Legislature(1993 - 1994)

03/19/1993 01:40 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         March 19, 1993                                        
                            1:40 p.m.                                          
                                                                               
  TAPE HFC 93-51, Side 1, #000 - end.                                          
  TAPE HFC 93-51, Side 2, #000 - end.                                          
  TAPE HFC 93-52, Side 1, #000 - end.                                          
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson called the House  Finance Committee to order                 
  at 1:40 p.m.                                                                 
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Martin                          
  Vice-Chair Hanley           Representative Navarre                           
  Representative Brown        Representative Parnell                           
  Representative Foster       Representative Therriault                        
  Representative Grussendorf                                                   
  Representative Hoffman                                                       
                                                                               
  Co-Chair MacLean was absent from the meeting.                                
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Mike Greany,  Director, Legislative Finance  Division; Janet                 
  Clarke,  Director,  Division  of   Administrative  Services,                 
  Department  of  Health  and  Social  Services;  Jan  Hansen,                 
  Director,  Division  of  Public  Assistance,  Department  of                 
  Health  and  Social  Services;   Richard  Pegues,  Director,                 
  Division of  Administrative  Services,  Department  of  Law;                 
  Tracy McGill, Director, Division of Administrative Services,                 
  Department of Revenue; Arthur H. Snowden, II, Administrative                 
  Director, Alaska  Court  System;  Sharon  Barton,  Director,                 
  Division   of   Administrative   Services,   Department   of                 
  Administration; Frank Spargo, Director,  Division of Pioneer                 
  Benefits, Diane Barran's,Program  Coordinator, Postsecondary                 
  Education;    Jeff    Morrison,   Director,    Division   of                 
  Administrative Services, Department of Military and Veterans                 
  Affairs,  Nico Bus,  Chief Financial Officer,  Department of                 
  Natural  Resources; Bill  Bradley, Anchorage;  Paul Woerner,                 
  Retired   Officers   Association;  Gene   Dowe,  Legislative                 
  Officer, Veterans of Foreign Wars,  Laura Kelly, First Vice-                 
  President, Community College Teachers Union.                                 
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  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."                              
                                                                               
                                1                                              
                                                                               
                                                                               
            HB 66 was HELD in Committee.                                       
                                                                               
  HB 135    "An   Act   making   supplemental    and   special                 
            appropriations   for   the   expenses   of   state                 
            government;   making,   amending,   and  repealing                 
            capital   and   operating    appropriations;   and                 
            providing for an effective date."                                  
                                                                               
            HB 135 was HELD in Committee.                                      
  HOUSE BILL NO. 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 Larson  announced  that  HB 66  would  be  HELD  in                 
  Committee following public testimony.                                        
                                                                               
  Representative  Brown  presented members  with  Amendment 1,                 
  creating  a  mandatory  deferral  for  low   income  persons                 
  (Attachment  1).     She  noted   that  a  memorandum   from                 
  Legislative  Counsel  is  attached to  Amendment  1.   Legal                 
  Counsel advises that it is necessary to include  language to                 
  base the optional exemption on "hardship".                                   
                                                                               
  In  response   to  a  question  by  Representative  Parnell,                 
  Representative Brown explained  that $36,000 for individuals                 
  filling  jointly  has been  added  to subsection  (b).   The                 
  intent of the amendment would be to mandate that communities                 
  allow low income citizens to defer tax payments until death.                 
                                                                               
                                                                               
  BRAD  BRADLEY, spoke in support of continued funding for the                 
  Senior  Citizen Tax  Exemption.   He pointed  out  that many                 
  seniors could not  afford to stay  in the state without  the                 
  aid of support programs.  He urged the Committee to maintain                 
  current programs.  He felt that  rural seniors would be most                 
  adversely affected.  He suggested that the cap be lowered or                 
  the age raised rather than to discontinue the senior citizen                 
  property tax exemption.                                                      
                                                                               
  PAUL WOERNER, RETIRED OFFICERS  ASSOCIATION spoke in support                 
  of continued funding for the  Disabled Veterans Property Tax                 
  Exemption.  He  pointed out  that the Veterans  Home is  not                 
  being funded.  He added that the  veteran's burial allowance                 
  is  also  being  discontinued.   He  stressed  that eligible                 
  veterans  are  50  percent  disabled.    He  emphasized  the                 
  difficulty  that  disabled  veterans encounter  in  reaching                 
  their full earning potential.  He suggested that, "surely in                 
                                                                               
                                2                                              
                                                                               
                                                                               
  a state that can offer upwards of  a $1,000 dollars for each                 
  resident, each year  for no other criteria  than that person                 
  is a  resident in  the State  for twelve  months, surely  we                 
  don't have to offer up our disabled American veterans to get                 
  government spending under control."                                          
                                                                               
  Representative  Grussendorf  expressed   his  concern   that                 
  disabled  veterans  are  likely  to  be  renters  and  would                 
  therefore  be affected by the deletion of the Renters Rebate                 
  Program.   Mr.  Woerner  agreed that  perhaps  half  of  the                 
  disabled veterans live in rental property.                                   
                                                                               
  Representative  Grussendorf  stated  that  in making  things                 
  easier for  the State and municipalities that some times "we                 
  forget  who  the people  were  that  we originally  set  the                 
  program up, and the service that it provides."                               
                                                                               
  Representative Martin asserted that the  State has an influx                 
  of seniors because the State's senior programs are generous.                 
  He felt that controls must be put on the State's generosity.                 
                                                                               
  Co-Chair Larson clarified that the  legislation passed in FY                 
  93 to create a  Veterans Home stated that the Home  would be                 
  funded with private donations.                                               
                                                                               
  Representative Therriault  asked if  most disabled  veterans                 
  would  fit under the caps provided for  in Amendment 1.  Mr.                 
  Woerner  thought  that  most  disabled veterans  would  have                 
  incomes under the cap.                                                       
                                                                               
  GENE  DOWE, LEGISLATIVE  OFFICE,  VETERANS  OF FOREIGN  WARS                 
  (VFW) spoke in support of continued funding for the Disabled                 
  Veterans Property Tax Exemption.                                             
                                                                               
  HB 66 was HELD in Committee.                                                 
  COMMUNITY COLLEGES                                                           
                                                                               
