Legislature(1993 - 1994)
04/07/1994 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
April 7, 1994
1:40 P.M.
TAPE HFC 94 - 111, Side 1, #000 - end.
TAPE HFC 94 - 111, Side 2, #000 - end.
TAPE HFC 94 - 112, Side 1, #000 - end.
TAPE HFC 94 - 112, Side 2, #000 - #257.
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 Foster
Representative Brown Representative Parnell
Representative Grussendorf Representative Therriault
Representative Navarre was not present for the meeting.
ALSO PRESENT
Representative John Davies; Mike Greany, Director, Division
of Legislative Finance; Melva Krogseng, Staff,
Representative Barnes; Frank Prewitt, Commissioner,
Department of Corrections; Margaret Pugh, Staff,
Representative Fran Ulmer; Diane Schenker, Special
Assistant, Department of Corrections; Jay Hogan, Staff,
Representative Ron Larson; Janet Clarke, Director, Division
of Administrative Services, Department of Health and Social
Services; Virginia Stonkus, Analyst, Division of Legislative
Finance; Nancy Slagle, Director, Division of Budget Review,
Office of Management and Budget; Guy Bell, Director,
Division of Administrative Services, Department of Commerce
and Economic Development; Don Study, OSHA Director,
Department of Labor; Remond Henderson, Director, Division of
Administrative Services, Department of Community and
Regional Affairs.
SUMMARY
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
1
consideration.
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."
Department of Corrections
Representative Brown summarized previous action taken on
Amendment #6 which had been reduced by $1 million dollars
providing an add back of $8.635 million dollars. She added
that Amendment #6 would restore the reductions made by the
House Finance Subcommittee and would supplement funding to
the level requested by the Governor's amended budget for the
Department of Corrections. Representative Brown MOVED to
adopt Amendment #6.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Foster, Grussendorf, Hoffman.
OPPOSED: Parnell, Hanley, Martin, Larson,
MacLean.
Representatives Therriault and Navarre were not present for
the vote.
The MOTION FAILED (4-5).
Representative Brown MOVED to adopt Amendment #3 which would
impose a 2% unallocated reduction to the Governor's proposed
budget to replace the 5% component reduction recommended by
the Correction's Subcommittee. This reduction would total
$5,819.8 million dollars. A 2% reduction would total
$2,327.9 million dollars.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Foster, Grussendorf, Hoffman.
OPPOSED: Parnell, Hanley, Martin, MacLean,
Larson.
Representative Therriault and Representative Navarre were
not present for the vote.
The MOTION FAILED (4-5).
Representative Brown MOVED to adopt Amendment #5.
MARGARET PUGH, STAFF, REPRESENTATIVE FRAN ULMER, stated that
Amendment #5 would restore two Assistant Superintendents to
2
the Wildwood Correction Center. She added that other
institutions were reduced by one management position, an
Assistant Superintendent. Wildwood had three management
positions eliminated, and that the amendment would return
Wildwood to parity with the other institutions in the State.
FRANK PREWITT, COMMISSIONER, DEPARTMENT OF CORRECTIONS,
pointed out that most prison facilities are multi purpose
and have combined pretrial and misdemeanant relations. When
the Assistant Superintendent position is eliminated, the
Superintendent will then have the responsibility for the
entire management structure. Commissioner Prewitt
reiterated that without these positions the management
structure at Wildwood would be deficient.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Foster, Grussendorf, Hoffman.
OPPOSED: Therriault, Hanley, Martin, Parnell,
Larson, MacLean.
Representative Navarre was not present for the vote.
The MOTION FAILED (4-6).
Representative Brown MOVED to adopt Amendment #4 explaining
that it would impose a 5% unallocated reduction, rather than
identifying components. This would give the administration
maximum flexibility to handle reductions.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Foster, Grussendorf.
OPPOSED: Hanley, Martin, Parnell, Therriault,
Larson, MacLean.
Representatives Hoffman and Navarre were not present for the
vote.
The MOTION FAILED (3-6).
Representative Parnell MOVED to adopt Amendment #9, a Letter
of Intent which would provide language assuring that public
safety would be protected upon a prisoners release.
