Legislature(1993 - 1994)

02/23/1994 01:40 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                        February 23, 1994                                      
                            1:40 P.M.                                          
                                                                               
  TAPE HFC 94 - 39, Side 1, #000 - end.                                        
  TAPE HFC 94 - 39, Side 2, #000 - end.                                        
  TAPE HFC 94 - 40, Side 1, #000 - #560.                                       
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson  called the House Finance  Committee meeting                 
  to order at 1:40 P.M.                                                        
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Hoffman                         
  Co-Chair MacLean              Representative Martin                          
  Vice-Chair Hanley             Representative Navarre                         
  Representative Brown          Representative Parnell                         
  Representative Grussendorf    Representative Therriault                      
  Representative Foster                                                        
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Nancy Slagle, Director, Division of Budget Review, Office of                 
  Management  and  Budget,  Office  of  the  Governor;  Shelby                 
  Stastny, Director, Office  of Management and Budget,  Office                 
  of  the  Governor;  Sharon  Barton,  Director,  Division  of                 
  Administrative  Services,  Office  of Administration;  Nancy                 
  Bear  Usera,  Commissioner,  Department  of  Administration;                 
  Karen Rehfeld, Director, Administrative Services, Department                 
  of  Education;  Dan  Spencer,   Budget  Analyst,  Office  of                 
  Management and  Budget,  Office  of  the  Governor;  Richard                 
  Pegues,  Director,  Administrative  Services, Department  of                 
  Law;  Thomas  Williams,  Director, Permanent  Fund  Dividend                 
  Division,  Department  of Revenue;  Janet  Clarke, Director,                 
  Division of  Administrative Services,  Department of  Health                 
  and   Social  Services;   Karen  Petersen,   (testified  via                 
  teleconference),  Board of  Directors, Women  in Safe  Homes                 
  (WISH),   Ketchikan;   Charles   Mallott,   (testified   via                 
  teleconference), Ketchikan Police Department, Ketchikan; Joy                 
  Albin,  (testified  via  teleconference),  Fairbanks;  Cathy                 
  Wingrove, (testified via teleconference), Director, Women in                 
  Crisis  (WICCA),  Fairbanks;   Bob  Irvine,  (testified  via                 
  teleconference),  Director,   LIFEQUEST,  Mat-Su;   Michelle                 
  Calahan,   (testified   via   teleconference),  City   Hall,                 
  Unalaska;  Patrick  Owen,  (testified  via  teleconference),                 
  Frontier Trauma Center (FTC), Kenai; Wini Crosby, (testified                 
  via teleconference), FTC, Kenai; Lauree Hugonin,  (testified                 
  via  teleconference),  President,  Tundra Women's  Coalition                 
  (TWC), Bethel; Charmi Olson, (testified via teleconference),                 
                                                                               
                                1                                              
                                                                               
                                                                               
  Bering  Sea   Women's  Group  (BSWG),  Nome;  Paul  Johnson,                 
  (testified  via  teleconference),  Alaska  Women's  Resource                 
  Center,   Anchorage;   Cathy   Schindler,   (testified   via                 
  teleconference),  Abused  Women   Aid  in  Crisis   (AWAIC),                 
  Anchorage;  Mary  White,  (testified   via  teleconference),                 
  General Manager, KRBD Radio Station, Ketchikan; Dixie Duehn,                 
  (testified  via  teleconference),   OCRA,  Ketchikan;   Gigi                 
  Pilcher, (testified via teleconference), Executive Director,                 
  Women  in  Safe  Homes  (WISH),  Ketchikan;  Pam  Creekmore,                 
  (testified  via  teleconference),  WICCA,  Fairbanks;  Lonna                 
  Nevil,  (testified  via  teleconference),  WISH,  Ketchikan;                 
  Clyde  Ferguson,  (testified via  teleconference), Director,                 
  Mental Health Center, Bethel.                                                
                                                                               
  SUMMARY                                                                      
  HB 441    An Act reducing certain appropriations for  fiscal                 
            year 1994; and providing for an effective date.                    
                                                                               
            HB   441  was   held  in  Committee   for  further                 
            discussion.                                                        
  HB 455    An  Act making and  amending operating and capital                 
            appropriations   and   ratifying   certain   state                 
            expenditures; and providing for an effective date.                 
                                                                               
            HB   455  was   held  in  Committee   for  further                 
  discussion.                                                                  
  GENERAL DISCUSSION                                                           
                                                                               
  Co-Chair Larson  provided a  brief overview  of the  present                 
  budget status.  Currently, projected  revenues for the State                 
  of Alaska are significantly less  than the projected budget.                 
  He asked that State residents  to participate in identifying                 
  a  solution to the budget crisis.  Discussion followed among                 
  Committee  members regarding funds  contained in  the budget                 
  reserve and correct  usage of  those funds.   Representative                 
  Navarre recommended significant long range budget planning.                  
  HOUSE BILL 441                                                               
                                                                               
       "An Act reducing certain appropriations for fiscal year                 
       1994; and providing for an effective date."                             
                                                                               
  KAREN  PETERSON,  (TESTIFIED VIA  TELECONFERENCE),  BOARD OF                 
  DIRECTORS, WOMEN IN  SAFE HOMES (WISH), KETCHIKAN,  spoke in                 
  opposition   to  HB   441,   specifically  the   retroactive                 
  reduction.    She   pointed  out  that  most   organizations                 
  identified for cuts have fixed costs which have already been                 
  implemented.  Recuperating those costs will  severely impact                 
  the direct operations of services.                                           
                                                                               
