Legislature(1993 - 1994)
04/06/1994 01:39 PM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
April 6, 1994
1:39 p.m.
TAPE HFC 94-107, Side 1, #000 - end.
TAPE HFC 94-107, Side 2, #000 - end.
TAPE HFC 94-108, Side 1, #000 - 304.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee to order
at 1:39 p.m.
PRESENT
Co-Chair Larson Representative Hoffman
Co-Chair MacLean Representative Martin
Vice-Chair Hanley
Representative Brown Representative Parnell
Representative Foster Representative Therriault
Representative Grussendorf
Representative Navarre was not present for the meeting.
ALSO PRESENT
Representative Fran Ulmer; Mike Greany, Director,
Legislative Finance Division; Nancy Slagle, Director,
Division of Budget Review, Office of the Management and
Budget, Office of the Governor; Bob Poe, Director, Division
of Information and Administrative Services, Department of
Environmental Conservation; Mike Nizich, Director, Division
of Administrative Services, Office of the Governor; Paul
Fuhs, Acting Commissioner, Department of Commerce and
Economic Development; Pam Stoops, Executive Director,
Legislative Affairs Agency; McKie Campbell, Deputy
Commissioner, Department of Fish and Game; Chris
Christensen, Staff Counsel, Alaska Court System; Janet
Clarke, Director, Division of Administrative Services,
Department of Health and Social Services; Kevin Brooks,
Director, Division of Administration, Department of Fish and
Game; Guy Bell, Director of Administrative Services,
Department of Commerce and Economic Development.
SUMMARY INFORMATION
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
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discussion.
HOUSE BILL NO. 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."
DEPARTMENT OF FISH AND GAME
Representative Hoffman MOVED to ADOPT AMENDMENT 1A (copy on
file). He explained that amendment 1A would add $40.0
thousand dollars for the Yukon River Drainage Association.
A roll call vote was taken on the MOTION.
IN FAVOR: Foster, Brown, Hoffman, Grussendorf, MacLean
OPPOSED: Hanley, Martin, Parnell, Therriault, Larson
Representative Navarre was absent from the vote.
The MOTION FAILED (5-5).
Co-Chair MacLean MOVED to ADOPT AMENDMENT 6 (copy on file).
She explained that amendment 6 would add $300.0 thousand
dollars for Fisheries Development. She noted that the
Department of Fish and Game will be forced to reduce efforts
for the Alaska Yukon/Kuskokwim Initiative and delete funding
for the Sikusuilaq Hatchery if the amendment is not adopted.
Representative Hanley noted that the Sikusuilaq Hatchery was
given a low priority by the Department of Fish and Game.
MCKIE CAMPBELL, DEPUTY COMMISSIONER, DEPARTMENT OF FISH AND
GAME stated that if the amendment is adopted the
Commissioner intends to add $90.0 thousand dollars to fund
the hatchery at $390.0 thousand dollars. He clarified that
program receipts may be a future option for hatchery
funding, pending legislation. He observed that Snettisham
and Sikusuilaq are the last hatcheries to receive state
support.
Co-Chair MacLean emphasized the need to allow sufficient
time for the regional aquaculture association to take over
the hatchery.
A roll call vote was taken on the MOTION to adopt AMENDMENT
6.
IN FAVOR: Brown, Grussendorf, Hoffman, Foster, MacLean,
Larson
OPPOSED: Hanley, Martin, Parnell, Therriault
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The MOTION PASSED (6-4).
Representative Therriault MOVED to RESCIND the Committee's
action in failing to adopt AMENDMENT 2. Amendment 2 would
eliminate the grant to the Walrus Commission. Co-Chair
MacLean OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Hanley, Martin, Parnell, Therriault, Larson
OPPOSED: Brown, Foster, Grussendorf, Hoffman, MacLean
Representative Navarre was absent from the vote.
The MOTION FAILED (5-5).
Representative Grussendorf MOVED to RESCIND the Committee's
action in failing to adopt AMENDMENT 3. He noted that
amendment 3 would restore $460.0 thousand dollars to allow
operations of the hatchery until its transfer to the
Northern Southeast Regional Aquaculture Association.
Mr. Campbell observed that it would cost $4.0 million
dollars to tear the hatchery down and restore the habitat to
its natural state. If the hatchery is privatized there
would be no need to tear it down.
Representative Grussendorf emphasized the effect on the
Canadian/U.S. Salmon Treaty. He maintained that the
hatchery should be moth balled to allow future use.
Mr. Campbell stressed that the hatchery needs to stay
operational if it is to be turned over to a non-profit. He
discussed the effect on fishery stock and associated job
dependency. He addressed the importance of the hatchery on
the U.S./Canada Salmon Treaty. Discussion pursued in
regards to funding and privatization of the hatchery.
REPRESENTATIVE FRAN ULMER urged the Committee to support
amendment 3. She stressed that the hatchery is a valuable
state asset that makes a significant contribution to the
economy of Southeast Alaska. She stressed the importance of
the hatchery to the U.S./Canada Salmon Treaty and fishermen
of Southeast Alaska.
