Legislature(1993 - 1994)
03/14/1994 01:35 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 14, 1994
1:35 P.M.
TAPE HFC 94 - 61, Side 1, #000 - end.
TAPE HFC 94 - 61, Side 2, #000 - end.
TAPE HFC 94 - 62, Side 1, #000 - #215.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 1:35 P.M.
PRESENT
Co-Chair Larson Representative Hoffman
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Navarre
Representative Brown Representative Foster
Representative Grussendorf Representative Therriault
Representative Parnell was not present for the meeting.
ALSO PRESENT
Nancy Slagle, Director, Division of Budget Review, Office of
Management and Budget; Mike Greany, Director, Legislative
Finance Division; Jack Phelps, Staff, Representative Peter
Kott.
SUMMARY
HB 363 An Act repealing an additional fee for motor
vehicle registration not conducted by mail.
CS HB 363 (FIN) was reported out of Committee with
"no recommendations" and with a fiscal note by the
Department of Public Safety dated 2/16/94.
HB 370 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 370 was HELD in Committee for further
consideration.
DISCUSSION ON THE SPENDING PLAN
Co-Chair Larson provided the Committee with a handout
"FY94/95 House Spending Plan". [Attachment #1].
1
Information was compiled based on the price of oil at
$13.44/bbl price which would provide unrestricted general
funds of $1,677.0 billion dollars. He pointed out that FY95
expenditures would total $2,512.0 billion dollars which
would be $12 million dollars higher than that initially
presented by the Governor. He asked what attributed to the
increase.
MIKE GREANY, DIRECTOR, LEGISLATIVE FINANCE DIVISION, stated
that the Governor's amendments added $3.6 million dollars.
Also, there was an additional $8 million dollar reduction
off-set resulting from the Aetna budget reserve which was
not accounted for in the operating portion of the budget.
Co-Chair Larson discussed the subcommittee closeout process.
Each subcommittee chairperson will provide a letter
recommending the subcommittee changes by 3/21/94 which will
be distributed to all Committee and House members and the
Legislative Information Offices throughout the state. A
statewide teleconference will be scheduled for citizen
participation followed by consideration by the full House
Finance Committee.
HOUSE BILL 370
"An Act making appropriations for the operating and
loan program expenses of state government and to
capitalize funds; and providing for an effective date."
NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF
MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, offered to
provide the Committee with a letter summarizing the
Governor's amendments.
Ms. Slagle provided a sectional analysis of HB 370,
answering questions on individual sections.
* Sec. 2
Mr. Greany stated that Section #2 would empower the
Legislative Budget and Audit Committee to make adjustments
during the year to federal funds and program receipts.
* Sec. 5
Ms. Slagle noted that Section #5 applies to the social
services block grant money in the Department of Health and
Social Services, under Title 20. Those funds are received
from the federal government as an off-set to general fund
dollars. If the full amount budgeted is not received,
general fund dollars would need to be adjusted.
2
* Sec. 6
Representative Navarre asked if judgments and claims paid
from the state insurance catastrophe reserve account would
be listed in the annual report. Ms. Slagle replied that
information would be included in the catastrophe reserve
account.
* Sec. 8
Representative Navarre asked if a debt retirement fund had
been established. Ms. Slagle stated that in Section 10 and
Section 11, those funds would be appropriated out and then
back into the debt retirement fund to pay the G.O. debt.
She added that Section 8 would address AHFC veteran's
mortgage bonds and the state's guarantee for bonds based on
voter approval.
* Sec.9 - Sec. 10 - Sec. 11
Representative Brown asked if the amounts appropriated in
Sections 8-11 to the state bond committee were listed on the
balance sheet under the $131 million dollars debt service
increment. Mr. Greany advised that amount was shown in
Sections 10-11 and Section 34, and added, Section 11 had
been appropriated to cover the G.O. debt.
* Sec. 13
Co-Chair MacLean asked the amount of funds spent on
inflation proofing and the fiscal impact should that funding
not be appropriated this year. Ms. Slagle advised the
amount spent was $372 million dollars. Mr. Greany added
that as of June lst of each year, the actual inflation proof
cost is determined by the Consumer Price Index (CPI) and the
inflation rate. That amount is transferred each year into
the corpus of the permanent fund.
* Sec. 15
Representative Hanley asked for further information on items
included to the principal of the Alaska permanent fund in
Section 15.
* Sec. 16
Representative Martin noted that Section 16 was new and
would cover the cost of fund investment. Representative
Grussendorf pointed out that these costs were previously
reflected in the Department of Revenue's budget. Ms. Slagle
indicated OMB's intent to place Section 16 in the front
3
section of the budget as it is specifically driven by
activity of the fund.
