Legislature(1993 - 1994)
02/23/1994 01:40 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
February 23, 1994
1:40 P.M.
TAPE HFC 94 - 39, Side 1, #000 - end.
TAPE HFC 94 - 39, Side 2, #000 - end.
TAPE HFC 94 - 40, Side 1, #000 - #560.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
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 Grussendorf Representative Therriault
Representative Foster
ALSO PRESENT
Nancy Slagle, Director, Division of Budget Review, Office of
Management and Budget, Office of the Governor; Shelby
Stastny, Director, Office of Management and Budget, Office
of the Governor; Sharon Barton, Director, Division of
Administrative Services, Office of Administration; Nancy
Bear Usera, Commissioner, Department of Administration;
Karen Rehfeld, Director, Administrative Services, Department
of Education; Dan Spencer, Budget Analyst, Office of
Management and Budget, Office of the Governor; Richard
Pegues, Director, Administrative Services, Department of
Law; Thomas Williams, Director, Permanent Fund Dividend
Division, Department of Revenue; Janet Clarke, Director,
Division of Administrative Services, Department of Health
and Social Services; Karen Petersen, (testified via
teleconference), Board of Directors, Women in Safe Homes
(WISH), Ketchikan; Charles Mallott, (testified via
teleconference), Ketchikan Police Department, Ketchikan; Joy
Albin, (testified via teleconference), Fairbanks; Cathy
Wingrove, (testified via teleconference), Director, Women in
Crisis (WICCA), Fairbanks; Bob Irvine, (testified via
teleconference), Director, LIFEQUEST, Mat-Su; Michelle
Calahan, (testified via teleconference), City Hall,
Unalaska; Patrick Owen, (testified via teleconference),
Frontier Trauma Center (FTC), Kenai; Wini Crosby, (testified
via teleconference), FTC, Kenai; Lauree Hugonin, (testified
via teleconference), President, Tundra Women's Coalition
(TWC), Bethel; Charmi Olson, (testified via teleconference),
1
Bering Sea Women's Group (BSWG), Nome; Paul Johnson,
(testified via teleconference), Alaska Women's Resource
Center, Anchorage; Cathy Schindler, (testified via
teleconference), Abused Women Aid in Crisis (AWAIC),
Anchorage; Mary White, (testified via teleconference),
General Manager, KRBD Radio Station, Ketchikan; Dixie Duehn,
(testified via teleconference), OCRA, Ketchikan; Gigi
Pilcher, (testified via teleconference), Executive Director,
Women in Safe Homes (WISH), Ketchikan; Pam Creekmore,
(testified via teleconference), WICCA, Fairbanks; Lonna
Nevil, (testified via teleconference), WISH, Ketchikan;
Clyde Ferguson, (testified via teleconference), Director,
Mental Health Center, Bethel.
SUMMARY
HB 441 An Act reducing certain appropriations for fiscal
year 1994; and providing for an effective date.
HB 441 was held in Committee for further
discussion.
HB 455 An Act making and amending operating and capital
appropriations and ratifying certain state
expenditures; and providing for an effective date.
HB 455 was held in Committee for further
discussion.
GENERAL DISCUSSION
Co-Chair Larson provided a brief overview of the present
budget status. Currently, projected revenues for the State
of Alaska are significantly less than the projected budget.
He asked that State residents to participate in identifying
a solution to the budget crisis. Discussion followed among
Committee members regarding funds contained in the budget
reserve and correct usage of those funds. Representative
Navarre recommended significant long range budget planning.
HOUSE BILL 441
"An Act reducing certain appropriations for fiscal year
1994; and providing for an effective date."
KAREN PETERSON, (TESTIFIED VIA TELECONFERENCE), BOARD OF
DIRECTORS, WOMEN IN SAFE HOMES (WISH), KETCHIKAN, spoke in
opposition to HB 441, specifically the retroactive
reduction. She pointed out that most organizations
identified for cuts have fixed costs which have already been
implemented. Recuperating those costs will severely impact
the direct operations of services.