  LAURA   KELLY,   FIRST  VICE-PRESIDENT,   COMMUNITY  COLLEGE                 
  TEACHERS UNION expressed concern that the mission, identity,                 
  and  programs of community colleges are being systematically                 
  destroyed within the  university system.  She  asserted that                 
  the University is  withdrawing monetary, administrative  and                 
  programmatic  support   from   programs   that   have   been                 
  traditionally  associated  with  community  colleges.    She                 
  observed  that  during  the  1987  merger,  the   University                 
  promised  to  protect,  preserve and  defend  the  community                 
  college  mission  and  programs.     She  alleged  that  the                 
  community college program  will not exist at  the University                 
  of Alaska within two  years.  She emphasized the  importance                 
  of two year  job training  programs.  She  urged members  to                 
  remind  the  University  of  their  promise to  protect  the                 
                                                                               
                                3                                              
                                                                               
                                                                               
  community college mission.                                                   
                                                                               
  Co-Chair Larson observed  that Valdez is the  only remaining                 
  community college.   He asked if  efforts are being made  to                 
  encourage local support  of community  colleges.  Ms.  Kelly                 
  stated that the  mission of  the Community College  Teachers                 
  Union  is  to teach  the  courses.   She  stressed  that the                 
  University asked  for the responsibility of teaching courses                 
  that  had  been  provided through  local  communities.   She                 
  asserted that the  problem is not that local communities are                 
  refusing  to  participate but  that  the University  has not                 
  lived up to the responsibility they took on.                                 
                                                                               
  Representative Martin noted  that Valdez  has dropped  their                 
  local support.  He added that  Bristol Bay and Ketchikan are                 
  supporting  local  training programs.    He felt  that local                 
  communities had "dropped the Ball"  in helping the community                 
  colleges.    He  felt that  the  Board  of  Regents had  not                 
  welcomed legislative participation.                                          
  HOUSE BILL NO. 135                                                           
                                                                               
       "An Act making supplemental and special  appropriations                 
       for the expenses of state government; making, amending,                 
       and repealing capital and operating appropriations; and                 
       providing for an effective date."                                       
                                                                               
  Members were  presented with  an analysis  of HB 135,  dated                 
  3/16/93 (copy on file).                                                      
                                                                               
       *    Sec. 1    Longevity  Bonus   -  $1,980.7   million                 
            dollars                                                            
                                                                               
            This  request  represents  the  cost of  increased                 
            applicants.                                                        
                                                                               
  Representative  Hoffman noted that  the amount had increased                 
  from the original supplemental request.                                      
                                                                               
  SHARON   BARTON,   DIRECTOR,   DIVISION  OF   ADMINISTRATIVE                 
  SERVICES,DEPARTMENT  OF  ADMINISTRATION  clarified that  the                 
  actual  participation  level is  higher  than  Department of                 
  Labor statistics used for the original request.                              
                                                                               
  Representative Grussendorf  asked if the Department  will be                 
  requesting a supplement for FY 94.  Ms. Barton stressed that                 
  the FY 94 Operating Budget is  based on the best statistical                 
  information the Department has available.                                    
                                                                               
  Representative Martin  asked if a monthly growth rate can be                 
  anticipated.  Ms.  Barton could not answer.   Representative                 
  Parnell  asked  how  many  individuals  participate  in  the                 
                                                                               
                                4                                              
                                                                               
                                                                               
  program.     He   expressed  concern   that   the  estimated                 
  participation level  was approximately 700  applicants below                 
  the actual level.                                                            
                                                                               
  FRANK  SPARGO,  ADMINISTRATOR,   LONGEVITY  BONUS   PROGRAM,                 
  DEPARTMENT  OF ADMINISTRATION  explained that the  growth of                 
  the program has been  slightly lower than the  annual growth                 
  of  individuals  over 65  years of  age  as compiled  by the                 
  Department of Labor.  The  Longevity Bonus Program estimated                 
  growth  was  for   a  5.7  percent  increase  based  on  the                 
  Department of  Labor's projections.   There  has been  a 6.3                 
  percent growth in the program.   He clarified that there has                 
  been an  average of  223  new applications  per month  since                 
  September.    The   program  has   averaged  160  -180   new                 
  applications per month in previous years.                                    
                                                                               
  Representative   Grussendorf   asked   the   percentage   of                 
  applicants that have only been a resident for one year.  Mr.                 
  Spargo stated  that 13  percent of  the new applicants  have                 
  been in the State for less than a year and a half.                           
                                                                               
  Representative Martin  asked the monthly participation.  Mr.                 
  Spargo stated  that  there are  approximately 2,300  monthly                 
  participants.                                                                
                                                                               
  Mr.  Spargo  clarified,   in  response  to  a   question  by                 
  Representative  Parnell,  that the  entire  request will  be                 
  dedicated to grants.                                                         
                                                                               
  (Tape Change, HFC 93-52, Side 2)                                             
                                                                               
  Co-Chair Larson  noted that Longevity  Bonus payments cannot                 
  be pro-rated.                                                                
                                                                               
  Co-Chair Larson  MOVED to INCORPORATE  Sec. 1  into HB  135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
       *    Sec. 2    Public   Defender   -   $383.0  thousand                 
                      dollars                                                  
                                                                               
            This represents  operating costs  unfunded in  the                 
            current budget.   Sec. 2 has been  adjusted for in                 
            the FY 94 Operating Budget.                                        
                                                                               
  Ms.  Barton noted  that the  Office  of Public  Defender was                 
  unable  to  meet  their  caseload  within  the  appropriated                 
  amount.   Co-Chair  Larson noted  that the  FY 94  Operating                 
  Budget  includes  the  FY  93 Authorized  level  plus  FY 93                 
  supplementals.                                                               
                                                                               
  Co-Chair Larson  MOVED to  INCORPORATE Sec.  2 into  HB 135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
                                5                                              
                                                                               
                                                                               
       *    Sec. 3    RATNET - $200.0 thousand dollars                         
                                                                               
            Anticipated savings were not realized in the FY 93                 
            Operating  Budget.   Competitive  bids for  uplink                 
            services were delayed.  Savings are anticipated in                 
            FY  94.    If the  appropriation  is  not approved                 
            service could  be discontinued  for the final  two                 
            months of fiscal year FY 93 or daily service could                 
            be drastically curtailed.                                          
                                                                               
  Co-Chair  Larson  noted  that  RATNET  is funded  at  $1.200                 
  million  dollars  in  FY  94  Operating  Budget.    If   the                 
  supplemental  appropriation  is approved  the FY  94 funding                 
  level will  be $1,400 million dollars.  Funding for FY 95 is                 
  anticipated at $1,200 million  dollars.  He referred  to the                 
  proposed Bethel  station.  He  noted that operations  of the                 
  Bethel station would not begin until FY 95.                                  
                                                                               
  Ms. Barton stated that  the request will allow RATNET  to be                 
  fully functional through the end of FY 93.                                   
                                                                               
