Legislature(1993 - 1994)
01/28/1993 01:30 PM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
January 28, 1993
1:30 P.M.
TAPE HFC 93-12, Side 2, #000 - end.
TAPE HFC 93-13, Side 1, #000 - end.
TAPE HFC 93-13, Side 2, #000 - #165.
CALL TO ORDER
Co-Chair Ron Larson called the meeting of the House Finance
Committee to order at 1:30 P.M.
PRESENT
Co-Chair Larson Representative Brown
Co-Chair MacLean Representative Foster
Vice-Chair Hanley Representative
Grussendorf
Representative Martin Representative Therriault
Representative Navarre Representative Parnell
Representative Hoffman was not present for the meeting.
ALSO PRESENT
Frank Turpin, Commissioner, Department of Transportation and
Public Facilities; Ron Lind, Director, Plans, Programs and
Budget, Department of Transportation and Public Facilities;
Keith Gerken, Deputy Commissioner, Department of
Transportation and Public Facilities; Keith Gerken, Deputy
Commissioner, Department of Transportation and Public
Facilities; Randy Simmons, Deputy Commissioner, Department
of Transportation and Public Facilities; Charles Mahlen,
Commissioner, Department of Labor; David Teal, Director,
Division of Administrative Services, Department of Labor;
Donald Study, Director, Division of Labor Standards &
Safety, Department of Labor; Arbe Williams, Special
Assistant to the Commissioner, Department of Labor.
SUMMARY INFORMATION
HB 55 FY 94 OPERATING BUDGET & LOAN PROGRAMS
HB 56 APPROP: FORMULA/MANDATED PROGRAMS; LEASES
OVERVIEWS: Transportation & Public Facilities
Labor
HB 55 FY 94 OPERATING BUDGET & LOAN PROGRAMS
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
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FRANK TURPIN, COMMISSIONER, DEPARTMENT OF TRANSPORTATION &
PUBLIC FACILITIES (DOTPF), provided the Committee with a
handout summarizing the Department's FY 94 budget.
[Attachment #1 - on file].
Co-Chair Larson noted that DOTPF asked for $130.7 million
dollars for the FY 93 authorized budget. The FY 94 request
reflects a reduction of $2.65 million dollars less.
Commissioner Turpin pointed out that the total drop in the
projected budget incorporates a change with the Alaska
Marine Highway System.
Commissioner Turpin provided statistics from the past ten
years illustrating financing for DOTPF. Funding sources
which support DOTPF are: General fund dollars, AMHS
revenues, international airports, highway working capital
dollars and mixed funding. The majority of money spent by
the Department (56%) goes to capital improvements.
He added that most of the general fund monies go to
maintenance and operations of highways, airports and
buildings. Any cuts from DOTPF must be taken from either
the Alaska Marine Highways (AMHS) or maintenance, even
though both these Divisions are operating on a thin budget.
Commissioner Turpin noted there was a large maintenance
funding drop in 1987 from which the Department is currently
trying to recover. He emphasized that the AMHS has seen a
$1 million dollar decrease of funds since 1987. A $37
million dollar increase is necessary to reach the 1983
level.
Representative Martin asked how many employees worked in the
Department's administration. Commissioner Turpin explained
there are thirty-one hundred people who work for DOTPF.
Representative Martin asked for an employee division
breakdown.
Representative Grussendorf questioned the effects of the
reduction to AMHS with a main line ferry currently in
repair. Commissioner Turpin replied that service would be
virtually unaffected although fares would be increased.
Co-Chair Larson inquired if the Retirement Incentive Program
(RIP) saved DOTPF money. Commissioner Turpin responded that
the RIP Program forced DOTPF to loose a lot of valuable
experience and there have been many hidden costs. He stated
that the number of people do not tell the full story.
Representative Navarre suggested more funds be shifted to
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the maintenance and operations component of the proposed
budget. Commissioner Turpin replied that the cut to that
component was distributed statewide.
Representative Navarre asked what comprised the reduction to
maintenance and operations. Commissioner Turpin stated a
secretarial and procurement clerk position would be
eliminated in Anchorage. Representative Navarre requested
an additional grater operator for the Kenai area and asked
if there were any proposed reductions to the rural airports.
Commissioner Turpin replied that the rural airport component
and increased landing fees were left untouched this year.
Representative Grussendorf noted that there is $61 million
dollars of Intermodal Surface Transportation Enhancement Act
(ISTEA) funds. He asked if those funds would be distributed
to the organized boroughs through DOTPF. Commissioner
Turpin clarified that there will be no change in the
legislative approval of the DOTPF capital budget. Local
projects and roads will be paid with federal funds and
planned by local committees with assistance from the
Department.
Representative Therriault asked if the supplemental would
include the Dalton Highway. Commissioner Turpin replied
that the Dalton Highway problem has presented continuous
difficulties including contraction of services due to record
snowfalls. There is currently a request of $1.2 million
dollars supplemental funds. In order to guarantee that
further supplementals will not be necessary, DOTPF submitted
a request for $1.8 million additional dollars for
maintenance money for the Dalton Highway in the FY 94 budget
package. Representative Therriault asked if those figures
were reflected in the proposed budget. Commissioner Turpin
stated they were not.
Representative Navarre questioned the need of the additional
allocation requested for the Dalton Highway for next year.
Commissioner Turpin pointed out there will be a newly added
one hundred-fifteen mile extension of highway which will
require additional upkeep and maintenance.
Representative Therriault questioned mail box damage in his
district by snow removal equipment. Commissioner Turpin
explained that maintenance control is a regional problem and
is dealt with on a regional level by the Department.
