Legislature(1993 - 1994)

04/22/1993 01:35 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         APRIL 22, 1992                                        
                            1:35 P.M.                                          
                                                                               
  TAPE HFC 93 - 117, Side 1, #000 - end.                                       
  TAPE HFC 93 - 117, Side 2, #000 - end.                                       
  TAPE HFC 93 - 118, Side 1, #000 - #298.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Ron Larson called the meeting of  the House Finance                 
  Committee to order at 1:35 P.M.                                              
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Brown                           
  Co-Chair MacLean              Representative Foster                          
  Vice-Chair Hanley             Representative Grussendorf                     
  Representative Hoffman        Representative Martin                          
  Representative Navarre        Representative Parnell                         
  Representative Therriault                                                    
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Sharon Barton, Director, Administrative Services, Department                 
  of  Administration;  Cheryl  Frasca, Director,  Division  of                 
  Budget Review, Office  of Management  and Budget, Office  of                 
  the Governor;  Sandy  Newsbaum,  Aide,  Representative  Gail                 
  Phillips;    Jeff    Morrison,    Director,   Division    of                 
  Administrative Services, Department of Military and Veterans                 
  Affairs; Duane Guiley, Director, School Finance,  Department                 
  of Education; Nancy  Bear-Usera, Commissioner, Department of                 
  Administration;  Janet   Clarke,  Director,   Administrative                 
  Services,  Department  of Health  and Social  Services; C.E.                 
  Swackhammer,  Deputy  Commissioner,  Department   of  Public                 
  Safety;  Representative  Jerry  Mackie; Representative  Fran                 
  Ulmer.                                                                       
                                                                               
  SUMMARY INFORMATION                                                          
  HB 50     An   Act  authorizing   the  Anchorage   to  Kenai                 
            Peninsula  and  the   Healy  to  Fairbanks   power                 
            transmission  interties  and approving  the design                 
            and  construction  costs  of  the  interties;  and                 
            providing for an effective date.                                   
                                                                               
            HB   50   was    placed   in   Subcommittee   with                 
            Representative Parnell as  Chair and with  members                 
            Representative   Therriault   and   Representative                 
            Navarre.                                                           
                                                                               
                                1                                              
                                                                               
                                                                               
  HB 51     An Act making a  special appropriation for  design                 
            and construction of  power transmission  interties                 
            between  Anchorage  and  the Kenai  Peninsula  and                 
            between Healy and Fairbanks; and providing for  an                 
            effective date.                                                    
                                                                               
            HB   51   was   placed   into  Subcommittee   with                 
            Representative Parnell  as Chair and  with members                 
            Representative   Therriault   and   Representative                 
            Navarre.                                                           
  HB 83     An Act making  appropriations for construction and                 
            major maintenance of schools; and providing for an                 
            effective date.                                                    
                                                                               
            HB  83   was   held  in   Committee  for   further                 
            discussion.                                                        
  SB 100    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.                                   
                                                                               
            SB  100   was  held  in   Committee  for   further                 
            discussion.                                                        
  HOUSE BILL 50                                                                
                                                                               
       "An  Act authorizing the  Anchorage to  Kenai Peninsula                 
       and the Healy to Fairbanks power transmission interties                 
       and approving the design and  construction costs of the                 
       interties; and providing for an effective date."                        
  HOUSE BILL 51                                                                
                                                                               
       "An Act making  a special appropriation for  design and                 
       construction  of  power transmission  interties between                 
       Anchorage and the Kenai Peninsula and between Healy and                 
       Fairbanks; and providing for an effective date."                        
                                                                               
  Co-Chair Larson  placed HB  50 and  HB 51  into Subcommittee                 
  with  Representative  Parnell  as  Chair  and  with  members                 
  Representative Therriault and Representative Navarre.                        
  SENATE BILL 100                                                              
                                                                               
       "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."                                       
                                                                               
                                                                               
                                2                                              
                                                                               
                                                                               
  Co-Chair MacLean provided the Committee a sectional analysis                 
  of HCS CS SB 100 (FIN) work draft #8-GS1063\D dated 4/22/93.                 
                                                                               
                                                                               
  Representative     Martin     questioned     Section    #10,                 
  Administration, Pioneer Home Study and the continuum of care                 
  for  senior  Alaskans.    Co-Chair   Larson  explained  that                 
  Representative Navarre  had proposed an amendment asking the                 
  Administration to investigate privitorization of the Pioneer                 
  Homes.  The  Department asked  that the balance  of fund  be                 
  used to  fund a task force  for future study of  the Pioneer                 
  Homes.                                                                       
                                                                               
  SHARON   BARTON,   DIRECTOR,   DIVISION  OF   ADMINISTRATIVE                 
  SERVICES,  DEPARTMENT OF  ADMINISTRATION,  noted the  amount                 
  previously  requested   was   $85  thousand   dollars.     A                 
  determination was made  that $55  thousand dollars would  be                 
  adequate.    She  concluded, $55  thousand  dollars  was the                 
  balance of  the original  appropriation when  the study  was                 
  completed.                                                                   
                                                                               
