Legislature(1995 - 1996)

03/28/1995 01:47 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         March 28, 1995                                        
                            1:30 P.M.                                          
                                                                               
  TAPE HFC 95-66, Side 2, #000 - end.                                          
  TAPE HFC 95-67, Side 1, #000 - end.                                          
  TAPE HFC 95-67, Side 2, #000 - end.                                          
  TAPE HFC 95-68, Side 1, #000 - 525.                                          
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair  Mark  Hanley called  the  House  Finance Committee                 
  meeting to order at 1:47 p.m.                                                
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Hanley               Representative Martin                          
  Co-Chair Foster               Representative Mulder                          
  Representative Brown          Representative Navarre                         
  Representative Grussendorf    Representative Parnell                         
  Representative Kelly          Representative Therriault                      
  Representative Kohring                                                       
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative  Ivan;  Barbara Ritchie,  Department  of Law;                 
  Nancy Slagle, Director, Division of Budget Review, Office of                 
  the Management and  Budget, Office of the  Governor; Kristie                 
  Leaf, Staff, Representative Kohring; Bill Legere, President,                 
  Alaska Broadcasting Service; Douglas Samimi-Moore, Executive                 
  Director,  Alaska  Broadcasting  Commission;  Rich  McClear,                 
  Southeast Media Consortium.                                                  
                                                                               
  SUMMARY                                                                      
                                                                               
  HB 100    An Act making appropriations for the operating and                 
            loan program  expenses of state  government and to                 
            capitalize funds; making appropriations under art.                 
            IX, sec.  17(c),  Constitution  of  the  State  of                 
            Alaska,  from  the  constitutional budget  reserve                 
            fund; and providing for an effective date.                         
                                                                               
            HB  100   was  HELD   in  Committee   for  further                 
            discussion.                                                        
  HOUSE BILL NO. 100                                                           
                                                                               
       "An  Act making  appropriations for  the  operating and                 
       loan  program  expenses  of  state  government  and  to                 
       capitalize funds; making appropriations  under art. IX,                 
                                                                               
                                1                                              
                                                                               
                                                                               
       sec. 17(c), Constitution  of the State of  Alaska, from                 
       the constitutional  budget reserve fund;  and providing                 
       for an effective date."                                                 
                                                                               
       (Copies of  amendments will be  on file with  the House                 
       Finance  Committee  Secretaries  Office, Capital,  Room                 
       519,  until  the  end of  the  Nineteenth  Alaska State                 
       Legislature.  Copies of the amendments will be found at                 
       the Legislative Library after the end of the Nineteenth                 
       Alaska State Legislature.)                                              
                                                                               
  DEPARTMENT OF ADMINISTRATION                                                 
                                                                               
  Representative Kohring MOVED to adopt  Amendment DOA-1 (copy                 
  on file).   Representative  Brown OBJECTED.   Representative                 
  Kohring explained  that  the amendment  would delete  $170.6                 
  thousand  dollars  from  Permanency  Planning  and  $2,803.4                 
  thousand  dollars from  the Public  Broadcasting Commission;                 
  and add $111.5  thousand dollars to the  Public Broadcasting                 
  Commission   and  $2,862.5   thousand   dollars  in   Public                 
  Broadcasting Radio Grants.  He explained that  the intent is                 
  to  maximize  funding   to  sole   service  stations.     He                 
  recommended  that   separate  appropriations   be  made   to                 
  individual stations.                                                         
                                                                               
  Representative Grussendorf  expressed concern with  the line                 
  item authorization of separate appropriations.   He spoke in                 
  support of allowing  the Public  Broadcasting Commission  to                 
  allocate grants based on services.  He pointed out that even                 
  though  KCAW is not  identified as  a sole  service station,                 
  KCAW is the only  source of news, weather and  radio service                 
  to many communities.   He noted that the commercial  station                 
  only reaches to three miles outside  of town.  He emphasized                 
  that area fisherman are dependent on KCAW.                                   
                                                                               
  RICH  MCCLEAR,   SOUTHEAST  MEDIA  CONSORTIUM   stated  that                 
  regional  consortiums  have   been  created  by   individual                 
  stations.   The  Alaska Public  Broadcasting Commission  has                 
  aggregated $300.0  thousand dollars for  statewide services.                 
  He emphasized that these  services provide more efficiencies                 
  than could be created  by individual stations.  He  stressed                 
  that money can be saved through regionalization.                             
                                                                               
  Representative Brown spoke against line item appropriations.                 
  She  suggested that a  separate BRU could  be identified for                 
  radio.    She   pointed  out  that  some  public  radio  and                 
  television   stations  have   combined   operations.     She                 
  emphasized  that the  elimination of public  television will                 
  effect the radio network.  She spoke in support of providing                 
  sufficient  funding  for  public  television  to  allow  the                 
  transition  to privatization of  television.  She maintained                 
  that  public  television  could  be  consolidated  into  one                 
                                                                               
                                2                                              
                                                                               
                                                                               
  station.    She   noted  that  there  are   alternatives  to                 
  eliminating television.                                                      
                                                                               