Commissioner Prewitt advised that the Legislature's intent
would be difficult to execute because of inadequate funding.
There being NO OBJECTION, it was adopted.
Co-Chair Larson MOVED to adopt Amendment #10 which would
provide an increment of $334.7 thousand dollars to be used
for electronic monitoring and day reporting centers
contracted out to the private sector.
3
MELVA KROGSENG, STAFF, REPRESENTATIVE RAMONA BARNES, advised
that Speaker Barnes supported Amendment #10 and asked that
the service be contracted out of the Department.
Representative Brown questioned the per prisoner cost. Ms.
Krogseng replied that by using staff from the Department of
Corrections, the cost of the services would increase whereas
contracting the service out would defray that cost.
Commissioner Prewitt remarked that the "in house" cost would
be $15 dollars per day for electronic monitoring. He asked
what type of offender the legislature would expect to be
electronically monitored.
DIANE SCHENKER, SPECIAL ASSISTANT, DEPARTMENT OF
CORRECTIONS, stated that DWI offenders are statutorily
exempt from electronic monitoring.
There being NO OBJECTION to Amendment #10, it was adopted.
Co-Chair MacLean MOVED to adopt the Department of
Correction's budget as amended by the House Finance
Committee. There being NO OBJECTION, it was adopted.
Front Section
Co-Chair Larson explained the changes made in work draft #8-
GH2027\E, Utermohle, 4/01/94.
JAY HOGAN, STAFF, REPRESENTATIVE RON LARSON, clarified the
changes made to Section #6. Currently, the State insurance
catastrophe reserve sweeps left over balances at the end of
a fiscal year for a substantial portion of that money. The
concept of back up reserves is currently being considered.
Mr. Hogan said that the Committee is being asked to consider
a budget reserve back up appropriation. Section #6 was HELD
open.
Representative Martin referenced Section #5 and asked if the
shortfall had been appropriated from the general fund for
Title XX of the Social Security Act.
JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, stated that
Section #5 relates to Title XX funds. The action which the
Committee took kept this portion in the front section of the
operating budget. She added that there has been information
available regarding over collection and federal receipts
received over the years. The general funds will be used
within the Division of Family and Youth services budget in
order to qualify for the federal funds which are spread
throughout the budget.
4
Co-Chair Larson commented on Section #12 stating that
according to the Constitution, the permanent fund earnings
go to the general fund or whatever sources the Legislature
determines. Section #12 would recommend that those funds go
into the dividend fund.
(Tape Change, HFC 94-111, Side 2).
Co-Chair Larson advised that $556 million dollars would then
be available to distribute through the permanent fund.
Co-Chair MacLean MOVED to delete Section #13 which would
remove inflation proofing of the principal of the Alaska
permanent fund.
Representative Martin OBJECTED. Co-Chair MacLean
interjected that the cost for inflation proofing currently
is 2.9% of the principle. She recommended that inflation
proofing continue at a cost rate of 1%.
Discussion followed among Committee members regarding
reduction or deletion of inflation proofing of the principal
of the permanent fund. Representative Hanley pointed out
that protection of the principle of the permanent fund
should be closely monitored by the Legislature and that he
would not support the reduction or deletion.
Co-Chair MacLean WITHDREW the MOTION to delete Section #13.
There being NO OBJECTION, it was withdrawn.
Representative Therriault WITHDREW a previous motion to
amend Section #16. There being NO OBJECTION, it was so
ordered.
Co-Chair Larson provided the Committee with an amendment to
Page 4, Section #17 (d). [Copy on file]. The amendment
would appropriate $200 million dollars from the available
unrestricted cash in the general account of the revolving
Alaska Housing Finance Corporation (AHFC) fund to the
general fund.
Co-Chair Larson MOVED the amendment. Representative Brown
OBJECTED.
Representative Brown pointed out that the Executive Director
of AHFC had testified before the LBA Committee that AHFC
would prefer a longer period of time in order to secure bond
market approval that would guarantee a long range financial
plan. She emphasized that the amendment would be a "taking"
from AHFC rather than an appropriation from that
corporation.