  Representative  Hanley   asked  the  balance  of  Office  of                 
  Management  and  Budget,  Community/Regional Affairs,  Rural                 
  Development Grants-extend lapse.                                             
                                                                               
  CHERYL FRASCA,  DIRECTOR, DIVISION OF BUDGET  REVIEW, OFFICE                 
  OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, noted that                 
  balance was $160 thousand dollars.                                           
                                                                               
  Representative Martin asked the balances of categories #13 -                 
  budget   sections    address   lapses    in   the    budget.                 
  Representative Brown  asked if the legislative  lapses could                 
  be used for  building repairs.   Co-Chair Larson noted  that                 
  those budgets roll-forward.                                                  
                                                                               
  Representative  Hanley  referenced   Sections  #21  -   #23,                 
  Administration, Kenai Peninsula Borough items, asking if the                 
  road projects would be taken from the general fund.                          
                                                                               
  SANDY NEWSBAUM,  AIDE, REPRESENTATIVE GAIL  PHILLIPS, stated                 
  that all those projects are  contained in the capital budget                 
  and would be pure general funds.                                             
                                                                               
  Representative    Hanley    referenced   line    item   #24,                 
  Community/Regional Affairs, Anchorage  Traffic Signalization                 
  and Safety Upgrades and asked if  it was a specific district                 
  project.  Representative Brown replied the request addresses                 
  a specific program  at the intersection  of 15th and  Ingrid                 
  Street for an Anchorage stop light.                                          
                                                                               
  Representative  Therriault  referenced Sections  #32  - #33,                 
                                                                               
                                3                                              
                                                                               
                                                                               
  Community/Regional Affairs, Deltana  Road Upgrade/Glennallen                 
  Improvement Corporation-Sewage  Lagoon and asked  if funding                 
  was being switched.   Ms. Frasca explained the scope  of the                 
  project  is  being  broadened, although  no  money  is being                 
  switched between projects.                                                   
                                                                               
  Co-Chair Larson MOVED to adopt  the sectional, understanding                 
  that the Committee  had no  further questions regarding  the                 
  '94 Reappropriation Sectional [Attachment #1].   There being                 
  NO OBJECTION, it was so ordered.                                             
                                                                               
  Representative Foster provided  the Committee with Amendment                 
                                                                               
  JEFF   MORRISON,   DIRECTOR   OF  ADMINISTRATIVE   SERVICES,                 
  DEPARTMENT  OF MILITARY AND  VETERAN AFFAIRS,  explained the                 
  amendment would  carry-forward the  balance of  the Disaster                 
  Relief Fund.    This would  reduce  the potential  need  for                 
  supplemental   funding   for    the   next   fiscal    year.                 
  Representative Foster MOVED  Amendment #1.   There being  NO                 
  OBJECTIONS, it was so ordered.                                               
                                                                               
  Co-Chair  MacLean  provided  the Committee  with  a  copy of                 
  Amendment  #2.   [Attachment  #3].   Ms.  Frasca stated  the                 
  amendment would extend  the lapse  date on an  appropriation                 
  which  the Department  of  Environmental Conservation  (DEC)                 
  received   in   FY  93   for   the  Nearshore   Strike  Team                 
  Demonstration Projects request of $1.2 million dollars.                      
                                                                               
  Representative Hanley MOVED  Amendment #2.   There being  NO                 
  OBJECTION, it was adopted.                                                   
                                                                               
  Ms. Frasca  explained Amendment #3.   [Attachment #4].   She                 
  stated  amendment  is a  request by  DCRA expenditure  for a                 
  production of the  Alcan Caravan Alaska Highway  promotional                 
  film.    Representative Foster  MOVED  Amendment #3.   There                 
  being NO OBJECTION, it was adopted.                                          
                                                                               
  Representative Brown  provided the Committee  with Amendment                 
  previous City Council  approved the road  expansion although                 
  Representative Brown stated the citizens of the area did not                 
  support  the  work.  Representative  Martin  questioned  the                 
  information.  Co-Chair MacLean recommended holding Amendment                 
                                                                               
  (Tape Change, HFC 93 - 117, Side 2).                                         
  SENATE BILL 100                                                              
                                                                               
       "An Act making  supplemental and special appropriations                 
       for the expenses of state government; making, amending,                 
                                                                               
                                4                                              
                                                                               
                                                                               
       and repealing capital and operating appropriations; and                 
       providing for an effective date."                                       
                                                                               
  Co-Chair Larson provided  the Committee an overview  of work                 
  draft HCS CS SB 100 (FIN), #8-GS1063\D dated 4/22/93.                        
                                                                               
  Co-Chair  MacLean  MOVED  Section  #61.     There  being  NO                 
  OBJECTION, it was adopted.                                                   
                                                                               
  Representative  Brown  questioned  the  facility closure  in                 
  Section #62.  Co-Chair MacLean  stated only the nursing home                 
  wing of  the  facility had  been closed.   Co-Chair  MacLean                 
  MOVED Section  #62.   There being  NO OBJECTION,  it was  so                 
  ordered.  Co-Chair MacLean  MOVED Section #63.  There  being                 
  NO OBJECTION, it was so ordered.                                             
                                                                               
