  of $152.1  thousand                 
            dollars.    The   Harborview  Development   Center                 
            received  a decrement of $924 thousand dollars for                 
            the expansion of the Sourdough Unit.  There was an                 
            additional decrement to Community DD Grants in the                 
            amount of $300 thousand dollars and a shift in the                 
            Fund  Source increment  in  the  amount of  $172.3                 
            thousand dollars.                                                  
                                                                               
       *    Administrative  Services  -  Commissioner's Office                 
            received  a  total  component  decrement  of   $87                 
            thousand   dollars.       Regulatory    compliance                 
            increment  to  Bloodborne  Pathogens,   a  federal                 
            requirement  for  $212  thousand  dollars.     The                 
            Commissioner's Office received a decrement of $1.3                 
            thousand   dollars.      Personnel   and   Payroll                 
            miscellaneous received  a reduction in  the amount                 
            of  $56.7  thousand dollars.   Budget  and Finance                 
            received a miscellaneous total component reduction                 
            in the amount of $111.7 thousand dollars.                          
                                                                               
  Representative  Brown  referenced   line  #21,  the   Public                 
  Assistance  Data Processing  component  and  asked how  many                 
  positions are necessary.                                                     
                                                                               
  JAN  HANSEN,  DIRECTOR,  PUBLIC  ASSISTANCE,  DEPARTMENT  OF                 
  HEALTH AND SOCIAL  SERVICES, noted there would  be seventeen                 
  positions.   Ten of  those  positions would  be for  Systems                 
  Operations  for  the  EIS  System.     The  remaining  seven                 
  positions  from  the  capital budget  would  be  for ongoing                 
  projects to redesign the data  system.  Representative Brown                 
  questioned  the impact  of  not funding  the  project.   Ms.                 
  Hansen replied all  the positions are tied into  the aspects                 
  of the project in the capital budget.                                        
                                                                               
  Representative  Brown   referenced  Line  #24,   the  Claims                 
  Processing  component  and  asked which  project  was  being                 
  referenced.   Representative  Hanley  replied  the  Medicaid                 
  Management Information System which is a proposed Governor's                 
  amendment.  Representative Brown asked  if the project would                 
  be covered in any other capital budget project.                              
                                                                               
  KIM  BUSCH,  DIRECTOR,   DIVISION  OF  MEDICAL   ASSISTANCE,                 
  DEPARTMENT OF  HEALTH AND  SOCIAL SERVICES,  stated that  it                 
  would not be  covered in the  capital budget.  The  contract                 
  was  extended  for  one year  and  at  the  time received  a                 
  contract reduction price.  She added, the federal government                 
  requires  reprocurement for  contracts every  few additional                 
  years.  The  feds have  already allowed the  contract to  be                 
                                                                               
                                8                                              
                                                                               
                                                                               
  extended an additional year.                                                 
                                                                               
  Representative Brown  referenced Line  #43, the  DYS Central                 
  Office,  and   asked  the   total  amount   to  be   RSA'ed.                 
  Representative  Hanley replied  that  amount  would be  $200                 
  thousand  dollars.   Representative  Brown recommended  that                 
  "intent" be written to address this concern.                                 
                                                                               
  Representative Brown referenced Line #85, Women, Infants and                 
  Children component and asked what the project would cover.                   
                                                                               
  DWAYNE  PEEPLES, DIVISION  OF PUBLIC  HEALTH, DEPARTMENT  OF                 
  HEALTH AND SOCIAL  SERVICES, stated that  Line #85 would  be                 
  federal funds  for the development  of a WIC  automated data                 
  base and vouchering issue systems.  This program is required                 
  by  the  federal   government  as  the  current   system  is                 
  inadequate.   Representative Brown asked for  further backup                 
  material to be provided.                                                     
                                                                               
  Representative  Brown  referenced Line  #90,  and asked  the                 
  intention   of   470   funding   for   emergency   response.                 
  Representative  Therriault  noted  that  the  Department  of                 
  Environmental Conservation  Subcommittee did  not deal  with                 
  this amendment.                                                              
                                                                               
  Representative Brown referenced Line  #104, Alcohol and Drug                 
  Abuse Grants and questioning the impact of those reductions.                 
                                                                               
                                                                               
  LOREN JONES, DIRECTOR, DIVISION OF ALCOHOL ABUSE, DEPARTMENT                 
  OF  HEALTH  AND  SOCIAL SERVICES,  stated  with  the funding                 
  sources currently  available through  federal funds,  Mental                 
  Health  Trust  Funds  and  State  general  funds,  the  $200                 
  thousand dollar  reduction would  affect training  programs,                 
  reductions  in  prevention   and  the  prevention  of   drug                 
  treatment programs.  Mental Health Trust money is issued for                 
  alcohol  treatment programs specified  in the  conditions of                 
  that  funding.  As this is a  grant program, the decision of                 
  which  programs will receive  a reduction  has not  yet been                 
  decided.  With  all proposed grant  cuts nine hundred  fewer                 
  clients will be served.                                                      
                                                                               
  Representative  Grussendorf  advised  that   the  referenced                 
  grants  have  reduced  juvenile  delinquency  in  the  small                 
  communities.     Representative  Therriault  asked   if  the                 
  reduction originated from  the same area  of funding as  the                 
  officers in the school  programs.  Mr. Jones stated  that it                 
  was, although, that program would not be affected.                           
                                                                               
  Representative  Brown  referenced  Line #109  and  asked the                 
  reduction for the  KIVA House.  Representative  Hanley noted                 
  this was Mental Health money; there has been a report issued                 
                                                                               
                                9                                              
                                                                               
                                                                               
  made which suggests that these funds were not being used for                 
  mental health purposes.                                                      
                                                                               