  Representative  Martin  asked  if  RATNET  receives  private                 
  funds.   Ms.  Barton replied  that RATNET  does not  receive                 
  private funds.   Legislation would  be needed  in order  for                 
  RATNET to accept  private donations through fund  raisers or                 
  other   methods.     The  Subcommittee   discussed  possible                 
  legislation.  No legislation has been drafted.                               
                                                                               
  Ms. Barton  clarified  that the  request would  be used  for                 
  maintenance  and  operational  costs.   She  clarified  that                 
  RATNET received $1,400 million dollars in FY 92, in response                 
  to a question by Representative Hanley.                                      
                                                                               
  Representative Hanley expressed concern that the FY 93 level                 
  was  not  achieved.   He  suggested  that  continued support                 
  through  supplementals  defeat  the  appropriation  process.                 
  Representative Navarre suggested  that supplementals  should                 
  be addressed at the beginning of the legislative year.                       
                                                                               
  Ms. Barton  explained that  the overrun  by RATNET  occurred                 
  because transponder  maintenance bids were  not accomplished                 
  in   order    to   realized    the   anticipated    savings.                 
  Representative   Brown   pointed   out   that   the   actual                 
  appropriation for FY 92 was $1,700 million dollars.                          
                                                                               
  Representative  Brown  stressed  that  $1.2  million  dollar                 
  appropriation level assumes that no repairs are needed.  She                 
  emphasized that the supplemental request will bring back the                 
  six stations that are down.                                                  
                                                                               
  Representative  Hoffman  added  that there  is  a  potential                 
                                                                               
                                6                                              
                                                                               
                                                                               
  savings in the  use of compressed channels.   Representative                 
  Brown  agreed  that  compressed  video  channels   represent                 
  potential savings.  She did not think that the savings could                 
  be realized in the FY  94 Operating Budget.  She  added that                 
  the  State  could  utilize  eight  channels where  there  is                 
  currently one channel.  She  noted that other public service                 
  such as education and the university could also benefit from                 
  compressed video channels.                                                   
  Representative Hanley MOVED  to REDUCE  section 3 to  $100.0                 
  thousand dollar.  Representative Hoffman OBJECTED.  He asked                 
  for  a  breakdown  of  costs   according  to  operation  and                 
  maintenance.                                                                 
                                                                               
  Representative Martin felt that the  stations are obligating                 
  the State.                                                                   
                                                                               
  Representatives Grussendorf and Hoffman requested that  Sec.                 
  3 be HELD OPEN.  Section 3 was HELD OPEN.                                    
                                                                               
       *    Sec. 4    Personnel Board - $64.0 thousand dollars                 
                                                                               
                                                                               
            Increased hearings  have resulted in  a shortfall.                 
            This  appropriation will  pay for  special counsel                 
            and a hearing officer.                                             
                                                                               
  Ms. Barton explained  that the  request is the  result of  a                 
  Executive  Branch  Ethics Act  complaint and  other hearings                 
  before the Personnel Board.  Funds are also included for the                 
  Division   of  Personnel,  EEO.     Statewide  and  division                 
  consolidations have added to the shortfall.                                  
                                                                               
  Co-Chair Larson  MOVED to  INCORPORATE Sec.  4 into  HB 135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
  Co-Chair  Larson  added  that  the  FY 94  Operating  Budget                 
  contains the FY  93 level with an additional $400.0 thousand                 
  dollars.                                                                     
                                                                               
       *    Sec. 5    Office  of  Public  Advocacy   -  $616.4                 
                      thousand dollars                                         
                                                                               
            The  Office  of   Public  Advocacy  caseload   has                 
            increased by 19 percent in FY 93.  Sec. 5 has been                 
            adjusted for in the FY 94 Operating Budget.                        
                                                                               
  Co-Chair   Larson  asked   the   result   of  reducing   the                 
  supplemental   by  $216.4  thousand  dollars.    Ms.  Barton                 
  emphasized that the  Office of  Public Advocacy is  caseload                 
  driven.   She stated  that the  State of  Alaska would  risk                 
  contempt of court if sufficient funding is not available.                    
                                                                               
                                                                               
                                7                                              
                                                                               
                                                                               
  Representative  Brown   emphasized  that  the  State  has  a                 
  constitutional obligation to provide access to  the criminal                 
  justice system  for  people who  are accused  and cannot  be                 
  represented  by  the  Public  Defender.    She  felt  that a                 
  reduction would result in a large FY 94 supplemental.                        
                                                                               
  ARTHUR H. SNOWDEN, II, ADMINISTRATIVE DIRECTOR, ALASKA COURT                 
  SYSTEM  clarified  that  under Administrative  Rule  12, the                 
  Public  Defender  and  the  Office  of Public  Advocacy  are                 
  mandated  to  return  to  the  Court  any  cases  where  the                 
  defendant  is  found to  not  be  indigent.   He  noted that                 
  legislation  is pending in  Committee to allow  the court to                 
  charge for indigent coverage.                                                
                                                                               
  Co-Chair Larson  MOVED to  INCORPORATE Sec.  5 into  HB 135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
       *    Sec. 6    Elected  Officials  Retirement  -  $30.4                 
                      thousand dollars                                         
                                                                               
            There  has  been  an  increase in  former  elected                 
            officials who have elected  to collect retirement.                 
            Increased health costs are also included.                          
                                                                               
  Co-Chair Larson MOVED  to INCORPORATE  Sec. 6  into HB  135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
       *    Sec. 7    Leasing  of  State  facilities -  $642.9                 
                      thousand dollars                                         
                                                                               
  Ms. Barton noted  that the  request will pay  for the  lease                 
  obligations though FY  93.  Representative Martin  asked why                 
  the  Department  cannot  more  accurately  anticipate  lease                 
  costs.  Ms.  Barton emphasized that  "dozens" of leases  are                 
  rebid  every  year.    She  noted  that  the   component  is                 
  chronically under-funded.   Representative Parnell asked the                 
  affect of not funding the component.  Ms. Barton stated that                 
  it would be difficult  and chaotic.  Spaces would have to be                 
  vacated.                                                                     
                                                                               
  Co-Chair  Larson MOVED  to INCORPORATE  Sec. 8 into  HB 135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
       *    Sec. 8    Prosecution - $400.0 thousand dollars                    
                                                                               
            Reductions resulted  in the  elimination of  three                 
            prosecutors  and  three  support staff  positions.                 
            The Governor felt that prosection activities would                 
            be  adversely   affected  and   elected  to   seek                 
            supplemental funding.   Sec.  8 has been  adjusted                 
            for in the FY 94 Operating Budget.                                 
                                                                               