  DUANE  GUILEY,  DIRECTOR,  SCHOOL  FINANCE,  DEPARTMENT   OF                 
  EDUCATION,  stated that  Section  #64 addresses  legislation                 
  which   was  passed   last  session   for  one-time   grants                 
  tocooperating  school  districts  to  reduce  administrative                 
  costs in order  to provide  more direct construction  costs.                 
  This  would be  a  one  time  grant issue.    Representative                 
  Hoffman  MOVED  adoption  of  Section  #64.   Representative                 
  Navarre OBJECTED.                                                            
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Grussendorf,  Hoffman,  Brown,   Foster,                 
  MacLean.                                                                     
                                                                               
       OPPOSED:       Hanley,   Martin,   Navarre,    Parnell,                 
  Therriault,                   Larson.                                        
                                                                               
  The MOTION FAILED, (5-6).                                                    
                                                                               
  Representative  Foster  MOVED  to incorporate  Section  #65.                 
  Representative Navarre OBJECTED.  He  pointed out that other                 
  fishing groups are not provided grants.                                      
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Hoffman,  Brown,   Foster,  Grussendorf,                 
  MacLean,                 Larson.                                             
                                                                               
       OPPOSED:       Hanley,   Martin,    Navarre,   Parnell,                 
  Therriault.                                                                  
                                                                               
  The MOTION PASSED, (6-5).                                                    
                                                                               
  Representative   Brown  MOVED   Section   #66  which   would                 
  appropriate funds from the general fund to the Department of                 
  Administration for a  grant payment  to the Municipality  of                 
                                                                               
                                5                                              
                                                                               
                                                                               
  Anchorage  for disaster  assistance resulting  from  the Mt.                 
  Spurr volcanic eruption.   There being NO  OBJECTION, it was                 
  adopted.                                                                     
                                                                               
  Co-Chair  MacLean   introduced  Section   #67  which   would                 
  appropriate   $66.8  thousand  dollars  for  payment  of  an                 
  arbitrator's decision on the Anchorage Print Shop closure.                   
                                                                               
  NANCY    BEAR    USERA,    COMMISSIONER,    DEPARTMENT    OF                 
  ADMINISTRATION, explained that the  closure of the Anchorage                 
  Print  Shop   grievance  was  placed   in  an   arbitrator's                 
  negotiation,  ruling  in  favor  of the  union.    The $66.8                 
  thousand dollars represents  back-wages to those  persons in                 
  the print shop  who were laid  off.  Co-Chair MacLean  MOVED                 
  Section #67.  There being NO OBJECTION, it was adopted.                      
                                                                               
  Representative    Brown    MOVED    Amendment   #4    noting                 
  Representative   Porter's   support.      [Attachment   #5].                 
  Representative  Therriault  pointed  out  these are  general                 
  highway funds.  There being NO OBJECTION, it was adopted.                    
                                                                               
  Co-Chair  MacLean  MOVED  closure   of  the  reappropriation                 
  section.  There  being NO  OBJECTIONS, it was  closed.   She                 
  noted   the  section   would   be   incorporated  into   the                 
  supplemental.                                                                
                                                                               
  Ms. Frasca  explained that  in Section #68,  the lapse  date                 
  would be extended  so that the  funds would remain with  the                 
  Aerospace Corporation.   Currently,  there is  a balance  of                 
  $275 thousand dollars resulting from a number of contractual                 
  projects which were  not started last year.   Representative                 
  Therriault MOVED  Section #68.  There being NO OBJECTION, it                 
  was adopted.                                                                 
                                                                               
  Ms. Frasca explained Section #69 which would allow  a carry-                 
  forward of the current year $450 thousand dollar balance for                 
  executive operations and  $60 thousand dollars for OMB.  Co-                 
  Chair Larson MOVED Section #69.   There being NO OBJECTIONS,                 
  it was adopted.                                                              
                                                                               
  Co-Chair  Larson  MOVED   Section  #70.    There   being  NO                 
  OBJECTION, it was so ordered.                                                
                                                                               
  JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,                 
  DEPARTMENT OF HEALTH AND SOCIAL SERVICES, explained Sections                 
  Social Services has  been able to go  back and retroactively                 
  add   a   program   which  Medicaid   had   for   serving  a                 
  disproportionate share of  low income  people.  Section  #71                 
  lists hospitals  which have  a high  percentage of  Medicaid                 
  revenue as a total percentage of their income.                               
                                                                               
                                                                               
                                6                                              
                                                                               
                                                                               
  The State will receive  retroactively $28.7 million  dollars                 
  in federal  receipts.  $2.8  million dollars of  these funds                 
  will be placed into the Division of Medical Assistance which                 
  will  pay   for  claims  processing   and  hospital   costs.                 
  Currently, 86% of  API's operating  budget is Mental  Health                 
  Trust Funds, which is being requested to be paid back to the                 
  facility for use.                                                            
                                                                               