  Representative  Brown  referenced  Line  #84  and  asked the                 
  impact  of the  reduction  to Public  Health  Nursing.   Mr.                 
  Peeples stated the reduction would be one nurse in Anchorage                 
  with small reductions  to other areas.   He stated that  700                 
  hours would be eliminated for children, 480 hours of service                 
  communicable  disease  work  and 150  hours  of  service for                 
  general health concerns.                                                     
                                                                               
  Representative Hoffman referenced Line #89, the Epidemiology                 
  component expressing his  concern in addressing  the disease                 
  in rural  Alaska.   Mr. Peeples  replied the  intent of  the                 
  Department was to use federal funds to support rural Alaska.                 
                                                                               
                                                                               
  Representative Martin recommended eliminating  the permanent                 
  fund "hold harmless" clause.                                                 
                                                                               
  Representative Hanley MOVED  that the  Department of  Health                 
  and Social Services Subcommittee  recommendations be adopted                 
  for non-formula, non-Mental Health Trust with  the exception                 
  of $800 thousand dollars/transfer of  Mental Health Trust in                 
  the Residential Facilities and that these recommendations be                 
  incorporated into HB 55.                                                     
                                                                               
  Representative Hoffman  questioned the  $75 thousand  dollar                 
  reduction for the youth facility in Bethel.                                  
                                                                               
  RANDAL  HEINZE,  DIVISION  OF  FAMILY  AND  YOUTH  SERVICES,                 
  DEPARTMENT OF  HEALTH AND  SOCIAL SERVICES,  stated that  as                 
  long  as the  population of  the facility  remained at  it's                 
  current  rate,  the   accreditation  process  will   not  be                 
  jeopardized.      He  added,   that   there   is  additional                 
  administrative  documentation  necessary  for  the  standard                 
  compliances which can be covered  by the existing personnel.                 
                                                                               
                                                                               
  There be NO OBJECTIONS to the specified recommendations, the                 
  motion was adopted.                                                          
                                                                               
  THE DEPARTMENT OF LABOR                                                      
                                                                               
  The  Department   of  Labor  Subcommittee  was   Chaired  by                 
  Representative MacLean with  members Representative  Hudson,                 
  Representative    Vezey,    Representative     Sitton    and                 
  Representative Finkelstein.                                                  
                                                                               
  Co-Chair  Larson  WITHDREW  his original  OBJECTION.   There                 
  being    NO    FURTHER    OBJECTIONS,    the    Subcommittee                 
  recommendations were incorporated into HB 55.                                
                                                                               
                               10                                              
                                                                               
                                                                               
  HOUSE BILL 66                                                                
                                                                               
       "An Act  relating to municipal  property tax exemptions                 
       for certain residences and  to property tax equivalency                 
       payments  for certain  residents; and providing  for an                 
       effective date."                                                        
                                                                               
  Co-Chair MacLean provided the Committee  a brief overview of                 
  the changes made by the Subcommittee to HB 66 work draft #8-                 
  GH1032\R dated 3/15/93.   [Attachment #12].   She noted that                 
  Section 4 contains the changes made by  the Subcommittee and                 
  does not include:                                                            
                                                                               
       1.   Renters rebate;                                                    
       2.   Deferral option;                                                   
       3.   Hardship language;                                                 
       4.   Full and true value exemption.                                     
                                                                               
  Representative  Grussendorf pointed  out  that changing  the                 
  effective date to January 1, 1994 would place responsibility                 
  on  the  municipalities  for the  transitional  period.   He                 
  recommended adding a contribution.                                           
                                                                               
  Co-Chair MacLean MOVED CS HB 66 (FIN) work draft 8-GH1032\R,                 
  Cook, dated  3/15/93 as  the version  before the  Committee.                 
  There being NO OBJECTIONS, it was ordered.                                   
                                                                               
  Representative Brown  provided the Committee  with Amendment                 
  net for the poorest citizens that they not loose their homes                 
  as a result  of the phase out of the program.  The amendment                 
  would provide that  there be a mandatory  deferment of taxes                 
  owed for an individual  whose adjusted gross income  is less                 
  than  $24 thousand  dollars.   She  urged  the Committee  to                 
  consider the amendment for the senior citizens.                              
                                                                               
  (Tape Change, HFC 93-50, Side 2).                                            
                                                                               
  KENT  E.  SWISHER,  EXECUTIVE   DIRECTOR,  ALASKA  MUNICIPAL                 
  LEAGUE, JUNEAU,  ALASKA,  noted  specific  concerns  of  the                 
  Alaska Municipal League (AML).                                               
                                                                               
       *    Community  Approval - Granting  an exemption  or a                 
            deferral  is an  important public  policy decision                 
            having impacts on  all other taxpayers and  on the                 
            level of service offered  by the local government.                 
            He   stated  the  local  public  should  have  the                 
            opportunity to participate in the decision through                 
            the  polls.    ALM  requests  that  the  Committee                 
            consider  amending  HB  66  to  provide for  voter                 
            approval of local ordinances creating exemption or                 
                                                                               
                               11                                              
                                                                               
                                                                               
            deferral structures.                                               
                                                                               
       *    Personal Financial Circumstances -  Currently, the                 
            statute  does  not  include  authority  for  local                 
            government to consider  individual financial  need                 
            or other  circumstances in creating  an exemption,                 
            deferral, or combination  system.   AML urges  the                 
            Committee  to  amend  HB   66  to  clarify   local                 
            government's ability  to consider needs  in making                 
            decisions for that area.                                           
                                                                               