2
CHARLES MALLOTT, (TESTIFIED VIA TELECONFERENCE), KETCHIKAN
POLICE DEPARTMENT, KETCHIKAN, spoke in opposition to HB 441
and asked Committee members not to cut funding for women's
shelters throughout the State. He advised, that these
programs are "cost efficient" noting that women centers
receive funding from other sources besides state grants, for
example donations.
JOY ALBIN, (TESTIFIED VIA TELECONFERENCE), FAIRBANKS, spoke
against HB 441 and any further cuts proposed to the mental
health component.
CATHY WINGROVE, (TESTIFIED VIA TELECONFERENCE), DIRECTOR,
WOMEN IN CRISIS (WICCA), FAIRBANKS, spoke against HB 441.
She explained that women's shelters have received a
maintenance budget for the past three years while the costs
of running these shelters has increased. She pointed out
that a retroactive charge would remove services for victims
of abuse. Shelters can not afford that loss.
BOB IRVINE, (TESTIFIED VIA TELECONFERENCE), DIRECTOR,
LIFEQUEST, MAT-SU, spoke against HB 441 and the proposed
retroactive three percent cut from community mental health
services from the FY94 budget. Mr. Irvine asked for long
range consideration of adequate "front-end" funding.
MICHELLE CALAHAN,(TESTIFIED VIA TELECONFERENCE), CITY HALL,
UNALASKA, spoke against HB 441. She requested that
domestic violence and sexual assault programs be exempt from
funding cuts.
PATRICK OWEN, (TESTIFIED VIA TELECONFERENCE), FRONTIER
TRAUMA CENTER (FTC), KENAI, spoke against HB 441 expressing
concern with decreased funding for community based mental
health services.
WINI CROSBY, (TESTIFIED VIA TELECONFERENCE), FRONTIER TRAUMA
CENTER (FTC), KENAI, spoke against HB 441, echoing the
concerns of Mr. Patrick Owen.
LAUREE HUGONIN, (TESTIFIED VIA TELECONFERENCE), PRESIDENT,
TUNDRA WOMEN'S COALITION (TWC), BETHEL, spoke against HB
441. She urged that continued funding be allocated to
programs addressing sexual assault and domestic violence.
Ms. Hugonin recommended that budget cuts be taken from
capital improvement projects or that a statewide sales tax
be implemented to cover budget deficits.
CHARMI OLSON, (TESTIFIED VIA TELECONFERENCE), BERING SEA
WOMEN'S GROUP (BSWG), NOME, spoke against HB 441. She
requested that services for women suffering from domestic
3
violence continue to receive full funding adding that
services available in the Nome area are always fully
utilized.
(Tape Change, HFC 94-39, Side 2).
PAULA JOHNSON, (TESTIFIED VIA TELECONFERENCE), ALASKA
WOMEN'S RESOURCE CENTER, ANCHORAGE, spoke against HB 441
stating that social service programs are being targeted
during revenue depletion. She stressed that retroactive
cuts will dramatically affect the programs which assist
women moving into the job market from public assistance
support.
CATHY SCHINDLER, (TESTIFIED VIA TELECONFERENCE), ABUSED
WOMEN AID IN CRISIS (AWAIC), ANCHORAGE, spoke against HB 441
stressing the "front line" safety that shelter agencies
provide. Most of the funding received by AWAIC originates
from social service block money and grants. These are
designated funds. The proposed cuts would greatly affect
all programs since that money has already been budgeted for
the current fiscal year. Ms. Schindler urged the Committee
to reconsider the proposed legislation and exempt domestic
violence and sexual assault from any further cuts.
MARY WHITE, (TESTIFIED VIA TELECONFERENCE), GENERAL MANAGER,
KRBD RADIO STATION, KETCHIKAN, spoke against HB 441 and any
legislation which might establish the precedence to take
money retroactively. She added that public radio stations
in the State have received a lot of budget cuts in the past
few years and those cuts affect quality service.