  Representative  Hanley pointed out,  the way the legislation                 
  is written, the money goes to  the Department rather than to                 
  the API construction  account.  Ms. Clarke  advised that the                 
  way the account is structured, the money would be authorized                 
  to the  construction of  the API  facility.   Representative                 
  Hanley  asked if  the money  would be appropriated  from the                 
  account for  the project.  He noted his concern with the $23                 
  million dollar appropriation authorization  for construction                 
  of the facility.                                                             
                                                                               
  Ms.  Clarke  pointed out,  the  House budget  allocates $3.5                 
  million  dollars  for  API  design.   The  Department  feels                 
  strongly  that API earned  the funds  and that  the facility                 
  should receive the benefit of those funds.                                   
                                                                               
  The funding  reimburses the State for  providing psychiatric                 
  services at API to a disproportionately large number of low-                 
  income/medicaid eligible  individuals.    The  funding  also                 
  reimburses other hospitals  who serve  a high proportion  of                 
  Medicaid  recipients.   Alaska  has not  previously received                 
  reimbursement under the  program and the Governor  is please                 
  with  the  Department's  success  in  maximizing receipt  of                 
  federal dollars.                                                             
                                                                               
  Co-Chair  Larson  MOVED   Section  #71.    There   being  NO                 
  OBJECTION, it was adopted.                                                   
                                                                               
  Co-Chair Larson requested  that Section #72 remain  open for                 
  further discussion.                                                          
                                                                               
  Cheryl  Frasca  stated  Section  #73  was  a  court  ordered                 
  settlement related to  the dismissal of  an employee in  the                 
  Division  of Elections.  Representative Martin MOVED Section                 
                                                                               
  Co-Chair  Larson stated that  Section #74  would appropriate                 
  $157  thousand  dollars   from  the  general  fund   to  the                 
  Department of Public Safety for computer services costs.                     
                                                                               
  C.E. SWACKHAMMER, DEPUTY  COMMISSIONER, DEPARTMENT OF PUBLIC                 
  SAFETY,  explained  the  requested amount  would  go  to the                 
  Department  of  Administration  charge-back for  use  of the                 
  computer main frame.                                                         
                                                                               
                                                                               
                                7                                              
                                                                               
                                                                               
  Representative Parnell MOVED  Section #74.   There being  NO                 
  OBJECTION, it was adopted.                                                   
                                                                               
  SB 100 was HELD in Committee for further discussion.                         
                                                                               
  (Tape Change, HFC 93 - 118, Side 1).                                         
  HOUSE BILL 83                                                                
                                                                               
       "An  Act  making  appropriations  for construction  and                 
       major  maintenance of  schools;  and providing  for  an                 
       effective date."                                                        
                                                                               
  Co-Chair MacLean MOVED  work draft for  CS HB 83 (FIN),  #8-                 
  GH1060\U dated 4/22/93 as the  version before the Committee.                 
  There being NO OBJECTION, it was adopted.                                    
                                                                               
  Co-Chair  MacLean provided  the  Committee with  an Election                 
  District Spreadsheet [Attachment #7] indicating the total HB
  83 allocation of $186,780.6 million  dollars which was moved                 
  from  the  capital  budget.    Co-Chair MacLean  provided  a                 
  sectional analysis of the work draft.                                        
                                                                               
  Mr.  Guiley  stated  that Section  2  would  distribute $145                 
  million dollars  from the  Educational Facility  Maintenance                 
  and Construction  Fund to  the School  Construction to  fund                 
  school  construction projects  which are categorized  in the                 
  Department's current safety list.                                            
                                                                               
  Section 3 of  the bill  distributes $20.813 million  dollars                 
  from the Educational  Facility Maintenance and  Construction                 
  Fund to  the new major maintenance grant fund established by                 
  HB 82 to be  distributed for grant projects in  the category                 
  III  and  IV,  the  protection   of  structure  and  upgrade                 
  projects.                                                                    
                                                                               
  Representative Brown MOVED  adding language to Page  2, Line                 
  18,  deleting "and"  and  inserting,  "district wide  school                 
  design,  construction  and  technology".   Co-Chair  MacLean                 
  OBJECTED.    She  stated  that  technology was  included  in                 
  renovations.   Mr. Guiley noted that an allowable expense to                 
  a school  project is the  "technology" to wire  the building                 
  and also the purchase of equipment.                                          
                                                                               
  Representative Parnell  asked if the word  "renovations" had                 
  been included  in  the  bill.   Mr.  Guiley  responded,  any                 
  projects  related to  school  construction, renovation,  and                 
  modification   can  include   new  equipment  used   in  the                 
  classroom.  The scope of the grant application will  dictate                 
  the use of the funds allowable  under the grant to determine                 
  the use of dollars for specific projects.                                    
  Representative Brown WITHDREW  THE MOTION.   There being  NO                 
                                                                               
                                8                                              
                                                                               
                                                                               
  OBJECTION, it was so ordered.                                                
                                                                               