  Representative  Brown  stated that  she  supports permanency                 
  planning.    She  noted that  permanency  planning  could be                 
  funded through adoption of a fiscal note.                                    
                                                                               
  Representative Kohring  agreed that  the Permanency  Planing                 
  program  can be funded through a fiscal note accompanying HB                 
  92.  He spoke in support of  Amendment DOA-1.  He noted that                 
  the intent is  to serve all  communities.  He stressed  that                 
  the  amendment does not  inhibit pooling  of resources  on a                 
  regional basis.                                                              
                                                                               
  Representative  Navarre   asked  the  definition   of  "sole                 
  service".    Representative  Kohring  responded  that  "sole                 
  service" refers  to  a  community  that only  has  a  public                 
  facility,   there   is   no   commercial   radio   facility.                 
  Representative Navarre noted  that Kenai is listed as a sole                 
  service station.                                                             
                                                                               
  Representative Martin  pointed out  that Kenai  can pick  up                 
  radio singles from Anchorage.                                                
                                                                               
  Representative Brown  expressed concern  that stations  that                 
  are  not  being  fully  funded  are  taking  a larger  (35%)                 
  reduction.  She stressed that many stations are close to the                 
  edge of being able to capture federal funds.  She emphasized                 
  that  larger stations  serve areas  that do  not have  other                 
  services.    She observed  that  the Anchorage  station also                 
  provides service to Prudhoe Bay and Unalaska.  She felt that                 
  attempts to regionalize would be undermined.  She emphasized                 
  that public  radio is  a fundamental  core service  that has                 
  huge impacts on people.                                                      
                                                                               
  Representative Kohring maintained that  no stations will  go                 
  off the air.  He stressed that reductions must be made.                      
                                                                               
  Representative  Brown responded  that several  stations will                 
  loose federal funding if the proposed level of reduction  is                 
  made.   She alleged that even though the total appropriation                 
  will  be  larger  than  the  original  recommendation,  some                 
  stations will receive deeper cuts.   She stated that a dozen                 
  stations will be reduced to local access repeaters and loose                 
  most of their federal dollars.                                               
                                                                               
  Representative Kohring  observed that sole  service stations                 
  will not  be reduced.  Other stations would be reduced by 35                 
  percent.  He  acknowledged that  the amendment would  reduce                 
  the amount that non-sole service stations would be cut.                      
                                                                               
  Co-Chair   Hanley   clarified   that    the   Subcommittee's                 
                                                                               
                                3                                              
                                                                               
                                                                               
  recommendation would have provided a 25 percent reduction to                 
  public radio with  the intention that sole  service stations                 
  would be  held harmless.   Non-sole  service stations  would                 
  have received a 45 - 50 percent reduction.  He noted concern                 
  that the Public  Broadcasting Commission would shut  down or                 
  drastically reduce some of the sole service stations.                        
                                                                               
  Representative Grussendorf emphasized that  stations running                 
  repeaters  are  dependent  on  the  "mother" stations.    He                 
  reiterated  the dependency of fishers  on radio service.  He                 
  repeated  his  concern  for  the  allocation  of  designated                 
  grants.                                                                      
                                                                               
  Representative Kohring  stated that $111.5  thousand dollars                 
  will remain for staff and  travel expenses.  Co-Chair Hanley                 
  clarified that there  is $170.6  dollars more  in the  total                 
  component.                                                                   
                                                                               
  Representative Kohring stressed that  the intent of separate                 
  appropriations is that public radio service be maintained at                 
  all stations.                                                                
                                                                               
  Representative    Navarre    summarized     that    separate                 
  appropriations will  result in the elimination  of statewide                 
  news programs and the loss of some federal grant funding.                    
                                                                               
  KRISTIE  LEAF, STAFF, REPRESENTATIVE KOHRING stated that the                 
  Department  of  Administration  did  not indicate  that  any                 
  public  radio stations would  go off the air  as a result of                 
  the reduction of state funding.   She maintained that  radio                 
  stations will  receive an additional $25.0  thousand dollars                 
  due to a reduction in staff and travel.                                      
                                                                               
  Representative Grussendorf MOVED  to AMEND Amendment  DOA-1,                 
  to grant $2,974.0 million dollars to the Public Broadcasting                 
  Commission.     He  stated  the  intent  would  be  for  the                 
  Commission to administer the grants.   After a brief at ease                 
  Representative Grussendorf  MOVED to WITHDRAW  his amendment                 
  to Amendment DOA-1.                                                          
                                                                               
  Representative  Kohring MOVED  to AMEND Amendment  DOA-1, by                 
  deleting the itemization  of grants  to individual  stations                 
  and to appropriate  $2,974.0 million  dollars to the  Public                 
  Broadcasting Commission.  He stated  that the amendment will                 
  give the Commission  an opportunity to allocate  the funding                 
  in a manner that is fair and allows stations to remain open.                 
  He noted that a letter of intent will be drafted.                            
                                                                               
  There being NO  OBJECTION, the amendment to  Amendment DOA-1                 
  was adopted.   There being NO OBJECTION, Amendment DOA-1 was                 
  adopted.                                                                     
                                                                               