Representative Brown asked if OMB could provide a front end
budget total. Ms. Slagle stated that the amount requested
in Section 16 would not be included in the spending plan as
it is driven by the Permanent Fund Corporation and would not
be identified in the general fund spending plan. She
offered to provide the Committee with the proposed total.
(Tape Change, HFC 94-61, Side 2).
* Sec. 17
Ms. Slagle stated that Section 17 was not new and that it
would address the lapsing balance of the employment
assistance and training program account. Mr. Greany added
that the increase would provide a specific amount.
* Sec. 19
Representative Hanley asked the balance of the commercial
fishing revolving loan account. Ms. Slagle advised that
before the transfer occurred, there was a balance of
$15,046.0 million dollars in that account.
* Sec. 20
Co-Chair MacLean referenced the balance of the oil and
hazardous substance release mitigation account and noted her
concern with Section 20(b). She remarked that it was
inequitable that above ground storage tanks were not being
addressed.
Representative Brown asked if the new gasoline tax proposed
by the Governor would earmark funds for the purposes of
Section 20. Co-Chair Larson replied that revenue generated
from that source would be under $5 million dollars.
Representative Therriault pointed out that the amount
requested this year is above the amount which the DEC
subcommittee recommended last year.
* Sec. 23
Representative Martin expressed concern with the minimal
funding for costs relating to the legal proceedings and
audit activity involving oil and gas revenue. He urged the
Committee to consider full funding of those costs.
Representative Brown asked if the Department of Law would
anticipate a need for double funding in FY95. Ms. Slagle
advised that the full amount requested from the Department
of Law for litigation procedures was $36 million dollars.
4
* Sec. 24
Representative Therriault stated that the request for fire
suppression for the fiscal year ending June 30, 1994, would
be an increase of $1.9 million dollars from last year's
request.
* Sec. 25
Representative Brown asked the current fund balance in the
information services fund in the Department of
Administration. Ms. Slagle offered to provide the Committee
that information.
* Sec. 26
Co-Chair Larson referenced the $28,715.0 million dollars
appropriated the Alaska marine highway system fund and
pointed out that request was 50% (percent) less than the
total operational cost.
* Sec. 28
Co-Chair Larson asked the difference between Section 28, the
tank registration fee program and Section 20(b), the oil and
hazardous substance release mitigation account. Ms. Slagle
explained that Section 28 specifically addresses receipts
from the tank registration fee program.
* Sec. 33
Co-Chair MacLean asked the balance of the rural
electrification revolving loan fund. Ms. Slagle replied
that balance would be zero (0).
HB 370 was HELD in Committee for further consideration.
HOUSE BILL 363
"An Act repealing an additional fee for motor vehicle
registration not conducted by mail."
Co-Chair Larson pointed out that the House Finance Committee
version of HB 363 had been withdrawn.
JACK PHELPS, STAFF, REPRESENTATIVE PETER KOTT, spoke in
support of the House State Affairs version of the proposed
legislation. He stated that the bill would propose a $5
dollar increase and then would provide a $5 discount for
those who mail in their registration. Mr. Phelps pointed
out that this legislation represents the first increase to
5
motor vehicle fees since 1978.
Representative Martin recommended adding the electronic
means of performing business. Representative Brown pointed
out that the Division of Motor Vehicles is looking for
greater system efficiency through electronic mail. Mr.
Phelps agreed that legislation could support the concept.
Representative Brown MOVED adding language to Page 1, Line
10, after the word "mail" inserting "or electronic
transmission". Representative Grussendorf asked if the
Department currently has the essential equipment to provide
the recommended service. Representative Martin replied that
the Department is capable of handling the electronic
systems, although to date they have not had the authority to
provide it.
Following discussion, Co-Chair Larson MOVED TO AMEND
Amendment 1, following the word "mail" inserting "and may be
reduced by $5 when registration is conducted by electronic
transmission". Representative Navarre OBJECTED to the
motion to amend Amendment #1.
(Tape Change, HFC 94-62, Side 1).
Representative Navarre WITHDREW THE OBJECTION to amending
Amendment #1.
There being NO OBJECTIONS to the main amendment, Amendment
Representative Navarre pointed out that the fiscal note
would not generate the amount of revenue indicated.
Representative Hanley MOVED Amendment #2, #8-LS1484\K.1,
Ford, 3/02/94. There being NO OBJECTION to Amendment #2, it
was adopted.
Representative Hanley MOVED to report CS HB 363 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CS HB 363 (FIN) was reported out of Committee with
"individual recommendations" and with a fiscal note by the
Department of Public Safety dated 2/16/94.
ADJOURNMENT
The meeting adjourned at 3:10 P.M.