                                                                               
                                8                                              
                                                                               
                                                                               
  RICHARD   PEGUES,   DIRECTOR,  DIVISION   OF  ADMINISTRATIVE                 
  SERVICES,   DEPARTMENT   OF  ADMINISTRATION   clarified,  in                 
  response to  a question  by Representative  Brown, that  the                 
  discretionary expenditure  cannot be reduced.   He explained                 
  that  the  Office  of  the  Governor  and  Attorney  General                 
  identified that further cuts would cause the State to refuse                 
  criminal cases that should not be declined.                                  
                                                                               
  Representative  Brown  asked  if  funding  was removed  from                 
  Prosecution to cover  other shortfalls.  Mr.  Pegues assured                 
  her that funding  was not  transferred to other  components.                 
  Co-Chair  Larson observed  that Prosecution  was reduced  by                 
  $47.0 thousand  dollars in the FY 94  Operating Budget, from                 
  the Governor's requested amount.                                             
                                                                               
  Representative  Navarre asked if  court dismissals are going                 
  up as a result  of under-funding or a lack  of incarceration                 
  space.  Mr. Pegues could not answer the question.                            
                                                                               
  Co-Chair Larson  MOVED to  INCORPORATE Sec.  8 into  HB 135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
       *    Sec. 9    Oil and  Gas Litigation  - $6.6  million                 
                      dollars                                                  
                                                                               
  Co-Chair Larson  asked if the  Department of Law  feels that                 
  the 25/75  Permanent, Fund/General  Fund split  is the  most                 
  appropriate separation.  Mr. Pegues stated that there was an                 
  under allocation  of cost to  the Permanent Fund.   Co-Chair                 
  Larson suggested that up to  $26 million dollars could  have                 
  been identified  to the  Fund.   Only $16  million has  been                 
  appropriated.     Representative  Navarre   felt  that   the                 
  remaining amount should be deposited in the General Fund.                    
                                                                               
  Co-Chair Larson requested that Sec. 9 be HELD OPEN.  Section                 
  9 was HELD  OPEN.  Representative Martin suggested  that the                 
  Department of Law  has "milked"  the State.   He asked  what                 
  portion of the settlements are rebated for the State's court                 
  costs.  Mr.  Pegues stated  that money goes  to the  General                 
  Fund or the Budget Reserve Account.                                          
                                                                               
  Representative Martin suggested  that the Department of  Law                 
  only has four cases remaining and  should need less funding.                 
  Mr. Pegues emphasized that there are more pending tax cases.                 
  He  emphasized  that  the   Department  must  determine  the                 
  disposition and  value of  every barrel  of North Slope  Oil                 
  since  the  beginning of  the  pipeline.   Members discussed                 
  pending settlements.                                                         
                                                                               
  Co-Chair Larson  MOVED to INCORPORATE  Sec. 10 into  HB 135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
                                                                               
                                9                                              
                                                                               
                                                                               
       *    Sec. 10   FCC   Telephone   Proceeding   -  $280.0                 
                      thousand dollars                                         
                                                                               
            The   request   will   pay    legal   counsel   in                 
            telecommunications proceedings.   Proceedings will                 
            decide how long distance rates will be apportioned                 
            between outside carriers.                                          
                                                                               
  Mr. Pegues discussed the request.                                            
                                                                               
  (Tape Change, HFC 93-52, Side 1)                                             
                                                                               
  Co-Chair Larson MOVED  to INCORPORATE Sec.  10 into HB  135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
       *    Sec. 11   Subsistence Legislation - $35.0 thousand                 
                      dollars                                                  
                                                                               
            This  will pay  for the  enactment of  subsistence                 
            legislation which was  paid for during  the Second                 
            Special  Session  of  the Seventeenth  Legislative                 
            Session.     Regulations  will   be  drafted   and                 
            implemented    to    reflect    the    subsistence                 
            legislation.                                                       
                                                                               
  Co-Chair Larson  MOVED to INCORPORATE  Sec. 11 into  HB 135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
       *    Sec. 12   Judgement and Claims -  $1,133.6 million                 
                      dollars                                                  
                                                                               
            The  Southeast  Conference   judgement  award   is                 
            included   in  this   request.     Six  additional                 
            judgments were added to the original amount.                       
                                                                               
  Mr.  Pegues noted that two more judgments have been awarded.                 
  He asked  that Section Sec. 12 be HELD OPEN until the actual                 
  award amount is calculated.  Section 12 was HELD OPEN.                       
                                                                               
       *    Sec. 12.1 Regulations  Attorney  -  $28.1 thousand                 
            dollar                                                             
                                                                               
  Mr. Pegues explained that the Attorney General and the Chief                 
  of  Staff  agreed that  a  regulations attorney  position be                 
  hired as soon as possible.  The  position is included in the                 
  FY  94  Operating  Budget.    He  stressed  that  delays  in                 
  regulations have resulted in the  usurping of state programs                 
  by the federal government.  There is  currently one attorney                 
  responsible  for  all   of  the   State's  legislation   and                 
  regulations.                                                                 
                                                                               
  Representative  Hoffman felt  that the  position could  wait                 
                                                                               
                               10                                              
                                                                               
                                                                               
  until FY 94 funding was available.                                           
                                                                               
  Co-Chair Larson MOVED to INCORPORATE Sec. 12.1  into HB 135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
  DEPARTMENT OF REVENUE                                                        
                                                                               
       *    Sec. 13   Income  &  Excise   -  $325.0   thousand                 
                      dollars                                                  
                                                                               
            Unallocated reductions  resulted in  a backlog  of                 
            cases.  Sec. 13 has been adjusted for in the FY 94                 
            Operating Budget.                                                  
                                                                               
  Representative Martin expressed concern with the addition of                 
  positions.                                                                   
                                                                               
  TRACY MCGILL, DIRECTOR,  DIVISION OF ADMINISTRATIVE SERVICES                 
  explained that $275.0 thousand dollars of the request is for                 
  contractual and travel of existing staff.   There will be an                 
  additional  $50.0  thousand  dollars for  personal  services                 
  funding.    No additional  positions  would be  added.   The                 
  request would allow positions that have been held open to be                 
  hired prior to FY 94.                                                        
                                                                               
  Representative Martin clarified that funding for some of the                 
  positions  are not included  in the FY  94 Operating Budget.                 
  Ms.  McGill  explained  that  funding  of the  positions  in                 
  question are included  in the  Governor's amendments to  the                 
  Department of Revenue.  Other positions are  included in the                 
  front section.                                                               
                                                                               
  Representative Hanley requested  that Sec. 13 be  HELD OPEN.                 
  Section 13 was HELD OPEN.                                                    
                                                                               