                                                                               
                                4                                              
                                                                               
                                                                               
  Co-Chair  Foster  MOVED to  adopt  Amendment DOA-2  (copy on                 
  file).   Representative Kohring  OBJECTED.   Co-Chair Foster                 
  explained  that  the  amendment  will  pay  $200.0  thousand                 
  dollars for staffing of the  Rural Alaska Television Network                 
  (RATNet).  He  noted that  the uplink is  funded for  RATNet                 
  without an staff.                                                            
                                                                               
  Representative  Kohring  stated  that  RATNet's  budget  was                 
  reduced by 25 percent.                                                       
                                                                               
  (Tape Change, HFC 95-67, Side 1)                                             
                                                                               
  The amendment would  reduce the Office of  the Commissioner,                 
  Department of  Administration  by  $50.0  thousand  dollars;                 
  Agricultural Development, Department of Natural Resources by                 
  $100.0  thousand  dollars  and   Personnel/Equal  Employment                 
  Opportunity, Department of Administration by $50.0  thousand                 
  dollars.  He spoke in support of the amendment.                              
                                                                               
  Representative  Brown noted  that she supports  the addition                 
  but  not  the reduction  to  the  Personnel/Equal Employment                 
  Opportunity, Department of Administration  by $50.0 thousand                 
  dollars.     She  stressed   that  grievances   not  handled                 
  administratively could end up in court.                                      
                                                                               
  Representative Therriault expressed concern with the  $100.0                 
  thousand   dollars  reduction   to  Department   of  Natural                 
  Resources.                                                                   
  Representative  Grussendorf  suggested that  another revenue                 
  source be considered.                                                        
                                                                               
  Co-Chair Foster WITHDREW Amendment DOA-2.                                    
                                                                               
  Representative Brown MOVED to adopt Amendment DOA-3 (copy on                 
  file).    Representative Kohring  OBJECTED.    The amendment                 
  would add  $309.9 thousand  dollars to  RATNet and  $3,067.8                 
  million dollars for the Public Broadcasting  Commission from                 
  the Mitigation Account.  Representative Brown explained that                 
  the  Mitigation  Account  consists  of  fines  and penalties                 
  collected by the Department of Law for money owed the State.                 
  She  noted  proposals   to  appropriate  funding   from  the                 
  Mitigation Account to  the Underground Storage Tank  program                 
  and Oil and Hazardous Substance Release  Response Fund.  She                 
  stressed that the money in the Mitigation Account is general                 
  fund revenue.   She  stressed the importance  of RATNet  and                 
  public broadcasting.  She maintained that storage tank clean                 
  up is not  the most pressing environmental  problem that the                 
  State faces.  She emphasized that RATNet is an integral part                 
  of the state emergency broadcasting system.                                  
                                                                               
  Co-Chair    Foster   MOVED    to   divide    the   question.                 
  Representative  Martin  spoke against  using  the Mitigation                 
                                                                               
                                5                                              
                                                                               
                                                                               
  Account  as a  funding source.   There  being  NO OBJECTION,                 
  Amendment DOA-3 was divided.                                                 
                                                                               
  Co-Chair Foster MOVED to adopt  Amendment DOA-3A, add $309.9                 
  thousand  dollars to  RATNet  from  the Mitigation  Account.                 
  Representative Therriault asked if the  funds would be taken                 
  from section 20(a) or 20(b).   He stated that funding in  20                 
  (a)  that  is  not transferred  to  the  Underground Storage                 
  Assistance  Fund  will  lapse  into  the Oil  and  Hazardous                 
  Substance Release Prevention  and Response  Fund.  He  noted                 
  that the Oil and Hazardous  Substance Release Prevention and                 
  Response Fund pays for operations  of the Division of  Spill                 
  Prevention and Response.                                                     
                                                                               
  Representative Brown  stated that  the reduction would  come                 
  from section 20(b).  Representative Therriault stressed that                 
  the money contained in 20(b) would have to be transferred to                 
  the   General   Fund   before   it   can   be  appropriated.                 
  Representative  Brown observed  that  she  is attempting  to                 
  target the $3.5  million dollars  that would be  transferred                 
  from the Mitigation  Account to the Storage  Tank Assistance                 
  Fund.  She  observed that there  is no legal restriction  on                 
  spending from the Mitigation Account.                                        
                                                                               
  Representative Therriault  spoke against the  amendment.  He                 
  emphasized   the  importance   of   clean  drinking   water.                 
  Representative Martin agreed with Representative Therriault.                 
                                                                               
                                                                               
  Representative  Brown stressed that  she also supports clean                 
  drinking  water.   She  maintained  that  the money  in  the                 
  Storage Tank  Assistance Fund  subsidizes private  corporate                 
  entities.   She noted  that Chevron,  Tesoro, MarkAir,  PTI,                 
  Delta  Airlines,  Alaska  Airlines,  Mat-Su  Telephone,  and                 
  Alaska Federal Credit  Union are among the  beneficiaries of                 
  the Fund.                                                                    
                                                                               
