Legislature(1993 - 1994)
03/02/1993 01:37 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
March 2, 1993
1:37 p.m.
TAPE HFC 93-34, Side 2, #000 - end.
TAPE HFC 93-35, Side 1, #000 - end.
TAPE HFC 93-35, Side 2, #000 - #212
CALL TO ORDER
Co-Chair Larson called the House Finance Committee to order
at 1:37 p.m.
PRESENT
Co-Chair Larson Representative Hoffman
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Navarre
Representative Brown Representative Parnell
Representative Foster Representative Therriault
Representative Grussendorf
ALSO PRESENT
Representative Kott; Mike Greany, Director, Legislative
Finance Division; Nancy Bear-Usera, Commissioner, Department
of Administration; John Bitney, Staff, Representative
Larson.
SUMMARY INFORMATION
HB 55 "An Act making appropriations for the operating
and loan program expenses of state government and
to capitalize funds; and providing for an
effective date."
HB 55 HELD in Committee.
Co-Chair Larson presented members with a FY 93/94 Spending
Plan prepared by the Legislative Finance Division
(Attachment 1). He reviewed Attachment 1. He noted that
Attachment 1 includes roll-forward funding and settlements
to the State of Alaska prior to July 1, 1992.
Representative Martin asked if RPL's authorized by the
Legislative Budget and Audit Committee on January 8, 1993
are included in adjustments to revenue. Co-Chair Larson
interjected that there are no settlements included in the
adjustments to revenues.
MIKE GREANY, DIRECTOR, LEGISLATIVE FINANCE DIVISION
clarified that revised programs will be included in the
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conference committee reports.
Co-Chair Larson noted that FY 94 revenues are based on the
Department of Revenue's mid scenario fall 1994 forecast. He
pointed out that FY 94 revenues minus FY 94 anticipated
expenditures result in a $25.4 million dollar deficient.
Co-Chair Larson provided members with a handout from the
Legislative Finance Division summarizing the Governor's FY
94 Operating Budget (Attachment 2). He presented members
with a handout from the Legislative Finance Division,
Analysis of FY 93 Authorized to FY 94 Governor's Request
General Funds Only (Attachment 3). He concluded that the
formula programs have increased by $16.9 million dollars
(including supplementals.) He added that non-formula
programs for FY 94 will exceed FY 93 by $20.8 million
dollars. The total FY 94 request is $37.7 million dollars
above FY 93 authorized.
Co-Chair Larson pointed out budget amendments will add $8.8
million dollars in formula general fund dollars and $5.9
million in non-formula general fund dollars. He noted that
an additional $5 million general fund dollars will be needed
as a result of HB 158. The supplemental request if approved
will add $11.1 million dollars in formula programs and $29.4
million dollars in non-formula programs. He concluded that
the total FY 94 budget would be $100 million dollars above
the FY 93 authorized budget.
Representative Navarre stressed the importance of inclusion
of FY 93 supplementals in calculating FY 93 authorized
totals. He spoke against across the board cuts.
Representative Martin suggested that there is waste in
government spending that can be addressed through further
reductions. He agreed with Representative Navarre that
supplemental appropriations and RPL appropriations by the
Legislative Budget and Audit Committee should be included in
calculating final FY 93 authorized levels. He suggested
that funding reduced by the Conference Committee was funded
during the interim by the Legislative Budget and Audit
Committee.
Representative Navarre emphasized that the FY 93 Conference
Committee held all their deliberations in public. He
pointed out that, for the first time, the Conference
Committee budget was lower than the House or Senate version
of the budget. He stressed that he has worked to remove the
opportunity for "back door" approaches to funding.
Co-Chair Larson reiterated that the FY 94 requested level is
above the FY 93 authorized level.
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Representative Navarre commented that there is no category
in government called "fat and inefficiency".
Co-Chair Larson interjected that a seven member subcommittee
has been created to consider HB 56, Formula/Mandated
Programs. The subcommittee consists of Co-Chair Larson, Co-
Chair MacLean, Representative Grussendorf, Representative
Hanley, Representative Navarre, Speaker Barnes and
Representative Moses.
Co-Chair Larson discussed the procedure to be used by the
Committee during budget closeouts. He explained that
subcommittee chairmen will present the subcommittee's
recommendations. The Governor's FY 94 Proposed Operating
Budget will be used as the base. House Finance Committee
members will vote on the subcommittee recommendations. Any
components objected to by a member will be held open.
Amendments must be submitted in written form. He stressed
that potential amendments should be indicated at the time of
the subcommittee closeouts but that they will be acted on at
a later date. He stated that components closed would need
to be reopened in order to amend.
Representative Navarre stressed the importance of
maintaining flexibility to offer amendments.
DEPARTMENT OF ADMINISTRATION
Department of Administration Subcommittee consists of
Representatives Larson, Kott, Green, Brown and Hoffman.