  CS HB 83 (FIN) was HELD in Committee for further discussion.                 
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 3:25 P.M.                                           
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         APRIL 22, 1992                                        
                            1:35 P.M.                                          
                                                                               
  TAPE HFC 93 - 117, Side 1, #000 - end.                                       
  TAPE HFC 93 - 117, Side 2, #000 - end.                                       
  TAPE HFC 93 - 118, Side 1, #000 - #298.                                      
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Ron Larson called the  meeting of the House Finance                 
  Committee to order at 1:35 P.M.                                              
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Brown                           
  Co-Chair MacLean              Representative Foster                          
  Vice-Chair Hanley             Representative Grussendorf                     
  Representative Hoffman        Representative Martin                          
  Representative Navarre        Representative Parnell                         
  Representative Therriault                                                    
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Sharon Barton, Director, Administrative Services, Department                 
  of Administration;  Cheryl  Frasca,  Director,  Division  of                 
  Budget Review, Office  of Management  and Budget, Office  of                 
  the  Governor;  Sandy  Newsbaum,  Aide, Representative  Gail                 
  Phillips;    Jeff    Morrison,    Director,   Division    of                 
  Administrative Services, Department of Military and Veterans                 
  Affairs; Duane Guiley, Director,  School Finance, Department                 
  of Education; Nancy Bear-Usera, Commissioner, Department  of                 
  Administration;  Janet   Clarke,  Director,   Administrative                 
  Services,  Department of  Health and  Social  Services; C.E.                 
  Swackhammer,  Deputy  Commissioner,  Department   of  Public                 
  Safety;  Representative  Jerry  Mackie; Representative  Fran                 
  Ulmer.                                                                       
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  HB 50     An  Act   authorizing  the   Anchorage  to   Kenai                 
            Peninsula  and   the  Healy  to   Fairbanks  power                 
            transmission  interties  and approving  the design                 
                                                                               
                                9                                              
                                                                               
                                                                               
            and  construction  costs  of  the  interties;  and                 
            providing for an effective date.                                   
                                                                               
            HB   50   was   placed    in   Subcommittee   with                 
            Representative Parnell  as Chair and  with members                 
            Representative   Therriault   and   Representative                 
            Navarre.                                                           
                                                                               
  HB 51     An  Act making a  special appropriation for design                 
            and construction of  power transmission  interties                 
            between Anchorage  and  the  Kenai  Peninsula  and                 
            between Healy and Fairbanks;  and providing for an                 
            effective date.                                                    
                                                                               
            HB   51   was   placed  into   Subcommittee   with                 
            Representative Parnell as  Chair and with  members                 
            Representative   Therriault   and   Representative                 
            Navarre.                                                           
                                                                               
  HB 83     An Act making appropriations for construction  and                 
            major maintenance of schools; and providing for an                 
            effective date.                                                    
                                                                               
            HB   83  was   held  in   Committee  for   further                 
            discussion.                                                        
                                                                               
  SB 100    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.                                   
                                                                               
            SB  100   was  held   in  Committee   for  further                 
            discussion.                                                        
                                                                               
  HOUSE BILL 50                                                                
                                                                               
       "An Act  authorizing the  Anchorage to  Kenai Peninsula                 
       and the Healy to Fairbanks power transmission interties                 
       and approving the design and  construction costs of the                 
       interties; and providing for an effective date."                        
                                                                               
  HOUSE BILL 51                                                                
                                                                               
       "An Act making  a special appropriation for  design and                 
       construction  of  power transmission  interties between                 
       Anchorage and the Kenai Peninsula and between Healy and                 
       Fairbanks; and providing for an effective date."                        
                                                                               
  Co-Chair  Larson placed  HB 50  and HB 51  into Subcommittee                 
  with  Representative  Parnell  as  Chair  and  with  members                 
  Representative Therriault and Representative Navarre.                        
                                                                               
                               10                                              
                                                                               
                                                                               
  SENATE BILL 100                                                              
                                                                               
       "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."                                       
                                                                               
  Co-Chair MacLean provided the Committee a sectional analysis                 
  of HCS CS SB 100 (FIN) work draft #8-GS1063\D dated 4/22/93.                 
                                                                               
                                                                               
  Representative     Martin     questioned     Section    #10,                 
  Administration, Pioneer Home Study and the continuum of care                 
  for  senior   Alaskans.    Co-Chair  Larson  explained  that                 
  Representative Navarre had proposed an amendment  asking the                 
  Administration to investigate privitorization of the Pioneer                 
  Homes.  The  Department asked  that the balance  of fund  be                 
  used to fund  a task force  for future study of  the Pioneer                 
  Homes.                                                                       
                                                                               
  SHARON   BARTON,   DIRECTOR,   DIVISION  OF   ADMINISTRATIVE                 
  SERVICES,  DEPARTMENT OF  ADMINISTRATION,  noted the  amount                 
  previously   requested  was   $85  thousand   dollars.     A                 
  determination was made  that $55  thousand dollars would  be                 
  adequate.    She  concluded, $55  thousand  dollars  was the                 
  balance of  the original  appropriation when  the study  was                 
  completed.                                                                   
                                                                               