                                2                                              
                                                                               
                                                                               
  CHARLES MALLOTT, (TESTIFIED  VIA TELECONFERENCE),  KETCHIKAN                 
  POLICE DEPARTMENT, KETCHIKAN, spoke in  opposition to HB 441                 
  and asked  Committee members not to cut  funding for women's                 
  shelters  throughout  the  State.   He  advised,  that these                 
  programs  are  "cost efficient"  noting  that women  centers                 
  receive funding from other sources besides state grants, for                 
  example donations.                                                           
                                                                               
  JOY ALBIN, (TESTIFIED VIA  TELECONFERENCE), FAIRBANKS, spoke                 
  against HB 441 and  any further cuts proposed to  the mental                 
  health component.                                                            
                                                                               
  CATHY  WINGROVE,  (TESTIFIED VIA  TELECONFERENCE), DIRECTOR,                 
  WOMEN IN CRISIS  (WICCA), FAIRBANKS,  spoke against HB  441.                 
  She   explained  that  women's   shelters  have  received  a                 
  maintenance budget for the past three years while  the costs                 
  of  running these shelters  has increased.   She pointed out                 
  that a retroactive charge would  remove services for victims                 
  of abuse.  Shelters can not afford that loss.                                
                                                                               
  BOB  IRVINE,  (TESTIFIED   VIA  TELECONFERENCE),   DIRECTOR,                 
  LIFEQUEST, MAT-SU,  spoke against  HB 441  and the  proposed                 
  retroactive three  percent cut from community  mental health                 
  services from the  FY94 budget.   Mr. Irvine asked for  long                 
  range consideration of adequate "front-end" funding.                         
                                                                               
  MICHELLE CALAHAN,(TESTIFIED VIA TELECONFERENCE),  CITY HALL,                 
  UNALASKA,  spoke  against  HB   441.    She  requested  that                 
  domestic violence and sexual assault programs be exempt from                 
  funding cuts.                                                                
                                                                               
  PATRICK  OWEN,  (TESTIFIED  VIA   TELECONFERENCE),  FRONTIER                 
  TRAUMA CENTER (FTC), KENAI, spoke  against HB 441 expressing                 
  concern with decreased  funding for  community based  mental                 
  health services.                                                             
                                                                               
  WINI CROSBY, (TESTIFIED VIA TELECONFERENCE), FRONTIER TRAUMA                 
  CENTER  (FTC),  KENAI,  spoke against  HB  441,  echoing the                 
  concerns of Mr. Patrick Owen.                                                
                                                                               
  LAUREE HUGONIN, (TESTIFIED  VIA TELECONFERENCE),  PRESIDENT,                 
  TUNDRA  WOMEN'S COALITION  (TWC), BETHEL,  spoke  against HB
  441.   She  urged  that continued  funding  be allocated  to                 
  programs  addressing sexual  assault and  domestic violence.                 
  Ms.  Hugonin  recommended  that budget  cuts  be  taken from                 
  capital improvement projects  or that a statewide  sales tax                 
  be implemented to cover budget deficits.                                     
                                                                               
  CHARMI  OLSON, (TESTIFIED  VIA  TELECONFERENCE), BERING  SEA                 
  WOMEN'S  GROUP (BSWG),  NOME,  spoke against  HB  441.   She                 
  requested that  services for  women suffering  from domestic                 
                                                                               
                                3                                              
                                                                               
                                                                               
  violence  continue  to  receive  full  funding  adding  that                 
  services  available  in  the  Nome  area  are  always  fully                 
  utilized.                                                                    
                                                                               
  (Tape Change, HFC 94-39, Side 2).                                            
                                                                               
  PAULA  JOHNSON,  (TESTIFIED   VIA  TELECONFERENCE),   ALASKA                 
  WOMEN'S  RESOURCE CENTER,  ANCHORAGE, spoke  against  HB 441                 
  stating that  social  service programs  are  being  targeted                 
  during  revenue depletion.   She  stressed that  retroactive                 
  cuts  will dramatically  affect  the programs  which  assist                 
  women  moving  into the  job  market from  public assistance                 
  support.                                                                     
                                                                               
  CATHY  SCHINDLER,  (TESTIFIED  VIA  TELECONFERENCE),  ABUSED                 
  WOMEN AID IN CRISIS (AWAIC), ANCHORAGE, spoke against HB 441                 
  stressing  the "front  line"  safety  that shelter  agencies                 
  provide.  Most  of the funding received by  AWAIC originates                 
  from  social  service block  money  and grants.    These are                 
  designated funds.   The proposed  cuts would greatly  affect                 
  all programs since that money has already  been budgeted for                 
  the current fiscal year.  Ms. Schindler urged the  Committee                 
  to  reconsider the proposed  legislation and exempt domestic                 
  violence and sexual assault from any further cuts.                           
                                                                               
  MARY WHITE, (TESTIFIED VIA TELECONFERENCE), GENERAL MANAGER,                 
  KRBD  RADIO STATION, KETCHIKAN, spoke against HB 441 and any                 
  legislation  which  might establish  the precedence  to take                 
  money retroactively.   She added that public  radio stations                 
  in the State have received a lot of budget cuts in  the past                 
  few years and those cuts affect quality service.                             
                                                                               
  DIXIE   DUEHN,   (TESTIFIED   VIA   TELECONFERENCE),   OCRA,                 
  KETCHIKAN, spoke  against HB  441 and  asked that  continued                 
  funding be provided to OCRA, a program which  keeps families                 
  together.   These funds  are administered  through the  WISH                 
  program.                                                                     
                                                                               
  GIGI  PILCHER,  (TESTIFIED  VIA  TELECONFERENCE),  EXECUTIVE                 
  DIRECTOR, WOMEN IN  SAFE HOMES  (WISH), KETCHIKAN, spoke  in                 
  opposition  to HB  441.   Ms. Pilcher stressed  that further                 
  cuts will deplete  life threatening  services to  recipients                 
  suffering from domestic  violence and  sexual assault.   She                 
  asked that the Committee exempt  those services from further                 
  budget cuts.                                                                 
                                                                               