  Representative Brown  stressed that the request is important                 
  to assure that  potential cases are  not jeopardized by  the                 
  statute  of  limitation.   Co-Chair  Larson agreed  that the                 
  Department of Revenue needs the resources to assure that the                 
  State receives "every cent that is coming to  it in a timely                 
  manner."                                                                     
                                                                               
  Members discussed the  positions as  included in  the FY  93                 
  Operating Budget.    Representative  Brown  maintained  that                 
  approval of section 13 would preserve the status quo.                        
                                                                               
  DEPARTMENT OF EDUCATION                                                      
                                                                               
       *    Sec. 14   Foundation  Program  -  $4,101.7 million                 
                      dollars                                                  
                                                                               
            This  represents  an  increase  in  enrollment  in                 
                                                                               
                               11                                              
                                                                               
                                                                               
            grades K - 12.                                                     
                                                                               
  Co-Chair  Larson MOVED to  INCORPORATE Sec. 14  into HB 135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
       *    Sec. 15   Postsecondary    Commission   -    $98.5                 
                      thousand dollars                                         
                                                                               
  DIANE BARRAN, PROGRAM  COORDINATOR, POSTSECONDARY  EDUCATION                 
  explained that the WAMI  Program was short funded due  to an                 
  accounting error.   A FY  92 billing was  paid out of  FY 93                 
  accounts.  The amount was lapsed from FY 92.                                 
                                                                               
  Co-Chair Larson  MOVED to INCORPORATE  Sec. 15 into  HB 135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
       *    Sec. 16   Ratification and amendment of prior year                 
                      expenditures - $0                                        
                                                                               
            Errors  resulting from  conversions  in the  state                 
            accounting system in 1985 will be cleared.                         
                                                                               
  Co-Chair Larson  MOVED to INCORPORATE  Sec. 16 into  HB 135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
  DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                     
                                                                               
       *    Sec. 17   Aid to Families with  Dependent Children                 
                      (AFDC) - $3,203.5 million dollars                        
                                                                               
            This request will cover shortfalls due to caseload                 
            increases and the Cost of Living Allowance (COLA).                 
            Legislation to suspend the COLA failed to pass the                 
            Second Session of the Seventeenth Legislature.                     
                                                                               
  Representative  Hanley  explained  that sections  17  and 18                 
  resulted when legislation to discontinue  the COLA failed to                 
  pass.    The  FY   94  budget  does  not  include   a  COLA.                 
  Legislation will be  needed in  order to suspend  the FY  94                 
  COLA.                                                                        
                                                                               
  Co-Chair Larson  MOVED to INCORPORATE  Sec. 17 into  HB 135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
       *    Sec. 18   Adult Public Assistance (APA) - $1,671.1                 
                      million dollars                                          
                                                                               
            This request will cover shortfalls due to caseload                 
            increases and the Cost of Living Allowance (COLA).                 
            Legislation to suspend the COLA failed to pass the                 
            Second Session of the Seventeenth Legislature.                     
                                                                               
                                                                               
                               12                                              
                                                                               
                                                                               
  Co-Chair Larson MOVED  to INCORPORATE Sec.  18 into HB  135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
       *    Sec. 19   Medicaid Facilities  - <3,808.9  million                 
                      dollars>                                                 
                                                                               
            This amount will return to the General Fund due to                 
            a caseload decrease.                                               
                                                                               
  Representative Hanley clarified that this component has been                 
  reduced in the FY 94 Operating Budget.                                       
                                                                               
  Co-Chair Larson MOVED  to INCORPORATE Sec.  19 into HB  135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
                                                                               
       *    Sec. 20   Public       Assistance      eligibility                 
                      Determination- $77.9 thousand dollars                    
                                                                               
            There has been an increase in caseload.                            
                                                                               
  Representative Hanley observed that  this increase has  been                 
  added to the FY 94 Operating Budget.                                         
                                                                               
  Co-Chair Larson MOVED  to INCORPORATE Sec.  20 into HB  135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
       *    Sec. 21   JOBS Program - $195.0 thousand dollars                   
                                                                               
            This  request will pay  for child-care costs while                 
            Public   Assistance   clients   are   engaged   in                 
            education,   training   and   employment   related                 
            activities.                                                        
                                                                               
  Co-Chair Larson  MOVED to INCORPORATE  Sec. 21 into  HB 135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
       *    Sec. 22   Public  Assistance  Data   Processing  -                 
                      $174.0                                                   
                                                                               
            This is the result of increased use of the State's                 
            mainframe computer system as a result of increased                 
            caseloads.                                                         
                                                                               
  JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,                 
  DEPARTMENT OF HEALTH AND SOCIAL  SERVICES explained that the                 
  request  will cover  additional charge-back  costs from  the                 
  Department   of  Administration  due  to  the  an  increased                 
  caseload.                                                                    
                                                                               
  Co-Chair Larson  MOVED to INCORPORATE  Sec. 21 into  HB 135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
                               13                                              
                                                                               
                                                                               
       *    Sec. 23   Medical   Assistance  Administration   -                 
                      $187.5 thousand dollars                                  
                                                                               
            The  State has  reduced  medicare dollars  through                 
            increased screening.   There has been  an increase                 
            in  administrative  costs   associated  with   the                 
            screening process.                                                 
                                                                               
  Co-Chair Larson MOVED  to INCORPORATE Sec.  23 into HB  135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
       *    Sec. 24   Foster Care - $1,100.0 million dollars                   
                                                                               
            Four hundred thousand dollars are the result of an                 
            increased  number  of  placements.   In  addition,                 
            there has been a delay in the start of anticipated                 
            federal programs that  will subsidize state costs.                 
            Savings will be realized in FY 94.                                 
                                                                               
  Representative  Hanley  clarified  that anticipated  federal                 
  funds were not captured.  He  stressed that children will be                 
  put into residential care if funds are not appropriated.  He                 
  noted that residential care is more expensive.                               
                                                                               
  Ms. Clarke explained that $700.0 thousand dollar of the $1.1                 
  million request were for anticipated social security federal                 
  funds.    The  contract was  delayed.    The  funds will  be                 
  received in FY 94.                                                           
                                                                               
  Co-Chair Larson MOVED  to INCORPORATE Sec.  24 into HB  135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
       *    Sec. 25   McLaughlin   Youth   Center   -   $110.0                 
                      thousand dollars                                         
                                                                               
            This  request  is  the result  of  an  increase of                 
            contractual  costs   due  to   the  expansion   of                 
            facilities.                                                        
                                                                               
  Co-Chair Larson  MOVED to INCORPORATE  Sec. 25 into  HB 135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
       *    Sec. 26   Post  Mortem  Exams  -  $229.6  thousand                 
                      dollars                                                  
                                                                               