       *    Effective Date - When HB 66 was introduced, it had                 
            an effective date of January  1, 1993, which would                 
            be consistent.   There is no money provided in the                 
            Governor's  budget  proposal   for  funding   this                 
            mandate.  The concept of deferral was not included                 
            in the bill, and the required action at  the local                 
            level was to grant or not grant tax exemption to a                 
            clearly  defined  group  per   regulations  to  be                 
            adopted by DCRA.                                                   
                                                                               
  Representative Brown questioned the Subcommittee elimination                 
  of the authority  for communities to develop  programs based                 
  on "need".   Co-Chair MacLean  stated that the  Subcommittee                 
  intended to eliminate that authority.  Representative Hanley                 
  pointed  out  that  Amendment #1  requires  a  "needs based"                 
  program  and asked if that was permissive.  Co-Chair MacLean                 
  stated  that "needs  based" would  be made  optional  by the                 
  municipalities.                                                              
                                                                               
  BRUCE GERAGHTY, DEPUTY COMMISSIONER, DEPARTMENT OF COMMUNITY                 
  AND REGIONAL AFFAIRS, stated the  "needs based" sentence was                 
  left out in order that the municipalities would not act only                 
  on that.  He noted, y not  adding the "needs based" language                 
  would allow the municipalities the option.                                   
                                                                               
  Co-Chair Larson recommended  drafting a Subcommittee  Letter                 
  of Intent explaining the "needs based" concern.                              
                                                                               
  Co-Chair  MacLean  suggested  that the  amendment  could  be                 
  placed on  Page 3, Line 9.   She explained that language had                 
  been   modified   so   to   include    no   dollar   amount.                 
  Representative  Brown  restated  that  the  amendment  would                 
  assure  that  low  income people  would  not  loose property                 
  because of their  inability to  pay the tax.   Mr.  Geraghty                 
  pointed out that the amendment would change the language and                 
  at which time all the seniors would not be given the  option                 
  to  have  their taxes  deferred.   This  would create  a tax                 
  liability and/or a municipal lien on the property.                           
                                                                               
  GENE DOW,  LEGISLATIVE  OFFICER, VETERANS  OF  FOREIGN  WARS                 
  (FVW), JUNEAU, ALASKA, testified in opposition of HB 66.  He                 
                                                                               
                               12                                              
                                                                               
                                                                               
  state  that  the  proposed legislation  would  affect senior                 
  citizens and  veterans income.   He added that  the veterans                 
  also  oppose  the  elimination  of  the $750  dollar  burial                 
  gratuity further discussion followed.                                        
                                                                               
  Co-Chair Larson noted  that CS HB 66 (FIN) would  be HELD in                 
  Committee for further discussion.                                            
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 3:30 P.M.                                           
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         March 18, 1993                                        
                            1:31 P.M.                                          
                                                                               
  TAPE HFC 93 - 49, Side 2, #000 - end.                                        
  TAPE HFC 93 - 50, Side 1, #000 - end.                                        
  TAPE HFC 93 - 50, Side 2, #000 - #518.                                       
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Ron Larson called the meeting of the  House Finance                 
  Committee to order at 1:31 P.M.                                              
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Brown                           
  Co-Chair MacLean              Representative Foster                          
  Vice-Chair Hanley             Representative Grussendorf                     
  Representative Hoffman        Representative Martin                          
  Representative Navarre        Representative Parnell                         
  Representative Therriault                                                    
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative   Ed   Willis;   Representative  Tom   Brice;                 
  Representative  Jim  Nordlund;  Representative  Pat  Carney;                 
  Loren  Jones,  Director,  Division  of Alcoholism  and  Drug                 
  Abuse, Department  of Health  and Social Services;  Kimberly                 
  Busch, Director, Division of Medical Assistance,  Department                 
  of  Health  and  Social   Services;  Jan  Hansen,  Director,                 
  Division  of Public  Assistance,  Department of  Health  and                 
  Social Services;  Dwayne Peeples,  Health Program  Services,                 
  Division of Public  Health, Department of Health  and Social                 
  Services;  Randal  Heinze,  Division  of  Family  and  Youth                 
  Services,  Department of  Health and  Social  Services; Kent                 
  Swisher, Executive Director,  Alaska Municipal League (AML),                 
  Juneau; Gene Dowe, Legislative  Officer, Veterans of Foreign                 
                                                                               
                               13                                              
                                                                               
                                                                               
  Wars (VFW), Juneau, Alaska.                                                  
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  HB 55     An Act making appropriations for the operating and                 
            loan program expenses  of state government  and to                 
            capitalize funds; and  providing for an  effective                 
            date.                                                              
                                                                               
  HB 56     An   Act   making  appropriations   for  operating                 
            expenses for certain programs for which the  costs                 
            are  derived from  mandated formulas  or criteria,                 
            and  for expenses for certain leases and contracts                 
            for state  services and operations;  and providing                 
            for an effective date.                                             
                                                                               
            SUBCOMMITTEE CLOSEOUTS:  Health & Social Services                  
                                     Governor's Office                         
                                     Legislature                               
                                     Labor                                     
                                                                               
            Incorporated the Subcommittee  recommendations for                 
  the       Department of Health & Social Services, Department                 
            of   Labor,   the   Governor's  Office   and   the                 
            Legislature into HB 55.                                            
                                                                               
  HB 66     An   Act  relating   to  municipal   property  tax                 
            exemptions for certain residences  and to property                 
            tax  equivalency  payments for  certain residents;                 
            and providing for an effective date.                               
                                                                               
            CS HB 66 (FIN)  was held in Committee for  further                 
            discussion.                                                        
                                                                               
