Legislature(1993 - 1994)
03/30/1993 01:40 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
March 30, 1993
1:40 p.m.
TAPE HFC 93-82, Side 1, #000 - end.
TAPE HFC 93-82, Side 2, #000 - end.
TAPE HFC 93-83, Side 1, #000 - end.
TAPE HFC 93-83, Side 2, #000 - end.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee to order
at 1:40 p.m.
PRESENT
Co-Chair Larson Representative Hoffman
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Navarre
Representative Brown Representative Parnell
Representative Foster Representative Therriault
Representative Grussendorf
ALSO PRESENT
Mike Greany, Director, Legislative Finance Division; Frank
Turpin, Commissioner, Department of Transportation and
Public Facilities; Jan Hansen, Director, Division of Public
Assistance, Department of Health and Social Services; Janice
Adair, Assistant Commissioner, Department of Environmental
Conservation; Bruce Botelho, Assistant Attorney General,
Department of Law; Karen Rehfeld, Fiscal Analyst,
Legislative Finance Division; Theodore A. Mala, MD, MPH,
Commissioner, Department of Health and Social Services.
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 was HELD in Committee.
HB 67 "An Act relating to eligibility for and payments
of public assistance; and providing for an
effective date."
HB 67 was HELD in Committee.
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HOUSE BILL NO. 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."
UNIVERSITY OF ALASKA
Co-Chair Larson MOVED to ADOPT AMENDMENT UA-7 (copy on
file). He explained that the Amendment would use $150.0
thousand dollars of the Science and Technology Endowment
Fund for a seed potato project.
KAREN REHFELD, FISCAL ANALYST, DIVISION OF LEGISLATIVE
FINANCE observed that there is $3 million dollars in the
University of Alaska's budget for grants from the Fund. She
noted that the estimated revenue from the Fund would just
cover the appropriations from the Fund. from the clarified
that funding for Amendment UA-7 would increase grants from
the Science and Technology Fund to $3,150.0 million dollars.
Representative Martin MOVED to AMEND the motion to specify
that the $150.0 thousand dollar grant for the seed potato
project will be allocated from the $3.0 million dollars
appropriated for University of Alaska grants. There being
NO OBJECTION, it was so ordered.
Co-Chair Larson MOVED to ADOPT AMENDMENT UA-7 as amended.
There being NO OBJECTION, it was so ordered.
Representative Hanley MOVED to RESCIND the Committee's
action in adopting UA-1 (copy on file). There being NO
OBJECTION, it was so ordered. UA-1 was NOT ADOPTED.
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS
Representative Foster MOVED to RESCIND the Committee's
action in adopting CRA-3, to delete $22.8 thousand dollars
for pay increase for a Deputy Commissioner position (copy on
file). There being NO OBJECTION, it was so ordered.
Representative Brown MOVED to ADOPT AMENDMENT CRA-3. A roll
call vote was taken on the motion.
IN FAVOR: Brown, Grussendorf, Navarre
OPPOSED: Foster, Hanley, Martin, Parnell, Therriault,
Hoffman, MacLean, Larson
The MOTION FAILED (3-8).
DEPARTMENT OF EDUCATION
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Co-Chair MacLean MOVED to RESCIND the Committee's action in
adopting Amendment DOE-2 (copy on file). There being NO
OBJECTION, it was so ordered. Co-Chair MacLean provided
members with a new Amendment DOE-2 (copy on file). She
MOVED to ADOPT AMENDMENT DOE-2. Representative Navarre
OBJECTED. A roll call vote was taken on the motion.
IN FAVOR: Brown, Grussendorf, Hoffman, Foster, Hanley,
Martin, Parnell, Therriault, MacLean, Larson
OPPOSED: Navarre
The MOTION PASSED (10-1).
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
Co-Chair Larson provided members with a new Amendment DOT-5
(copy on file). He explained Amendment DOT-5. Co-Chair
Larson MOVED to ADOPT AMENDMENT DOT-5. Representative
Navarre OBJECTED. Representative Navarre noted that the
amendment included a $200.0 thousand dollar unallocated
reduction in maintenance and operations.
FRANK TURPIN, COMMISSIONER, DEPARTMENT OF TRANSPORTATION AND
PUBLIC FACILITIES noted that the amendment represents a
heavy administrative reduction. He stressed that the
Department's administrative operations have been severely
reduced. Representative Navarre asserted that reductions
will result in less efficiencies.