  Representative Grussendorf  spoke in support of  funding for                 
  RATNet.  He asked suggestions  for a more agreeable  funding                 
  source.                                                                      
                                                                               
  A  roll call vote was taken on the MOTION to adopt Amendment                 
  DOA-3A.                                                                      
                                                                               
  IN FAVOR: Brown, Grussendorf, Navarre, Foster                                
  OPPOSED:  Kelly,   Kohring,    Martin,   Mulder,    Parnell,                 
  Therriault,         Hanley                                                   
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  Representative  Brown  MOVED   to  adopt  Amendment  DOA-3B.                 
  Representative Kohring OBJECTED.                                             
                                                                               
                                6                                              
                                                                               
                                                                               
  BILL   LEGERE,   PRESIDENT,   ALASKA  BROADCASTING   SERVICE                 
  discussed a  plan  to phase  out  state support  for  public                 
  television over a  three year period.   He provided  members                 
  with a handout describing  the phase out plan (copy  on file                 
  with Amendment DOA-3B).  He stressed that the infrastructure                 
  created by the State would be jeopardized by the elimination                 
  of state support in FY 96.                                                   
                                                                               
  Representative  Brown MOVED  to  AMEND  Amendment DOA-3B  by                 
  reducing the appropriation amount to $2.8 million dollars.                   
                                                                               
  DOUGLAS  SAMIMI-MOORE,  EXECUTIVE  DIRECTOR,  ALASKA  PUBLIC                 
  BROADCASTING COMMISSION assured  members that it is  not the                 
  intent of the Commissioner to  shut down any radio stations.                 
  He stressed that  a number  of stations  risk loosing  their                 
  federal matching  funds at the current  appropriation level.                 
  He noted that the federal match  requires that there be five                 
  full time professional  staff not paid  by federal funds  at                 
  each station applying  for a  match.  Most  of the  stations                 
  that would be turned into  local access repeaters would  not                 
  qualify  under  this  restriction.    He  pointed  out  that                 
  commercial radio  may not provide the same service as public                 
  radio stations.  He observed that a significant reduction of                 
  state support would result in the  loss of the Alaska Public                 
  Radio Network's statewide news coverage.  He reiterated that                 
  10 to 12 stations  would loose their federal funding  and be                 
  reduced from  a  full  service station  to  a  local  access                 
  repeater.                                                                    
                                                                               
  Representative   Kohring   pointed  out   that   the  Public                 
  Broadcasting Endowment can raise money.   He maintained that                 
  the public will pay for public  radio and television if they                 
  want  the service to continue.   He  did not feel that it is                 
  the role of government to subsidize radio and television.                    
                                                                               
  Representative Brown maintained that there  is a high degree                 
  of public interest and concern.   She alleged that the State                 
  should be involved in emergency broadcasting and educational                 
  programing.                                                                  
                                                                               
  A  roll call vote was taken on the MOTION to adopt Amendment                 
  3B.                                                                          
                                                                               
  IN FAVOR: Brown, Grussendorf, Navarre, Foster                                
  OPPOSED:  Kelly,   Kohring,    Martin,   Mulder,    Parnell,                 
  Therriault,         Hanley                                                   
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  Representative Brown MOVED to adopt Amendment DOA-4 (copy on                 
  file).   Representative Kohring  OBJECTED.   Amendment DOA-4                 
                                                                               
                                7                                              
                                                                               
                                                                               
  would add $100 to the Personnel/Equal Employment Opportunity                 
  BRU  from  the  Mitigation  Account.   Representative  Brown                 
  observed that there is a current backlog of six months.  She                 
  maintained that if cases are not settled in arbitrations the                 
  State will face an increase in court cases.                                  
                                                                               
  A roll call vote was taken on the  MOTION to adopt Amendment                 
  DOA-4.                                                                       
                                                                               
  IN FAVOR: Brown, Grussendorf, Navarre                                        
  OPPOSED:  Kohring,  Martin,  Parnell,   Therriault,  Foster,                 
  Hanley                                                                       
                                                                               
  Representatives Kelly and Mulder were absent for the vote.                   
                                                                               
  The MOTION FAILED (3-6).                                                     
                                                                               
  Representative Brown MOVED to adopt Amendment DOA-5 (copy on                 
  file).   Representative Kohring  OBJECTED.   Amendment DOA-5                 
  would fund  the Public  Defender Agency  at $460.0  thousand                 
  dollars and the Office of Public Advocacy at $780.0 thousand                 
  dollars.   Representative Brown explained that the amendment                 
  would fund  the activities of the Public Defender Agency and                 
  the Office of Public Advocacy for the next year.   She asked                 
  how members  could justify not  funding these  requirements.                 
  She  noted  that  by June  30,  1995  the  Office of  Public                 
  Advocacy  expects to have  60 cases that  must be continued.                 
  She maintained that 57 of the cases are for felonies.                        
                                                                               
  Representative   Grussendorf  spoke   in   support  of   the                 
  amendment.  He emphasized  the constitutional responsibility                 
  for representation.   He  maintained that  the  size of  the                 
  purse should not determine the quality of justice received.                  
                                                                               