  PAM  CREEKMORE,  (TESTIFIED   VIA  TELECONFERENCE),   WICCA,                 
  FAIRBANKS,                                                                   
  spoke  in  opposition to  HB  441 while  encouraging further                 
  support of domestic violence programs.                                       
                                                                               
  LONNA NEVIL,  (TESTIFIED VIA TELECONFERENCE), WOMEN  IN SAFE                 
                                                                               
                                4                                              
                                                                               
                                                                               
  HOMES  (WISH),  KETCHIKAN,  spoke in  opposition  to  HB 441                 
  requesting  that Committee members  become more  educated to                 
  the  amount  of and  degree  of domestic  violence occurring                 
  within the State to women and children.                                      
                                                                               
  CLYDE  FERGUSON,  (TESTIFIED VIA  TELECONFERENCE), DIRECTOR,                 
  MENTAL HEALTH CENTER, BETHEL, spoke in  opposition to HB 441                 
  requesting no  further cuts  to mental health  practitioners                 
  particularly in the rural  areas.  He pointed out  there are                 
  no private practitioners available in  his area.  Counselors                 
  in  the  Bethel  area  are  presently    functioning  at  an                 
  emergency crisis care  level.  Mr. Ferguson  emphasized that                 
  it is the  responsibility of the  State to provide  Alaskans                 
  essential services.                                                          
                                                                               
  HB 441 was HELD in Committee for further consideration.                      
  HOUSE BILL 455                                                               
                                                                               
       "An Act  making  and  amending  operating  and  capital                 
       appropriations    and    ratifying     certain    state                 
       expenditures; and providing for an effective date."                     
                                                                               
  NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF                 
  MANAGEMENT AND BUDGET,  OFFICE OF  THE GOVERNOR, provided  a                 
  sectional overview of HB 455, the Supplemental legislation.                  
                                                                               
  DEPARTMENT OF ADMINISTRATION                                                 
                                                                               
       *    Sec. 3    Public Defender          $466.0                          
                                                                               
            This request  would provide for  the extraordinary                 
            number  of felony  cases and  underfunded personal                 
            services.                                                          
                                                                               
       *    Sec. 4    Office of Public Advocacy $554.7                         
                                                                               
            The request would address increased caseload.                      
                                                                               
  Representative Parnell asked if the requests in Sections 3 &                 
  4 resulted  from the  reductions the  Legislature took  last                 
  year.  Ms. Slagle stated those budgets had been reduced last                 
  year below projected cost for FY94.                                          
                                                                               
       *    Sec. 5    Personnel/OEEO           $100.0                          
                                                                               
            This request  would cover  arbitration case  costs                 
            for labor negotiations.                                            
                                                                               
       *    Sec. 6    Personnel/OEEO           $18.0                           
                                                                               
            This cost will cover a grievance  award cost for a                 
                                                                               
                                5                                              
                                                                               
                                                                               
            specific employee in that Department.                              
                                                                               
       *    Sec. 7    Personnel/OEEO           $50.0  thousand                 
            dollars                                                            
                                                                               
            The  request will  provide  for the  court-ordered                 
  salary and          geographic differential survey.                          
                                                                               
  SHARON   BARTON,   DIRECTOR,   DIVISION  OF   ADMINISTRATIVE                 
  SERVICES, DEPARTMENT  OF ADMINISTRATION,  remarked that  the                 
  survey conducted  provided an evaluation  of state  salaries                 
  versus  private  sector salaries  for  similar type  of work                 
  performed.                                                                   
                                                                               
       *    Sec. 8    Leases                   $1,870.2                        
                                                                               
            The request will cover additional lease costs.                     
                                                                               
  DAN  SPENCER,  BUDGET  ANALYST,  OFFICE  OF  MANAGEMENT  AND                 
  BUDGET, OFFICE  OF THE  GOVERNOR, explained  that the  lease                 
  budget had been funded below  the projected costs for  FY94.                 
  Last years under funding was $1.8 million dollars under  the                 
  Governor's request budget.                                                   
                                                                               
  Co-Chair MacLean asked  which leases  were not covered  last                 
  year.  Ms. Barton offered to provide the Committee with that                 
  information.                                                                 
                                                                               
  (Tape Change, HFC 94-40, Side 1).                                            
                                                                               
       *    New Section #51     Personnel/OEEO  $35.0                          
                                                                               
       The  request would  cover  ethics complaints  grievance                 
       award cases.                                                            
                                                                               
  DEPARTMENT OF LAW                                                            
                                                                               
       *    Sec. 9    Legal Services & Operations $325.4                       
                                                                               
            The funding will pay  judgement and claims against                 
  the State.                                                                   
                                                                               
  RICHARD   PEGUES,    DIRECTOR,   ADMINISTRATIVE    SERVICES,                 
  DEPARTMENT OF LAW,  explained the cost would  cover nineteen                 
  judgments.  During  the year,  more judgments were  received                 
  than funds allocated.                                                        
                                                                               
  DEPARTMENT OF EDUCATION                                                      
                                                                               
       *    Sec. 9a    Pupil transportation         $50.0                      
                                                                               
            These  costs  would  provide for  the  legal  fees                 
                                                                               
                                6                                              
                                                                               
                                                                               
            related to pupil  transportation issues (Ten  Eyck                 
            versus the State).                                                 
                                                                               