5
A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Hanley, Martin, Parnell,
Therriault, Foster, MacLean, Larson.
OPPOSED: Hoffman, Brown.
Representative Navarre was not present for the vote.
The MOTION PASSED (8-2).
Co-Chair Larson MOVED a change to Section #19 (b), Page 4,
deleting "$5,545,000" and inserting "$2,462,600". He
questioned Section #19 (a) asking if the remainder of the
fund should continue to stay in the oil and hazardous
substance release response fund or if it should be placed in
the general fund. Representative Brown MOVED that the
amount lapse into the general fund.
VIRGINIA STONKUS, ANALYST, DIVISION OF LEGISLATIVE FINANCE,
noted that the majority of the funds in the oil and
hazardous substance release response fund resulted from the
Exxon Valdez settlement.
There being NO OBJECTION, the motion was adopted.
Co-Chair Larson MOVED to amend Section #21, deleting
"$25,800,000" and inserting "$25,900,000.
MIKE GREANY, DIRECTOR, DIVISION OF LEGISLATIVE FINANCE,
advised that the Department of Revenue provided the updated
amount as derived from the five cent per barrel surcharge
collected from the general fund to the oil and hazardous
release response fund.
There being NO OBJECTION, Section #21 was amended.
Co-Chair Larson MOVED to amend Section #22 which would
appropriate additional monies for costs relating to legal
proceedings and audit activity involving oil and gas revenue
due to be paid from the constitutional budget reserve.
There being NO OBJECTION to changing the funding source for
Section #22 to the constitutional budget reserve, it was
adopted.
Representative Martin MOVED to insert the full costs
recommended by the Department of Law be deleting
"$13,500,000" and inserting "$27,000,000" dollars and to
delete "$4,500,000" state corporation receipts and insert
"$9,000,000" dollars.
6
A roll call vote was taken on the MOTION.
IN FAVOR: Hanley, Martin, Parnell, Therriault,
Brown, MacLean.
OPPOSED: Hoffman, Grussendorf, Larson.
Representatives Navarre and Foster were not present for the
vote.
The MOTION PASSED (6-3).
(Tape Change, HFC 94-112, Side 1).
Co-Chair MacLean recommended amending Section #25. Co-Chair
Larson pointed out that half the costs for the Alaska Marine
Highway System are generated from program receipts and half
the cost are provided from the general fund. Ms. Slagle
noted that the Alaska Marine Highway System's receipts
currently total $41 million dollars. The $41 million
dollars and the request for $28 million dollars would cover
the needed appropriation for the system. She added that
there would be a fund balance to be accessed in order to
continue operations.
Co-Chair MacLean MOVED to amend Section #25 by deleting
"$28,715,800" and inserting "$20,000,000". Representative
Grussendorf noted that the Legislature has requested that
the Marine Highway System service more communities which
would make it inappropriate to decrease the funding request.
A roll call vote was taken on the MOTION.
IN FAVOR: Therriault, Martin, MacLean.
OPPOSED: Hoffman, Parnell, Brown, Foster,
Grussendorf, Hanley, Larson.
Representative Navarre was not present for the vote.
The MOTION FAILED (3-7).
Co-Chair Larson referenced a letter from George Utermohle,
Legislative Counsel regarding Section #28. The original
language would allow funds from that section to lapse into
the general fund offsetting a supplemental request. [Copy
on file]. Co-Chair Larson MOVED to delete Section #28,
replacing it with the new language.
DON STUDY, OSHA DIRECTOR, DEPARTMENT OF LABOR, stated that
the Safety Advisory Council was started as a private entity
with private functions. Private funds generating $68
thousand dollars were contributed to the State with the
7
understanding that the State would reappropriate each year
that amount of funds for "seed" money for conference needs.
Mr. Study noted that the group currently meets yearly to
discuss occupational, safety, and health training.
Co-Chair Larson WITHDREW THE MOTION. There being NO
OBJECTION, it was withdrawn.
Representative Hanley MOVED to insert the language as
proposed by Mr. Utermohle as a new Section #28. There being
NO OBJECTION, it was so ordered.
Representative Hanley MOVED the new Section #31 as drafted
by Mr. Utermohle which would reappropriate the roll forward
for the Alaska Public Utilities Commission (APUC).