  Representative  Kohring   pointed  out   that  funding   has                 
  increased from  the FY  95 authorized level.   He  suggested                 
  that the Prosecuting Attorney's Office and the Department of                 
  Law be equally reduced.                                                      
                                                                               
  Representative Brown  noted that  if these  agencies are  to                 
  have  less cases  there needs to  be less  crime laws.   She                 
  suggested that these  programs be funded in  relationship to                 
  the rest of the criminal justice system.                                     
                                                                               
  Representative Navarre  pointed out  that the  Department of                 
  Law has the ability to determine  which cases they are going                 
  to prosecute.  The Public Defender  Agency does not have the                 
  discretion to reject cases referred to  them.  He noted that                 
  the Office of Public Advocacy  takes child protection cases.                 
  He  observed that  these  agencies  have  been  consistently                 
  under-funded.                                                                
                                                                               
                                                                               
                                8                                              
                                                                               
                                                                               
  Representative  Brown  maintained  that the  FY  96 proposed                 
  funding  level  for  the Public  Defender  Agency  is $300.0                 
  thousand dollars less than the FY 95 authorized when the RPL                 
  approved by the  Legislative Budget  and Audit Committee  is                 
  included.  The Office of Public Advocacy will receive $100.0                 
  thousand dollars less than the  total FY 95 authorized level                 
  including RPL's.                                                             
                                                                               
  Representative  Navarre  emphasized that  inadequate funding                 
  will result in a supplemental.                                               
                                                                               
  Representative  Kohring  stressed   that  he  would  welcome                 
  working with the Administration for long term solutions.                     
                                                                               
  A roll  call vote was taken on the MOTION to adopt Amendment                 
  DOA-5.                                                                       
                                                                               
  IN FAVOR: Brown, Grussendorf, Navarre                                        
  OPPOSED:  Kohring,  Martin,  Mulder,   Parnell,  Therriault,                 
  Foster,        Hanley                                                        
                                                                               
  Representative Mulder was absent from the vote.                              
                                                                               
  The MOTION FAILED (3-7).                                                     
                                                                               
  (Tape Change, HFC 95-67, Side 2)                                             
                                                                               
  Co-Chair Hanley  MOVED to  adopt Intent  Language DOA-1  and                 
  DOA-2  on behalf  of  Representative  Austerman  (copies  on                 
  file).  He noted  that the intent language would  direct the                 
  Administration to move towards privatization of public radio                 
  and  television.   Representative  Brown suggested  that the                 
  intent  language  is inconsistent  with  the actions  of the                 
  Committee.  She  noted that  RATNet is not  included in  the                 
  Endowment Trust.                                                             
                                                                               
  Co-Chair  Hanley WITHDREW Intent  Language DOA-1  and DOA-2.                 
  There being NO OBJECTION, it was so ordered.                                 
                                                                               
  Representative Brown HELD Intent Language DOA-3.                             
                                                                               
  Representative Kohring MOVED to adopt  Intent Language DOA-4                 
  (copy on file).   The intent language provided that  no sole                 
  service  stations  be  closed,  that  state funding  not  be                 
  provided to  public television,  and that the  issue be  re-                 
  visited in  one year.   There being NO OBJECTION,  it was so                 
  ordered.                                                                     
                                                                               
  NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF                 
  MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR requested that                 
  "Commission" be  deleted from  Amendment DOA-1  in order  to                 
  allow  the Administration  flexibility to  provide that  the                 
                                                                               
                                9                                              
                                                                               
                                                                               
  Public   Broadcasting   Endowment   Trust   or  the   Public                 
  Broadcasting Commission administer the funds.                                
                                                                               
  Representative  Martin spoke  against  the suggestion.    He                 
  maintained that  an amendment  to delete  "Commission" would                 
  amount to using an appropriation for legislative change.                     
                                                                               
  Ms. Slagle emphasized that the intent would be  to privatize                 
  public broadcasting and would not require statutory language                 
  changes.  Co-Chair  Hanley noted that  the Trust is  already                 
  established  in  law.    He   questioned  if  the  suggested                 
  amendment would  allow the Administration to  distribute the                 
  funding  without  going  through   the  Public  Broadcasting                 
  Commission or the Public Broadcasting  Endowment Trust.  Ms.                 
  Slagle assured  Co-Chair Hanley that the appropriation would                 
  be   directed   either  through   the   Public  Broadcasting                 
  Commission  or the Public Broadcasting Endowment Trust.                      
                                                                               
  The amendment was not offered.                                               
                                                                               
  Representative Brown referred to Intent Language DOA-3.  She                 
  deleted  "and  RATNet"  from  the  third  paragraph  of  the                 
  amendment.  She MOVED  to adopt Intent Language DOA-3.   The                 
  intent language  would direct  the Administration  to reduce                 
  general  fund  support  for  RATNet,  to  privatize   public                 
  broadcasting  through  the  Public   Broadcasting  Endowment                 
  Trust, and  to consolidate  the  public television  stations                 
  into one station.                                                            
                                                                               