  LEGISLATURE                                                                  
                                                                               
  The Legislature Subcommittee  was Chaired by  Representative                 
  Larson    and    Representative    MacLean   with    members                 
  Representative Barnes and Representative Grussendorf.                        
                                                                               
  The Committee was provided with handouts.  [Attachments #1 -                 
                                                                               
       *    Legislative  Audit  received  a  1.8%  restoration                 
            deletion in the amount of $49.5 thousand dollars.                  
                                                                               
       *    The Subcommittee recommended a total decrement  of                 
            $270.1 thousand dollars to the Legislative Finance                 
            component.                                                         
                                                                               
       *    Committee Expenses received  a $20 thousand dollar                 
            deletion   to   the   State  Office   Compensation                 
                                                                               
                               14                                              
                                                                               
                                                                               
            Commission.                                                        
                                                                               
       *    Legislative   Council,  Executive   Administration                 
            received a 1.8% restoration deletion in the amount                 
            of $42.1 thousand dollars.                                         
                                                                               
       *    Public Services received an  unallocated reduction                 
            of $33.4 thousand dollars.                                         
                                                                               
       *    Administrative    Services    received    a   1.8%                 
            restoration  decrement  in  the  amount  of  $27.1                 
            thousand dollars.                                                  
                                                                               
       *    Legal Services  also received  a 1.8%  restoration                 
            decrement in the amount of $41.4 thousand dollars.                 
                                                                               
       *    Co-Chair Larson  noted the  only increment  to the                 
            Legislative  proposed budget  would be  to Session                 
            Expenses. This would be a transfer from Department                 
            of Public  Safety to  Legislative  Council in  the                 
            amount of $73.2  thousand dollars for the  funding                 
            of Security Services for the Capitol Building.                     
                                                                               
       *    General  Services  received  a 1.8%  deletion  for                 
            restoration  in  the  amount   of  $33.8  thousand                 
            dollars.                                                           
                                                                               
       *    Legislative Research Agency also received the 1.8%                 
            restoration  reduction   in  the  amount   of  $14                 
            thousand dollars.                                                  
                                                                               
  Representative Brown asked which services  would be lost for                 
  the Legislature given  the proposed budget reductions.   Co-                 
  Chair Larson referenced  Attachment #1, Component  Summary -                 
  Operating Budget.    He  noted  the full  reduction  to  the                 
  Legislature would be $2.8  million dollars with  significant                 
  reductions  to the LIO component  and will result in closing                 
  the Tok Office.                                                              
                                                                               
  Co-Chair  Larson  MOVED   to  incorporate  the   Legislative                 
  Subcommittee's recommendations into  HB 55.  There  being NO                 
  OBJECTION, it was incorporated.                                              
                                                                               
  OFFICE OF THE GOVERNOR                                                       
                                                                               
  The  Office  of  the Governor  Subcommittee  was  Chaired by                 
  Representative  Larson  and   Representative  MacLean   with                 
  members Representative Hanley and Representative Navarre.                    
                                                                               
  The Committee was provided with handouts.  [Attachments #4 &                 
  approved by the  Subcommittee was  the Governor's budget  as                 
                                                                               
                               15                                              
                                                                               
                                                                               
  requested with one change.  Due to EO 84, which consolidates                 
  the Alaska Women's Commission and  Youth to a new Commission                 
  called the Alaska Human  Rights Commission, the Subcommittee                 
  transferred $60.7 thousand dollars to that new Commission.                   
                                                                               
  She  noted  that the  Subcommittee  accepted the  Governor's                 
  proposed  budget  as proposed  in all  remaining components.                 
  There is a reduction to the Governor's FY 94 request  in the                 
  amount of $3,111.7  thousand dollars general funds  from the                 
  FY 93  authorized level.   The  reduction resulted from  the                 
  elimination of funding for the Alaska Sentencing  Commission                 
  which completed work as of 6/30/93.                                          
                                                                               
  Co-Chair  MacLean  noted the  ANWR  funding deletion  in the                 
  amount  of   $1,279.2  thousand   dollars.    The   original                 
  appropriation  was  $3  million  dollars.     There  was  an                 
  additional  general   fund  deletion  for   the  contractual                 
  component  and  to  equipment in  the  Audit  and Management                 
  Services Division in the amount  of $289.9 thousand dollars.                 
                                                                               
                                                                               
  The only increment to the budget was $391.3 thousand dollars                 
  for  the continuation  of the  Media Center.   The increment                 
  would supply the  Media Center with  five full time and  one                 
  part  time  employee.    The   Governor  has  requested  one                 
  additional budget amendment for  $580.6 thousand dollars for                 
  the Division  of Elections  (Attachment #5).   The  Division                 
  needs  these  funds   in  order   to  implement  the   final                 
  reapportionment plan after  it is  approved by the  Governor                 
  and the Department of Justice.                                               
                                                                               
  Representative Brown  asked the status  of the International                 
  Trade Office.  Co-Chair MacLean  stated that office would be                 
  transferred next fiscal year.                                                
                                                                               
  Co-Chair MacLean  MOVED to incorporated  the recommendations                 
  made by the Office of the  Governor Subcommittee into HB 55.                 
  Co-Chair Larson emphasized the  importance of Attachment #5,                 
  the letter  to  the Division  of  Elections from  the  House                 
  Finance   Co-Chairs.     There  being   NO  OBJECTION,   the                 
  recommendations were incorporated.                                           
                                                                               
  DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                     
                                                                               
  The Department  of Health  and Social  Services Subcommittee                 
  was   Chaired   by   Representative   Hanley  with   members                 
  Representative    Toohey,    Representative    Gail   Davis,                 
  Representative Nordlund and Representative Brice.                            
                                                                               