DIXIE DUEHN, (TESTIFIED VIA TELECONFERENCE), OCRA,
KETCHIKAN, spoke against HB 441 and asked that continued
funding be provided to OCRA, a program which keeps families
together. These funds are administered through the WISH
program.
GIGI PILCHER, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE
DIRECTOR, WOMEN IN SAFE HOMES (WISH), KETCHIKAN, spoke in
opposition to HB 441. Ms. Pilcher stressed that further
cuts will deplete life threatening services to recipients
suffering from domestic violence and sexual assault. She
asked that the Committee exempt those services from further
budget cuts.
PAM CREEKMORE, (TESTIFIED VIA TELECONFERENCE), WICCA,
FAIRBANKS,
spoke in opposition to HB 441 while encouraging further
support of domestic violence programs.
LONNA NEVIL, (TESTIFIED VIA TELECONFERENCE), WOMEN IN SAFE
4
HOMES (WISH), KETCHIKAN, spoke in opposition to HB 441
requesting that Committee members become more educated to
the amount of and degree of domestic violence occurring
within the State to women and children.
CLYDE FERGUSON, (TESTIFIED VIA TELECONFERENCE), DIRECTOR,
MENTAL HEALTH CENTER, BETHEL, spoke in opposition to HB 441
requesting no further cuts to mental health practitioners
particularly in the rural areas. He pointed out there are
no private practitioners available in his area. Counselors
in the Bethel area are presently functioning at an
emergency crisis care level. Mr. Ferguson emphasized that
it is the responsibility of the State to provide Alaskans
essential services.
HB 441 was HELD in Committee for further consideration.
HOUSE BILL 455
"An Act making and amending operating and capital
appropriations and ratifying certain state
expenditures; and providing for an effective date."
NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF
MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, provided a
sectional overview of HB 455, the Supplemental legislation.
DEPARTMENT OF ADMINISTRATION
* Sec. 3 Public Defender $466.0
This request would provide for the extraordinary
number of felony cases and underfunded personal
services.
* Sec. 4 Office of Public Advocacy $554.7
The request would address increased caseload.
Representative Parnell asked if the requests in Sections 3 &
4 resulted from the reductions the Legislature took last
year. Ms. Slagle stated those budgets had been reduced last
year below projected cost for FY94.
* Sec. 5 Personnel/OEEO $100.0
This request would cover arbitration case costs
for labor negotiations.
* Sec. 6 Personnel/OEEO $18.0
This cost will cover a grievance award cost for a
5
specific employee in that Department.
* Sec. 7 Personnel/OEEO $50.0 thousand
dollars
The request will provide for the court-ordered
salary and geographic differential survey.
SHARON BARTON, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF ADMINISTRATION, remarked that the
survey conducted provided an evaluation of state salaries
versus private sector salaries for similar type of work
performed.
* Sec. 8 Leases $1,870.2
The request will cover additional lease costs.
DAN SPENCER, BUDGET ANALYST, OFFICE OF MANAGEMENT AND
BUDGET, OFFICE OF THE GOVERNOR, explained that the lease
budget had been funded below the projected costs for FY94.
Last years under funding was $1.8 million dollars under the
Governor's request budget.
Co-Chair MacLean asked which leases were not covered last
year. Ms. Barton offered to provide the Committee with that
information.
(Tape Change, HFC 94-40, Side 1).
* New Section #51 Personnel/OEEO $35.0
The request would cover ethics complaints grievance
award cases.
DEPARTMENT OF LAW
* Sec. 9 Legal Services & Operations $325.4
The funding will pay judgement and claims against
the State.
RICHARD PEGUES, DIRECTOR, ADMINISTRATIVE SERVICES,
DEPARTMENT OF LAW, explained the cost would cover nineteen
judgments. During the year, more judgments were received
than funds allocated.