Co-Chair Larson provided members with a summary of the
Department of Administration House Finance Subcommittee's
proposed decrements (Attachment 4). He reviewed Attachment
4. He noted that the subcommittee's recommendation is
$400.00 hundred dollars over their target reduction level.
* Longevity Bonus Administration, $5.0 thousand
dollar reduction.
Subcommittee Chair MOVED to adopt the subcommittee's
recommendation, Longevity Bonus Administration, $5.0
thousand dollar reduction. There being NO OBJECTION, it was
so ordered.
* Pioneers Homes, $389.9 thousand dollars
unallocated reduction
This represents a 1.3 percent reduction.
Subcommittee Chair Larson MOVED to adopt the subcommittee's
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recommendation, Pioneers Homes, $389.9 thousand dollars
unallocated reduction. Representative Navarre OBJECTED.
Co-Chair Larson stressed that other senior programs have
been cut while pioneer homes have been held harmless. He
noted that it is the subcommittee's intention to reduce
funding to pioneer homes in order to prevent further
reduction to senior programs.
Representative Navarre asked if deferred maintenance would
be reduced. Co-Chair Larson agreed that deferred
maintenance may be affected. Representative Navarre asked
if it is the intent of the subcommittee to allow the
Department of Administration to have discretion in applying
the reduction.
NANCY BEAR-USERA, COMMISSIONER, DEPARTMENT OF ADMINISTRATION
stated that deferred maintenance for the pioneer homes is
generally included in the capital budget. She emphasized
that deferred maintenance would be affected if funding was
not available for interim repairs. She stressed that each
home would choose to apply reductions to different areas of
their budget.
Representative Navarre WITHDREW HIS OBJECTION.
Representative Grussendorf OBJECTED. Commissioner Usera was
unable to specify the area of reductions. She emphasized
the need for a thorough assessment. The component was HELD
open.
(Tape Change, HFC 93-35, Side 1)
Representative Brown noted that the Mental Health Trust
Board has recommended that $821.1 thousand dollars be
appropriated for care of alzheimer victims. Subcommittee
Chair Larson agreed that this request will be discussed at a
later date.
* Older Alaskan Services Project Choice, $10.0
thousand dollar reduction
The start-up of Project Choice would be delayed by
one month or the program would be reduced by one
position for three months. $42.4 thousand dollars
would be shifted from general fund to inter agency
receipts.
Subcommittee Chair Larson MOVED to adopt the subcommittee's
recommendation, Older Alaskan Services Project Choice, $10.0
thousand dollar reduction.
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Representative Brown offered Amendment 1 (Attachment 5).
She noted her objection to closure of the Older Alaskan
(OAC) Commission's budget. She noted her intention to
increase the OAC, Nutrition, Transportation and Support
component (Attachment 5). Amendment 1 was HELD in
Committee.
Members discussed the amendment process. Co-Chair Larson
assured members that amendments would not be precluded.
Co-Chair MacLean restated the motion to adopt the
subcommittee's recommendation, Older Alaskan Services
Project Choice, $10.0 thousand dollar reduction. There
being NO OBJECTION, it was so ordered. She noted that the
rest of the OAC component would be HELD open.
Representative Martin noted his objection to personal use of
frequent flyer miles gained through state business.
* Public Defender, $166.8 thousand dollar reduction.
This recommendation is 2.2 percent below the
Governor's FY 93 request. This represents an
increase of $350.0 thousand dollars over the FY 93
authorized level. The supplemental FY 93 request
would add $383.0 thousand dollars to the FY 93
authorized level if approved.
Subcommittee Chair Larson MOVED to adopt the subcommittee's
recommendation, Public Defender, $166.8 thousand dollar
reduction. Representative Navarre OBJECTED. He requested
that the component be HELD open. Subcommittee Chair Larson
pointed out that the subcommittee's recommendation includes
the FY 93 authorized level and a $347.7 thousand dollar
supplemental request minus $47.7 thousand dollars. Members
discussed funding for the Public Defender. Subcommittee
Chair Larson pointed out that the Public Defender's and the
Office of Public Advocacy's budgets are increasing more than
the Prosecutor's budget. Members further discussed closeout
procedures. The Public Defender component was HELD open.
Subcommittee Chair Larson noted that there is a funding
shift in the OAC, Project Choice component.
JOHN BITNEY, STAFF, REPRESENTATIVE LARSON explained that the
$42.4 thousand dollar reduction is a fund source change from
the Department of Administration to inter agency receipts.
General funds are being transferred from the Department of
Health and Social Services for administration of the
program. Subcommittee Chair Larson MOVED that the funding
shift be accepted. There being NO OBJECTION, it was so
ordered.
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* Office of Public Advocacy, $14.1 thousand dollar
reduction
This represents FY 93 authorized plus a $400.0
thousand dollar increase. The supplemental
request is $616.4 thousand dollars. The
subcommittee's recommendation is $14.1 below the
FY 93 authorized and supplemental request.