  Representative Hanley provided the Committee with  handouts.                 
  [Attachments #6 -11].  Representative  Hanley noted that the                 
  budget was separated into  non-formula and non-Mental Health                 
                                                                               
                               16                                              
                                                                               
                                                                               
  Trust  dollars in order to  reach the $2,189 million dollars                 
  2% reduction.                                                                
                                                                               
  Representative   Hanley   referenced   Attachment   #6,   an                 
  explanation  summery  sheet  prepared   by  his  office  and                 
  Attachment #7, Transaction Summary for Governor to House.                    
                                                                               
       *    Medical Assistance - Medicaid-Facilities amendment                 
            from  Resident  Child  Care increment  for  $1,510                 
            million  dollars,  resulting  from  Mental  Health                 
            Trust dollars.                                                     
                                                                               
       *    Mental Health  Trust dollar  increment to  Waivers                 
            Services for $1,664 million dollars.                               
                                                                               
       *    Public Assistance Administration received a travel                 
            reduction of 3% for $19.8 thousand dollars.                        
                                                                               
       *    Eligibility   Determination   received   a   total                 
            decrement  of   $868.7  thousand  dollars.     The                 
            component  consists   of  a  decrement   to  self-                 
            sufficiency  staff  for  $187.5 thousand  dollars;                 
            reduced  caseload  increment  for $245.8  thousand                 
            dollars; deny  under funding increment  for $415.4                 
            thousand  dollars;  and the  Commissioner's Office                 
            decrement for $20 thousand dollars.                                
                                                                               
       *    Alaska  Work  Programs -  Establishing  child care                 
            component decrement for $3,703.9 thousand dollars;                 
            JOBS Training increment for $200 thousand dollars;                 
            amendment - JOBS Supportive Services increment for                 
            $200 thousand dollars.                                             
                                                                               
       *    Public  Assistance  Data  Processing   which  will                 
            update  computer systems  total  increment in  the                 
            amount of $779.1 thousand dollars.                                 
                                                                               
       *    Child Care Benefits from  the Alaska Work Programs                 
            which  would be  a  transfer of  $3,703.6 thousand                 
            dollars.                                                           
                                                                               
       *    Medical   Assistance   Administration   -  Medical                 
            Assistance  Central  Administration received  a 3%                 
            travel  reduction for a  total decrement  of $17.8                 
            thousand dollars.                                                  
                                                                               
       *    Claims Processing  received an amendment  from the                 
            Governor's Office which the  Subcommittee accepted                 
            for  the  Medicaid  Management Information  System                 
            decrement  in   the  amount  of   $911.8  thousand                 
            dollars.                                                           
                                                                               
                                                                               
                               17                                              
                                                                               
                                                                               
       *    Certification  and  Licensing total  decrement for                 
            $228.1    thousand    dollars    to    the    CLIA                 
            Implementation.                                                    
                                                                               
       *    Medicaid  Rate  Advisory Commission  decrement for                 
            $198.9 thousand dollars.                                           
                                                                               
       *    Medicaid  Waivers  Authorization for  Better Match                 
            Rate for Nurses  would receive a 25/75  match from                 
            the federal  government for  nursing, which  would                 
            reduce  general  funds  in  the  amount  of  $15.9                 
            thousand dollars.                                                  
                                                                               
       *    Purchased Services - Residential Child Care  total                 
            component  reduction  of  $1,510 thousand  dollars                 
            which would  affect  residential child  care.   He                 
            noted that Mental Health Trust beneficiaries would                 
            be identified  in the program.   [Attachment  #11]                 
            which  is  a  letter to  Janet  Clarke,  Director,                 
            Division of Administrative  Services from  Deborah                 
            Wing  regarding  Mental  Health  Dollars  and  the                 
            Foster Care Component.                                             
                                                                               
       *    Southcentral  Region -  Family and  Youth Services                 
            received  a  $10.1   thousand  dollar   decrement.                 
            Northern Region  received a  $7.2 thousand  dollar                 
            decrement.   Southeastern  Region received  a $3.1                 
            thousand dollar decrement.   The Central Office  -                 
            Division of  Family and Youth Services received an                 
            increment  of   $100  thousand  dollars   for  the                 
            permanency planning RSA/DOA.   The Central  Office                 
            received a  travel  reduction  of  $44.1  thousand                 
            dollars  and  a  reduction to  the  Commissioner's                 
            Office for $9.9 thousand dollars.                                  
                                                                               
       *    McLaughlin Youth Center  - Youth Facility Services                 
            received a 3% travel reduction component decrement                 
            in the amount of $85 thousand dollars.                             
                                                                               
       *    Fairbanks Youth Facility  received a decrement  of                 
            $2.7  thousand dollars.   The Nome  Youth Facility                 
            received  a  decrement  in  the   amount  of  $1.3                 
            thousand  dollars.    The   Johnson  Youth  Center                 
            received an increment of $27 thousand  dollars for                 
            the  Juneau  school  district   to  hire  a  youth                 
            counselor  at  that  facility.    The  same   line                 
            received a decrement for  $1.3 thousand dollars to                 
            the  Commissioner's  Office.    The  Bethel  Youth                 
            Facility  received  a   total  reduction  of   $77                 
            thousand dollars which will eliminate treatment at                 
            that center and ten employee positions.                            
                                                                               
                                                                               
                               18                                              
                                                                               
                                                                               
       *    The  Human  Services   Community  Matching   Grant                 
            received a 5% reduction of $100  thousand dollars,                 
            and will encourage the  local communities to match                 
            with 10%.                                                          
                                                                               
       *    Public  Health   Services-Community  Health   Aide                 
            Training has received a 3%  reduction to Maniilaq,                 
            Norton  Sound,  SEARHC, Tanana  Chiefs Conference,                 
            Yukon-Kuskokwin Health Corporation.                                
                                                                               