DEPARTMENT OF EDUCATION
* Sec. 9a Pupil transportation $50.0
These costs would provide for the legal fees
6
related to pupil transportation issues (Ten Eyck
versus the State).
DEPARTMENT OF LAW
* Sec. 10 Legal Services & Operations $462.5
These fees will address the reapportionment case -
Southeast Conference versus Hickel.
Mr. Pegues pointed out that the amount currently requested
for reapportionment is the same amount requested last year
and not granted in Conference Committee. The amount
requested includes the added interest costs from last year's
request.
DEPARTMENT OF REVENUE
* Sec. 11 Permanent Fund Dividend $142.6
These costs will cover additional costs of
printing and delivery of the 1994 PFD
applications.
THOMAS WILLIAMS, DIRECTOR, PERMANENT FUND DIVIDEND DIVISION,
DEPARTMENT OF REVENUE, explained the original contractor was
not paid because services were not completed. The
Department was advised late in the printing schedule that
the contractor could not provide the product by the
deadline. Consequently, there was $142 thousand dollars of
additional expenses in order to get the applications
available on time.
* Sec. 12 Permanent Fund Corporation $3,195.0
Cost to cover the additional equity management and
international custody fees.
DEPARTMENT OF EDUCATION
* Sec. 13 Foundation Program $1,500.0
Funds to cover increased student enrollments.
KAREN REHFELD, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT
OF EDUCATION, stated the amount requested was the total
amount needed based on a count taken in October, 1993. That
amount will be updated, March, 1994, and will affect the
request.
* Sec. 14 Vocational Education - federal
grants -0-
7
Funds to cover the ratification of expenditures.
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
* Sec. 15 PFD Hold Harmless $244.4
Costs to cover the increased number of eligible
recipients.
* Sec. 16 Medicaid Facilities $7,674.5
Funds to cover judgement and settlements against
state by ASHNHA and others.
JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, explained that the
request is comprised of three main cases, two of which are
settlements with the Attorney General's office related to
Our Lady of Compassion's appeal issue and with Humana
Hospital, a 1986 rate setting settlement. Both of these
settlements can be shared 50/50 percent with the federal
government. The largest amount of the request originates
from a judgement from the supreme court for a rate setting
issue dispute over rates paid nursing homes with the Alaska
State Hospital Nursing Home Association. She added that it
is anticipated that the level of federal participation will
reduce the needed amount.
Representative Hanley asked the amount of anticipated match
funds due from the federal government. Ms. Clarke stated
the request for federal participation would be for the years
1991, 1992 and 1993, and it has been received. That
information will be available in March, 1994. Ms. Clarke
offered to provide that information upon receipt.
* Sec. 17 Medicaid Facilities $5,045.0
Funds to cover FY93 bills paid in FY94 and the
increased participants in FY94.
Representative Hanley commented on the request for an
additional supplemental for fiscal year 1993. Ms. Clarke
pointed out that last year, the Department offered to
relinquish $4.5 million dollars in the Medicaid program
which held true with projections until the fourth quarter
(April, May and June 1994). At that time, bills were
provided remaining from 1993. The magnitude of those
expenditures resulted in the proposed request.
* Sec. 18 Medicaid Facilities $2,600.0
8
Funds to cover for Charter North and North Star
Hospital (disproportionate share claims).
* Sec. 19 Indian Health Service $3,567.4
Costs to cover the increased Indian Health Service
billings.
* Sec. 20 General Relief Medical $887.5
Funds for the $246.6 thousand dollars in FY93
carry forward; $640.9 thousand dollars increased
program growth.
Per Representative Therriault's request, Ms. Clarke
explained "disproportionate share claims", a program which
can be participated in through Medicaid. These are
disproportionate share payments given to psychiatric
hospitals because those hospitals serve a disproportionate
share of either Medicaid clients or low income people. When
Alaska began participating in this program, new federal
dollars were brought into the State in order to match
current funds spent at API.
HB 455 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting adjourned at 340 P.M.