            This is the result of an increased number of court                 
            ordered autopsies.                                                 
                                                                               
  Co-Chair Larson  MOVED to INCORPORATE  Sec. 27 into  HB 135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
                                                                               
                               14                                              
                                                                               
                                                                               
       *    Sec. 27   Bloodborne Pathogens  - $155.9  thousand                 
                      dollars                                                  
                                                                               
            This  is  the  result  of  the  implementation  of                 
            federal requirements.                                              
                                                                               
  Representative Hanley noted that a  position included in the                 
  supplemental  request  was  not carried  forward  to  FY 94.                 
  Representative Hanley provided members with Amendment  1, to                 
  delete  "$155.900  thousand  dollars"  and insert  "$145,300                 
  thousand  dollars",  (Attachment  2).       There  being  NO                 
  OBJECTION, it  was  so ordered.   Co-Chair  Larson MOVED  to                 
  INCORPORATE Sec. 28 as AMENDED into HB 135.   There being NO                 
  OBJECTION it was so ordered.                                                 
                                                                               
  Ms.  Clarke  explained  that the  Department  of  Health and                 
  Social Services  was cited for  a situation  at the  Johnson                 
  Youth  Center  were  an  employee  was  concerned  with  the                 
  Department's inaction in implementing  blood borne pathogens                 
  regulations. The  Department  the  citation  cost  is  $31.5                 
  thousand dollar.                                                             
                                                                               
       *    Sec. 26   Post  Mortem  Exams  -  $229.6  thousand                 
                      dollars                                                  
                                                                               
  Ms. Clarke observed that the  Department has calculated that                 
  this request could  be reduced  to $200.0 thousand  dollars.                 
  Co-Chair Larson MOVED that Sec. 26 be reopened.  There being                 
  NO OBJECTION, it was  so ordered.  Co-Chair Larson  MOVED to                 
  AMEND  and  INCORPORATE  Sec.  26 at  the  amount  of $220.0                 
  thousand dollars into HB  135.  There being NO  OBJECTION it                 
  was so ordered.                                                              
                                                                               
  Co-Chair Larson MOVED  to INCORPORATE Sec.  27 into HB  135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
       *    Sec. 27.1 Fairbanks   Youth   Facility   -   $60.0                 
            thousand dollar                                                    
                                                                               
            This request is for increased operating costs.                     
                                                                               
  Co-Chair Larson MOVED to INCORPORATE  Sec. 27.1 into HB 135.                 
  Representative Martin OBJECTED.                                              
                                                                               
  Ms. Clarke explained that the need was identified last fall.                 
  She observed that  two units were  consolidated into a  coed                 
  unit in  the  FY 93  Operating  Budget.   A  court case  was                 
  initiated objecting to the coed unit.                                        
                                                                               
  Representative Martin requested that Sec. 27.1 be HELD OPEN.                 
  Section 27.1 was HELD OPEN.                                                  
                                                                               
                                                                               
                               15                                              
                                                                               
                                                                               
  DEPARTMENT OF EDUCATION                                                      
                                                                               
  Representative  Brown referred to  Sec. 16.   She  asked for                 
  further clarification of Sec. 16.  Co-Chair Larson requested                 
  that the Committee RESCIND its  action in INCORPORATING Sec.                 
  16  into HB  135.    There being  NO  OBJECTION,  it was  so                 
  ordered.  Section 16 was HELD OPEN.                                          
                                                                               
  Representative  Brown  provided  members with  Amendment  2,                 
  "making  a  special  appropriation  for additional  district                 
  support for  kindergarten, primary, and  secondary education                 
  programs"  (Attachment  3).     Amendment  2  was   HELD  in                 
  Committee.                                                                   
                                                                               
  DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT                              
                                                                               
       *    Sec. 28   ASMI - $196.3 thousand dollars                           
                                                                               
            This request would provide a general fund match to                 
            federal   dollars   for  the   overseas  marketing                 
            program.                                                           
                                                                               
  Co-Chair  Larson  requested  that  Sec.  28  be  HELD  OPEN.                 
  Section 28 was HELD OPEN.                                                    
                                                                               
       *    Sec. 29   ASMI -  $60.0  thousand  dollars  FY  92                 
                      extension                                                
                                                                               
            This request would extend the lapse date of the FY                 
            92 balance to be used  as general fund (GF)  match                 
            for the  federal grant contained in section 28.                    
                                                                               
  Co-Chair Larson  MOVED to INCORPORATE  Sec. 29 into  HB 135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
  DEPARTMENT OF MILITARY AND VETERANS AFFAIRS                                  
                                                                               
       *    Sec. 30   Veterans Death Gratuity - $90.0 thousand                 
                      dollars                                                  
                                                                               
            This request would respond to increased claims.                    
                                                                               
  JEFF   MORRISON,   DIRECTOR,   DIVISION  OF   ADMINISTRATIVE                 
  SERVICES,  DEPARTMENT  OF  MILITARY  AND  VETERANS   AFFAIRS                 
  clarified,  for  Representative  Parnell, that  the  request                 
  would only be  used to pay  the $750 dollar death  gratuity.                 
  The  Department  will  pay  the  gratuity until  funding  is                 
  exhausted.    The  Department  expects  that funds  will  be                 
  depleted by the  end of  March, 1993. Grants  cannot be  pro                 
  rated.                                                                       
                                                                               
  Co-Chair Larson MOVED  to INCORPORATE Sec.  31 into HB  135.                 
                                                                               
                               16                                              
                                                                               
                                                                               
  There being NO OBJECTION it was so ordered.                                  
                                                                               
  DEPARTMENT OF NATURAL RESOURCES                                              
                                                                               
       *    Sec. 31   Fire Suppression - $6.0 million dollars                  
                                                                               
            Three million dollars would provide funding in the                 
            case of a  fire prior to  fiscal year FY 94.   The                 
            Department  incurs $3.6  million dollars  in fixed                 
            costs.  Unused funds would  lapse into the General                 
            Fund.                                                              
                                                                               
  Co-Chair  Larson  requested  that  Sec.  31  be  HELD  OPEN.                 
  Section 31 was HELD OPEN.                                                    
                                                                               
  Representative   Therriault   provided   members   with   an                 
  explanation of  projected FY 93  costs (Attachment  4).   He                 
  explained  that the Committee  has the choice  of funding $2                 
  million dollars in anticipation of a  fire before the end of                 
  the fiscal year or  $1 million dollars for the  initial fire                 
  attack.                                                                      
                                                                               
       *    Sec. 32   Land Selection Program - $641.0 thousand                 
                      dollars                                                  
                                                                               
