Legislature(1993 - 1994)
03/18/1993 01:31 PM House FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
March 18, 1993
1:31 P.M.
TAPE HFC 93 - 49, Side 2, #000 - end.
TAPE HFC 93 - 50, Side 1, #000 - end.
TAPE HFC 93 - 50, Side 2, #000 - #518.
CALL TO ORDER
Co-Chair Ron Larson called the meeting of the House Finance
Committee to order at 1:31 P.M.
PRESENT
Co-Chair Larson Representative Brown
Co-Chair MacLean Representative Foster
Vice-Chair Hanley Representative Grussendorf
Representative Hoffman Representative Martin
Representative Navarre Representative Parnell
Representative Therriault
ALSO PRESENT
Representative Ed Willis; Representative Tom Brice;
Representative Jim Nordlund; Representative Pat Carney;
Loren Jones, Director, Division of Alcoholism and Drug
Abuse, Department of Health and Social Services; Kimberly
Busch, Director, Division of Medical Assistance, Department
of Health and Social Services; Jan Hansen, Director,
Division of Public Assistance, Department of Health and
Social Services; Dwayne Peeples, Health Program Services,
Division of Public Health, Department of Health and Social
Services; Randal Heinze, Division of Family and Youth
Services, Department of Health and Social Services; Kent
Swisher, Executive Director, Alaska Municipal League (AML),
Juneau; Gene Dowe, Legislative Officer, Veterans of Foreign
Wars (VFW), Juneau, Alaska.
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 56 An Act making appropriations for operating
expenses for certain programs for which the costs
are derived from mandated formulas or criteria,
and for expenses for certain leases and contracts
1
for state services and operations; and providing
for an effective date.
SUBCOMMITTEE CLOSEOUTS: Health & Social Services
Governor's Office
Legislature
Labor
Incorporated the Subcommittee recommendations for
the Department of Health & Social Services, Department
of Labor, the Governor's Office and the
Legislature into HB 55.
HB 66 An Act relating to municipal property tax
exemptions for certain residences and to property
tax equivalency payments for certain residents;
and providing for an effective date.
CS HB 66 (FIN) was held in Committee for further
discussion.
LEGISLATURE
The Legislature Subcommittee was Chaired by Representative
Larson and Representative MacLean with members
Representative Barnes and Representative Grussendorf.
The Committee was provided with handouts. [Attachments #1 -
* Legislative Audit received a 1.8% restoration
deletion in the amount of $49.5 thousand dollars.
* The Subcommittee recommended a total decrement of
$270.1 thousand dollars to the Legislative Finance
component.
* Committee Expenses received a $20 thousand dollar
deletion to the State Office Compensation
Commission.
* Legislative Council, Executive Administration
received a 1.8% restoration deletion in the amount
of $42.1 thousand dollars.
* Public Services received an unallocated reduction
of $33.4 thousand dollars.
* Administrative Services received a 1.8%
restoration decrement in the amount of $27.1
thousand dollars.
2
* Legal Services also received a 1.8% restoration
decrement in the amount of $41.4 thousand dollars.
* Co-Chair Larson noted the only increment to the
Legislative proposed budget would be to Session
Expenses. This would be a transfer from Department
of Public Safety to Legislative Council in the
amount of $73.2 thousand dollars for the funding
of Security Services for the Capitol Building.
* General Services received a 1.8% deletion for
restoration in the amount of $33.8 thousand
dollars.
* Legislative Research Agency also received the 1.8%
restoration reduction in the amount of $14
thousand dollars.
Representative Brown asked which services would be lost for
the Legislature given the proposed budget reductions. Co-
Chair Larson referenced Attachment #1, Component Summary -
Operating Budget. He noted the full reduction to the
Legislature would be $2.8 million dollars with significant
reductions to the LIO component and will result in closing
the Tok Office.
Co-Chair Larson MOVED to incorporate the Legislative
Subcommittee's recommendations into HB 55. There being NO
OBJECTION, it was incorporated.
OFFICE OF THE GOVERNOR
The Office of the Governor Subcommittee was Chaired by
Representative Larson and Representative MacLean with
members Representative Hanley and Representative Navarre.
The Committee was provided with handouts. [Attachments #4 &
approved by the Subcommittee was the Governor's budget as
requested with one change. Due to EO 84, which consolidates
the Alaska Women's Commission and Youth to a new Commission
called the Alaska Human Rights Commission, the Subcommittee
transferred $60.7 thousand dollars to that new Commission.
She noted that the Subcommittee accepted the Governor's
proposed budget as proposed in all remaining components.
There is a reduction to the Governor's FY 94 request in the
amount of $3,111.7 thousand dollars general funds from the
FY 93 authorized level. The reduction resulted from the
elimination of funding for the Alaska Sentencing Commission
which completed work as of 6/30/93.
3
Co-Chair MacLean noted the ANWR funding deletion in the
amount of $1,279.2 thousand dollars. The original
appropriation was $3 million dollars. There was an
additional general fund deletion for the contractual
component and to equipment in the Audit and Management
Services Division in the amount of $289.9 thousand dollars.
The only increment to the budget was $391.3 thousand dollars
for the continuation of the Media Center. The increment
would supply the Media Center with five full time and one
part time employee. The Governor has requested one
additional budget amendment for $580.6 thousand dollars for
the Division of Elections (Attachment #5). The Division
needs these funds in order to implement the final
reapportionment plan after it is approved by the Governor
and the Department of Justice.