HOUSE FINANCE COMMITTEE
February 23, 1994
1:40 P.M.
TAPE HFC 94 - 39, Side 1, #000 - end.
TAPE HFC 94 - 39, Side 2, #000 - end.
TAPE HFC 94 - 40, Side 1, #000 - #560.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
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 Grussendorf Representative Therriault
Representative Foster
9
ALSO PRESENT
Nancy Slagle, Director, Division of Budget Review, Office of
Management and Budget, Office of the Governor; Shelby
Stastny, Director, Office of Management and Budget, Office
of the Governor; Sharon Barton, Director, Division of
Administrative Services, Office of Administration; Nancy
Bear Usera, Commissioner, Department of Administration;
Karen Rehfeld, Director, Administrative Services, Department
of Education; Dan Spencer, Budget Analyst, Office of
Management and Budget, Office of the Governor; Richard
Pegues, Director, Administrative Services, Department of
Law; Thomas Williams, Director, Permanent Fund Dividend
Division, Department of Revenue; Janet Clarke, Director,
Division of Administrative Services, Department of Health
and Social Services; Karen Petersen, (testified via
teleconference), Board of Directors, Women in Safe Homes
(WISH), Ketchikan; Charles Mallott, (testified via
teleconference), Ketchikan Police Department, Ketchikan; Joy
Albin, (testified via teleconference), Fairbanks; Cathy
Wingrove, (testified via teleconference), Director, Women in
Crisis (WICCA), Fairbanks; Bob Irvine, (testified via
teleconference), Director, LIFEQUEST, Mat-Su; Michelle
Calahan, (testified via teleconference), City Hall,
Unalaska; Patrick Owen, (testified via teleconference),
Frontier Trauma Center (FTC), Kenai; Wini Crosby, (testified
via teleconference), FTC, Kenai; Lauree Hugonin, (testified
via teleconference), President, Tundra Women's Coalition
(TWC), Bethel; Charmi Olson, (testified via teleconference),
Bering Sea Women's Group (BSWG), Nome; Paul Johnson,
(testified via teleconference), Alaska Women's Resource
Center, Anchorage; Cathy Schindler, (testified via
teleconference), Abused Women Aid in Crisis (AWAIC),
Anchorage; Mary White, (testified via teleconference),
General Manager, KRBD Radio Station, Ketchikan; Dixie Duehn,
(testified via teleconference), OCRA, Ketchikan; Gigi
Pilcher, (testified via teleconference), Executive Director,
Women in Safe Homes (WISH), Ketchikan; Pam Creekmore,
(testified via teleconference), WICCA, Fairbanks; Lonna
Nevil, (testified via teleconference), WISH, Ketchikan;
Clyde Ferguson, (testified via teleconference), Director,
Mental Health Center, Bethel.
SUMMARY
HB 441 An Act reducing certain appropriations for fiscal
year 1994; and providing for an effective date.
HB 441 was held in Committee for further
discussion.
10
HB 455 An Act making and amending operating and capital
appropriations and ratifying certain state
expenditures; and providing for an effective date.
HB 455 was held in Committee for further
discussion.
GENERAL DISCUSSION
Co-Chair Larson provided a brief overview of the present
budget status. Currently, projected revenues for the State
of Alaska are significantly less than the projected budget.
He asked that State residents to participate in identifying
a solution to the budget crisis. Discussion followed among
Committee members regarding funds contained in the budget
reserve and correct usage of those funds. Representative
Navarre recommended significant long range budget planning.
HOUSE BILL 441
"An Act reducing certain appropriations for fiscal year
1994; and providing for an effective date."
KAREN PETERSON, (TESTIFIED VIA TELECONFERENCE), BOARD OF
DIRECTORS, WOMEN IN SAFE HOMES (WISH), KETCHIKAN, spoke in
opposition to HB 441, specifically the retroactive
reduction. She pointed out that most organizations
identified for cuts have fixed costs which have already been
implemented. Recuperating those costs will severely impact
the direct operations of services.