  DEPARTMENT OF LAW                                                            
                                                                               
       *    Sec. 10   Legal Services & Operations  $462.5                      
                                                                               
            These fees will address the reapportionment case -                 
             Southeast Conference versus Hickel.                               
                                                                               
  Mr. Pegues pointed  out that the amount  currently requested                 
  for reapportionment is  the same amount requested  last year                 
  and  not  granted  in  Conference  Committee.    The  amount                 
  requested includes the added interest costs from last year's                 
  request.                                                                     
                                                                               
  DEPARTMENT OF REVENUE                                                        
                                                                               
       *    Sec. 11   Permanent Fund Dividend       $142.6                     
                                                                               
            These  costs   will  cover  additional   costs  of                 
            printing   and   delivery   of    the   1994   PFD                 
            applications.                                                      
                                                                               
  THOMAS WILLIAMS, DIRECTOR, PERMANENT FUND DIVIDEND DIVISION,                 
  DEPARTMENT OF REVENUE, explained the original contractor was                 
  not  paid  because   services  were  not  completed.     The                 
  Department was advised  late in  the printing schedule  that                 
  the  contractor  could  not  provide   the  product  by  the                 
  deadline.  Consequently, there was  $142 thousand dollars of                 
  additional  expenses  in  order   to  get  the  applications                 
  available on time.                                                           
                                                                               
       *    Sec. 12   Permanent Fund Corporation    $3,195.0                   
                                                                               
            Cost to cover the additional equity management and                 
            international custody fees.                                        
                                                                               
  DEPARTMENT OF EDUCATION                                                      
                                                                               
       *    Sec. 13   Foundation Program            $1,500.0                   
                                                                               
            Funds to cover increased student enrollments.                      
                                                                               
  KAREN REHFELD, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT                 
  OF  EDUCATION,  stated the  amount  requested was  the total                 
  amount needed based on a count taken in October, 1993.  That                 
  amount  will be updated,  March, 1994,  and will  affect the                 
  request.                                                                     
                                                                               
       *    Sec. 14   Vocational    Education     -    federal                 
                      grants    -0-                                            
                                                                               
                                7                                              
                                                                               
                                                                               
            Funds to cover the ratification of expenditures.                   
                                                                               
  DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                     
                                                                               
       *    Sec. 15   PFD Hold Harmless             $244.4                     
                                                                               
            Costs to  cover the  increased number of  eligible                 
            recipients.                                                        
                                                                               
       *    Sec. 16   Medicaid Facilities           $7,674.5                   
                                                                               
            Funds to cover  judgement and settlements  against                 
            state by ASHNHA and others.                                        
                                                                               
  JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,                 
  DEPARTMENT OF HEALTH AND SOCIAL SERVICES, explained that the                 
  request is comprised of  three main cases, two of  which are                 
  settlements with  the Attorney  General's office  related to                 
  Our  Lady  of  Compassion's  appeal  issue and  with  Humana                 
  Hospital,  a 1986 rate  setting settlement.   Both  of these                 
  settlements can  be shared  50/50 percent  with the  federal                 
  government.  The  largest amount  of the request  originates                 
  from a judgement from  the supreme court for a  rate setting                 
  issue dispute over rates paid nursing  homes with the Alaska                 
  State Hospital Nursing Home Association.  She added  that it                 
  is anticipated that the level  of federal participation will                 
  reduce the needed amount.                                                    
                                                                               
  Representative Hanley asked the amount of  anticipated match                 
  funds due from  the federal government.   Ms. Clarke  stated                 
  the request for federal participation would be for the years                 
  1991,  1992  and  1993, and  it  has  been  received.   That                 
  information will be  available in March,  1994.  Ms.  Clarke                 
  offered to provide that information upon receipt.                            
                                                                               
       *    Sec. 17   Medicaid Facilities           $5,045.0                   
                                                                               
            Funds  to cover FY93  bills paid  in FY94  and the                 
            increased participants in FY94.                                    
                                                                               
  Representative  Hanley  commented  on  the  request  for  an                 
  additional supplemental for  fiscal year  1993.  Ms.  Clarke                 
  pointed  out  that  last  year,  the Department  offered  to                 
  relinquish  $4.5 million  dollars  in  the Medicaid  program                 
  which held true  with projections  until the fourth  quarter                 
  (April,  May  and June  1994).    At that  time,  bills were                 
  provided  remaining  from  1993.    The magnitude  of  those                 
  expenditures resulted in the proposed request.                               
                                                                               
       *    Sec. 18   Medicaid Facilities           $2,600.0                   
                                                                               
                                                                               
                                8                                              
                                                                               
                                                                               
            Funds to cover  for Charter  North and North  Star                 
            Hospital (disproportionate share claims).                          
                                                                               
       *    Sec. 19   Indian Health Service         $3,567.4                   
                                                                               
            Costs to cover the increased Indian Health Service                 
            billings.                                                          
                                                                               
       *    Sec. 20   General Relief Medical        $887.5                     
                                                                               
            Funds  for the  $246.6  thousand dollars  in  FY93                 
            carry forward; $640.9  thousand dollars  increased                 
            program growth.                                                    
                                                                               
  Per   Representative   Therriault's   request,  Ms.   Clarke                 
  explained "disproportionate share  claims", a program  which                 
  can  be  participated  in  through   Medicaid.    These  are                 
  disproportionate   share   payments  given   to  psychiatric                 
  hospitals because those  hospitals serve a  disproportionate                 
  share of either Medicaid clients or low income people.  When                 
  Alaska  began  participating in  this  program,  new federal                 
  dollars  were brought  into  the  State  in order  to  match                 
  current funds spent at API.                                                  
                                                                               
  HB 455 was HELD in Committee for further consideration.                      
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 340 P.M.                                            
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                        February 23, 1994                                      
                            1:40 P.M.                                          
                                                                               