Representative Brown asked the status of the International
Trade Office. Co-Chair MacLean stated that office would be
transferred next fiscal year.
Co-Chair MacLean MOVED to incorporated the recommendations
made by the Office of the Governor Subcommittee into HB 55.
Co-Chair Larson emphasized the importance of Attachment #5,
the letter to the Division of Elections from the House
Finance Co-Chairs. There being NO OBJECTION, the
recommendations were incorporated.
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
The Department of Health and Social Services Subcommittee
was Chaired by Representative Hanley with members
Representative Toohey, Representative Gail Davis,
Representative Nordlund and Representative Brice.
Representative Hanley provided the Committee with handouts.
[Attachments #6 -11]. Representative Hanley noted that the
budget was separated into non-formula and non-Mental Health
Trust dollars in order to reach the $2,189 million dollars
2% reduction.
Representative Hanley referenced Attachment #6, an
explanation summery sheet prepared by his office and
Attachment #7, Transaction Summary for Governor to House.
* Medical Assistance - Medicaid-Facilities amendment
from Resident Child Care increment for $1,510
million dollars, resulting from Mental Health
Trust dollars.
* Mental Health Trust dollar increment to Waivers
4
Services for $1,664 million dollars.
* Public Assistance Administration received a travel
reduction of 3% for $19.8 thousand dollars.
* Eligibility Determination received a total
decrement of $868.7 thousand dollars. The
component consists of a decrement to self-
sufficiency staff for $187.5 thousand dollars;
reduced caseload increment for $245.8 thousand
dollars; deny under funding increment for $415.4
thousand dollars; and the Commissioner's Office
decrement for $20 thousand dollars.
* Alaska Work Programs - Establishing child care
component decrement for $3,703.9 thousand dollars;
JOBS Training increment for $200 thousand dollars;
amendment - JOBS Supportive Services increment for
$200 thousand dollars.
* Public Assistance Data Processing which will
update computer systems total increment in the
amount of $779.1 thousand dollars.
* Child Care Benefits from the Alaska Work Programs
which would be a transfer of $3,703.6 thousand
dollars.
* Medical Assistance Administration - Medical
Assistance Central Administration received a 3%
travel reduction for a total decrement of $17.8
thousand dollars.
* Claims Processing received an amendment from the
Governor's Office which the Subcommittee accepted
for the Medicaid Management Information System
decrement in the amount of $911.8 thousand
dollars.
* Certification and Licensing total decrement for
$228.1 thousand dollars to the CLIA
Implementation.
* Medicaid Rate Advisory Commission decrement for
$198.9 thousand dollars.
* Medicaid Waivers Authorization for Better Match
Rate for Nurses would receive a 25/75 match from
the federal government for nursing, which would
reduce general funds in the amount of $15.9
thousand dollars.
5
* Purchased Services - Residential Child Care total
component reduction of $1,510 thousand dollars
which would affect residential child care. He
noted that Mental Health Trust beneficiaries would
be identified in the program. [Attachment #11]
which is a letter to Janet Clarke, Director,
Division of Administrative Services from Deborah
Wing regarding Mental Health Dollars and the
Foster Care Component.
* Southcentral Region - Family and Youth Services
received a $10.1 thousand dollar decrement.
Northern Region received a $7.2 thousand dollar
decrement. Southeastern Region received a $3.1
thousand dollar decrement. The Central Office -
Division of Family and Youth Services received an
increment of $100 thousand dollars for the
permanency planning RSA/DOA. The Central Office
received a travel reduction of $44.1 thousand
dollars and a reduction to the Commissioner's
Office for $9.9 thousand dollars.
* McLaughlin Youth Center - Youth Facility Services
received a 3% travel reduction component decrement
in the amount of $85 thousand dollars.
* Fairbanks Youth Facility received a decrement of
$2.7 thousand dollars. The Nome Youth Facility
received a decrement in the amount of $1.3
thousand dollars. The Johnson Youth Center
received an increment of $27 thousand dollars for
the Juneau school district to hire a youth
counselor at that facility. The same line
received a decrement for $1.3 thousand dollars to
the Commissioner's Office. The Bethel Youth
Facility received a total reduction of $77
thousand dollars which will eliminate treatment at
that center and ten employee positions.
* The Human Services Community Matching Grant
received a 5% reduction of $100 thousand dollars,
and will encourage the local communities to match
with 10%.
* Public Health Services-Community Health Aide
Training has received a 3% reduction to Maniilaq,
Norton Sound, SEARHC, Tanana Chiefs Conference,
Yukon-Kuskokwin Health Corporation.
* State Health Services received reduced Public
Health Services for a total component reduction of
$171.3 thousand dollars. The Women, Infants and
6
Children component would receive an increment in
the amount of $600 thousand dollars federal funds.
The Maternal, Child and Family Health component
would move six kids to the Waivers Program
resulting in a decrement of $127.4 thousand
dollars. Laboratory Services received a decrement
of $4.9 thousand dollars.
* Public Health Administrative Services received a
federal fund increment to amend the Toxic
Substance Disease Regulations for $205.8 thousand
dollars. Epidemiology -Hemophilus B Program will
absorb a three year federal grant for hepatitis.
The Commissioner's Office will receive a decrement
of $8.1 thousand dollars.
* EMS Training & Licensing total reduction of $116.8
thousand dollars. The Bureau of Vital Statistics
received a reduction of $2.5 thousand dollars.