       *    State  Health  Services  received  reduced  Public                 
            Health Services for a total component reduction of                 
            $171.3 thousand dollars.   The Women,  Infants and                 
            Children component  would receive an  increment in                 
            the amount of $600 thousand dollars federal funds.                 
            The Maternal,  Child and  Family Health  component                 
            would  move  six  kids   to  the  Waivers  Program                 
            resulting  in  a   decrement  of  $127.4  thousand                 
            dollars.  Laboratory Services received a decrement                 
            of $4.9 thousand dollars.                                          
                                                                               
       *    Public Health Administrative  Services received  a                 
            federal  fund   increment  to   amend  the   Toxic                 
            Substance Disease Regulations for  $205.8 thousand                 
            dollars.  Epidemiology -Hemophilus  B Program will                 
            absorb a  three year federal grant  for hepatitis.                 
            The Commissioner's Office will receive a decrement                 
            of $8.1 thousand dollars.                                          
                                                                               
       *    EMS Training & Licensing total reduction of $116.8                 
            thousand dollars.  The  Bureau of Vital Statistics                 
            received a reduction of $2.5 thousand dollars.                     
                                                                               
       *    Health Services/Medicaid component would receive a                 
            reduction to  the  Commissioner's  Office  in  the                 
            amount  of  $4.3  thousand dollars.    Post Mortem                 
            Examinations  amendment  of funding  for autopsies                 
            would  receive  an  increment  of  $340   thousand                 
            dollars.     Home   Health  Services   received  a                 
            reduction in the amount of $1.1 thousand dollars.                  
                                                                               
       *    Health Grants  for Community Health  Aide Training                 
            reduction of $19 thousand dollars.                                 
                                                                               
       *    Alcohol & Drug Abuse Services received a decrement                 
            to the  Administration component  for $7  thousand                 
            dollars and  an Alcohol/Drug  Grants reduction  in                 
            the amount of $442 thousand dollars.                               
                                                                               
       *    Community     Mental      Health     Grants      -                 
            Services/Chronically Mentally Ill  component total                 
            reduction of $288 thousand dollars.                                
                                                                               
                               19                                              
                                                                               
                                                                               
  (Tape Change, HFC 93-50, Side 1).                                            
                                                                               
  Representative Hanley continued:                                             
                                                                               
       *    Community  DD Grants  received a reduction  in the                 
            amount of $1,428.4 thousand dollars.                               
                                                                               
       *    Institutions & Administration  - Mental  Health/DD                 
            Administration   RSA   OAC   -Treatment   Services                 
            increment  for   $200  thousand   dollars  and   a                 
            decrement  to  the  Commissioner's Office  in  the                 
            amount  of  $39.5 thousand  dollars.   The  Alaska                 
            Psychiatric   Institute   reduction   to  personal                 
            services   for  $100   thousand  dollars   and  an                 
            increment to the Psychiatrists from the Department                 
            of Corrections  in the  amount of  $152.1 thousand                 
            dollars.    The   Harborview  Development   Center                 
            received a decrement of  $924 thousand dollars for                 
            the expansion of the Sourdough Unit.  There was an                 
            additional decrement to Community DD Grants in the                 
            amount of $300 thousand dollars and a shift in the                 
            Fund Source  increment  in the  amount  of  $172.3                 
            thousand dollars.                                                  
                                                                               
       *    Administrative  Services  -  Commissioner's Office                 
            received  a  total   component  decrement  of  $87                 
            thousand   dollars.       Regulatory    compliance                 
            increment  to  Bloodborne  Pathogens,   a  federal                 
            requirement  for  $212   thousand  dollars.    The                 
            Commissioner's Office received a decrement of $1.3                 
            thousand   dollars.      Personnel   and   Payroll                 
            miscellaneous received  a reduction in  the amount                 
            of $56.7  thousand dollars.    Budget and  Finance                 
            received a miscellaneous total component reduction                 
            in the amount of $111.7 thousand dollars.                          
                                                                               
  Representative  Brown   referenced  line  #21,   the  Public                 
  Assistance  Data Processing  component  and asked  how  many                 
  positions are necessary.                                                     
                                                                               
  JAN  HANSEN,  DIRECTOR,  PUBLIC  ASSISTANCE,  DEPARTMENT  OF                 
  HEALTH AND SOCIAL  SERVICES, noted there would  be seventeen                 
  positions.   Ten  of  those positions  would be  for Systems                 
  Operations  for  the  EIS  System.     The  remaining  seven                 
  positions  from  the  capital budget  would  be  for ongoing                 
  projects to redesign the data  system.  Representative Brown                 
  questioned the  impact  of not  funding  the project.    Ms.                 
  Hansen replied  all the positions are tied  into the aspects                 
  of the project in the capital budget.                                        
                                                                               
  Representative  Brown  referenced   Line  #24,  the   Claims                 
                                                                               
                               20                                              
                                                                               
                                                                               
  Processing  component and  asked  which  project  was  being                 
  referenced.   Representative  Hanley  replied  the  Medicaid                 
  Management Information System which is a proposed Governor's                 
  amendment.  Representative Brown asked  if the project would                 
  be covered in any other capital budget project.                              
                                                                               
  KIM  BUSCH,  DIRECTOR,   DIVISION  OF  MEDICAL   ASSISTANCE,                 
  DEPARTMENT OF  HEALTH AND  SOCIAL SERVICES,  stated that  it                 
  would not be  covered in the  capital budget.  The  contract                 
  was  extended  for  one year  and  at  the  time received  a                 
  contract reduction price.  She added, the federal government                 
  requires  reprocurement for  contracts every  few additional                 
  years.  The  feds have  already allowed the  contract to  be                 
  extended an additional year.                                                 
                                                                               