A roll call vote was taken on the MOTION to rescind the
Committee's action in failing to adopt AMENDMENT 3.
IN FAVOR: Brown, Hoffman, Grussendorf, MacLean, Larson
OPPOSED: Foster, Hanley, Martin, Parnell, Therriault
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Representative Navarre was absent from the vote.
The MOTION FAILED (5-5).
Representative Therriault MOVED to ADOPT AMENDMENT 5 at an
amended level of $75.0 thousand dollars (copy on file).
Amendment 5 would impose a $75.0 thousand dollar unallocated
reduction to the Division of Habitat.
Mr. Campbell asserted that amendment 5 would have a
significant adverse effect on development in the state and
place the state's waters at risk. He emphasized that the
Division of Hatchery is at critical mass.
A roll call vote was taken on the MOTION to adopt AMENDMENT
5.
IN FAVOR: Foster, Hanley, Martin, Parnell, Therriault,
Larson
OPPOSED: Brown, Hoffman, Grussendorf, MacLean
Representative Navarre was absent from the vote.
The MOTION PASSED (6-4).
Co-Chair MacLean MOVED to close the Department of Fish and
Game's FY 95 operating budget. There being NO OBJECTION, it
was so ordered.
(Tape Change, HFC 94-107, Side 2)
UNIVERSITY OF ALASKA
Representative Therriault MOVED to ADOPT AMENDMENT 9 (copy
on file). He explained that amendment 9 would add
legislative intent to direct the University of Alaska to
continue initiatives to reduce the overall cost of
instruction; increase faculty and staff productivity; reduce
the level of academic administration; increase the annual
level of building maintenance; enhance the transfer of
credits between campuses; and assure that all unnecessary
program duplication is eliminated.
There being NO OBJECTION, AMENDMENT 9 was adopted.
Co-Chair MacLean MOVED to close the University of Alaska's
FY 95 operating budget. There being NO OBJECTION, it was so
ordered.
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
Co-Chair MacLean MOVED to close the Department of
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Transportation and Public Facilities's FY 95 operating
budget. There being NO OBJECTION, it was so ordered.
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT
Co-Chair MacLean provided members with a letter from Guy
Bell regarding the Real Estate Surety Fund (copy on file).
GUY BELL, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT discussed
the need to add $100.0 thousand dollars in appropriation
authority to allow the payment of claims from the Real
Estate Surety Fund. He explained that the Fund is composed
of real estate licensing.
Co-Chair MacLean noted that amendment 3 deleted funding for
the International Trade Offices.
PAUL FUHS, COMMISSIONER, DEPARTMENT OF COMMERCE AND ECONOMIC
DEVELOPMENT stressed the importance of maintaining
international trade offices. He noted that the
international trade for the state of Alaska is $3.5 billion
dollars a year.
Mr. Bell recommended that the addition of $100.0 thousand
dollars for appropriation authority to pay claims from the
Real Estate Surety Fund be placed in the front section of HB
370. Discussion pursued in regards to the addition of this
item in the front section.
FRONT SECTION
Representative Martin MOVED to ADOPT AMENDMENT 9 to add
$100.0 thousand dollars in appropriation authority to allow
the payment of claims from the Real Estate Surety Fund by
the Department of Commerce and Economic Development. There
being NO OBJECTION, it was so ordered.
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT
Co-Chair MacLean MOVED to RESCIND the Committee's action in
adopting AMENDMENT 3 (copy on file).
Representative Brown emphasized the need to make priorities.
She recommended that the amendment not be rescinded.
A roll call vote was taken on the MOTION.
IN FAVOR: Foster, Grussendorf, Hoffman, Martin, Larson,
MacLean
OPPOSED: Brown, Hanley, Therriault
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Representatives Parnell and Navarre were absent from the
vote.
The MOTION PASSED (6-3).
A roll call vote was taken on the main MOTION.
IN FAVOR: Brown, Hanley, Therriault
OPPOSED: Foster, Grussendorf, Hoffman, Martin, Larson,
MacLean
Representatives Parnell and Navarre were absent from the
vote.
The MOTION PASSED (6-3).
Co-Chair MacLean MOVED to close the Department of Commerce
and Economic Development's FY 95 operating budget. There
being NO OBJECTION, it was so ordered.
OFFICE OF THE GOVERNOR
Co-Chair Larson MOVED to ADOPT AMENDMENT 3 (copy on file).
He noted that the amendment would reduce the Office of the
Governor by $636.6 thousand dollars.
MIKE NIZICH, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
OFFICE OF THE GOVERNOR reviewed amendment 3. Discussion
pursued in regards to the roll forward of FY 94 funding in
the Office of the Governor.
There being NO OBJECTION, AMENDMENT 3 was adopted.
Co-Chair MacLean MOVED to close the Office of the Governor's
FY 95 operating budget. There being NO OBJECTION, it was so
ordered.
ALASKA COURT SYSTEM
Representative Therriault MOVED to ADOPT AMENDMENT 6 (copy
on file). Amendment 6 would reduce contractual for
Administrative Support by $150.0 thousand dollars.