* Health Services/Medicaid component would receive a
reduction to the Commissioner's Office in the
amount of $4.3 thousand dollars. Post Mortem
Examinations amendment of funding for autopsies
would receive an increment of $340 thousand
dollars. Home Health Services received a
reduction in the amount of $1.1 thousand dollars.
* Health Grants for Community Health Aide Training
reduction of $19 thousand dollars.
* Alcohol & Drug Abuse Services received a decrement
to the Administration component for $7 thousand
dollars and an Alcohol/Drug Grants reduction in
the amount of $442 thousand dollars.
* Community Mental Health Grants -
Services/Chronically Mentally Ill component total
reduction of $288 thousand dollars.
(Tape Change, HFC 93-50, Side 1).
Representative Hanley continued:
* Community DD Grants received a reduction in the
amount of $1,428.4 thousand dollars.
* Institutions & Administration - Mental Health/DD
Administration RSA OAC -Treatment Services
increment for $200 thousand dollars and a
decrement to the Commissioner's Office in the
amount of $39.5 thousand dollars. The Alaska
7
Psychiatric Institute reduction to personal
services for $100 thousand dollars and an
increment to the Psychiatrists from the Department
of Corrections in the amount of $152.1 thousand
dollars. The Harborview Development Center
received a decrement of $924 thousand dollars for
the expansion of the Sourdough Unit. There was an
additional decrement to Community DD Grants in the
amount of $300 thousand dollars and a shift in the
Fund Source increment in the amount of $172.3
thousand dollars.
* Administrative Services - Commissioner's Office
received a total component decrement of $87
thousand dollars. Regulatory compliance
increment to Bloodborne Pathogens, a federal
requirement for $212 thousand dollars. The
Commissioner's Office received a decrement of $1.3
thousand dollars. Personnel and Payroll
miscellaneous received a reduction in the amount
of $56.7 thousand dollars. Budget and Finance
received a miscellaneous total component reduction
in the amount of $111.7 thousand dollars.
Representative Brown referenced line #21, the Public
Assistance Data Processing component and asked how many
positions are necessary.
JAN HANSEN, DIRECTOR, PUBLIC ASSISTANCE, DEPARTMENT OF
HEALTH AND SOCIAL SERVICES, noted there would be seventeen
positions. Ten of those positions would be for Systems
Operations for the EIS System. The remaining seven
positions from the capital budget would be for ongoing
projects to redesign the data system. Representative Brown
questioned the impact of not funding the project. Ms.
Hansen replied all the positions are tied into the aspects
of the project in the capital budget.
Representative Brown referenced Line #24, the Claims
Processing component and asked which project was being
referenced. Representative Hanley replied the Medicaid
Management Information System which is a proposed Governor's
amendment. Representative Brown asked if the project would
be covered in any other capital budget project.
KIM BUSCH, DIRECTOR, DIVISION OF MEDICAL ASSISTANCE,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, stated that it
would not be covered in the capital budget. The contract
was extended for one year and at the time received a
contract reduction price. She added, the federal government
requires reprocurement for contracts every few additional
years. The feds have already allowed the contract to be
8
extended an additional year.
Representative Brown referenced Line #43, the DYS Central
Office, and asked the total amount to be RSA'ed.
Representative Hanley replied that amount would be $200
thousand dollars. Representative Brown recommended that
"intent" be written to address this concern.
Representative Brown referenced Line #85, Women, Infants and
Children component and asked what the project would cover.
DWAYNE PEEPLES, DIVISION OF PUBLIC HEALTH, DEPARTMENT OF
HEALTH AND SOCIAL SERVICES, stated that Line #85 would be
federal funds for the development of a WIC automated data
base and vouchering issue systems. This program is required
by the federal government as the current system is
inadequate. Representative Brown asked for further backup
material to be provided.
Representative Brown referenced Line #90, and asked the
intention of 470 funding for emergency response.
Representative Therriault noted that the Department of
Environmental Conservation Subcommittee did not deal with
this amendment.
Representative Brown referenced Line #104, Alcohol and Drug
Abuse Grants and questioning the impact of those reductions.
LOREN JONES, DIRECTOR, DIVISION OF ALCOHOL ABUSE, DEPARTMENT
OF HEALTH AND SOCIAL SERVICES, stated with the funding
sources currently available through federal funds, Mental
Health Trust Funds and State general funds, the $200
thousand dollar reduction would affect training programs,
reductions in prevention and the prevention of drug
treatment programs. Mental Health Trust money is issued for
alcohol treatment programs specified in the conditions of
that funding. As this is a grant program, the decision of
which programs will receive a reduction has not yet been
decided. With all proposed grant cuts nine hundred fewer
clients will be served.
Representative Grussendorf advised that the referenced
grants have reduced juvenile delinquency in the small
communities. Representative Therriault asked if the
reduction originated from the same area of funding as the
officers in the school programs. Mr. Jones stated that it
was, although, that program would not be affected.
Representative Brown referenced Line #109 and asked the
reduction for the KIVA House. Representative Hanley noted
this was Mental Health money; there has been a report issued
9
made which suggests that these funds were not being used for
mental health purposes.
Representative Brown referenced Line #84 and asked the
impact of the reduction to Public Health Nursing. Mr.
Peeples stated the reduction would be one nurse in Anchorage
with small reductions to other areas. He stated that 700
hours would be eliminated for children, 480 hours of service
communicable disease work and 150 hours of service for
general health concerns.