CHARLES MALLOTT, (TESTIFIED VIA TELECONFERENCE), KETCHIKAN
POLICE DEPARTMENT, KETCHIKAN, spoke in opposition to HB 441
and asked Committee members not to cut funding for women's
shelters throughout the State. He advised, that these
programs are "cost efficient" noting that women centers
receive funding from other sources besides state grants, for
example donations.
JOY ALBIN, (TESTIFIED VIA TELECONFERENCE), FAIRBANKS, spoke
against HB 441 and any further cuts proposed to the mental
health component.
CATHY WINGROVE, (TESTIFIED VIA TELECONFERENCE), DIRECTOR,
WOMEN IN CRISIS (WICCA), FAIRBANKS, spoke against HB 441.
She explained that women's shelters have received a
maintenance budget for the past three years while the costs
of running these shelters has increased. She pointed out
that a retroactive charge would remove services for victims
of abuse. Shelters can not afford that loss.
BOB IRVINE, (TESTIFIED VIA TELECONFERENCE), DIRECTOR,
11
LIFEQUEST, MAT-SU, spoke against HB 441 and the proposed
retroactive three percent cut from community mental health
services from the FY94 budget. Mr. Irvine asked for long
range consideration of adequate "front-end" funding.
MICHELLE CALAHAN,(TESTIFIED VIA TELECONFERENCE), CITY HALL,
UNALASKA, spoke against HB 441. She requested that
domestic violence and sexual assault programs be exempt from
funding cuts.
PATRICK OWEN, (TESTIFIED VIA TELECONFERENCE), FRONTIER
TRAUMA CENTER (FTC), KENAI, spoke against HB 441 expressing
concern with decreased funding for community based mental
health services.
WINI CROSBY, (TESTIFIED VIA TELECONFERENCE), FRONTIER TRAUMA
CENTER (FTC), KENAI, spoke against HB 441, echoing the
concerns of Mr. Patrick Owen.
LAUREE HUGONIN, (TESTIFIED VIA TELECONFERENCE), PRESIDENT,
TUNDRA WOMEN'S COALITION (TWC), BETHEL, spoke against HB
441. She urged that continued funding be allocated to
programs addressing sexual assault and domestic violence.
Ms. Hugonin recommended that budget cuts be taken from
capital improvement projects or that a statewide sales tax
be implemented to cover budget deficits.
CHARMI OLSON, (TESTIFIED VIA TELECONFERENCE), BERING SEA
WOMEN'S GROUP (BSWG), NOME, spoke against HB 441. She
requested that services for women suffering from domestic
violence continue to receive full funding adding that
services available in the Nome area are always fully
utilized.
(Tape Change, HFC 94-39, Side 2).
PAULA JOHNSON, (TESTIFIED VIA TELECONFERENCE), ALASKA
WOMEN'S RESOURCE CENTER, ANCHORAGE, spoke against HB 441
stating that social service programs are being targeted
during revenue depletion. She stressed that retroactive
cuts will dramatically affect the programs which assist
women moving into the job market from public assistance
support.
CATHY SCHINDLER, (TESTIFIED VIA TELECONFERENCE), ABUSED
WOMEN AID IN CRISIS (AWAIC), ANCHORAGE, spoke against HB 441
stressing the "front line" safety that shelter agencies
provide. Most of the funding received by AWAIC originates
from social service block money and grants. These are
designated funds. The proposed cuts would greatly affect
all programs since that money has already been budgeted for
the current fiscal year. Ms. Schindler urged the Committee
12
to reconsider the proposed legislation and exempt domestic
violence and sexual assault from any further cuts.
MARY WHITE, (TESTIFIED VIA TELECONFERENCE), GENERAL MANAGER,
KRBD RADIO STATION, KETCHIKAN, spoke against HB 441 and any
legislation which might establish the precedence to take
money retroactively. She added that public radio stations
in the State have received a lot of budget cuts in the past
few years and those cuts affect quality service.