  TAPE HFC 94 - 39, Side 1, #000 - end.                                        
  TAPE HFC 94 - 39, Side 2, #000 - end.                                        
  TAPE HFC 94 - 40, Side 1, #000 - #560.                                       
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson called  the House Finance Committee  meeting                 
  to order at 1:40 P.M.                                                        
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Hoffman                         
  Co-Chair MacLean              Representative Martin                          
  Vice-Chair Hanley             Representative Navarre                         
  Representative Brown          Representative Parnell                         
  Representative Grussendorf    Representative Therriault                      
  Representative Foster                                                        
                                                                               
                                9                                              
                                                                               
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Nancy Slagle, Director, Division of Budget Review, Office of                 
  Management  and  Budget,  Office  of  the  Governor;  Shelby                 
  Stastny, Director, Office  of Management and  Budget, Office                 
  of  the  Governor;  Sharon  Barton,  Director,  Division  of                 
  Administrative  Services,  Office  of Administration;  Nancy                 
  Bear  Usera,  Commissioner,  Department  of  Administration;                 
  Karen Rehfeld, Director, Administrative Services, Department                 
  of  Education;  Dan  Spencer,  Budget  Analyst,  Office   of                 
  Management  and  Budget,  Office of  the  Governor;  Richard                 
  Pegues,  Director,  Administrative  Services, Department  of                 
  Law; Thomas  Williams,  Director,  Permanent  Fund  Dividend                 
  Division,  Department of  Revenue;  Janet Clarke,  Director,                 
  Division of  Administrative Services,  Department of  Health                 
  and  Social   Services;  Karen   Petersen,  (testified   via                 
  teleconference),  Board of  Directors,  Women in  Safe Homes                 
  (WISH),   Ketchikan;   Charles   Mallott,   (testified   via                 
  teleconference), Ketchikan Police Department, Ketchikan; Joy                 
  Albin,  (testified  via  teleconference),  Fairbanks;  Cathy                 
  Wingrove, (testified via teleconference), Director, Women in                 
  Crisis  (WICCA),  Fairbanks;  Bob  Irvine,  (testified   via                 
  teleconference),  Director,   LIFEQUEST,  Mat-Su;   Michelle                 
  Calahan,   (testified   via   teleconference),  City   Hall,                 
  Unalaska;  Patrick  Owen,  (testified  via  teleconference),                 
  Frontier Trauma Center (FTC), Kenai; Wini Crosby, (testified                 
  via teleconference), FTC, Kenai;  Lauree Hugonin, (testified                 
  via  teleconference),  President,  Tundra Women's  Coalition                 
  (TWC), Bethel; Charmi Olson, (testified via teleconference),                 
  Bering  Sea  Women's  Group   (BSWG),  Nome;  Paul  Johnson,                 
  (testified  via  teleconference),  Alaska  Women's  Resource                 
  Center,   Anchorage;   Cathy   Schindler,   (testified   via                 
  teleconference),  Abused  Women   Aid  in  Crisis   (AWAIC),                 
  Anchorage;  Mary  White,  (testified   via  teleconference),                 
  General Manager, KRBD Radio Station, Ketchikan; Dixie Duehn,                 
  (testified  via  teleconference),   OCRA,  Ketchikan;   Gigi                 
  Pilcher, (testified via teleconference), Executive Director,                 
  Women  in  Safe  Homes  (WISH),  Ketchikan;  Pam  Creekmore,                 
  (testified  via  teleconference),  WICCA,  Fairbanks;  Lonna                 
  Nevil,  (testified  via  teleconference),  WISH,  Ketchikan;                 
  Clyde  Ferguson,  (testified via  teleconference), Director,                 
  Mental Health Center, Bethel.                                                
                                                                               
  SUMMARY                                                                      
                                                                               
  HB 441    An Act reducing certain appropriations for  fiscal                 
            year 1994; and providing for an effective date.                    
                                                                               
            HB  441   was  held   in  Committee  for   further                 
            discussion.                                                        
                                                                               
                                                                               
                               10                                              
                                                                               
                                                                               
  HB 455    An Act making and  amending operating and  capital                 
            appropriations   and   ratifying   certain   state                 
            expenditures; and providing for an effective date.                 
                                                                               
            HB  455   was  held   in  Committee   for  further                 
  discussion.                                                                  
                                                                               
  GENERAL DISCUSSION                                                           
                                                                               
  Co-Chair Larson  provided a  brief overview  of the  present                 
  budget status.  Currently, projected  revenues for the State                 
  of Alaska are significantly less  than the projected budget.                 
  He asked that State residents  to participate in identifying                 
  a solution  to the budget crisis.  Discussion followed among                 
  Committee members  regarding funds  contained in the  budget                 
  reserve and correct  usage of  those funds.   Representative                 
  Navarre recommended significant long range budget planning.                  
                                                                               
  HOUSE BILL 441                                                               
                                                                               
       "An Act reducing certain appropriations for fiscal year                 
       1994; and providing for an effective date."                             
                                                                               
  KAREN  PETERSON, (TESTIFIED  VIA  TELECONFERENCE), BOARD  OF                 
  DIRECTORS, WOMEN IN  SAFE HOMES (WISH), KETCHIKAN,  spoke in                 
  opposition   to  HB   441,   specifically  the   retroactive                 
  reduction.    She   pointed  out  that   most  organizations                 
  identified for cuts have fixed costs which have already been                 
  implemented.   Recuperating those costs will severely impact                 
  the direct operations of services.                                           
                                                                               