  Representative  Hanley  asked  the  balance  of   Office  of                 
  Management  and  Budget,  Community/Regional Affairs,  Rural                 
  Development Grants-extend lapse.                                             
                                                                               
  CHERYL FRASCA, DIRECTOR,  DIVISION OF BUDGET  REVIEW, OFFICE                 
  OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, noted that                 
  balance was $160 thousand dollars.                                           
                                                                               
  Representative Martin asked the balances of categories #13 -                 
  budget   sections    address   lapses    in   the    budget.                 
  Representative Brown asked  if the legislative  lapses could                 
  be used  for building repairs.   Co-Chair Larson  noted that                 
  those budgets roll-forward.                                                  
                                                                               
  Representative  Hanley   referenced  Sections  #21   -  #23,                 
  Administration, Kenai Peninsula Borough items, asking if the                 
  road projects would be taken from the general fund.                          
                                                                               
  SANDY NEWSBAUM, AIDE,  REPRESENTATIVE GAIL PHILLIPS,  stated                 
  that all  those projects are contained in the capital budget                 
  and would be pure general funds.                                             
                                                                               
                                                                               
                               11                                              
                                                                               
                                                                               
  Representative    Hanley    referenced   line    item   #24,                 
  Community/Regional Affairs, Anchorage  Traffic Signalization                 
  and Safety Upgrades and asked if  it was a specific district                 
  project.  Representative Brown replied the request addresses                 
  a specific  program at the  intersection of 15th  and Ingrid                 
  Street for an Anchorage stop light.                                          
                                                                               
  Representative  Therriault referenced  Sections  #32 -  #33,                 
  Community/Regional Affairs, Deltana  Road Upgrade/Glennallen                 
  Improvement Corporation-Sewage Lagoon  and asked if  funding                 
  was being switched.   Ms. Frasca explained the scope  of the                 
  project  is  being  broadened, although  no  money  is being                 
  switched between projects.                                                   
                                                                               
  Co-Chair Larson  MOVED to adopt the sectional, understanding                 
  that the Committee  had no  further questions regarding  the                 
  '94 Reappropriation Sectional [Attachment  #1].  There being                 
  NO OBJECTION, it was so ordered.                                             
                                                                               
  Representative Foster provided the Committee with  Amendment                 
                                                                               
  JEFF   MORRISON,   DIRECTOR   OF  ADMINISTRATIVE   SERVICES,                 
  DEPARTMENT OF  MILITARY AND  VETERAN AFFAIRS,  explained the                 
  amendment would  carry-forward the balance  of the  Disaster                 
  Relief  Fund.   This  would reduce  the  potential need  for                 
  supplemental   funding    for   the   next    fiscal   year.                 
  Representative Foster MOVED  Amendment #1.   There being  NO                 
  OBJECTIONS, it was so ordered.                                               
                                                                               
  Co-Chair  MacLean  provided  the Committee  with  a  copy of                 
  Amendment  #2.   [Attachment  #3].   Ms.  Frasca stated  the                 
  amendment would extend  the lapse  date on an  appropriation                 
  which  the  Department of  Environmental  Conservation (DEC)                 
  received   in   FY  93   for   the  Nearshore   Strike  Team                 
  Demonstration Projects request of $1.2 million dollars.                      
                                                                               
  Representative Hanley MOVED  Amendment #2.   There being  NO                 
  OBJECTION, it was adopted.                                                   
                                                                               
  Ms. Frasca  explained Amendment #3.   [Attachment #4].   She                 
  stated  amendment is  a request  by DCRA  expenditure for  a                 
  production of the Alcan  Caravan Alaska Highway  promotional                 
  film.    Representative Foster  MOVED  Amendment #3.   There                 
  being NO OBJECTION, it was adopted.                                          
                                                                               
  Representative Brown  provided the Committee  with Amendment                 
  previous City Council  approved the road expansion  although                 
  Representative Brown stated the citizens of the area did not                 
  support  the  work.  Representative  Martin  questioned  the                 
  information.  Co-Chair MacLean recommended holding Amendment                 
                                                                               
                               12                                              
                                                                               
                                                                               
  (Tape Change, HFC 93 - 117, Side 2).                                         
                                                                               
  SENATE BILL 100                                                              
                                                                               
       "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."                                       
                                                                               
  Co-Chair Larson provided  the Committee an overview  of work                 
  draft HCS CS SB 100 (FIN), #8-GS1063\D dated 4/22/93.                        
                                                                               
  Co-Chair  MacLean  MOVED  Section  #61.     There  being  NO                 
  OBJECTION, it was adopted.                                                   
                                                                               
  Representative  Brown  questioned  the facility  closure  in                 
  Section #62.   Co-Chair MacLean stated only the nursing home                 
  wing  of the  facility had  been closed.   Co-Chair  MacLean                 
  MOVED Section  #62.   There being  NO OBJECTION,  it was  so                 
  ordered.   Co-Chair MacLean MOVED Section #63.   There being                 
  NO OBJECTION, it was so ordered.                                             
                                                                               