6
HOUSE FINANCE COMMITTEE
March 14, 1994
1:35 P.M.
TAPE HFC 94 - 61, Side 1, #000 - end.
TAPE HFC 94 - 61, Side 2, #000 - end.
TAPE HFC 94 - 62, Side 1, #000 - #215.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 1:35 P.M.
PRESENT
Co-Chair Larson Representative Hoffman
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Navarre
Representative Brown Representative Foster
Representative Grussendorf Representative Therriault
Representative Parnell was not present for the meeting.
ALSO PRESENT
Nancy Slagle, Director, Division of Budget Review, Office of
Management and Budget; Mike Greany, Director, Legislative
Finance Division; Jack Phelps, Staff, Representative Peter
Kott.
SUMMARY
HB 363 An Act repealing an additional fee for motor
vehicle registration not conducted by mail.
CS HB 363 (FIN) was reported out of Committee with
"no recommendations" and with a fiscal note by the
Department of Public Safety dated 2/16/94.
HB 370 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 370 was HELD in Committee for further
consideration.
DISCUSSION ON THE SPENDING PLAN
Co-Chair Larson provided the Committee with a handout
"FY94/95 House Spending Plan". [Attachment #1].
Information was compiled based on the price of oil at
7
$13.44/bbl price which would provide unrestricted general
funds of $1,677.0 billion dollars. He pointed out that FY95
expenditures would total $2,512.0 billion dollars which
would be $12 million dollars higher than that initially
presented by the Governor. He asked what attributed to the
increase.
MIKE GREANY, DIRECTOR, LEGISLATIVE FINANCE DIVISION, stated
that the Governor's amendments added $3.6 million dollars.
Also, there was an additional $8 million dollar reduction
off-set resulting from the Aetna budget reserve which was
not accounted for in the operating portion of the budget.
Co-Chair Larson discussed the subcommittee closeout process.
Each subcommittee chairperson will provide a letter
recommending the subcommittee changes by 3/21/94 which will
be distributed to all Committee and House members and the
Legislative Information Offices throughout the state. A
statewide teleconference will be scheduled for citizen
participation followed by consideration by the full House
Finance Committee.
HOUSE BILL 370
"An Act making appropriations for the operating and
loan program expenses of state government and to
capitalize funds; and providing for an effective date."
NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF
MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, offered to
provide the Committee with a letter summarizing the
Governor's amendments.
Ms. Slagle provided a sectional analysis of HB 370,
answering questions on individual sections.
* Sec. 2
Mr. Greany stated that Section #2 would empower the
Legislative Budget and Audit Committee to make adjustments
during the year to federal funds and program receipts.
* Sec. 5
Ms. Slagle noted that Section #5 applies to the social
services block grant money in the Department of Health and
Social Services, under Title 20. Those funds are received
from the federal government as an off-set to general fund
dollars. If the full amount budgeted is not received,
general fund dollars would need to be adjusted.
8
* Sec. 6
Representative Navarre asked if judgments and claims paid
from the state insurance catastrophe reserve account would
be listed in the annual report. Ms. Slagle replied that
information would be included in the catastrophe reserve
account.
* Sec. 8
Representative Navarre asked if a debt retirement fund had
been established. Ms. Slagle stated that in Section 10 and
Section 11, those funds would be appropriated out and then
back into the debt retirement fund to pay the G.O. debt.
She added that Section 8 would address AHFC veteran's
mortgage bonds and the state's guarantee for bonds based on
voter approval.
* Sec.9 - Sec. 10 - Sec. 11
Representative Brown asked if the amounts appropriated in
Sections 8-11 to the state bond committee were listed on the
balance sheet under the $131 million dollars debt service
increment. Mr. Greany advised that amount was shown in
Sections 10-11 and Section 34, and added, Section 11 had
been appropriated to cover the G.O. debt.
* Sec. 13
Co-Chair MacLean asked the amount of funds spent on
inflation proofing and the fiscal impact should that funding
not be appropriated this year. Ms. Slagle advised the
amount spent was $372 million dollars. Mr. Greany added
that as of June lst of each year, the actual inflation proof
cost is determined by the Consumer Price Index (CPI) and the
inflation rate. That amount is transferred each year into
the corpus of the permanent fund.
* Sec. 15
Representative Hanley asked for further information on items
included to the principal of the Alaska permanent fund in
Section 15.
* Sec. 16
Representative Martin noted that Section 16 was new and
would cover the cost of fund investment. Representative
Grussendorf pointed out that these costs were previously
reflected in the Department of Revenue's budget. Ms. Slagle
indicated OMB's intent to place Section 16 in the front
section of the budget as it is specifically driven by
9
activity of the fund.