Commissioner Turpin expressed concern with the Department's
ability to absorb the $200.0 thousand dollar unallocated
reduction. Representative Grussendorf noted that the
Department's budget has been previously diminished.
Co-Chair Larson MOVED to AMEND the motion to reduce the
unallocated reduction from $200.0 thousand dollars to $100.0
thousand dollars. There being NO OBJECTION, it was so
ordered.
Representative Navarre MOVED to AMEND the motion to delete
the $100.0 thousand dollar unallocated reduction included in
DOT-5. A roll call vote was taken on the motion.
IN FAVOR: Brown, Grussendorf, Hoffman, Navarre
OPPOSED: Foster, Hanley, Martin, Parnell, Therriault,
MacLean, Larson
The MOTION FAILED (4-7).
Commissioner Turpin noted that there will be jobs lost as a
result of the adoption of DOT-5. He stressed that
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administration has been reduced over the last two years.
Co-Chair Larson MOVED to INCORPORATE AMENDMENT DOT-5, as
amended, into HB 55. A roll call vote was taken on the
motion.
IN FAVOR: Foster, Hanley, Martin, Parnell, Therriault,
MacLean, Larson
OPPOSED: Brown, Grussendorf, Hoffman, Navarre
The MOTION PASSED (7-4).
Representative Navarre MOVED to RESCIND the Committee's
action in failing to adopt Amendment DOT-2 (copy on file).
He asserted that the failure to provide funding for
maintenance and operations of new facilities will result in
greater deferred maintenance costs. A roll call vote was
taken on the motion.
IN FAVOR: Brown, Grussendorf, Hoffman, Navarre
OPPOSED: Foster, Hanley, Martin, Parnell, Therriault,
MacLean, Larson
The MOTION FAILED (4-7).
Co-Chair Larson MOVED to ADOPT INTENT DOT-B: "It is the
intent of the Legislature that General Fund reductions to
the Alaska Marine Highway system be taken from travel, per
diem, dues to the Alaska Visitors Association, education
fees, and training costs". Co-Chair MacLean OBJECTED.
JOHN BITNEY, LEGISLATIVE STAFF, REPRESENTATIVE LARSON
explained that the intent language would replace Amendment
6.
A roll call vote was taken on the motion to adopt Intent
Language DOT-B.
IN FAVOR: Foster, Hanley, Martin, Parnell, Therriault,
MacLean, Larson
OPPOSED: Brown, Grussendorf, Hoffman, Navarre
The MOTION PASSED (7-4).
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
Representative Therriault MOVED to RESCIND the Committee's
action in adopting Amendment DEC-6 (copy on file). He
indicated his intention to transfer the funding from
contaminated site cleanup to the Near Shore Demonstration
Project. Representative Navarre OBJECTED.
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(Tape Change, HFC 93-83, Side 1)
Representative Navarre conceded that the Near Shore
Demonstration Project has merit. He emphasized that funding
for the Project should not be taken from contaminated site
cleanup. A roll call vote was taken on the motion.
IN FAVOR: Foster, Hanley, Martin, Parnell, Therriault,
Larson
OPPOSED: Brown, Grussendorf, Hoffman, Navarre, MacLean
The MOTION PASSED (6-5).
Representative Therriault MOVED to AMEND Amendment DEC-6 by
transferring $100.0 thousand dollars in contractual services
OHSSRF to the Near Shore Project. There being NO OBJECTION,
it was so ordered.
Representative Hoffman MOVED to ADOPT AMENDMENT DEC-22 into
HB 55 (copy on file). He explained that $440.0 thousand
dollars would be used for Koyukuk School oil spill
evaluation and cleanup.
REPRESENTATIVE IRENE NICHOLIA explained that there is fuel
spill contamination as a result of a faulty fuel line. The
contamination is 75 feet from the village safe water
facility. The estimated cost of site evaluation is $40.0
thousand dollars. The cleanup cost is estimated at $400.0
thousand dollars.
Representative Brown MOVED to AMEND Amendment DEC-22, to
insert after "for" "the Koyukuk School". There being NO
OBJECTION, it was so ordered.
Co-Chair MacLean asked for information regarding other
contaminated sites within school districts.