  Representative    Kohring    spoke     against    government                 
  subsidization  of  public broadcasting.    Discussion ensued                 
  regarding    privatization    of     publIc    broadcasting.                 
  Representative Brown  asserted that private media  is absent                 
  from  much of the State due to the  size of the market.  She                 
  suggested that  there meeds to  be some level  of government                 
  funding  in  rural  Alaska.   She  emphasized  that stations                 
  should be encouraged  to create an organization that is able                 
  to solicit private funds.                                                    
                                                                               
  Representative Martin suggested that  private enterprise may                 
  feel   that  they   cannot  compete  against   a  government                 
  subsidized entity.                                                           
                                                                               
  Representative Navarre  noted that  commercial stations  are                 
  primarily funded  through advertising.   He  maintained that                 
  advertising dollars to  support commercial broadcasting  are                 
  not available.                                                               
                                                                               
  Representative Kohring reiterated his belief that the public                 
  will  pay  for  public  broadcasting  if  they  want  it  to                 
  continue.   He asserted  that "big bird  is not  going to go                 
  away."                                                                       
                                                                               
                               10                                              
                                                                               
                                                                               
  In   response  to  a   question  by  Representative  Martin,                 
  Representative Brown clarified  that the Public Broadcasting                 
  Endowment Trust has been legally created.                                    
                                                                               
  Representative  Navarre  noted   problems  in  his  district                 
  regarding commercial station broadcasting.                                   
                                                                               
  A roll  call vote was  taken on the  MOTION to adopt  Intent                 
  Language DOA-3.                                                              
                                                                               
  IN FAVOR: Brown,  Grussendorf,  Navarre,   Kohring,  Martin,                 
  Parnell,       Therriault, Hanley                                            
  OPPOSED:  Mulder                                                             
                                                                               
  Representatives Foster and Kelly was absent from the vote.                   
                                                                               
  The MOTION PASSED (8-1).                                                     
                                                                               
  DEPARTMENT OF LAW                                                            
                                                                               
  Representative Parnell  MOVED to adopt Amendment LAW-1 (copy                 
  on  file).   Co-Chair  Hanley  explained that  the amendment                 
  would add funding for the Department of Law, Legal Services.                 
  Funding would be  provided from the  Department of Health  &                 
  Social Services.   He  explained that  $1.0 million  dollars                 
  would be  take  from  the  Department  of  Health  &  Social                 
  Services  and transferred  to the  Department of  Law.   The                 
  Waivers  Services  Component  would  be  reduced  by  $588.0                 
  thousand dollars.  He stated that  this would not affect the                 
  number of waivers applied.  He  noted that a $488.0 thousand                 
  dollar  savings  was  realized  in  this  component  due  to                 
  additional slowing of  the Older Alaskans waiver.   The base                 
  was adjusted by $140.0 thousand dollars to correct an error.                 
  He added that  Medicaid Non-facility, Medicaid Facility  and                 
  General Relief Medial will be reduced  by 10.6 percent for a                 
  savings of $412.0 thousand dollars.                                          
                                                                               
  Representative Parnell  explained that $1.5  million dollars                 
  would be added  back to Legal  Services, Department of  Law.                 
  He added that transfers would be made from the Environmental                 
  Law  and   Environmental  Compliance  Components   to  Legal                 
  Services.    This  would allow  funding  in  areas of  child                 
  protection and natural resources.                                            
                                                                               
  In  response   to  a  question   by  Representative   Brown,                 
  Representative Parnell explained that at  the request of the                 
  Office of Management  and Budget,  470 funds were  withdrawn                 
  from the Department  of Law's base.   The Department of  Law                 
  will bill the Department  of Environmental Conservation  for                 
  services associated with 470 funds.                                          
                                                                               
                                                                               
                               11                                              
                                                                               
                                                                               
  Representative Brown asked  if there would be a reduction in                 
  the  level  of  effort  for  collecting fines,  damages  and                 
  penalties associated with violations.                                        
                                                                               
  BARBARA RITCHIE,  DEPUTY ATTORNEY  GENERAL, CIVIL  DIVISION,                 
  DEPARTMENT  OF  LAW  acknowledged  that  there  would  be  a                 
  reduction in the recouping of fines.  She estimated that the                 
  reduction in  personnel  cost  would  result in  a  loss  of                 
  revenues which  would exceeded  the savings  by over  $100.0                 
  thousand dollars in fines.                                                   
                                                                               
  Representative Parnell explained that  the Department of Law                 
  made  the  decision  to  share  the  reductions  across  the                 
  Department.                                                                  
                                                                               
  Co-Chair  Hanley further explained  the savings  realized in                 
  the  Waivers Services Component.  He  noted that the waiting                 
  list has been reduced.                                                       
                                                                               
  There being NO OBJECTION, Amendment LAW-1 was adopted.                       
                                                                               
  Representative  Brown  WITHDREW  Amendment  LAW-2  (copy  on                 
  file).                                                                       
                                                                               
  DEPARTMENT OF REVENUE                                                        
                                                                               
  Co-Chair  Hanley  MOVED to  adopt  Amendment REV-1  (copy on                 
  file).   He explained  that the  amendment would add  $952.8                 
  thousand dollars for the Mental Health Trust Authority.  The                 
  amendment  also  contained  intent  language  directing  the                 
  Authority to  prepare a comprehensive mental  health program                 
  budget.                                                                      
                                                                               