DIXIE DUEHN, (TESTIFIED VIA TELECONFERENCE), OCRA,
KETCHIKAN, spoke against HB 441 and asked that continued
funding be provided to OCRA, a program which keeps families
together. These funds are administered through the WISH
program.
GIGI PILCHER, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE
DIRECTOR, WOMEN IN SAFE HOMES (WISH), KETCHIKAN, spoke in
opposition to HB 441. Ms. Pilcher stressed that further
cuts will deplete life threatening services to recipients
suffering from domestic violence and sexual assault. She
asked that the Committee exempt those services from further
budget cuts.
PAM CREEKMORE, (TESTIFIED VIA TELECONFERENCE), WICCA,
FAIRBANKS,
spoke in opposition to HB 441 while encouraging further
support of domestic violence programs.
LONNA NEVIL, (TESTIFIED VIA TELECONFERENCE), WOMEN IN SAFE
HOMES (WISH), KETCHIKAN, spoke in opposition to HB 441
requesting that Committee members become more educated to
the amount of and degree of domestic violence occurring
within the State to women and children.
CLYDE FERGUSON, (TESTIFIED VIA TELECONFERENCE), DIRECTOR,
MENTAL HEALTH CENTER, BETHEL, spoke in opposition to HB 441
requesting no further cuts to mental health practitioners
particularly in the rural areas. He pointed out there are
no private practitioners available in his area. Counselors
in the Bethel area are presently functioning at an
emergency crisis care level. Mr. Ferguson emphasized that
it is the responsibility of the State to provide Alaskans
essential services.
HB 441 was HELD in Committee for further consideration.
HOUSE BILL 455
"An Act making and amending operating and capital
appropriations and ratifying certain state
expenditures; and providing for an effective date."
13
NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF
MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, provided a
sectional overview of HB 455, the Supplemental legislation.
DEPARTMENT OF ADMINISTRATION
* Sec. 3 Public Defender $466.0
This request would provide for the extraordinary
number of felony cases and underfunded personal
services.
* Sec. 4 Office of Public Advocacy $554.7
The request would address increased caseload.
Representative Parnell asked if the requests in Sections 3 &
4 resulted from the reductions the Legislature took last
year. Ms. Slagle stated those budgets had been reduced last
year below projected cost for FY94.
* Sec. 5 Personnel/OEEO $100.0
This request would cover arbitration case costs
for labor negotiations.
* Sec. 6 Personnel/OEEO $18.0
This cost will cover a grievance award cost for a
specific employee in that Department.
* Sec. 7 Personnel/OEEO $50.0 thousand
dollars
The request will provide for the court-ordered
salary and geographic differential survey.
SHARON BARTON, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF ADMINISTRATION, remarked that the
survey conducted provided an evaluation of state salaries
versus private sector salaries for similar type of work
performed.
* Sec. 8 Leases $1,870.2
The request will cover additional lease costs.
DAN SPENCER, BUDGET ANALYST, OFFICE OF MANAGEMENT AND
BUDGET, OFFICE OF THE GOVERNOR, explained that the lease
budget had been funded below the projected costs for FY94.
Last years under funding was $1.8 million dollars under the
14
Governor's request budget.
Co-Chair MacLean asked which leases were not covered last
year. Ms. Barton offered to provide the Committee with that
information.
(Tape Change, HFC 94-40, Side 1).
* New Section #51 Personnel/OEEO $35.0
The request would cover ethics complaints grievance
award cases.
DEPARTMENT OF LAW
* Sec. 9 Legal Services & Operations $325.4
The funding will pay judgement and claims against
the State.
RICHARD PEGUES, DIRECTOR, ADMINISTRATIVE SERVICES,
DEPARTMENT OF LAW, explained the cost would cover nineteen
judgments. During the year, more judgments were received
than funds allocated.