JANICE ADAIR, DEPUTY COMMISSIONER, DEPARTMENT OF
ENVIRONMENTAL CONSERVATION noted that there is an emergency
situation at the Kaltag school. She pointed out that the
Kaltag school will fail off the Department's list of cleanup
sites due to a lack of funding. She further discussed the
Koyukuk site contamination. She noted that the
contamination is the result of a broken fuel line. Co-Chair
Larson noted that the actual cost of cleanup is unknown.
Representative Therriault asked if Spill Reserve money could
be spent for the Koyukuk contaminated site cleanup. Ms.
Adair noted that expenditures of the Spill Reserve require
an imminent and substantial threat to the public health or
environment. She felt that the project would not qualify
until it was closer to the water. She suggested the problem
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be addressed before the problem becomes an emergency.
Representative Therriault spoke in opposition to the
amendment. Representative Brown emphasized that schools are
involved.
Co-Chair Larson suggested that the amendment be amended to
appropriate $40.0 thousand dollars from the Mitigation
Account to the Department of Environmental Conservation for
the Koyukuk oil spill evaluation. Representative Hoffman
stressed that if the evaluation demonstrates that the oil is
approaching the water source that further appropriations
would be a year away. He pointed out that a new well would
need to be drilled if the oil is not contained. He observed
that if the appropriation is made and the money not needed
that it would lapse. Ms. Adair clarified that 470 funds
could not be used to drill a new well.
Representative Hanley noted that if the spill becomes an
imminent danger the Department of Environmental Conservation
can go in and cleanup the spill. Ms. Adair agreed and added
that the Department would then cost recover against the
school district.
Co-Chair Larson reiterated the motion to ADOPT AMENDMENT
DEC-22. A roll call vote was taken on the motion.
IN FAVOR: Brown, Foster, Grussendorf, Hoffman, Navarre
OPPOSED: Hanley, Martin, Parnell, Therriault, MacLean,
Larson
The MOTION FAILED (5-6).
Representative Brown provided members with AMENDMENT DEC-25
(copy on file). She explained that the amendment would
fund contaminated site cleanup at the Kaltag school. She
noted that the problem began in 1986. She observed that the
Department recommended that $150.0 thousand dollars be
appropriated for the cleanup.
Representative Hoffman MOVED to AMEND the motion to include
$40.0 thousand dollars from the Mitigation Account to
Department of Environmental Conservation for contaminated
site evaluation for the Koyukuk School district. There
being NO OBJECTION, it was so ordered.
Co-Chair MacLean MOVED to AMEND Amendment DEC-25 to
appropriate to the Yukon Koyukuk School District for
contaminated site evaluation: $60.0 thousand dollars for
the Kaltag school and $40.0 thousand dollars for the Koyukuk
school. There being NO OBJECTION, it was so ordered.
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OIL HAZARDOUS SUBSTANCE RELEASE RESPONSE FUND INTER-AGENCY
RECEIPTS (OHSSRF)
Representative Therriault provided members with AMENDMENT
DEC-24 detailing allocations of OHSSRF to agency's programs
(Attachment 1).
(Tape Change, HFC 93-83, Side 1)
BRUCE BOTELHO, DEPUTY ATTORNEY GENERAL, DEPARTMENT OF LAW
discussed OHSSRF appropriations to the Department of Law.
He explained that the Department is counsel for Exxon Valdez
litigation, assists with cost recovery and is general
counsel for the Department of Environmental Conservation.
Representative Therriault MOVED to ADOPT AMENDMENT DEC-24.
Representative Brown OBJECTED. Representative Navarre noted
that Amendment DEC-24 will reduce the Citizen's Oversight
Council.
Co-Chair Larson suggested that Amendment DEC-24 be adopted
with the understanding that the Committee can address the
Citizen's Oversight Council during deliberations on the
Legislature's budget.
Representative Brown referred to the lack of maintenance for
repeater stations built during the oil spill.
A roll call vote was taken on the motion to adopt AMENDMENT
DEC-24.
IN FAVOR: Foster, Hanley, Martin, Parnell, Therriault,
MacLean, Larson
OPPOSED: Brown, Grussendorf, Hoffman, Navarre
The MOTION PASSED (7-4).