  Representative  Brown referenced Line  #43, the  DYS Central                 
  Office,  and   asked  the   total  amount   to  be   RSA'ed.                 
  Representative  Hanley replied  that  amount would  be  $200                 
  thousand  dollars.   Representative  Brown  recommended that                 
  "intent" be written to address this concern.                                 
                                                                               
  Representative Brown referenced Line #85, Women, Infants and                 
  Children component and asked what the project would cover.                   
                                                                               
  DWAYNE  PEEPLES, DIVISION  OF  PUBLIC HEALTH,  DEPARTMENT OF                 
  HEALTH AND  SOCIAL SERVICES, stated  that Line #85  would be                 
  federal  funds for the  development of a  WIC automated data                 
  base and vouchering issue systems.  This program is required                 
  by  the  federal   government  as  the  current   system  is                 
  inadequate.   Representative Brown  asked for further backup                 
  material to be provided.                                                     
                                                                               
  Representative  Brown referenced  Line  #90,  and asked  the                 
  intention   of   470   funding   for   emergency   response.                 
  Representative  Therriault  noted  that  the  Department  of                 
  Environmental  Conservation Subcommittee  did not  deal with                 
  this amendment.                                                              
                                                                               
  Representative Brown referenced Line #104, Alcohol and  Drug                 
  Abuse Grants and questioning the impact of those reductions.                 
                                                                               
                                                                               
  LOREN JONES, DIRECTOR, DIVISION OF ALCOHOL ABUSE, DEPARTMENT                 
  OF  HEALTH  AND  SOCIAL SERVICES,  stated  with  the funding                 
  sources  currently available  through federal  funds, Mental                 
  Health  Trust  Funds  and  State  general  funds,  the  $200                 
  thousand dollar  reduction would  affect training  programs,                 
  reductions  in  prevention   and  the  prevention   of  drug                 
  treatment programs.  Mental Health Trust money is issued for                 
  alcohol treatment  programs specified  in the conditions  of                 
  that funding.  As this  is a grant program, the decision  of                 
  which programs will  receive a  reduction has  not yet  been                 
                                                                               
                               21                                              
                                                                               
                                                                               
  decided.  With  all proposed grant  cuts nine hundred  fewer                 
  clients will be served.                                                      
                                                                               
  Representative  Grussendorf  advised  that   the  referenced                 
  grants  have  reduced  juvenile  delinquency  in  the  small                 
  communities.     Representative  Therriault  asked   if  the                 
  reduction originated from  the same area  of funding as  the                 
  officers in the school  programs.  Mr. Jones stated  that it                 
  was, although, that program would not be affected.                           
                                                                               
  Representative  Brown referenced  Line  #109 and  asked  the                 
  reduction for the  KIVA House.  Representative  Hanley noted                 
  this was Mental Health money; there has been a report issued                 
  made which suggests that these funds were not being used for                 
  mental health purposes.                                                      
                                                                               
  Representative  Brown  referenced  Line #84  and  asked  the                 
  impact of  the  reduction to  Public  Health Nursing.    Mr.                 
  Peeples stated the reduction would be one nurse in Anchorage                 
  with small reductions  to other areas.   He stated that  700                 
  hours would be eliminated for children, 480 hours of service                 
  communicable  disease  work  and 150  hours  of  service for                 
  general health concerns.                                                     
                                                                               
  Representative Hoffman referenced Line #89, the Epidemiology                 
  component expressing  his concern in addressing  the disease                 
  in rural  Alaska.   Mr. Peeples  replied the  intent of  the                 
  Department was to use federal funds to support rural Alaska.                 
                                                                               
                                                                               
  Representative Martin recommended eliminating  the permanent                 
  fund "hold harmless" clause.                                                 
                                                                               
  Representative  Hanley MOVED  that the Department  of Health                 
  and Social Services Subcommittee recommendations be  adopted                 
  for non-formula,  non-Mental Health Trust with the exception                 
  of $800 thousand dollars/transfer of  Mental Health Trust in                 
  the Residential Facilities and that these recommendations be                 
  incorporated into HB 55.                                                     
                                                                               
  Representative Hoffman  questioned the  $75 thousand  dollar                 
  reduction for the youth facility in Bethel.                                  
                                                                               
  RANDAL  HEINZE,  DIVISION  OF  FAMILY  AND  YOUTH  SERVICES,                 
  DEPARTMENT OF  HEALTH AND  SOCIAL SERVICES,  stated that  as                 
  long  as the  population of  the facility  remained  at it's                 
  current  rate,   the  accreditation  process  will   not  be                 
  jeopardized.      He  added,   that   there  is   additional                 
  administrative  documentation  necessary  for  the  standard                 
  compliances which can be covered  by the existing personnel.                 
                                                                               
                                                                               
                               22                                              
                                                                               
                                                                               
  There be NO OBJECTIONS to the specified recommendations, the                 
  motion was adopted.                                                          
                                                                               
  THE DEPARTMENT OF LABOR                                                      
                                                                               
  The  Department  of   Labor  Subcommittee  was   Chaired  by                 
  Representative MacLean with  members Representative  Hudson,                 
  Representative    Vezey,    Representative     Sitton    and                 
  Representative Finkelstein.                                                  
                                                                               
  Co-Chair  Larson WITHDREW  his  original OBJECTION.    There                 
  being    NO    FURTHER    OBJECTIONS,    the    Subcommittee                 
  recommendations were incorporated into HB 55.                                
                                                                               