Representative Brown asked if OMB could provide a front end
budget total. Ms. Slagle stated that the amount requested
in Section 16 would not be included in the spending plan as
it is driven by the Permanent Fund Corporation and would not
be identified in the general fund spending plan. She
offered to provide the Committee with the proposed total.
(Tape Change, HFC 94-61, Side 2).
* Sec. 17
Ms. Slagle stated that Section 17 was not new and that it
would address the lapsing balance of the employment
assistance and training program account. Mr. Greany added
that the increase would provide a specific amount.
* Sec. 19
Representative Hanley asked the balance of the commercial
fishing revolving loan account. Ms. Slagle advised that
before the transfer occurred, there was a balance of
$15,046.0 million dollars in that account.
* Sec. 20
Co-Chair MacLean referenced the balance of the oil and
hazardous substance release mitigation account and noted her
concern with Section 20(b). She remarked that it was
inequitable that above ground storage tanks were not being
addressed.
Representative Brown asked if the new gasoline tax proposed
by the Governor would earmark funds for the purposes of
Section 20. Co-Chair Larson replied that revenue generated
from that source would be under $5 million dollars.
Representative Therriault pointed out that the amount
requested this year is above the amount which the DEC
subcommittee recommended last year.
* Sec. 23
Representative Martin expressed concern with the minimal
funding for costs relating to the legal proceedings and
audit activity involving oil and gas revenue. He urged the
Committee to consider full funding of those costs.
Representative Brown asked if the Department of Law would
anticipate a need for double funding in FY95. Ms. Slagle
advised that the full amount requested from the Department
of Law for litigation procedures was $36 million dollars.
10
* Sec. 24
Representative Therriault stated that the request for fire
suppression for the fiscal year ending June 30, 1994, would
be an increase of $1.9 million dollars from last year's
request.
* Sec. 25
Representative Brown asked the current fund balance in the
information services fund in the Department of
Administration. Ms. Slagle offered to provide the Committee
that information.
* Sec. 26
Co-Chair Larson referenced the $28,715.0 million dollars
appropriated the Alaska marine highway system fund and
pointed out that request was 50% (percent) less than the
total operational cost.
* Sec. 28
Co-Chair Larson asked the difference between Section 28, the
tank registration fee program and Section 20(b), the oil and
hazardous substance release mitigation account. Ms. Slagle
explained that Section 28 specifically addresses receipts
from the tank registration fee program.
* Sec. 33
Co-Chair MacLean asked the balance of the rural
electrification revolving loan fund. Ms. Slagle replied
that balance would be zero (0).
HB 370 was HELD in Committee for further consideration.
HOUSE BILL 363
"An Act repealing an additional fee for motor vehicle
registration not conducted by mail."
Co-Chair Larson pointed out that the House Finance Committee
version of HB 363 had been withdrawn.
JACK PHELPS, STAFF, REPRESENTATIVE PETER KOTT, spoke in
support of the House State Affairs version of the proposed
legislation. He stated that the bill would propose a $5
dollar increase and then would provide a $5 discount for
those who mail in their registration. Mr. Phelps pointed
out that this legislation represents the first increase to
motor vehicle fees since 1978.
11
Representative Martin recommended adding the electronic
means of performing business. Representative Brown pointed
out that the Division of Motor Vehicles is looking for
greater system efficiency through electronic mail. Mr.
Phelps agreed that legislation could support the concept.
Representative Brown MOVED adding language to Page 1, Line
10, after the word "mail" inserting "or electronic
transmission". Representative Grussendorf asked if the
Department currently has the essential equipment to provide
the recommended service. Representative Martin replied that
the Department is capable of handling the electronic
systems, although to date they have not had the authority to
provide it.
Following discussion, Co-Chair Larson MOVED TO AMEND
Amendment 1, following the word "mail" inserting "and may be
reduced by $5 when registration is conducted by electronic
transmission". Representative Navarre OBJECTED to the
motion to amend Amendment #1.
(Tape Change, HFC 94-62, Side 1).
Representative Navarre WITHDREW THE OBJECTION to amending
Amendment #1.
There being NO OBJECTIONS to the main amendment, Amendment
Representative Navarre pointed out that the fiscal note
would not generate the amount of revenue indicated.
Representative Hanley MOVED Amendment #2, #8-LS1484\K.1,
Ford, 3/02/94. There being NO OBJECTION to Amendment #2, it
was adopted.
Representative Hanley MOVED to report CS HB 363 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CS HB 363 (FIN) was reported out of Committee with
"individual recommendations" and with a fiscal note by the
Department of Public Safety dated 2/16/94.
ADJOURNMENT
The meeting adjourned at 3:10 P.M.
12
| Document Name | Date/Time | Subjects |
|---|