Representative Hoffman referenced Line #89, the Epidemiology
component expressing his concern in addressing the disease
in rural Alaska. Mr. Peeples replied the intent of the
Department was to use federal funds to support rural Alaska.
Representative Martin recommended eliminating the permanent
fund "hold harmless" clause.
Representative Hanley MOVED that the Department of Health
and Social Services Subcommittee recommendations be adopted
for non-formula, non-Mental Health Trust with the exception
of $800 thousand dollars/transfer of Mental Health Trust in
the Residential Facilities and that these recommendations be
incorporated into HB 55.
Representative Hoffman questioned the $75 thousand dollar
reduction for the youth facility in Bethel.
RANDAL HEINZE, DIVISION OF FAMILY AND YOUTH SERVICES,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, stated that as
long as the population of the facility remained at it's
current rate, the accreditation process will not be
jeopardized. He added, that there is additional
administrative documentation necessary for the standard
compliances which can be covered by the existing personnel.
There be NO OBJECTIONS to the specified recommendations, the
motion was adopted.
THE DEPARTMENT OF LABOR
The Department of Labor Subcommittee was Chaired by
Representative MacLean with members Representative Hudson,
Representative Vezey, Representative Sitton and
Representative Finkelstein.
Co-Chair Larson WITHDREW his original OBJECTION. There
being NO FURTHER OBJECTIONS, the Subcommittee
recommendations were incorporated into HB 55.
10
HOUSE BILL 66
"An Act relating to municipal property tax exemptions
for certain residences and to property tax equivalency
payments for certain residents; and providing for an
effective date."
Co-Chair MacLean provided the Committee a brief overview of
the changes made by the Subcommittee to HB 66 work draft #8-
GH1032\R dated 3/15/93. [Attachment #12]. She noted that
Section 4 contains the changes made by the Subcommittee and
does not include:
1. Renters rebate;
2. Deferral option;
3. Hardship language;
4. Full and true value exemption.
Representative Grussendorf pointed out that changing the
effective date to January 1, 1994 would place responsibility
on the municipalities for the transitional period. He
recommended adding a contribution.
Co-Chair MacLean MOVED CS HB 66 (FIN) work draft 8-GH1032\R,
Cook, dated 3/15/93 as the version before the Committee.
There being NO OBJECTIONS, it was ordered.
Representative Brown provided the Committee with Amendment
net for the poorest citizens that they not loose their homes
as a result of the phase out of the program. The amendment
would provide that there be a mandatory deferment of taxes
owed for an individual whose adjusted gross income is less
than $24 thousand dollars. She urged the Committee to
consider the amendment for the senior citizens.
(Tape Change, HFC 93-50, Side 2).
KENT E. SWISHER, EXECUTIVE DIRECTOR, ALASKA MUNICIPAL
LEAGUE, JUNEAU, ALASKA, noted specific concerns of the
Alaska Municipal League (AML).
* Community Approval - Granting an exemption or a
deferral is an important public policy decision
having impacts on all other taxpayers and on the
level of service offered by the local government.
He stated the local public should have the
opportunity to participate in the decision through
the polls. ALM requests that the Committee
consider amending HB 66 to provide for voter
approval of local ordinances creating exemption or
11
deferral structures.
* Personal Financial Circumstances - Currently, the
statute does not include authority for local
government to consider individual financial need
or other circumstances in creating an exemption,
deferral, or combination system. AML urges the
Committee to amend HB 66 to clarify local
government's ability to consider needs in making
decisions for that area.
* Effective Date - When HB 66 was introduced, it had
an effective date of January 1, 1993, which would
be consistent. There is no money provided in the
Governor's budget proposal for funding this
mandate. The concept of deferral was not included
in the bill, and the required action at the local
level was to grant or not grant tax exemption to a
clearly defined group per regulations to be
adopted by DCRA.
Representative Brown questioned the Subcommittee elimination
of the authority for communities to develop programs based
on "need". Co-Chair MacLean stated that the Subcommittee
intended to eliminate that authority. Representative Hanley
pointed out that Amendment #1 requires a "needs based"
program and asked if that was permissive. Co-Chair MacLean
stated that "needs based" would be made optional by the
municipalities.
BRUCE GERAGHTY, DEPUTY COMMISSIONER, DEPARTMENT OF COMMUNITY
AND REGIONAL AFFAIRS, stated the "needs based" sentence was
left out in order that the municipalities would not act only
on that. He noted, y not adding the "needs based" language
would allow the municipalities the option.
Co-Chair Larson recommended drafting a Subcommittee Letter
of Intent explaining the "needs based" concern.
Co-Chair MacLean suggested that the amendment could be
placed on Page 3, Line 9. She explained that language had
been modified so to include no dollar amount.
Representative Brown restated that the amendment would
assure that low income people would not loose property
because of their inability to pay the tax. Mr. Geraghty
pointed out that the amendment would change the language and
at which time all the seniors would not be given the option
to have their taxes deferred. This would create a tax
liability and/or a municipal lien on the property.
GENE DOW, LEGISLATIVE OFFICER, VETERANS OF FOREIGN WARS
(FVW), JUNEAU, ALASKA, testified in opposition of HB 66. He
12
state that the proposed legislation would affect senior
citizens and veterans income. He added that the veterans
also oppose the elimination of the $750 dollar burial
gratuity further discussion followed.
Co-Chair Larson noted that CS HB 66 (FIN) would be HELD in
Committee for further discussion.
ADJOURNMENT
The meeting adjourned at 3:30 P.M.