  HOUSE BILL 66                                                                
                                                                               
       "An Act  relating to municipal property  tax exemptions                 
       for certain residences and to property tax  equivalency                 
       payments for  certain residents;  and providing  for an                 
       effective date."                                                        
                                                                               
  Co-Chair MacLean provided the Committee  a brief overview of                 
  the changes made by the Subcommittee to HB 66 work draft #8-                 
  GH1032\R dated 3/15/93.   [Attachment #12].   She noted that                 
  Section 4 contains the changes made  by the Subcommittee and                 
  does not include:                                                            
                                                                               
       1.   Renters rebate;                                                    
       2.   Deferral option;                                                   
       3.   Hardship language;                                                 
       4.   Full and true value exemption.                                     
                                                                               
  Representative  Grussendorf pointed  out  that changing  the                 
  effective date to January 1, 1994 would place responsibility                 
  on  the  municipalities  for the  transitional  period.   He                 
  recommended adding a contribution.                                           
                                                                               
  Co-Chair MacLean MOVED CS HB 66 (FIN) work draft 8-GH1032\R,                 
  Cook, dated  3/15/93 as  the version  before the  Committee.                 
  There being NO OBJECTIONS, it was ordered.                                   
                                                                               
  Representative Brown  provided the Committee  with Amendment                 
  net for the poorest citizens that they not loose their homes                 
  as a result of the phase out of the program.   The amendment                 
  would  provide that there be  a mandatory deferment of taxes                 
  owed for an  individual whose adjusted gross  income is less                 
  than $24  thousand  dollars.   She  urged the  Committee  to                 
  consider the amendment for the senior citizens.                              
                                                                               
  (Tape Change, HFC 93-50, Side 2).                                            
                                                                               
                                                                               
                               23                                              
                                                                               
                                                                               
  KENT  E.  SWISHER,  EXECUTIVE   DIRECTOR,  ALASKA  MUNICIPAL                 
  LEAGUE,  JUNEAU,  ALASKA,  noted  specific  concerns of  the                 
  Alaska Municipal League (AML).                                               
                                                                               
       *    Community Approval  - Granting  an exemption  or a                 
            deferral  is an  important public  policy decision                 
            having impacts on  all other taxpayers and  on the                 
            level of  service offered by the local government.                 
            He  stated  the  local  public  should   have  the                 
            opportunity to participate in the decision through                 
            the  polls.    ALM  requests  that  the  Committee                 
            consider  amending  HB  66 to  provide  for  voter                 
            approval of local ordinances creating exemption or                 
            deferral structures.                                               
                                                                               
       *    Personal Financial Circumstances -  Currently, the                 
            statute  does  not  include  authority  for  local                 
            government to consider  individual financial  need                 
            or other circumstances  in creating an  exemption,                 
            deferral,  or combination  system.  AML  urges the                 
            Committee  to  amend   HB  66  to  clarify   local                 
            government's ability to  consider needs in  making                 
            decisions for that area.                                           
                                                                               
       *    Effective Date - When HB 66 was introduced, it had                 
            an effective date of January  1, 1993, which would                 
            be  consistent.  There is no money provided in the                 
            Governor's  budget  proposal   for  funding   this                 
            mandate.  The concept of deferral was not included                 
            in the bill, and the required action  at the local                 
            level was to grant or not grant tax exemption to a                 
            clearly  defined  group  per  regulations  to   be                 
            adopted by DCRA.                                                   
                                                                               
  Representative Brown questioned the Subcommittee elimination                 
  of the authority  for communities to develop  programs based                 
  on "need".   Co-Chair MacLean  stated that the  Subcommittee                 
  intended to eliminate that authority.  Representative Hanley                 
  pointed  out  that  Amendment #1  requires  a  "needs based"                 
  program and asked if that was permissive.  Co-Chair  MacLean                 
  stated that  "needs based"  would be  made  optional by  the                 
  municipalities.                                                              
                                                                               
  BRUCE GERAGHTY, DEPUTY COMMISSIONER, DEPARTMENT OF COMMUNITY                 
  AND REGIONAL AFFAIRS, stated the  "needs based" sentence was                 
  left out in order that the municipalities would not act only                 
  on that.  He noted, y not adding the "needs based"  language                 
  would allow the municipalities the option.                                   
                                                                               
  Co-Chair Larson  recommended drafting a  Subcommittee Letter                 
  of Intent explaining the "needs based" concern.                              
                                                                               
                                                                               
                               24                                              
                                                                               
                                                                               
  Co-Chair  MacLean suggested  that  the  amendment  could  be                 
  placed  on Page 3, Line 9.   She explained that language had                 
  been   modified   so   to    include   no   dollar   amount.                 
  Representative  Brown  restated  that  the  amendment  would                 
  assure  that  low  income people  would  not  loose property                 
  because of their  inability to  pay the tax.   Mr.  Geraghty                 
  pointed out that the amendment would change the language and                 
  at which time all the seniors would not be given  the option                 
  to  have  their taxes  deferred.   This  would create  a tax                 
  liability and/or a municipal lien on the property.                           
                                                                               
  GENE  DOW, LEGISLATIVE  OFFICER,  VETERANS  OF FOREIGN  WARS                 
  (FVW), JUNEAU, ALASKA, testified in opposition of HB 66.  He                 
  state  that  the proposed  legislation  would  affect senior                 
  citizens and  veterans income.   He added that  the veterans                 
  also  oppose  the  elimination  of  the $750  dollar  burial                 
  gratuity further discussion followed.                                        
                                                                               
  Co-Chair Larson  noted that CS HB 66  (FIN) would be HELD in                 
  Committee for further discussion.                                            
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 3:30 P.M.                                           
                                                                               
                                                                               
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