Representative Brown pointed out that the Office of Public
Advocacy (OPA) has been short-funded in past years. She
asked that the Office of Public Advocacy be HELD open.
Representative Navarre asked for information regarding
indigent recovery. He asked if the OPA will need a FY 94
supplemental. He reiterated the need to incorporate the FY
93 supplemental amount to the authorized FY 93 level.
Commissioner Usera observed that the Department of
Administration recommended legislation to reduce OPA
caseload by eliminating non-constitutionally mandated
functions from their purview. The recommendations were
removed from the omnibus bill. Caseload savings are not
anticipated. The Department of Administration has maximized
management of OPA. The Department has maintained the
program's cost despite a growing caseload.
Commissioner Usera commented on rule 39. She explained that
the Supreme Court has provided for cost recovery of indigent
defense. Rule 39 allows the Department of Administration to
attach permanent fund dividend checks of those convicted for
indigent defense. She clarified that there is a three year
delay of recover upon release. Cost recovery would not
occur for four years.
The Office of Public Advocacy was HELD open.
* Office of Commissioner, $54.0 thousand dollar
unallocated reduction
All components in the Office of Commissioner would
be included.
Representative Navarre OBJECTED.
Commissioner Usera expressed concern that core government
services suffer from cuts due to the political inability to
reduce popular programs. She understood that the reduction
could be taken from operational components in services to
state agency. Representative Navarre stressed that the
reduction is out of the general government category. There
being NO OBJECTION, it was so ordered.
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* Alaska Public Offices Commission (APOC), replace
$26.5 general fund program receipts with general
fund dollars.
Representative Navarre asked if lobbyist fees could be
raised or filing fees for public office instituted.
Subcommittee Chair Larson agreed that it would be possible.
Representative Navarre suggested that the Committee
introduce legislation to increase revenues through fees to
APOC. There being NO OBJECTION to the reduction, it was so
ordered.
* Information Services, $60.0 thousand dollar
reduction
Commissioner Usera noted that the Department of
Administration budgets for maintenance. Surplus funds are
transferred to the Information Services Fund for future
acquisitions. This reduction would reduce the amount
available for future acquisitions.
Subcommittee Chair Larson MOVED to adopt the subcommittee's
recommendation, Information Services, $60.0 thousand dollar
reduction. There being NO OBJECTION, it was so ordered.
Subcommittee Chair Larson provided members with a list of
increment requests for the Department of Administration
(Attachment 6). The subcommittee did not approve any of the
requests. He observed that the House Finance Committee can
choose to act on additional requests at another time.
Representative Brown clarified that the increment request
for OAC/Nutrition services was for $190.2 thousand dollars.
She added that the request for Foster Care Review program
was $200.0 thousand dollars.
Representative Hanley pointed out that the Department of
Health and Social Services, House Finance Subcommittee is
contemplating funding of increment requests through the
Mental Health Trust Account.
Representative Grussendorf asked when amendments will be
considered. Co-Chair Larson stated that it would be
appropriate to note the intention of amendment at any time.
He added that amendments will be considered at a later date.
Representative Hoffman noted that as a member of the
Department of Administration House Finance Subcommittee he
would have voted for approval of an increment for the Public
Broadcasting Commission. The increment failed on a 4 to 4
vote. Representative Hoffman was absent from the meeting.
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Members further discussed which components would be held
open. Only components formally closed would require a vote
to reopen for amendment.
(Tape Change, HFC 93-35, Side 2)
Representative Brown stated that she would like to hold
everything open that is not specifically closed. Members
further discussed the amendment process. Representative
Grussendorf stressed that caps prevent members from
supporting needed programs.
Representative Foster provided the Committee with Amendment
2 (Attachment 7). Amendment 2 is an increment for the
Public Broadcasting Commission.
Representative Grussendorf spoke in support of Amendment 2.
He noted that the cut of $300.0 thousand dollars to Public
Broadcasting is compounded by the addition of two new
stations. Subcommittee Chair Larson OBJECTED to Amendment
2. He asked that Amendment 2 be HELD open. Amendment 2 was
HELD open.
Subcommittee Chair Larson provided members with a list of
potential legislation (Attachment 8). He reviewed
Attachment 8:
* Provide APOC with authority to charge fees;
* Allow state option to self-insure for group health
or group life insurance for state employees;
* Delete spouse coverage for group life and health
insurance in cases where coverage is duplicative;
* Possible legislation to allow RATNet to host fund
raisers;
* Transfer RATNet to Public Broadcasting;
* Tax credits for corporate contributions to public
broadcasting;
* Reduce annual cost of leasing by purchasing
buildings;
* Legislation by the administration to consolidate
senior services.
Representative Brown introduced Amendment 3 (Attachment 3).
Amendment 3 was HELD in Committee.
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HB 55 was HELD in Committee.
ADJOURNMENT
The meeting adjourned at 3:25 p.m.
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