HOUSE FINANCE COMMITTEE
March 18, 1993
1:31 P.M.
TAPE HFC 93 - 49, Side 2, #000 - end.
TAPE HFC 93 - 50, Side 1, #000 - end.
TAPE HFC 93 - 50, Side 2, #000 - #518.
CALL TO ORDER
Co-Chair Ron Larson called the meeting of the House Finance
Committee to order at 1:31 P.M.
PRESENT
Co-Chair Larson Representative Brown
Co-Chair MacLean Representative Foster
Vice-Chair Hanley Representative Grussendorf
Representative Hoffman Representative Martin
Representative Navarre Representative Parnell
Representative Therriault
ALSO PRESENT
Representative Ed Willis; Representative Tom Brice;
Representative Jim Nordlund; Representative Pat Carney;
Loren Jones, Director, Division of Alcoholism and Drug
Abuse, Department of Health and Social Services; Kimberly
Busch, Director, Division of Medical Assistance, Department
of Health and Social Services; Jan Hansen, Director,
Division of Public Assistance, Department of Health and
Social Services; Dwayne Peeples, Health Program Services,
Division of Public Health, Department of Health and Social
Services; Randal Heinze, Division of Family and Youth
Services, Department of Health and Social Services; Kent
Swisher, Executive Director, Alaska Municipal League (AML),
Juneau; Gene Dowe, Legislative Officer, Veterans of Foreign
13
Wars (VFW), Juneau, Alaska.
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 56 An Act making appropriations for operating
expenses for certain programs for which the costs
are derived from mandated formulas or criteria,
and for expenses for certain leases and contracts
for state services and operations; and providing
for an effective date.
SUBCOMMITTEE CLOSEOUTS: Health & Social Services
Governor's Office
Legislature
Labor
Incorporated the Subcommittee recommendations for
the Department of Health & Social Services, Department
of Labor, the Governor's Office and the
Legislature into HB 55.
HB 66 An Act relating to municipal property tax
exemptions for certain residences and to property
tax equivalency payments for certain residents;
and providing for an effective date.
CS HB 66 (FIN) was held in Committee for further
discussion.
LEGISLATURE
The Legislature Subcommittee was Chaired by Representative
Larson and Representative MacLean with members
Representative Barnes and Representative Grussendorf.
The Committee was provided with handouts. [Attachments #1 -
* Legislative Audit received a 1.8% restoration
deletion in the amount of $49.5 thousand dollars.
* The Subcommittee recommended a total decrement of
$270.1 thousand dollars to the Legislative Finance
component.
* Committee Expenses received a $20 thousand dollar
deletion to the State Office Compensation
14
Commission.
* Legislative Council, Executive Administration
received a 1.8% restoration deletion in the amount
of $42.1 thousand dollars.
* Public Services received an unallocated reduction
of $33.4 thousand dollars.
* Administrative Services received a 1.8%
restoration decrement in the amount of $27.1
thousand dollars.
* Legal Services also received a 1.8% restoration
decrement in the amount of $41.4 thousand dollars.
* Co-Chair Larson noted the only increment to the
Legislative proposed budget would be to Session
Expenses. This would be a transfer from Department
of Public Safety to Legislative Council in the
amount of $73.2 thousand dollars for the funding
of Security Services for the Capitol Building.
* General Services received a 1.8% deletion for
restoration in the amount of $33.8 thousand
dollars.
* Legislative Research Agency also received the 1.8%
restoration reduction in the amount of $14
thousand dollars.
Representative Brown asked which services would be lost for
the Legislature given the proposed budget reductions. Co-
Chair Larson referenced Attachment #1, Component Summary -
Operating Budget. He noted the full reduction to the
Legislature would be $2.8 million dollars with significant
reductions to the LIO component and will result in closing
the Tok Office.
Co-Chair Larson MOVED to incorporate the Legislative
Subcommittee's recommendations into HB 55. There being NO
OBJECTION, it was incorporated.
OFFICE OF THE GOVERNOR
The Office of the Governor Subcommittee was Chaired by
Representative Larson and Representative MacLean with
members Representative Hanley and Representative Navarre.
The Committee was provided with handouts. [Attachments #4 &
approved by the Subcommittee was the Governor's budget as
15
requested with one change. Due to EO 84, which consolidates
the Alaska Women's Commission and Youth to a new Commission
called the Alaska Human Rights Commission, the Subcommittee
transferred $60.7 thousand dollars to that new Commission.
She noted that the Subcommittee accepted the Governor's
proposed budget as proposed in all remaining components.
There is a reduction to the Governor's FY 94 request in the
amount of $3,111.7 thousand dollars general funds from the
FY 93 authorized level. The reduction resulted from the
elimination of funding for the Alaska Sentencing Commission
which completed work as of 6/30/93.
Co-Chair MacLean noted the ANWR funding deletion in the
amount of $1,279.2 thousand dollars. The original
appropriation was $3 million dollars. There was an
additional general fund deletion for the contractual
component and to equipment in the Audit and Management
Services Division in the amount of $289.9 thousand dollars.
The only increment to the budget was $391.3 thousand dollars
for the continuation of the Media Center. The increment
would supply the Media Center with five full time and one
part time employee. The Governor has requested one
additional budget amendment for $580.6 thousand dollars for
the Division of Elections (Attachment #5). The Division
needs these funds in order to implement the final
reapportionment plan after it is approved by the Governor
and the Department of Justice.