  DUANE  GUILEY,  DIRECTOR,  SCHOOL   FINANCE,  DEPARTMENT  OF                 
  EDUCATION,  stated that  Section  #64 addresses  legislation                 
  which  was   passed  last   session   for  one-time   grants                 
  tocooperating  school  districts  to  reduce  administrative                 
  costs in order  to provide  more direct construction  costs.                 
  This  would  be  a  one time  grant  issue.   Representative                 
  Hoffman  MOVED  adoption  of Section  #64.    Representative                 
  Navarre OBJECTED.                                                            
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Grussendorf,  Hoffman,   Brown,  Foster,                 
  MacLean.                                                                     
                                                                               
       OPPOSED:       Hanley,   Martin,    Navarre,   Parnell,                 
  Therriault,                   Larson.                                        
                                                                               
  The MOTION FAILED, (5-6).                                                    
                                                                               
  Representative Foster  MOVED  to  incorporate  Section  #65.                 
  Representative Navarre OBJECTED.  He  pointed out that other                 
  fishing groups are not provided grants.                                      
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Hoffman,  Brown,   Foster,  Grussendorf,                 
  MacLean,                 Larson.                                             
                                                                               
                                                                               
                               13                                              
                                                                               
                                                                               
       OPPOSED:       Hanley,   Martin,   Navarre,    Parnell,                 
  Therriault.                                                                  
                                                                               
  The MOTION PASSED, (6-5).                                                    
                                                                               
  Representative   Brown  MOVED   Section   #66  which   would                 
  appropriate funds from the general fund to the Department of                 
  Administration for a  grant payment  to the Municipality  of                 
  Anchorage for  disaster  assistance resulting  from the  Mt.                 
  Spurr  volcanic eruption.  There  being NO OBJECTION, it was                 
  adopted.                                                                     
                                                                               
  Co-Chair  MacLean   introduced  Section   #67  which   would                 
  appropriate  $66.8  thousand  dollars  for   payment  of  an                 
  arbitrator's decision on the Anchorage Print Shop closure.                   
                                                                               
  NANCY    BEAR    USERA,    COMMISSIONER,    DEPARTMENT    OF                 
  ADMINISTRATION, explained that the closure of the  Anchorage                 
  Print  Shop   grievance  was   placed  in   an  arbitrator's                 
  negotiation,  ruling  in favor  of  the  union.   The  $66.8                 
  thousand dollars represents  back-wages to those persons  in                 
  the print shop  who were laid  off.  Co-Chair MacLean  MOVED                 
  Section #67.  There being NO OBJECTION, it was adopted.                      
                                                                               
  Representative    Brown    MOVED    Amendment   #4    noting                 
  Representative   Porter's   support.      [Attachment   #5].                 
  Representative  Therriault  pointed  out these  are  general                 
  highway funds.  There being NO OBJECTION, it was adopted.                    
                                                                               
  Co-Chair  MacLean  MOVED   closure  of  the  reappropriation                 
  section.  There  being NO  OBJECTIONS, it was  closed.   She                 
  noted   the  section   would   be  incorporated   into   the                 
  supplemental.                                                                
                                                                               
  Ms. Frasca  explained that in  Section #68,  the lapse  date                 
  would be extended  so that the  funds would remain with  the                 
  Aerospace Corporation.   Currently,  there is  a balance  of                 
  $275 thousand dollars resulting from a number of contractual                 
  projects which were  not started last year.   Representative                 
  Therriault MOVED Section #68.  There being NO OBJECTION,  it                 
  was adopted.                                                                 
                                                                               
  Ms. Frasca explained Section #69 which  would allow a carry-                 
  forward of the current year $450 thousand dollar balance for                 
  executive  operations and $60 thousand dollars for OMB.  Co-                 
  Chair Larson MOVED  Section #69.  There being NO OBJECTIONS,                 
  it was adopted.                                                              
                                                                               
  Co-Chair  Larson  MOVED   Section  #70.    There   being  NO                 
  OBJECTION, it was so ordered.                                                
                                                                               
  JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,                 
                                                                               
                               14                                              
                                                                               
                                                                               
  DEPARTMENT OF HEALTH AND SOCIAL SERVICES, explained Sections                 
  Social Services has been able  to go back and  retroactively                 
  add   a   program   which  Medicaid   had   for   serving  a                 
  disproportionate share of  low income  people.  Section  #71                 
  lists hospitals  which have  a high  percentage of  Medicaid                 
  revenue as a total percentage of their income.                               
                                                                               
  The  State will receive  retroactively $28.7 million dollars                 
  in federal receipts.   $2.8 million  dollars of these  funds                 
  will be placed into the Division of Medical Assistance which                 
  will  pay   for  claims   processing  and   hospital  costs.                 
  Currently, 86% of  API's operating  budget is Mental  Health                 
  Trust Funds, which is being requested to be paid back to the                 
  facility for use.                                                            
                                                                               