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
Representative Hanley MOVED to ADOPT a BUDGET NOTE for the
Department of Health and Social Services, Public Assistance
component: $350.0 thousand dollar of this allocation is to
provide job training. There being NO OBJECTION, it was so
ordered.
Representative Hanley MOVED to RESCIND the Committee's
action in adopting Amendment DHSS-6. Representative Navarre
OBJECTED. Representative Hanley discussed Amendment DHSS-6.
Representative Navarre WITHDREW HIS OBJECTIONS.
Representative Grussendorf noted that the Committee retains
concerns regarding services provided by Cordova House.
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THEODORE A. MALA, MD., COMMISSIONER, DEPARTMENT OF HEALTH
AND SOCIAL SERVICES stressed the importance of providing
mental health services to inmates. He asserted that the
problem is within the structure of the Department of
Corrections.
There being NO OBJECTION, Amendment DHSS-6 was rescinded.
Representative Hanley MOVED to RESCIND the Committee's
action in adopting Amendment DHSS-22. Commissioner Mala
noted that the amendment would deny transfer of $39.5
thousand dollars to the Department from the Mental Health
Trust Income Account. He emphasized that the Department has
sustained over $150.0 thousand dollars in cuts. He observed
that the position in question responds to constituent calls
in Anchorage.
Representative Brown OBJECTED to the motion to rescind
Amendment DHSS-22. A roll call vote was taken on the
motion.
IN FAVOR: Hanley, Martin, Parnell, Therriault, MacLean,
Larson
OPPOSED: Brown, Hoffman, Navarre
Representative Foster was not present for the vote.
The MOTION PASSED (7-3).
Representative Brown MOVED to RESCIND the Committee's action
in failing to adopt Amendment DHSS-9 as amended: Restore
$52.6 thousand dollars to the Council on Domestic Violence
and Sexual Assault (copy on file). Representative Hanley
OBJECTED. A roll call vote was taken on the motion.
IN FAVOR: Brown, Grussendorf, Hoffman, Navarre, Parnell,
MacLean
OPPOSED: Foster, Hanley, Martin, Therriault, Larson
The MOTION PASSED (6-5).
Representative Brown MOVED to ADOPT AMENDMENT DHSS-9.
Representative Hanley OBJECTED. A roll call vote was taken
on the motion.
IN FAVOR: Brown, Grussendorf, Hoffman, Navarre, Parnell,
MacLean
OPPOSED: Foster, Hanley, Martin, Therriault, Larson
The MOTION PASSED (6-5).
Representative Martin MOVED to ADOPT AMENDMENT DHSS-21:
Delete $448,945 thousand dollars from the General Relief
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Medical component. He explained that federal funding will
be available for funding of abortions. Representative Brown
questioned if federal dollars will be available. She
requested that Amendment DHSS-21 be HELD open.
Amendment DHSS-21 was HELD open.
DEPARTMENT OF NATURAL RESOURCES
Co-Chair MacLean provided members with replacement AMENDMENT
DNR-8 (copy on file). She explained that the amendment
would allocated $75.9 thousand dollar for state fairs. Co-
Chair MacLean noted that the Interior Rivers Fair and Chevak
Tundra Fest are new fairs. Co-Chair MacLean MOVED to ADOPT
AMENDMENT DNR-8. There being NO OBJECTION, it was so
ordered.
DEPARTMENT OF REVENUE
Representative Foster MOVED to ADOPT AMENDMENT REV-11 (copy
on file). The amendment would add four investigators to the
Alcohol Beverage Control Board, $279.0 thousand dollars in
program receipts. There being NO OBJECTION, it was so
ordered.
OFFICE OF THE GOVERNOR
Representative Therriault MOVED to ADOPT INTENT LANGUAGE
GOV-B (copy on file).
(Tape Change, HFC 93-83, Side 2)
There being NO OBJECTION, INTENT LANGUAGE GOV-B was adopted.
LEGISLATURE
Co-Chair MacLean MOVED to ADOPT AMENDMENT LEG-1, to delete
$237.3 thousand dollars for the Citizen's Oversight Council
on Oil and Hazardous Substance (copy on file).
Representative Navarre OBJECTED. He stressed the need to
continue the Citizen's Oversight Council. Representative
Brown noted that the Department of Environmental
Conservation's budget has been severely reduced.
A roll call vote was taken on the motion to adopt Amendment
LEG-1.