Representative Brown asked the status of the International
Trade Office. Co-Chair MacLean stated that office would be
transferred next fiscal year.
Co-Chair MacLean MOVED to incorporated the recommendations
made by the Office of the Governor Subcommittee into HB 55.
Co-Chair Larson emphasized the importance of Attachment #5,
the letter to the Division of Elections from the House
Finance Co-Chairs. There being NO OBJECTION, the
recommendations were incorporated.
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
The Department of Health and Social Services Subcommittee
was Chaired by Representative Hanley with members
Representative Toohey, Representative Gail Davis,
Representative Nordlund and Representative Brice.
Representative Hanley provided the Committee with handouts.
[Attachments #6 -11]. Representative Hanley noted that the
budget was separated into non-formula and non-Mental Health
16
Trust dollars in order to reach the $2,189 million dollars
2% reduction.
Representative Hanley referenced Attachment #6, an
explanation summery sheet prepared by his office and
Attachment #7, Transaction Summary for Governor to House.
* Medical Assistance - Medicaid-Facilities amendment
from Resident Child Care increment for $1,510
million dollars, resulting from Mental Health
Trust dollars.
* Mental Health Trust dollar increment to Waivers
Services for $1,664 million dollars.
* Public Assistance Administration received a travel
reduction of 3% for $19.8 thousand dollars.
* Eligibility Determination received a total
decrement of $868.7 thousand dollars. The
component consists of a decrement to self-
sufficiency staff for $187.5 thousand dollars;
reduced caseload increment for $245.8 thousand
dollars; deny under funding increment for $415.4
thousand dollars; and the Commissioner's Office
decrement for $20 thousand dollars.
* Alaska Work Programs - Establishing child care
component decrement for $3,703.9 thousand dollars;
JOBS Training increment for $200 thousand dollars;
amendment - JOBS Supportive Services increment for
$200 thousand dollars.
* Public Assistance Data Processing which will
update computer systems total increment in the
amount of $779.1 thousand dollars.
* Child Care Benefits from the Alaska Work Programs
which would be a transfer of $3,703.6 thousand
dollars.
* Medical Assistance Administration - Medical
Assistance Central Administration received a 3%
travel reduction for a total decrement of $17.8
thousand dollars.
* Claims Processing received an amendment from the
Governor's Office which the Subcommittee accepted
for the Medicaid Management Information System
decrement in the amount of $911.8 thousand
dollars.
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* Certification and Licensing total decrement for
$228.1 thousand dollars to the CLIA
Implementation.
* Medicaid Rate Advisory Commission decrement for
$198.9 thousand dollars.
* Medicaid Waivers Authorization for Better Match
Rate for Nurses would receive a 25/75 match from
the federal government for nursing, which would
reduce general funds in the amount of $15.9
thousand dollars.
* Purchased Services - Residential Child Care total
component reduction of $1,510 thousand dollars
which would affect residential child care. He
noted that Mental Health Trust beneficiaries would
be identified in the program. [Attachment #11]
which is a letter to Janet Clarke, Director,
Division of Administrative Services from Deborah
Wing regarding Mental Health Dollars and the
Foster Care Component.
* Southcentral Region - Family and Youth Services
received a $10.1 thousand dollar decrement.
Northern Region received a $7.2 thousand dollar
decrement. Southeastern Region received a $3.1
thousand dollar decrement. The Central Office -
Division of Family and Youth Services received an
increment of $100 thousand dollars for the
permanency planning RSA/DOA. The Central Office
received a travel reduction of $44.1 thousand
dollars and a reduction to the Commissioner's
Office for $9.9 thousand dollars.
* McLaughlin Youth Center - Youth Facility Services
received a 3% travel reduction component decrement
in the amount of $85 thousand dollars.
* Fairbanks Youth Facility received a decrement of
$2.7 thousand dollars. The Nome Youth Facility
received a decrement in the amount of $1.3
thousand dollars. The Johnson Youth Center
received an increment of $27 thousand dollars for
the Juneau school district to hire a youth
counselor at that facility. The same line
received a decrement for $1.3 thousand dollars to
the Commissioner's Office. The Bethel Youth
Facility received a total reduction of $77
thousand dollars which will eliminate treatment at
that center and ten employee positions.
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* The Human Services Community Matching Grant
received a 5% reduction of $100 thousand dollars,
and will encourage the local communities to match
with 10%.
* Public Health Services-Community Health Aide
Training has received a 3% reduction to Maniilaq,
Norton Sound, SEARHC, Tanana Chiefs Conference,
Yukon-Kuskokwin Health Corporation.
* State Health Services received reduced Public
Health Services for a total component reduction of
$171.3 thousand dollars. The Women, Infants and
Children component would receive an increment in
the amount of $600 thousand dollars federal funds.
The Maternal, Child and Family Health component
would move six kids to the Waivers Program
resulting in a decrement of $127.4 thousand
dollars. Laboratory Services received a decrement
of $4.9 thousand dollars.
* Public Health Administrative Services received a
federal fund increment to amend the Toxic
Substance Disease Regulations for $205.8 thousand
dollars. Epidemiology -Hemophilus B Program will
absorb a three year federal grant for hepatitis.
The Commissioner's Office will receive a decrement
of $8.1 thousand dollars.
* EMS Training & Licensing total reduction of $116.8
thousand dollars. The Bureau of Vital Statistics
received a reduction of $2.5 thousand dollars.