  Representative Hanley  pointed out, the way  the legislation                 
  is written, the money goes to  the Department rather than to                 
  the  API construction account.   Ms. Clarke advised that the                 
  way the account is structured, the money would be authorized                 
  to the  construction of  the API  facility.   Representative                 
  Hanley  asked if  the money would  be appropriated  from the                 
  account for the project.  He noted  his concern with the $23                 
  million dollar appropriation authorization  for construction                 
  of the facility.                                                             
                                                                               
  Ms.  Clarke  pointed out,  the  House budget  allocates $3.5                 
  million  dollars  for  API  design.   The  Department  feels                 
  strongly that  API earned  the funds  and that  the facility                 
  should receive the benefit of those funds.                                   
                                                                               
  The funding  reimburses the State  for providing psychiatric                 
  services at API to a disproportionately large number of low-                 
  income/medicaid  eligible  individuals.    The funding  also                 
  reimburses other hospitals  who serve  a high proportion  of                 
  Medicaid  recipients.   Alaska has  not  previously received                 
  reimbursement under the  program and the Governor  is please                 
  with  the  Department's  success in  maximizing  receipt  of                 
  federal dollars.                                                             
                                                                               
  Co-Chair  Larson  MOVED   Section  #71.    There   being  NO                 
  OBJECTION, it was adopted.                                                   
                                                                               
  Co-Chair Larson requested  that Section #72 remain  open for                 
  further discussion.                                                          
                                                                               
  Cheryl  Frasca  stated  Section  #73  was  a  court  ordered                 
  settlement  related to the  dismissal of an  employee in the                 
  Division of Elections.  Representative  Martin MOVED Section                 
                                                                               
  Co-Chair Larson  stated that  Section #74  would appropriate                 
                                                                               
                               15                                              
                                                                               
                                                                               
  $157  thousand  dollars   from  the  general  fund   to  the                 
  Department of Public Safety for computer services costs.                     
                                                                               
  C.E. SWACKHAMMER, DEPUTY COMMISSIONER,  DEPARTMENT OF PUBLIC                 
  SAFETY,  explained  the  requested amount  would  go  to the                 
  Department  of  Administration charge-back  for  use of  the                 
  computer main frame.                                                         
                                                                               
  Representative Parnell MOVED  Section #74.   There being  NO                 
  OBJECTION, it was adopted.                                                   
                                                                               
  SB 100 was HELD in Committee for further discussion.                         
                                                                               
  (Tape Change, HFC 93 - 118, Side 1).                                         
                                                                               
  HOUSE BILL 83                                                                
                                                                               
       "An  Act  making  appropriations for  construction  and                 
       major  maintenance of  schools;  and  providing for  an                 
       effective date."                                                        
                                                                               
  Co-Chair MacLean MOVED  work draft for  CS HB 83 (FIN),  #8-                 
  GH1060\U dated 4/22/93 as the  version before the Committee.                 
  There being NO OBJECTION, it was adopted.                                    
                                                                               
  Co-Chair  MacLean provided  the Committee  with an  Election                 
  District Spreadsheet [Attachment #7] indicating the total HB
  83 allocation of $186,780.6 million  dollars which was moved                 
  from  the  capital  budget.    Co-Chair MacLean  provided  a                 
  sectional analysis of the work draft.                                        
                                                                               
  Mr.  Guiley  stated  that Section  2  would  distribute $145                 
  million  dollars from  the Educational  Facility Maintenance                 
  and Construction  Fund to  the School  Construction to  fund                 
  school construction projects  which are  categorized in  the                 
  Department's current safety list.                                            
                                                                               
  Section 3 of  the bill  distributes $20.813 million  dollars                 
  from the  Educational Facility Maintenance  and Construction                 
  Fund to the new major maintenance grant fund established  by                 
  HB 82 to be  distributed for grant projects in  the category                 
  III  and  IV,  the  protection   of  structure  and  upgrade                 
  projects.                                                                    
                                                                               
  Representative Brown MOVED  adding language to Page  2, Line                 
  18,  deleting "and"  and  inserting, "district  wide  school                 
  design, construction  and  technology".    Co-Chair  MacLean                 
  OBJECTED.    She  stated  that  technology was  included  in                 
  renovations.  Mr. Guiley noted that an allowable expense  to                 
  a school  project is the  "technology" to wire  the building                 
  and also the purchase of equipment.                                          
                                                                               
                                                                               
                               16                                              
                                                                               
                                                                               
  Representative Parnell asked if  the word "renovations"  had                 
  been  included  in the  bill.    Mr. Guiley  responded,  any                 
  projects  related to  school  construction, renovation,  and                 
  modification  can   include  new  equipment   used  in   the                 
  classroom.   The scope of the grant application will dictate                 
  the use of the funds allowable  under the grant to determine                 
  the use of dollars for specific projects.                                    
  Representative Brown WITHDREW  THE MOTION.   There being  NO                 
  OBJECTION, it was so ordered.                                                
                                                                               
  CS HB 83 (FIN) was HELD in Committee for further discussion.                 
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 3:25 P.M.                                           
                                                                               
                                                                               
                               17                                              

Document Name Date/Time Subjects