  Representative  Martin  emphasized   that  money  spent   in                 
  administration reduces funding  available for  clients.   He                 
  maintained  that  the  Authority needs  to  have legislative                 
  oversight.    Co-Chair  Hanley pointed  out  that  they must                 
  submit their  budget to the  legislature.  He  observed that                 
  the amount was  requested by the  Authority.  He noted  that                 
  four positions are statutorily required.                                     
                                                                               
  Representative Brown maintained  that the Authority believes                 
  it has the ability  to spend dollars from the  Mental Health                 
  Trust Income Account.  She expressed concern that the intent                 
  language  would  run  counter to  the  understanding  of the                 
  settlement.                                                                  
                                                                               
  Co-Chair Hanley MOVED to divide the question.   He explained                 
  that  the  intent language  would be  considered separately.                 
  There being NO OBJECTION, it was so ordered.                                 
                                                                               
  In response  to a  question by  Representative Navarre,  Co-                 
                                                                               
                               12                                              
                                                                               
                                                                               
  Chair Hanley noted  that the staff and range information was                 
  not provided.                                                                
                                                                               
  There being NO OBJECTION, Amendment REV-1A was adopted.                      
                                                                               
  Representative Brown summarized that it is not the intent to                 
  preclude the Mental  Health Trust Authority from  exercising                 
  their statutory  authority and make  expenditures consistent                 
  with the  statute  out of  the  Mental Health  Trust  Income                 
  Account.  Co-Chair  Hanley stressed that  he only wanted  to                 
  have the Authority submit a list of planned expenditures.                    
                                                                               
  Representative Brown WITHDREW  her objections.   There being                 
  NO OBJECTION, Amendment REV-1B was adopted.                                  
                                                                               
  Representative  Martin MOVED to  adopt Amendment REV-2 (copy                 
  on  file).    The  amendment  would delete  $600.0  thousand                 
  dollars from the Department of Revenue, Oil and Gas Audit.                   
                                                                               
  (Tape Change, HFC 95-68, Side 1)                                             
                                                                               
  Representative Grussendorf  spoke against the amendment.  He                 
  noted that the  amendment would reduce an  auditor position.                 
  He pointed out that  each auditor is capable of  bringing in                 
  millions  of dollars.    Co-Chair Hanley  and Representative                 
  Brown spoke against adoption of the amendment.                               
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
  IN FAVOR: Therriault, Martin, Mulder, Foster                                 
  OPPOSED:  Brown,  Grussendorf,   Navarre,  Parnell,   Kelly,                 
  Kohring,       Hanley                                                        
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  Representative Brown MOVED to adopt Amendment REV-3 (copy on                 
  file).    Representative  Martin  OBJECTED.   Representative                 
  Brown explained that the amendment would add $140.0 thousand                 
  dollars  to Treasury  Management  Safekeeping Fees  from the                 
  Constitutional Budget  Reserve Fund.   She  argued that  the                 
  this component needs to be represented "on budget".                          
                                                                               
  Representative   Martin   objected   to  the   use   of  the                 
  Constitutional Budget  Reserve as  the funding  source.   He                 
  MOVED  to  AMEND  Amendment  REV-3,  delete  "Constitutional                 
  Budget Reserve Fund" and insert "general funds".                             
                                                                               
  Representative  Therriault noted  that the amendment  to the                 
  amendment would raise the cap of the Department of Revenue.                  
                                                                               
  Co-Chair   Hanley   expressed    support   for   using   the                 
  Constitutional Budget  Reserve Fund  as the  funding source.                 
                                                                               
                               13                                              
                                                                               
                                                                               
  He   stressed  that  the  funds   are  used  to  manage  the                 
  Constitutional Budget Reserve Fund.                                          
                                                                               
  Representative Martin  cautioned that interest  will have to                 
  be paid  on money  borrowed from  the Constitutional  Budget                 
  Reserve Fund.                                                                
                                                                               
  A  roll  call vote  was  taken on  the  MOTION to  amend the                 
  amendment.                                                                   
                                                                               
  IN FAVOR: Brown, Martin                                                      
  OPPOSED:  Grussendorf,  Navarre,  Kelly,  Kohring,  Parnell,                 
            Therriault, Foster, Hanley                                         
                                                                               
  The MOTION FAILED (2-8).                                                     
                                                                               
  There being NO OBJECTION, Amendment REV-3 was adopted.                       
                                                                               
  Representative Grussendorf  MOVED to  adopt Amendment  REV-4                 
  (copy  on  file).    He  explained  that  funding  would  be                 
  transferred from Gaming  to Child  Support Enforcement.   He                 
  spoke in  support of  the amendment.   He  pointed out  that                 
  child support payments which would result from the amendment                 
  would surpass the cost of the amendment.                                     
                                                                               