* Health Services/Medicaid component would receive a
reduction to the Commissioner's Office in the
amount of $4.3 thousand dollars. Post Mortem
Examinations amendment of funding for autopsies
would receive an increment of $340 thousand
dollars. Home Health Services received a
reduction in the amount of $1.1 thousand dollars.
* Health Grants for Community Health Aide Training
reduction of $19 thousand dollars.
* Alcohol & Drug Abuse Services received a decrement
to the Administration component for $7 thousand
dollars and an Alcohol/Drug Grants reduction in
the amount of $442 thousand dollars.
* Community Mental Health Grants -
Services/Chronically Mentally Ill component total
reduction of $288 thousand dollars.
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(Tape Change, HFC 93-50, Side 1).
Representative Hanley continued:
* Community DD Grants received a reduction in the
amount of $1,428.4 thousand dollars.
* Institutions & Administration - Mental Health/DD
Administration RSA OAC -Treatment Services
increment for $200 thousand dollars and a
decrement to the Commissioner's Office in the
amount of $39.5 thousand dollars. The Alaska
Psychiatric Institute reduction to personal
services for $100 thousand dollars and an
increment to the Psychiatrists from the Department
of Corrections in the amount of $152.1 thousand
dollars. The Harborview Development Center
received a decrement of $924 thousand dollars for
the expansion of the Sourdough Unit. There was an
additional decrement to Community DD Grants in the
amount of $300 thousand dollars and a shift in the
Fund Source increment in the amount of $172.3
thousand dollars.
* Administrative Services - Commissioner's Office
received a total component decrement of $87
thousand dollars. Regulatory compliance
increment to Bloodborne Pathogens, a federal
requirement for $212 thousand dollars. The
Commissioner's Office received a decrement of $1.3
thousand dollars. Personnel and Payroll
miscellaneous received a reduction in the amount
of $56.7 thousand dollars. Budget and Finance
received a miscellaneous total component reduction
in the amount of $111.7 thousand dollars.
Representative Brown referenced line #21, the Public
Assistance Data Processing component and asked how many
positions are necessary.
JAN HANSEN, DIRECTOR, PUBLIC ASSISTANCE, DEPARTMENT OF
HEALTH AND SOCIAL SERVICES, noted there would be seventeen
positions. Ten of those positions would be for Systems
Operations for the EIS System. The remaining seven
positions from the capital budget would be for ongoing
projects to redesign the data system. Representative Brown
questioned the impact of not funding the project. Ms.
Hansen replied all the positions are tied into the aspects
of the project in the capital budget.
Representative Brown referenced Line #24, the Claims
20
Processing component and asked which project was being
referenced. Representative Hanley replied the Medicaid
Management Information System which is a proposed Governor's
amendment. Representative Brown asked if the project would
be covered in any other capital budget project.
KIM BUSCH, DIRECTOR, DIVISION OF MEDICAL ASSISTANCE,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, stated that it
would not be covered in the capital budget. The contract
was extended for one year and at the time received a
contract reduction price. She added, the federal government
requires reprocurement for contracts every few additional
years. The feds have already allowed the contract to be
extended an additional year.
Representative Brown referenced Line #43, the DYS Central
Office, and asked the total amount to be RSA'ed.
Representative Hanley replied that amount would be $200
thousand dollars. Representative Brown recommended that
"intent" be written to address this concern.
Representative Brown referenced Line #85, Women, Infants and
Children component and asked what the project would cover.
DWAYNE PEEPLES, DIVISION OF PUBLIC HEALTH, DEPARTMENT OF
HEALTH AND SOCIAL SERVICES, stated that Line #85 would be
federal funds for the development of a WIC automated data
base and vouchering issue systems. This program is required
by the federal government as the current system is
inadequate. Representative Brown asked for further backup
material to be provided.
Representative Brown referenced Line #90, and asked the
intention of 470 funding for emergency response.
Representative Therriault noted that the Department of
Environmental Conservation Subcommittee did not deal with
this amendment.
Representative Brown referenced Line #104, Alcohol and Drug
Abuse Grants and questioning the impact of those reductions.
LOREN JONES, DIRECTOR, DIVISION OF ALCOHOL ABUSE, DEPARTMENT
OF HEALTH AND SOCIAL SERVICES, stated with the funding
sources currently available through federal funds, Mental
Health Trust Funds and State general funds, the $200
thousand dollar reduction would affect training programs,
reductions in prevention and the prevention of drug
treatment programs. Mental Health Trust money is issued for
alcohol treatment programs specified in the conditions of
that funding. As this is a grant program, the decision of
which programs will receive a reduction has not yet been
21
decided. With all proposed grant cuts nine hundred fewer
clients will be served.
Representative Grussendorf advised that the referenced
grants have reduced juvenile delinquency in the small
communities. Representative Therriault asked if the
reduction originated from the same area of funding as the
officers in the school programs. Mr. Jones stated that it
was, although, that program would not be affected.
Representative Brown referenced Line #109 and asked the
reduction for the KIVA House. Representative Hanley noted
this was Mental Health money; there has been a report issued
made which suggests that these funds were not being used for
mental health purposes.
Representative Brown referenced Line #84 and asked the
impact of the reduction to Public Health Nursing. Mr.
Peeples stated the reduction would be one nurse in Anchorage
with small reductions to other areas. He stated that 700
hours would be eliminated for children, 480 hours of service
communicable disease work and 150 hours of service for
general health concerns.