            This request is  the result  of the expedition  of                 
            land selection in order to meet federal deadlines.                 
                                                                               
  Co-Chair Larson  MOVED to INCORPORATE  Sec. 32 into  HB 135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
       *    Sec. 33   Challenge Alaska Grants -                                
                                                                               
            This  request  would change  the  scope of  a 1989                 
            capital project grant.                                             
                                                                               
  NICO BUS,  CHIEF  FINANCIAL OFFICER,  DEPARTMENT OF  NATURAL                 
  RESOURCES explained that the request  would change intent to                 
  allow a project to be built rather than remodeled.                           
                                                                               
  Representative Brown  asked if  funding for  section 32  has                 
  been  spent.  Mr. Bus  stated that the  money has been spent                 
  from the Divisions  of Land, Water and  Information Resource                 
  Management                                                                   
                                                                               
  Co-Chair Larson MOVED  to INCORPORATE Sec.  33 into HB  135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
  DEPARTMENT OF FISH AND GAME                                                  
                                                                               
       *    Sec. 34   Division  of  Boards  - $492.0  thousand                 
                      dollars                                                  
                                                                               
                               17                                              
                                                                               
                                                                               
            This request is the result of  legislation enacted                 
            during  the  Special  Session of  the  Seventeenth                 
            Alaska  Legislature.   (The  original  fiscal note                 
            associated with legislation passed was for  $365.0                 
            thousand  dollars.    There  was  no  vehicle  for                 
            passage   of   fiscal   notes    associated   with                 
            legislation.)  The  Division of Boards has  had an                 
            increase in board meetings.                                        
                                                                               
  Representative Hanley requested  that Sec. 34 be  HELD OPEN.                 
  Section 34 was HELD OPEN.                                                    
                                                                               
       *    Sec. 35   Division of Subsistence -  $8.0 thousand                 
                      dollars                                                  
                                                                               
            This request is the  result of legislation enacted                 
            during  the  Special  Session of  the  Seventeenth                 
            Alaska Legislature.   The original request  by the                 
            Division   of   Subsistence  was   $55.0  thousand                 
            dollars.                                                           
                                                                               
  Representative Hanley requested  that Sec. 35 be  HELD OPEN.                 
  Section 35 was HELD OPEN.                                                    
                                                                               
       *    Sec. 36   King  Salmon  Tags   -  $84.3   thousand                 
                      dollars                                                  
                                                                               
            This request would make  vendor payments for  King                 
            Salmon  tags.  The  request is  the result  of new                 
            legislation.  The associated fiscal note failed to                 
            be  included  in  the  FY  93  Operating   Budget.                 
            Funding will be from the General Fund.                             
                                                                               
  Representative Hanley explained  that a portion of  the sale                 
  of tags go  to the vendor.   This portion has been  paid for                 
  out of the General Fund.  The  receipts from the sale of the                 
  tags  go into the Fish and Game  Fund.  There is legislation                 
  pending to transfer the vendor costs to program receipts.                    
                                                                               
  Co-Chair Larson  MOVED to INCORPORATE  Sec. 36 into  HB 135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
       *    Sec. 37   Ratify and Amend Prior Year Expenditures                 
                      -                                                        
                                                                               
            Old appropriations that have not been corrected in                 
            the accounting system will be cleared.                             
                                                                               
  Representative Brown requested  that Sec.  37 be HELD  OPEN.                 
  Section 37 was HELD OPEN.                                                    
                                                                               
                                                                               
                               18                                              
                                                                               
                                                                               
       *    Sec. 38   Fund Shift -                                             
                                                                               
            This will replace unrealized federal receipts from                 
            a  1987  CIP  appropriation  for Sport  Fisheries,                 
            Public  Access  Acquisition.   Unrealized  federal                 
            receipts will be replaced by an appropriation from                 
            the Fish and Game Fund of $134.7 thousand dollars.                 
            The  Department  of  Fish  and  Game   incorrectly                 
            identified state matching contributions.                           
                                                                               
  Co-Chair Larson  MOVED to INCORPORATE  Sec. 38 into  HB 135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
  DEPARTMENT OF PUBLIC SAFETY                                                  
                                                                               
       *    Sec. 39   Contract Jails - $690.4 thousand dollars                 
                                                                               
                                                                               
            This request would meet increased operating costs.                 
            The FY 94  Operating Budget  has been adjusted  to                 
            include FY 93 supplemental costs.                                  
                                                                               
  Representative Parnell requested that Sec.  39 be HELD OPEN.                 
  Section 39 was HELD OPEN.                                                    
                                                                               
       *    Sec. 40   Criminal   Records   and  Id.   -  $90.6                 
                      thousand dollars                                         
                                                                               
            This request represents an increase in system use.                 
            New  legislation  has   been  approved   requiring                 
            applicants  for  teacher  certification and  other                 
            activities   to   supply   fingerprint  background                 
            checks.                                                            
                                                                               
  Representative Brown asked  why this request is  included in                 
  the  supplemental  and  not  addressed  through  the  FY  94                 
  Operating Budget.  Section 40 was HELD OPEN.                                 
                                                                               
       *    Sec. 41   Bloodborne Pathogens  - $126.7  thousand                 
                      dollars                                                  
                                                                               
            This request would allow the  Department to comply                 
            with requirements regarding  bloodborne pathogens.                 
            The Department  will purchase disposable  gear and                 
            vaccines.                                                          
                                                                               
  Representative Parnell requested that Sec.  41 be HELD OPEN.                 
  Section 41 was HELD OPEN.                                                    
                                                                               
       *    Sec. 42   Prisoner    Transportation   -    $125.0                 
            thousand dollars                                                   
                                                                               
                                                                               
                               19                                              
                                                                               
                                                                               
            This request would  pay for the cost  of increased                 
            prisoner transportation.  Costs are primarily  for                 
            air transportation.                                                
                                                                               
  Representative Parnell requested that Sec.  42 be HELD OPEN.                 
  Section 42 was HELD OPEN.                                                    
                                                                               
       *    Sec. 43   Arbitration Settlement - $101.4 thousand                 
                      dollars                                                  
                                                                               
            This  request  would  pay  settlement  costs   for                 
            arbitration involving an employee and a controlled                 
            substance.                                                         
                                                                               
  Co-Chair Larson  MOVED to INCORPORATE  Sec. 43 into  HB 135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
       *    Sec. 44   Civil  Air  Patrol  -   $125.0  thousand                 
                      dollars                                                  
                                                                               
            This  request  is  for  aircraft  maintenance  and                 
            operation costs.                                                   
                                                                               
  Co-Chair Larson  MOVED to INCORPORATE  Sec. 44 into  HB 135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
  DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES                           
                                                                               