GUY BELL, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, advised
that the Public Utilities Commission is funded with a
regulatory cost charge, a surcharge on every consumer's
electric bill to cover the cost of APUC. The intent of
Section #31 would roll forward any receipts from the
regulatory cost charge which are not spent in FY94, allowing
APUC to reduce the regulatory cost charge in FY95.
Representative Martin OBJECTED to the new language.
Representative Hanley WITHDREW THE MOTION. There being NO
OBJECTION, the motion was withdrawn.
Representative Martin advised that HB 505 would address
concerns indicated in Section #33. Discussion followed
regarding the stipulations of HB 505 and the funding sources
listed using the constitutional budget reserve.
Representative Hanley clarified that the appropriation from
the debt retirement fund to the Department of Education
would not require a three quarters vote.
Representative Martin MOVED to delete Section #33.
Representative Brown OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Martin, Parnell, Therriault, Foster,
Grussendorf, Hanley, Larson.
OPPOSED: Brown, Grussendorf, Hoffman.
Representatives MacLean and Navarre were not present for the
vote.
The MOTION PASSED (6-3).
Representative Parnell MOVED a change as proposed by
8
Representative MacLean to Section #34 deleting "deposited"
and inserting "available" in the four dam pool transfer
fund. Representative Brown questioned the effect of the
change.
REMOND HENDERSON, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS,
stated that the change would allow all available funds in
that fund to be appropriated in the 40/40/20 percent split.
He added that HB 372 and SB 243 would also address that
concern. Representative Brown OBJECTED to the change.
A roll call vote was taken on the MOTION.
IN FAVOR: Parnell, Therriault, Foster,
Grussendorf, Hanley, Hoffman, Martin,
Larson.
OPPOSED: Brown.
Representatives MacLean and Navarre were not present for the
vote.
The MOTION PASSED (8-1).
Co-Chair Larson MOVED to delete Section #35. Mr. Hogan
remarked that Section #35 had been placed in appropriation
bills in previous years. He added that HB 505 would
appropriate a specific amount from the constitutional budget
reserve fund and therefore thought deleting it would be
appropriate.
Representative Martin OBJECTED indicating this section could
protect the State from decisions made by the Supreme Court.
A roll call vote was taken on the MOTION.
IN FAVOR: Therriault, Brown, Grussendorf, Hanley,
Hoffman, Larson.
OPPOSED: Parnell, Martin.
Representatives Foster, Navarre and MacLean were not present
for the vote.
The MOTION PASSED (6-2).
Co-Chair Larson referenced the new language as provided by
George Utermohle for Section #38. [Copy on file].
Mr. Bell commented that the source of funds would be the
same as the marketing tax and the processor tax as collected
from fishermen. The purpose of the tax would be to cover
9
the cost of seafood marketing in Alaska. The revenue
expected this year would be close to $1.6 million dollars
and would be carried forward into FY95.
(Tape Change, HFC 94-112, Side 2).
Representative Hoffman MOVED to adopt the language as
proposed by Mr. Utermohle which would clarify the obligated
receipts. Following discussion among the Committee members,
there was NO OBJECTION, and it was adopted.
Representative Brown MOVED to adopt Amendment #10 which
would delete all material and insert a new subsection
addressing previous action taken to the mitigation account
and the storage tank fund. Representative Parnell OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Foster, Hoffman, Larson.
OPPOSED: Therriault, Grussendorf, Hanley, Martin,
Parnell.
Representatives Navarre and MacLean were not present for the
vote.
The MOTION FAILED (4-5).
HB 370 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting adjourned at 4:45 P.M.
HOUSE FINANCE COMMITTEE
April 7, 1994
1:40 P.M.
TAPE HFC 94 - 111, Side 1, #000 - end.
TAPE HFC 94 - 111, Side 2, #000 - end.
TAPE HFC 94 - 112, Side 1, #000 - end.
TAPE HFC 94 - 112, Side 2, #000 - #257.
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
10
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Foster
Representative Brown Representative Parnell
Representative Grussendorf Representative Therriault
Representative Navarre was not present for the meeting.