IN FAVOR: Foster, Hanley, Martin, Parnell, Therriault,
Larson
OPPOSED: Brown, Grussendorf, Hoffman, Navarre, MacLean
The MOTION PASSED (6-5).
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HB 55 was HELD in Committee.
HOUSE BILL NO. 67
"An Act relating to eligibility for and payments of
public assistance; and providing for an effective
date."
Representative Hanley MOVED to RESCIND the Committee's
action in reporting CSHB 67 (FIN) out of Committee.
Representative Brown OBJECTED. A roll call vote was taken
on the motion.
IN FAVOR: Grussendorf, Foster, Hanley, Martin, Parnell,
Therriault, MacLean, Larson
OPPOSED: Brown, Hoffman, Navarre
The MOTION PASSED (8-3).
A roll call vote was taken on the motion to report CSHB 67
(FIN) from Committee.
IN FAVOR: Grussendorf, Brown, Hoffman, Navarre
OPPOSED: Foster, Hanley, Martin, Parnell, Therriault,
MacLean, Larson
The MOTION FAILED (4-7).
Representative Hanley MOVED to RESCIND the Committee's
action in adopting Amendment 1 to HB 67. Representative
Brown OBJECTED. Representative Brown emphasized the need
for COLA adjustments. The amendment would suspend the COLA.
Representative Hoffman spoke is support of Amendment 1. He
asserted that repealing the COLA for Adult Public Assistance
(APA) and Aid to Families with Dependent Children (AFDC) is
"one of the most regressive things we can do to poor people
in the state."
Co-Chair Larson observed that Alaska is the only state that
has a COLA clause for these programs. Representative
Hoffman noted that if Amendment 1 is not adopted legislative
action will be needed in the future to increase APA or AFDC
payments.
Representative Brown provided members with a Legislative
Research Agency memorandum regarding the state of Alaska's
children, dated 3/22/93 (Attachment 2). She pointed out
that there are 45,000 children in Alaska living below the
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poverty level. She observed that 27 percent of Alaska's
preschool children live in poverty. She maintained that the
programs support children.
Representative Hoffman provided members with a 3/26/93,
memorandum from Terri Lauterbach, Legislative Counsel
stating that CSHB 67 (JUD) would not allow COLA payments to
be made through appropriation (Attachment 3).
Representative Grussendorf spoke against repealing the COLA.
A roll call vote was taken on the motion to RESCIND
Amendment 1, adopted on 3/27/93.
IN FAVOR: Foster, Hanley, Martin, Parnell, Therriault,
MacLean, Larson
OPPOSED: Brown, Grussendorf, Hoffman, Navarre
The MOTION PASSED (7-4).
Representative Brown provided members with a substitute for
Amendment 1 (copy on file). Representative Brown MOVED to
ADOPT AMENDMENT 1. A roll call vote was taken on the
motion.
IN FAVOR: Brown, Grussendorf, Hoffman, Navarre
OPPOSED: Foster, Hanley, Martin, Parnell, Therriault,
MacLean, Larson
The MOTION FAILED (4-7).
Representative Brown provided members with AMENDMENT 2
(Attachment 4). She explained that Amendment 2 would set a
floor for APA and AFDC payment levels. The COLA adjustment
would automatically be installed if AFDC and APA recipients
fell below 70 percent of the federal poverty guideline.
JAN HANSEN, DIRECTOR, PUBLIC ASSISTANCE, DEPARTMENT OF
HEALTH AND SOCIAL SERVICES explained that it is necessary to
specify the household size. She explained that a two person
household is at a higher percentage of poverty than a three
person household. She suggested that the amendment specify
that when a household of two reach 70 percent of the poverty
level than the COLA adjustment would be made. She explained
that COLAs are the same as the poverty level increase. She
gave examples of COLA adjustments. She noted that in 1992 a
household of three is at 77 percent of poverty and a
household of two is at 86 percent of poverty.
Representative Brown MOVED to AMEND AMENDMENT 2 to specify
that when a three person household reaches below 70 percent
of the poverty level a COLA adjustment would be made. Co-
Chair Larson suggested that the amendment be held and
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drafted be legal counsel. Amendment 2 was held.
HB 67 was HELD in Committee.
ADJOURNMENT
The meeting adjourned at 5:28 p.m.
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