       *    Sec. 45   Arbitrator's  Award  -  $539.6  thousand                 
                      dollars other funds.                                     
                                                                               
            This  request would  pay  for overtime  of on-site                 
            construction engineers.   The overtime  dates back                 
            to 1991 and is the result of arbitration.                          
                                                                               
  Representative  Navarre  noted   that  employees  must  work                 
  overtime  during the summer season.   He emphasized that the                 
  request is the result  of an arbitrator's award and  must be                 
  funded.                                                                      
                                                                               
  Representative Hanley asked  why salaried employees  must be                 
  paid  overtime.    He  questioned  the  arbitrators  ruling.                 
  Section 45 was HELD OPEN.                                                    
                                                                               
       *    Sec. 46   Dalton   Highway   -   $1,222.9  million                 
                      dollars                                                  
                                                                               
            This request  would  pay  for  snow  removal,  ice                 
            control and maintenance related activities.                        
                                                                               
  Representative Brown requested  that Sec.  46 be HELD  OPEN.                 
  Section 46 was HELD OPEN.                                                    
                                                                               
                               20                                              
                                                                               
                                                                               
       *    Sec. 47   Ratification  of  Prior Year  Supply and                 
            Inventory Asset Account Expenditures                               
                                                                               
            Spoilage and  breakage were  not accounted  for in                 
            assessing supply and inventory assets.                             
                                                                               
  Representative  Navarre  clarified  that the  request  is an                 
  inventory adjustment.                                                        
                                                                               
  Co-Chair Larson  MOVED to INCORPORATE  Sec. 47 into  HB 135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
       *    Sec. 48   Extend FY 93 Operating Lapse Date -                      
                                                                               
            This request  would  extend the  FY  93  Operating                 
            Budget lapse date for maintenance and operations.                  
                                                                               
                                                                               
  Co-Chair Larson  MOVED to INCORPORATE  Sec. 48 into  HB 135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
  DEPARTMENT OF ENVIRONMENTAL CONSERVATION                                     
                                                                               
       *    Sec. 49   Seafood  and  Sanitation   Activities  -                 
                      $351.2 thousand dollars                                  
                                                                               
            This  request  would  replace  unrealized  program                 
            receipts.  The Department did not receive approval                 
            to  implement  regulations  assessing  fees  until                 
            February 19, 1993.                                                 
                                                                               
  Representative Martin questioned section 49.  Representative                 
  Therriault  reiterated  that the  request  is the  result of                 
  unrealized  program receipts.    Representative Brown  noted                 
  that  regulations  for  program receipts  were  difficult to                 
  adopt.  She  stressed that new costs resulted from paralytic                 
  shelfish poisoning.                                                          
                                                                               
  Section 49 was HELD OPEN.                                                    
                                                                               
       *    Sec. 50   Paralytic Shellfish Poison Inspections -                 
                       $109.9 thousand dollars                                 
                                                                               
            This request is the result of PSP infected crabs.                  
                                                                               
  Co-Chair Larson  MOVED to INCORPORATE  Sec. 50 into  HB 135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
       *    Sec. 51   Water Quality Standards Advisory Group -                 
                       $41.4 thousand dollars                                  
                                                                               
                                                                               
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            This request would pay for meeting costs.                          
                                                                               
  Representative  Therriault requested  that Sec.  51 be  HELD                 
  OPEN.  Section 51 was HELD OPEN.                                             
                                                                               
  DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS                                 
                                                                               
       *    Sec. 52   Organizational Grant  - $300.0  thousand                 
            dollars                                                            
                                                                               
            This   request   would   pay   the   first    year                 
            organizational grant for the Yakutat Borough.                      
                                                                               
  Representative Martin questioned section 52.                                 
                                                                               
  Co-Chair Larson MOVED  to INCORPORATE Sec.  52 into HB  135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
       *    Sec. 53   Revenue Sharing - $25.6 thousand dollars                 
                                                                               
                                                                               
            The Department of  Community and Regional  Affairs                 
            used  incorrect  population  figures to  calculate                 
            revenue sharing for the Central Mat-Su and Greater                 
            Palmer fire service areas.                                         
                                                                               
  Co-Chair  Larson MOVED to  INCORPORATE Sec. 53  into HB 135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
       *    Sec. 53.1 Federal Grant Repayment - $48.5 thousand                 
            dollars                                                            
                                                                               
  Co-Chair  Larson  requested  that Sec.  53.1  be  HELD OPEN.                 
  Section 53.1 was HELD OPEN.                                                  
                                                                               
  DEPARTMENT OF CORRECTIONS                                                    
                                                                               
       *    Sec. 54   Operations - $6,879.4 million dollars                    
                                                                               
  Co-Chair  Larson  requested  that  Sec.  54  be  HELD  OPEN.                 
  Section 54 was HELD OPEN.                                                    
                                                                               
  UNIVERSITY OF ALASKA                                                         
                                                                               
       *    Sec. 55   UAF  Snow  Removal  -   $375.0  thousand                 
                      dollars                                                  
                                                                               
  Co-Chair  Larson MOVED to  INCORPORATE Sec. 55  into HB 135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
  ALASKA COURT SYSTEM                                                          
                                                                               
                                                                               
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       *    Sec. 56   Mental  Health  Trust Case  Law  Clerk -                 
                      $19.9  thousand  dollars  Mental  Health                 
                      Trust                                                    
                                                                               
            This request would add a law clerk to assist Judge                 
            Green  with  the backlog  involved  in the  Mental                 
            Health Trust Case.                                                 
                                                                               
  Mr. Snowden pointed out that Judge Greene has been withdrawn                 
  from all other cases.                                                        
                                                                               
  Co-Chair  Larson MOVED to  INCORPORATE Sec. 56  into HB 135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
  MULTIPLE DEPARTMENTS                                                         
                                                                               
       *    Sec. 57   Miscellaneous  Claims   and  Stale-Dated                 
                      Warrants - $159.6 thousand dollars                       
                                                                               
            This request would settle claims and billings that                 
            are more than two years old for  the Department of                 
            Administration,  Department  of Health  and Social                 
            Services,  Department  of  Labor,   Department  of                 
            Public  Safety,  Department of  Transportation and                 
            Public Facilities, Department  of Corrections  and                 
            Department of Military and Veterans Affairs.                       
                                                                               
  Co-Chair Larson MOVED  to INCORPORATE Sec.  57 into HB  135.                 
  There being NO OBJECTION it was so ordered.                                  
                                                                               
  HB 135 was HELD in Committee.                                                
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 4:00 p.m.                                           
                                                                               
                                                                               
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