Representative Hoffman referenced Line #89, the Epidemiology
component expressing his concern in addressing the disease
in rural Alaska. Mr. Peeples replied the intent of the
Department was to use federal funds to support rural Alaska.
Representative Martin recommended eliminating the permanent
fund "hold harmless" clause.
Representative Hanley MOVED that the Department of Health
and Social Services Subcommittee recommendations be adopted
for non-formula, non-Mental Health Trust with the exception
of $800 thousand dollars/transfer of Mental Health Trust in
the Residential Facilities and that these recommendations be
incorporated into HB 55.
Representative Hoffman questioned the $75 thousand dollar
reduction for the youth facility in Bethel.
RANDAL HEINZE, DIVISION OF FAMILY AND YOUTH SERVICES,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, stated that as
long as the population of the facility remained at it's
current rate, the accreditation process will not be
jeopardized. He added, that there is additional
administrative documentation necessary for the standard
compliances which can be covered by the existing personnel.
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There be NO OBJECTIONS to the specified recommendations, the
motion was adopted.
THE DEPARTMENT OF LABOR
The Department of Labor Subcommittee was Chaired by
Representative MacLean with members Representative Hudson,
Representative Vezey, Representative Sitton and
Representative Finkelstein.
Co-Chair Larson WITHDREW his original OBJECTION. There
being NO FURTHER OBJECTIONS, the Subcommittee
recommendations were incorporated into HB 55.
HOUSE BILL 66
"An Act relating to municipal property tax exemptions
for certain residences and to property tax equivalency
payments for certain residents; and providing for an
effective date."
Co-Chair MacLean provided the Committee a brief overview of
the changes made by the Subcommittee to HB 66 work draft #8-
GH1032\R dated 3/15/93. [Attachment #12]. She noted that
Section 4 contains the changes made by the Subcommittee and
does not include:
1. Renters rebate;
2. Deferral option;
3. Hardship language;
4. Full and true value exemption.
Representative Grussendorf pointed out that changing the
effective date to January 1, 1994 would place responsibility
on the municipalities for the transitional period. He
recommended adding a contribution.
Co-Chair MacLean MOVED CS HB 66 (FIN) work draft 8-GH1032\R,
Cook, dated 3/15/93 as the version before the Committee.
There being NO OBJECTIONS, it was ordered.
Representative Brown provided the Committee with Amendment
net for the poorest citizens that they not loose their homes
as a result of the phase out of the program. The amendment
would provide that there be a mandatory deferment of taxes
owed for an individual whose adjusted gross income is less
than $24 thousand dollars. She urged the Committee to
consider the amendment for the senior citizens.
(Tape Change, HFC 93-50, Side 2).
23
KENT E. SWISHER, EXECUTIVE DIRECTOR, ALASKA MUNICIPAL
LEAGUE, JUNEAU, ALASKA, noted specific concerns of the
Alaska Municipal League (AML).
* Community Approval - Granting an exemption or a
deferral is an important public policy decision
having impacts on all other taxpayers and on the
level of service offered by the local government.
He stated the local public should have the
opportunity to participate in the decision through
the polls. ALM requests that the Committee
consider amending HB 66 to provide for voter
approval of local ordinances creating exemption or
deferral structures.
* Personal Financial Circumstances - Currently, the
statute does not include authority for local
government to consider individual financial need
or other circumstances in creating an exemption,
deferral, or combination system. AML urges the
Committee to amend HB 66 to clarify local
government's ability to consider needs in making
decisions for that area.
* Effective Date - When HB 66 was introduced, it had
an effective date of January 1, 1993, which would
be consistent. There is no money provided in the
Governor's budget proposal for funding this
mandate. The concept of deferral was not included
in the bill, and the required action at the local
level was to grant or not grant tax exemption to a
clearly defined group per regulations to be
adopted by DCRA.
Representative Brown questioned the Subcommittee elimination
of the authority for communities to develop programs based
on "need". Co-Chair MacLean stated that the Subcommittee
intended to eliminate that authority. Representative Hanley
pointed out that Amendment #1 requires a "needs based"
program and asked if that was permissive. Co-Chair MacLean
stated that "needs based" would be made optional by the
municipalities.
BRUCE GERAGHTY, DEPUTY COMMISSIONER, DEPARTMENT OF COMMUNITY
AND REGIONAL AFFAIRS, stated the "needs based" sentence was
left out in order that the municipalities would not act only
on that. He noted, y not adding the "needs based" language
would allow the municipalities the option.
Co-Chair Larson recommended drafting a Subcommittee Letter
of Intent explaining the "needs based" concern.
24
Co-Chair MacLean suggested that the amendment could be
placed on Page 3, Line 9. She explained that language had
been modified so to include no dollar amount.
Representative Brown restated that the amendment would
assure that low income people would not loose property
because of their inability to pay the tax. Mr. Geraghty
pointed out that the amendment would change the language and
at which time all the seniors would not be given the option
to have their taxes deferred. This would create a tax
liability and/or a municipal lien on the property.
GENE DOW, LEGISLATIVE OFFICER, VETERANS OF FOREIGN WARS
(FVW), JUNEAU, ALASKA, testified in opposition of HB 66. He
state that the proposed legislation would affect senior
citizens and veterans income. He added that the veterans
also oppose the elimination of the $750 dollar burial
gratuity further discussion followed.
Co-Chair Larson noted that CS HB 66 (FIN) would be HELD in
Committee for further discussion.
ADJOURNMENT
The meeting adjourned at 3:30 P.M.
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