  CHARLES MALLOTT, (TESTIFIED  VIA TELECONFERENCE),  KETCHIKAN                 
  POLICE DEPARTMENT, KETCHIKAN, spoke in  opposition to HB 441                 
  and asked Committee members  not to cut funding  for women's                 
  shelters  throughout  the  State.   He  advised,  that these                 
  programs  are  "cost  efficient" noting  that  women centers                 
  receive funding from other sources besides state grants, for                 
  example donations.                                                           
                                                                               
  JOY ALBIN, (TESTIFIED VIA  TELECONFERENCE), FAIRBANKS, spoke                 
  against HB 441 and  any further cuts proposed to  the mental                 
  health component.                                                            
                                                                               
  CATHY  WINGROVE,  (TESTIFIED VIA  TELECONFERENCE), DIRECTOR,                 
  WOMEN IN CRISIS  (WICCA), FAIRBANKS,  spoke against HB  441.                 
  She  explained   that  women's  shelters   have  received  a                 
  maintenance budget for the past  three years while the costs                 
  of  running these shelters  has increased.   She pointed out                 
  that a retroactive charge would  remove services for victims                 
  of abuse.  Shelters can not afford that loss.                                
                                                                               
  BOB  IRVINE,  (TESTIFIED   VIA  TELECONFERENCE),   DIRECTOR,                 
                                                                               
                               11                                              
                                                                               
                                                                               
  LIFEQUEST, MAT-SU,  spoke against  HB 441  and the  proposed                 
  retroactive  three percent cut  from community mental health                 
  services from the  FY94 budget.   Mr. Irvine asked for  long                 
  range consideration of adequate "front-end" funding.                         
                                                                               
  MICHELLE CALAHAN,(TESTIFIED VIA TELECONFERENCE),  CITY HALL,                 
  UNALASKA,  spoke  against  HB    441.   She  requested  that                 
  domestic violence and sexual assault programs be exempt from                 
  funding cuts.                                                                
                                                                               
  PATRICK  OWEN,  (TESTIFIED  VIA   TELECONFERENCE),  FRONTIER                 
  TRAUMA CENTER (FTC), KENAI, spoke  against HB 441 expressing                 
  concern  with decreased  funding for community  based mental                 
  health services.                                                             
                                                                               
  WINI CROSBY, (TESTIFIED VIA TELECONFERENCE), FRONTIER TRAUMA                 
  CENTER  (FTC),  KENAI,  spoke against  HB  441,  echoing the                 
  concerns of Mr. Patrick Owen.                                                
                                                                               
  LAUREE HUGONIN, (TESTIFIED  VIA TELECONFERENCE),  PRESIDENT,                 
  TUNDRA  WOMEN'S  COALITION (TWC),  BETHEL, spoke  against HB
  441.    She urged  that  continued funding  be  allocated to                 
  programs addressing  sexual assault  and domestic  violence.                 
  Ms.  Hugonin  recommended  that budget  cuts  be  taken from                 
  capital improvement projects  or that a statewide  sales tax                 
  be implemented to cover budget deficits.                                     
                                                                               
  CHARMI  OLSON,  (TESTIFIED VIA  TELECONFERENCE),  BERING SEA                 
  WOMEN'S  GROUP (BSWG),  NOME,  spoke against  HB  441.   She                 
  requested  that services for  women suffering  from domestic                 
  violence  continue  to  receive  full  funding  adding  that                 
  services  available  in  the  Nome  area  are  always  fully                 
  utilized.                                                                    
                                                                               
  (Tape Change, HFC 94-39, Side 2).                                            
                                                                               
  PAULA  JOHNSON,  (TESTIFIED   VIA  TELECONFERENCE),   ALASKA                 
  WOMEN'S  RESOURCE CENTER,  ANCHORAGE, spoke  against HB  441                 
  stating  that social  service  programs are  being  targeted                 
  during  revenue depletion.   She  stressed that  retroactive                 
  cuts  will  dramatically affect  the  programs which  assist                 
  women  moving  into the  job  market from  public assistance                 
  support.                                                                     
                                                                               
  CATHY  SCHINDLER,  (TESTIFIED  VIA  TELECONFERENCE),  ABUSED                 
  WOMEN AID IN CRISIS (AWAIC), ANCHORAGE, spoke against HB 441                 
  stressing  the "front  line"  safety  that shelter  agencies                 
  provide.  Most of the  funding received by AWAIC  originates                 
  from  social  service block  money  and grants.    These are                 
  designated funds.   The proposed  cuts would greatly  affect                 
  all programs since that money  has already been budgeted for                 
  the current fiscal year.  Ms.  Schindler urged the Committee                 
                                                                               
                               12                                              
                                                                               
                                                                               
  to reconsider the proposed  legislation and exempt  domestic                 
  violence and sexual assault from any further cuts.                           
                                                                               
  MARY WHITE, (TESTIFIED VIA TELECONFERENCE), GENERAL MANAGER,                 
  KRBD RADIO  STATION, KETCHIKAN, spoke against HB 441 and any                 
  legislation which  might establish  the  precedence to  take                 
  money retroactively.   She added that public  radio stations                 
  in the State  have received a lot of budget cuts in the past                 
  few years and those cuts affect quality service.                             
                                                                               
  DIXIE   DUEHN,   (TESTIFIED   VIA   TELECONFERENCE),   OCRA,                 
  KETCHIKAN, spoke  against HB  441 and  asked that  continued                 
  funding be provided to OCRA, a program which keeps  families                 
  together.   These funds  are administered  through the  WISH                 
  program.                                                                     
                                                                               
  GIGI  PILCHER,  (TESTIFIED  VIA  TELECONFERENCE),  EXECUTIVE                 
  DIRECTOR, WOMEN IN  SAFE HOMES  (WISH), KETCHIKAN, spoke  in                 
  opposition to  HB 441.   Ms.  Pilcher stressed that  further                 
  cuts  will deplete  life threatening services  to recipients                 
  suffering from domestic  violence and  sexual assault.   She                 
  asked that the Committee exempt  those services from further                 
  budget cuts.                                                                 
                                                                               