DEPARTMENT OF EDUCATION
* Sec. 9a Pupil transportation $50.0
These costs would provide for the legal fees
related to pupil transportation issues (Ten Eyck
versus the State).
DEPARTMENT OF LAW
* Sec. 10 Legal Services & Operations $462.5
These fees will address the reapportionment case -
Southeast Conference versus Hickel.
Mr. Pegues pointed out that the amount currently requested
for reapportionment is the same amount requested last year
and not granted in Conference Committee. The amount
requested includes the added interest costs from last year's
request.
DEPARTMENT OF REVENUE
* Sec. 11 Permanent Fund Dividend $142.6
These costs will cover additional costs of
printing and delivery of the 1994 PFD
15
applications.
THOMAS WILLIAMS, DIRECTOR, PERMANENT FUND DIVIDEND DIVISION,
DEPARTMENT OF REVENUE, explained the original contractor was
not paid because services were not completed. The
Department was advised late in the printing schedule that
the contractor could not provide the product by the
deadline. Consequently, there was $142 thousand dollars of
additional expenses in order to get the applications
available on time.
* Sec. 12 Permanent Fund Corporation $3,195.0
Cost to cover the additional equity management and
international custody fees.
DEPARTMENT OF EDUCATION
* Sec. 13 Foundation Program $1,500.0
Funds to cover increased student enrollments.
KAREN REHFELD, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT
OF EDUCATION, stated the amount requested was the total
amount needed based on a count taken in October, 1993. That
amount will be updated, March, 1994, and will affect the
request.
* Sec. 14 Vocational Education - federal
grants -0-
Funds to cover the ratification of expenditures.
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
* Sec. 15 PFD Hold Harmless $244.4
Costs to cover the increased number of eligible
recipients.
* Sec. 16 Medicaid Facilities $7,674.5
Funds to cover judgement and settlements against
state by ASHNHA and others.
JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, explained that the
request is comprised of three main cases, two of which are
settlements with the Attorney General's office related to
Our Lady of Compassion's appeal issue and with Humana
Hospital, a 1986 rate setting settlement. Both of these
settlements can be shared 50/50 percent with the federal
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government. The largest amount of the request originates
from a judgement from the supreme court for a rate setting
issue dispute over rates paid nursing homes with the Alaska
State Hospital Nursing Home Association. She added that it
is anticipated that the level of federal participation will
reduce the needed amount.
Representative Hanley asked the amount of anticipated match
funds due from the federal government. Ms. Clarke stated
the request for federal participation would be for the years
1991, 1992 and 1993, and it has been received. That
information will be available in March, 1994. Ms. Clarke
offered to provide that information upon receipt.
* Sec. 17 Medicaid Facilities $5,045.0
Funds to cover FY93 bills paid in FY94 and the
increased participants in FY94.
Representative Hanley commented on the request for an
additional supplemental for fiscal year 1993. Ms. Clarke
pointed out that last year, the Department offered to
relinquish $4.5 million dollars in the Medicaid program
which held true with projections until the fourth quarter
(April, May and June 1994). At that time, bills were
provided remaining from 1993. The magnitude of those
expenditures resulted in the proposed request.
* Sec. 18 Medicaid Facilities $2,600.0
Funds to cover for Charter North and North Star
Hospital (disproportionate share claims).
* Sec. 19 Indian Health Service $3,567.4
Costs to cover the increased Indian Health Service
billings.
* Sec. 20 General Relief Medical $887.5
Funds for the $246.6 thousand dollars in FY93
carry forward; $640.9 thousand dollars increased
program growth.
Per Representative Therriault's request, Ms. Clarke
explained "disproportionate share claims", a program which
can be participated in through Medicaid. These are
disproportionate share payments given to psychiatric
hospitals because those hospitals serve a disproportionate
share of either Medicaid clients or low income people. When
Alaska began participating in this program, new federal
dollars were brought into the State in order to match
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current funds spent at API.
HB 455 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting adjourned at 340 P.M.
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