Co-Chair Larson noted that the Department of Transportation
and Public Facilities Subcommittee would be Chaired by
Representative Foster with members Representative Sanders,
Representative Williams, Representative Phillips,
Representative Mulder, Representative Menard, Representative
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Mackie and Representative Navarre.
(Tape Change, HFC 93 - 13, Side 1).
DEPARTMENT OF LABOR
CHARLES MAHLEN, COMMISSIONER, DEPARTMENT OF LABOR, provided
the Committee with a handout summarizing the Department's FY
94 budget request. [Attachment #2 - on file]. He noted
that the Department of Labor was submitting a proposed
budget reduced by $600 thousand dollars.
Co-Chair MacLean commented that over the past two years,
general funds for the Department of Labor have been reduced
by 15.6%. Representative Grussendorf asked if that included
transfer of responsibilities to other departments.
Commissioner Mahlen reviewed Attachment #1 and noted that
the Department of Labor's operating budget is .5% of the
State's entire operating budget. He added that the
Department of Labor's mission established in Title 23 is to
foster and promote the welfare of the wage earners in the
State, improve their working conditions and advance their
opportunities for profitable employment.
The Department is composed of the Commissioner's Office and
four divisions:
* Administrative Services Division - 14% percent of
FY 94 general fund operating budget request of
division.
* Worker's Compensation Division - 11% percent of FY
94 general fund operating budget request of the
division.
* Labor Standards & Safety Division - 11% of the FY
94 general fund operating budget request of the
division.
* Employment Security Division - 63% percent of the
FY 94 general fund operating budget request of the
division.
The Employment Security Division budget is comprised of four
components:
* Employment/Unemployment Services
* Alaska Work Programs (JOBS)
* Governor's Committee on Employment of People with
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Disabilities
* State Training & Employment Program
These funds originate from general funds ($243.3), federal
funds ($29,405.9), other funds ($6,562.1) and the remainder
of the Department.
The Administrative Services Division is comprised of three
sections:
* Management Services
* Labor Market Information
* Data Processing
The Office of the Commissioner is comprised of two sections:
* Office of the Commissioner - The Commissioner's
Office is the policy arm of the department and
focuses operations on the purpose of the
department which is to foster and promote the
health, safety, and economic well being of
Alaska's workers.
* Alaska Labor Relations Agency - The Agency's
principal role is to referee disputes between
organized labor and public employers. The
agency's methods can be informal, through
conciliation, or formal, through quasijudicial
administrative hearings.
The Worker's Compensation Division is comprised of two
sections:
* Workers' Compensation
* Fishermen's Fund program provides assistance with
the costs for treatment and care of Alaska licensed
commercial fishermen who are injured or become ill
due to commercial fishing activities in Alaska.
The Labor Standards and Safety Division is comprised of four
sections:
* Wage & Hour
* Mechanical Inspection
* Occupational Safety & Health
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* Alaska Safety Advisory Council
Co-Chair Larson asked if there were State requirements which
exceed the federal requirements for Occupational Safety and
Health Programs. Commissioner Mahlen stated no. All
requirements have been made to the specifications of the
federal requirements.
Representative Grussendorf commented on the position of
electrical examiners who are caught between the Department
of Commerce and Economic Development (DCED) and the
Department of Labor. Their position is tenuous as their
grace period is about to expire.
ARBE WILLIAMS, SPECIAL ASSISTANT TO THE COMMISSIONER,
DEPARTMENT OF LABOR, advised that there is legislation
drafted to establish a certificate for the electrical and
mechanical administrators. The legislation proposes to
establish a certificate under the Department's certificate
of fitness program. She added, that there is a question
wheather the public wants the protection granted with the
certificate. Commissioner Mahlen added that the board is
questioning if there should be a sunset clause added.
Representative Brown questioned the effect on workers safety
given the reductions to the Division of Occupational Safety
and the Division of Wage and Hour. Commissioner Mahlen
replied that the reductions would affect the Department's
program but pointed out that those divisions were the only
place where general funds could be reduced.
(Tape Change HFC 93 - 13, Side 2).
Representative Grussendorf asked if the bottom line for the
Department is public safety. Commissioner Mahlen agreed
that public safety is important to the Department, but a
reduction was necessary. Representative Grussendorf
reiterated his concern with decreasing public safety.
DONALD G. STUDY, CSP, DIRECTOR, LABOR STANDARDS & SAFETY
DIVISION, DEPARTMENT OF LABOR, pointed out that within the
Occupational Safety & Health Unit, the Department is bound
in a federal/state agreement for the funds and matching
funds. If any matching fund positions are cut, the State
would lose federal funds. Representative Grussendorf asked
if the captured funds would contribute to public safety.
Mr. Study stated that the funds are public safety related.
Co-Chair Larson inquired about the report prepared by the
Department regarding resident hire.
DAVID TEAL, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
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DEPARTMENT OF LABOR, noted that last year there was an
appropriation of $50 thousand dollars to finance the
preparation of a resident hire report. The FY 94 budget
transfers that source of funding to the STEP program. Co-
Chair Larson asked if the report would be completed this
year. Mr. Teal stated that the report is due thirty days
after the Legislature convenes and he would examine the
status of the report.
Co-Chair Larson requested more information on EO 85 which
transferred the fish processor bonding program from the
Department of Labor to the Department of Revenue.
Commissioner Mahlen stated that the bonding issue had no
significant ties with DOL, and because it was revenue
collection, it should be transferred to the Department of
Revenue.
Co-Chair Larson noted that the Department of Labor
subcommittee would be Chaired by Representative MacLean and
members Representative Hudson, Representative Vezey,
Representative Sitton and Representative Finkelstein.
ADJOURNMENT
The meeting adjourned at 3:05 P.M.
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