  PAM  CREEKMORE,  (TESTIFIED   VIA  TELECONFERENCE),   WICCA,                 
  FAIRBANKS,                                                                   
  spoke  in  opposition to  HB  441 while  encouraging further                 
  support of domestic violence programs.                                       
                                                                               
  LONNA  NEVIL, (TESTIFIED VIA  TELECONFERENCE), WOMEN IN SAFE                 
  HOMES  (WISH),  KETCHIKAN,  spoke in  opposition  to  HB 441                 
  requesting that  Committee members become  more educated  to                 
  the  amount  of and  degree  of domestic  violence occurring                 
  within the State to women and children.                                      
                                                                               
  CLYDE  FERGUSON,  (TESTIFIED VIA  TELECONFERENCE), DIRECTOR,                 
  MENTAL HEALTH CENTER,  BETHEL, spoke in opposition to HB 441                 
  requesting no  further cuts  to mental  health practitioners                 
  particularly in the rural  areas.  He pointed out  there are                 
  no private practitioners available in  his area.  Counselors                 
  in  the  Bethel  area  are  presently    functioning  at  an                 
  emergency crisis care  level.  Mr. Ferguson  emphasized that                 
  it is the  responsibility of the  State to provide  Alaskans                 
  essential services.                                                          
                                                                               
  HB 441 was HELD in Committee for further consideration.                      
                                                                               
  HOUSE BILL 455                                                               
                                                                               
       "An  Act making  and  amending  operating  and  capital                 
       appropriations    and    ratifying     certain    state                 
       expenditures; and providing for an effective date."                     
                                                                               
                               13                                              
                                                                               
                                                                               
  NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF                 
  MANAGEMENT AND BUDGET,  OFFICE OF  THE GOVERNOR, provided  a                 
  sectional overview of HB 455, the Supplemental legislation.                  
                                                                               
  DEPARTMENT OF ADMINISTRATION                                                 
                                                                               
       *    Sec. 3    Public Defender          $466.0                          
                                                                               
            This request would  provide for the  extraordinary                 
            number of  felony cases  and underfunded  personal                 
            services.                                                          
                                                                               
       *    Sec. 4    Office of Public Advocacy $554.7                         
                                                                               
            The request would address increased caseload.                      
                                                                               
  Representative Parnell asked if the requests in Sections 3 &                 
  4 resulted  from the  reductions the  Legislature took  last                 
  year.  Ms. Slagle stated those budgets had been reduced last                 
  year below projected cost for FY94.                                          
                                                                               
       *    Sec. 5    Personnel/OEEO           $100.0                          
                                                                               
            This request  would cover  arbitration case  costs                 
            for labor negotiations.                                            
                                                                               
       *    Sec. 6    Personnel/OEEO           $18.0                           
                                                                               
            This cost will cover a grievance award  cost for a                 
            specific employee in that Department.                              
                                                                               
       *    Sec. 7    Personnel/OEEO           $50.0  thousand                 
            dollars                                                            
                                                                               
            The  request will  provide  for the  court-ordered                 
  salary and          geographic differential survey.                          
                                                                               
  SHARON   BARTON,   DIRECTOR,   DIVISION  OF   ADMINISTRATIVE                 
  SERVICES, DEPARTMENT  OF ADMINISTRATION,  remarked that  the                 
  survey  conducted provided  an evaluation of  state salaries                 
  versus  private  sector salaries  for  similar type  of work                 
  performed.                                                                   
                                                                               
       *    Sec. 8    Leases                   $1,870.2                        
                                                                               
            The request will cover additional lease costs.                     
                                                                               
  DAN  SPENCER,  BUDGET  ANALYST,  OFFICE  OF  MANAGEMENT  AND                 
  BUDGET, OFFICE  OF THE  GOVERNOR, explained  that the  lease                 
  budget had been  funded below the projected  costs for FY94.                 
  Last years under funding was $1.8  million dollars under the                 
                                                                               
                               14                                              
                                                                               
                                                                               
  Governor's request budget.                                                   
                                                                               
  Co-Chair MacLean asked  which leases  were not covered  last                 
  year.  Ms. Barton offered to provide the Committee with that                 
  information.                                                                 
                                                                               
  (Tape Change, HFC 94-40, Side 1).                                            
                                                                               
       *    New Section #51     Personnel/OEEO  $35.0                          
                                                                               
       The  request would  cover  ethics complaints  grievance                 
       award cases.                                                            
                                                                               
  DEPARTMENT OF LAW                                                            
                                                                               
       *    Sec. 9    Legal Services & Operations $325.4                       
                                                                               
            The funding will pay judgement and claims  against                 
  the State.                                                                   
                                                                               
  RICHARD   PEGUES,    DIRECTOR,   ADMINISTRATIVE    SERVICES,                 
  DEPARTMENT OF LAW,  explained the cost would  cover nineteen                 
  judgments.  During  the year,  more judgments were  received                 
  than funds allocated.                                                        
                                                                               
  DEPARTMENT OF EDUCATION                                                      
                                                                               
       *    Sec. 9a    Pupil transportation         $50.0                      
                                                                               
            These  costs  would  provide  for  the legal  fees                 
            related to pupil  transportation issues (Ten  Eyck                 
            versus the State).                                                 
                                                                               
  DEPARTMENT OF LAW                                                            
                                                                               
       *    Sec. 10   Legal Services & Operations  $462.5                      
                                                                               
            These fees will address the reapportionment case -                 
             Southeast Conference versus Hickel.                               
                                                                               