  Representative  Martin pointed  out that  the Child  Support                 
  Enforcement Division is  receiving an  increase from FY  95.                 
  He argued against  the amendment.  He noted that  not all of                 
  the approved  positions have been  filled.  He  stressed the                 
  importance of the Gaming Component.                                          
                                                                               
  Representative  Grussendorf  acknowledged the  importance of                 
  Gaming.  He emphasized that a $90.0 thousand dollar transfer                 
  into the Child Support Enforcement Division would capture up                 
  to $800.0 thousand dollars in federal matching funds.                        
                                                                               
  Representative Parnell  expressed concern  with the  funding                 
  source.    Representative  Grussendorf  stressed  that   the                 
  funding source reflects the priorities  of the Department of                 
  Revenue.                                                                     
                                                                               
  Representative Brown spoke in support of the amendment.  She                 
  observed  that the  Legislative Budget  and  Audit Committee                 
  approved   additional   positions   without  approving   the                 
  necessary  funding   to  implement   the  positions.     She                 
  reiterated that federal matching funds would be gained.  She                 
  added  that the  State would  benefit from  the increase  in                 
  child support payments.                                                      
                                                                               
  Co-Chair Hanley noted  that the amendment would  drop Gaming                 
  to the FY 95 level.   The Child Support Enforcement Division                 
  would be $600.0 thousand dollars above FY 95.                                
                                                                               
                               14                                              
                                                                               
                                                                               
  A roll call vote was taken on the MOTION  to adopt Amendment                 
  REV-4.                                                                       
                                                                               
  IN FAVOR: Brown, Grussendorf, Navarre                                        
  OPPOSED:  Kelly,  Kohring,   Martin,  Parnell,   Therriault,                 
  Foster,        Hanley                                                        
                                                                               
  Representative Mulder was absent from the vote.                              
                                                                               
  The MOTION FAILED (3-7).                                                     
                                                                               
  Representative Grussendorf  MOVED to  adopt Amendment  REV-5                 
  (copy on file).   He explained that the amendment  would add                 
  an investigators  position to  the Alcohol Beverage  Control                 
  Board.                                                                       
                                                                               
  Representative Navarre  stressed that the  increase would be                 
  offset by an increase in program  receipts.  He stressed the                 
  effects of alcohol on social programs.                                       
                                                                               
  Representative Martin  observed that the increase in program                 
  fees comes from taxes paid by tavern and bar owners.                         
                                                                               
  Representative  Navarre  declared  a  conflict of  interest.                 
  Representative Parnell  declared  a  conflict  of  interest.                 
  Both were excused and expected to vote.                                      
                                                                               
  A roll call vote was taken on the  MOTION to adopt Amendment                 
  REV-5.                                                                       
                                                                               
  IN FAVOR: Brown, Grussendorf, Kelly, Navarre                                 
  OPPOSED:  Kohring,  Martin,  Parnell,   Therriault,  Foster,                 
  Hanley                                                                       
                                                                               
  Representative Mulder was absent from the vote.                              
                                                                               
  The MOTION FAILED (4-6).                                                     
                                                                               
  Representative Brown MOVED to adopt Amendment REV-6 (copy on                 
  file).   Representative  Martin  OBJECTED.    Representative                 
  Brown explained that the amendment  would restore funding to                 
  the Divisions of  Oil and  Gas Audit and  Income and  Excise                 
  Audit,  and the Office of the  Commissioner.  She maintained                 
  that it does  not make sense to  reduce areas of the  budget                 
  that are responsible  for collection of  monies owed to  the                 
  State.   She  stressed that  the Commissioner  serves on  24                 
  state boards with  major responsibility.   The reduction  in                 
  the  Commissioner's Office would result in a  loss of 2 of 4                 
  positions.                                                                   
                                                                               
  Representative  Martin  spoke  against the  amendment.    He                 
                                                                               
                               15                                              
                                                                               
                                                                               
  alleged that there are diminishing  returns on funding spent                 
  on  audits.  He stressed that  the level is an increase over                 
  Governor Hickel's request.  He acknowledged that the funding                 
  level is below Governor Knowles' request.                                    
                                                                               
  Representative  Brown pointed out that $265 thousand dollars                 
  was  deleted  from  the  front  section   for  oil  and  gas                 
  litigation.   She noted  other reductions.   She  maintained                 
  that there is a significant reduction in these areas.                        
                                                                               
  Representative Martin  maintained  that  the  front  section                 
  appropriation amounted  to a  "slush fund".   Representative                 
  Brown  argued  that the  front  section appropriated  funded                 
  items related to major  oil and gas cases, expert  witnesses                 
  and auditor travel.                                                          
                                                                               
  A roll call vote was taken  on the MOTION to adopt Amendment                 
  REV-6.                                                                       
                                                                               
  IN FAVOR: Brown, Grussendorf, Navarre                                        
  OPPOSED:  Kelly,  Kohring,   Martin,  Parnell,   Therriault,                 
  Foster,        Hanley                                                        
                                                                               
  Representative Mulder was absent from the vote.                              
                                                                               
  The MOTION FAILED (3-7).                                                     
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 5:05 p.m.                                           
                                                                               
                                                                               
                               16                                              

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