CHRIS CHRISTENSEN, ALASKA COURT SYSTEM explained that lease
hold money will be used to pay the operations and
maintenance on the Anchorage Times Building for the first
year. He estimated the amount to lapse at $100.0 thousand
dollars. He added that moving costs were not included. He
requested that the amendment be amended to reflect moving
costs.
Co-Chair MacLean MOVED to AMEND amendment 6 to delete
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"$150.0" and insert "$100.0" thousand dollars.
Representative Hanley OBJECTED. A roll call vote was taken
on the MOTION.
IN FAVOR: Brown, Grussendorf, Hoffman, Foster, Parnell,
MacLean, Larson
OPPOSED: Hanley, Therriault, Martin
Representative Navarre was absent from the vote.
The MOTION PASSED (7-3).
Representative Parnell MOVED to AMEND amendment 6 as amended
to add $90.0 thousand dollars to fund a prosecutor in the
Kenai office to work on domestic violence and sexual assault
cases.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Grussendorf, Hoffman, Martin, Parnell,
MacLean, Larson
OPPOSED: Hanley, Therriault, Foster
Representative Navarre was absent from the vote.
The MOTION PASSED (7-3).
A roll call vote was taken on the MOTION to adopt AMENDMENT
6 as amended.
IN FAVOR: Brown, Grussendorf, Hoffman, Hanley, Martin,
Parnell, Therriault, MacLean, Larson
OPPOSED: Foster
Representative Navarre was absent from the vote.
The MOTION PASSED (9-1).
Co-Chair MacLean MOVED to close the Alaska Court System's FY
95 operating budget. There being NO OBJECTION, it was so
ordered.
DEPARTMENT OF LAW
Co-Chair Larson WITHDREW AMENDMENT 1 and 2.
Representative Hoffman MOVED to ADOPT AMENDMENT 3 (copy on
file). He explained that amendment 3 would add $573.1
thousand dollars for the Fair Business Practices component.
Representative Martin OBJECTED. A roll call vote was taken
on the MOTION.
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IN FAVOR: Brown, Foster, Grussendorf, Hoffman, MacLean,
Larson
OPPOSED: Hanley, Martin, Parnell, Therriault
Representative Navarre was absent from the vote.
The MOTION PASSED (6-4).
Co-Chair MacLean MOVED to close the Department of Law's FY
95 operating budget. There being NO OBJECTION, it was so
ordered.
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES discussed the
medicaid priority list, in response to a question by
Representative Brown. She explained that the total
reduction in medicaid services is $4.6 million dollars.
There would be 10 services dropped from the list.
(Tape Change, HFC 94-108, Side 2)
Ms. Clarke reviewed services which would be deleted.
Discussion pursued in regards to the services which would be
dropped.
Co-Chair MacLean MOVED to close the Department of Health and
Social Services' FY 95 operating budget. There being NO
OBJECTION, it was so ordered.
LEGISLATURE
PAM STOOPS, EXECUTIVE DIRECTOR, LEGISLATIVE AFFAIRS AGENCY
observed that the future legislators will be given the
option to adopt the increased per diem rate.
Representative Martin spoke against adoption of the session
per diem rate increase.
Co-Chair Larson MOVED to RESCIND the Committee's action in
deleting $405.6 thousand dollars for session per diem.
Representative Martin OBJECTED. A roll call vote was taken
on the MOTION.
IN FAVOR: Parnell, Foster, Hoffman, Larson, MacLean
OPPOSED: Therriault, Brown, Grussendorf, Hanley, Martin
Representative Navarre was absent from the vote.
The MOTION FAILED (5-5).
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Co-Chair MacLean MOVED to close the Legislature's FY 95
operating budget. There being NO OBJECTION, it was so
ordered.
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
Representative Brown MOVED to close the Department of
Environmental Conservation's FY 95 operating budget.
Representative Therriault OBJECTED.
Representative Therriault spoke against the adoption of
AMENDMENT 8 (copy on file). Amendment 8 would fund an
$246.1 thousand dollars increment for environmental crime
investigation from the Storage Tank Assistance Program.
BOB POE, DIRECTOR, DIVISION OF INFORMATION AND
ADMINISTRATIVE SERVICES, DEPARTMENT OF ENVIRONMENTAL
CONSERVATION spoke in support of amendment 8. He observed
that the Department of Law must prioritize violent crimes.
He stressed the importance of funding for environmental
crime investigation. He noted that funding would be RSA'd
to the Departments of Law and Public Safety.
Representative Brown spoke in support of amendment 8. She
observed that the state must demonstrate enforcement effort
in order to retain primacy.
A roll call vote was taken on the MOTION to close the
Department of Commerce and Economic Development's FY 95
operating budget.
IN FAVOR: Parnell, Brown, Grussendorf, Hoffman, Martin,
MacLean
OPPOSED: Therriault, Foster, Hanley, Larson
Representative Navarre was absent from the vote.
The MOTION PASSED (6-4).
HB 370 was HELD in Committee for further discussion.
ADJOURNMENT
The meeting adjourned at 3:50 p.m.
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