  Mr. Pegues pointed  out that the amount  currently requested                 
  for reapportionment is  the same amount requested  last year                 
  and  not  granted  in  Conference  Committee.    The  amount                 
  requested includes the added interest costs from last year's                 
  request.                                                                     
                                                                               
  DEPARTMENT OF REVENUE                                                        
                                                                               
       *    Sec. 11   Permanent Fund Dividend       $142.6                     
                                                                               
            These  costs   will  cover  additional   costs  of                 
            printing   and   delivery   of    the   1994   PFD                 
                                                                               
                               15                                              
                                                                               
                                                                               
            applications.                                                      
                                                                               
  THOMAS WILLIAMS, DIRECTOR, PERMANENT FUND DIVIDEND DIVISION,                 
  DEPARTMENT OF REVENUE, explained the original contractor was                 
  not  paid  because   services  were  not  completed.     The                 
  Department was advised  late in  the printing schedule  that                 
  the  contractor  could  not  provide   the  product  by  the                 
  deadline.  Consequently, there was  $142 thousand dollars of                 
  additional  expenses  in  order  to  get   the  applications                 
  available on time.                                                           
                                                                               
       *    Sec. 12   Permanent Fund Corporation    $3,195.0                   
                                                                               
            Cost to cover the additional equity management and                 
            international custody fees.                                        
                                                                               
  DEPARTMENT OF EDUCATION                                                      
                                                                               
       *    Sec. 13   Foundation Program            $1,500.0                   
                                                                               
            Funds to cover increased student enrollments.                      
                                                                               
  KAREN REHFELD, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT                 
  OF  EDUCATION,  stated the  amount  requested was  the total                 
  amount needed based on a count taken in October, 1993.  That                 
  amount will  be updated, March,  1994, and  will affect  the                 
  request.                                                                     
                                                                               
       *    Sec. 14   Vocational    Education     -    federal                 
                      grants    -0-                                            
                                                                               
            Funds to cover the ratification of expenditures.                   
                                                                               
  DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                     
                                                                               
       *    Sec. 15   PFD Hold Harmless             $244.4                     
                                                                               
            Costs to  cover the  increased number  of eligible                 
            recipients.                                                        
                                                                               
       *    Sec. 16   Medicaid Facilities           $7,674.5                   
                                                                               
            Funds to cover  judgement and settlements  against                 
            state by ASHNHA and others.                                        
                                                                               
  JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,                 
  DEPARTMENT OF HEALTH AND SOCIAL SERVICES, explained that the                 
  request is comprised of  three main cases, two of  which are                 
  settlements with the  Attorney General's  office related  to                 
  Our  Lady  of  Compassion's  appeal  issue and  with  Humana                 
  Hospital, a  1986 rate  setting settlement.   Both  of these                 
  settlements can  be shared  50/50 percent  with the  federal                 
                                                                               
                               16                                              
                                                                               
                                                                               
  government.  The  largest amount  of the request  originates                 
  from a judgement from  the supreme court for a  rate setting                 
  issue dispute over rates paid nursing homes  with the Alaska                 
  State Hospital Nursing Home Association.  She added that  it                 
  is anticipated that the level  of federal participation will                 
  reduce the needed amount.                                                    
                                                                               
  Representative Hanley  asked the amount of anticipated match                 
  funds  due from the  federal government.   Ms. Clarke stated                 
  the request for federal participation would be for the years                 
  1991,  1992  and  1993, and  it  has  been  received.   That                 
  information  will be available  in March, 1994.   Ms. Clarke                 
  offered to provide that information upon receipt.                            
                                                                               
       *    Sec. 17   Medicaid Facilities           $5,045.0                   
                                                                               
            Funds to  cover FY93 bills  paid in  FY94 and  the                 
            increased participants in FY94.                                    
                                                                               
  Representative  Hanley  commented  on  the  request  for  an                 
  additional supplemental for  fiscal year  1993.  Ms.  Clarke                 
  pointed  out  that  last  year,  the Department  offered  to                 
  relinquish $4.5  million  dollars in  the  Medicaid  program                 
  which held true  with projections  until the fourth  quarter                 
  (April,  May  and June  1994).    At that  time,  bills were                 
  provided  remaining  from  1993.    The magnitude  of  those                 
  expenditures resulted in the proposed request.                               
                                                                               
       *    Sec. 18   Medicaid Facilities           $2,600.0                   
                                                                               
            Funds to cover  for Charter  North and North  Star                 
            Hospital (disproportionate share claims).                          
                                                                               
       *    Sec. 19   Indian Health Service         $3,567.4                   
                                                                               
            Costs to cover the increased Indian Health Service                 
            billings.                                                          
                                                                               
       *    Sec. 20   General Relief Medical        $887.5                     
                                                                               
            Funds  for  the $246.6  thousand  dollars in  FY93                 
            carry forward; $640.9  thousand dollars  increased                 
            program growth.                                                    
                                                                               
  Per   Representative   Therriault's   request,  Ms.   Clarke                 
  explained "disproportionate share  claims", a program  which                 
  can  be  participated  in  through   Medicaid.    These  are                 
  disproportionate   share   payments  given   to  psychiatric                 
  hospitals because those  hospitals serve a  disproportionate                 
  share of either Medicaid clients or low income people.  When                 
  Alaska began  participating  in this  program,  new  federal                 
  dollars  were  brought  into the  State  in  order to  match                 
                                                                               
                               17                                              
                                                                               
                                                                               
  current funds spent at API.                                                  
                                                                               
  HB 455 was HELD in Committee for further consideration.                      
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 340 P.M.                                            
                                                                               
                                                                               
                               18                                              

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