ALSO PRESENT
Representative John Davies; Mike Greany, Director, Division
of Legislative Finance; Melva Krogseng, Staff,
Representative Barnes; Frank Prewitt, Commissioner,
Department of Corrections; Margaret Pugh, Staff,
Representative Fran Ulmer; Diane Schenker, Special
Assistant, Department of Corrections; Jay Hogan, Staff,
Representative Ron Larson; Janet Clarke, Director, Division
of Administrative Services, Department of Health and Social
Services; Virginia Stonkus, Analyst, Division of Legislative
Finance; Nancy Slagle, Director, Division of Budget Review,
Office of Management and Budget; Guy Bell, Director,
Division of Administrative Services, Department of Commerce
and Economic Development; Don Study, OSHA Director,
Department of Labor; Remond Henderson, Director, Division of
Administrative Services, Department of Community and
Regional Affairs.
SUMMARY
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.
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."
Department of Corrections
Representative Brown summarized previous action taken on
Amendment #6 which had been reduced by $1 million dollars
providing an add back of $8.635 million dollars. She added
that Amendment #6 would restore the reductions made by the
House Finance Subcommittee and would supplement funding to
the level requested by the Governor's amended budget for the
Department of Corrections. Representative Brown MOVED to
adopt Amendment #6.
11
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Foster, Grussendorf, Hoffman.
OPPOSED: Parnell, Hanley, Martin, Larson,
MacLean.
Representatives Therriault and Navarre were not present for
the vote.
The MOTION FAILED (4-5).
Representative Brown MOVED to adopt Amendment #3 which would
impose a 2% unallocated reduction to the Governor's proposed
budget to replace the 5% component reduction recommended by
the Correction's Subcommittee. This reduction would total
$5,819.8 million dollars. A 2% reduction would total
$2,327.9 million dollars.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Foster, Grussendorf, Hoffman.
OPPOSED: Parnell, Hanley, Martin, MacLean,
Larson.
Representative Therriault and Representative Navarre were
not present for the vote.
The MOTION FAILED (4-5).
Representative Brown MOVED to adopt Amendment #5.
MARGARET PUGH, STAFF, REPRESENTATIVE FRAN ULMER, stated that
Amendment #5 would restore two Assistant Superintendents to
the Wildwood Correction Center. She added that other
institutions were reduced by one management position, an
Assistant Superintendent. Wildwood had three management
positions eliminated, and that the amendment would return
Wildwood to parity with the other institutions in the State.
FRANK PREWITT, COMMISSIONER, DEPARTMENT OF CORRECTIONS,
pointed out that most prison facilities are multi purpose
and have combined pretrial and misdemeanant relations. When
the Assistant Superintendent position is eliminated, the
Superintendent will then have the responsibility for the
entire management structure. Commissioner Prewitt
reiterated that without these positions the management
structure at Wildwood would be deficient.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Foster, Grussendorf, Hoffman.
12
OPPOSED: Therriault, Hanley, Martin, Parnell,
Larson, MacLean.
Representative Navarre was not present for the vote.
The MOTION FAILED (4-6).
Representative Brown MOVED to adopt Amendment #4 explaining
that it would impose a 5% unallocated reduction, rather than
identifying components. This would give the administration
maximum flexibility to handle reductions.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Foster, Grussendorf.
OPPOSED: Hanley, Martin, Parnell, Therriault,
Larson, MacLean.
Representatives Hoffman and Navarre were not present for the
vote.
The MOTION FAILED (3-6).
Representative Parnell MOVED to adopt Amendment #9, a Letter
of Intent which would provide language assuring that public
safety would be protected upon a prisoners release.
Commissioner Prewitt advised that the Legislature's intent
would be difficult to execute because of inadequate funding.
There being NO OBJECTION, it was adopted.
Co-Chair Larson MOVED to adopt Amendment #10 which would
provide an increment of $334.7 thousand dollars to be used
for electronic monitoring and day reporting centers
contracted out to the private sector.
MELVA KROGSENG, STAFF, REPRESENTATIVE RAMONA BARNES, advised
that Speaker Barnes supported Amendment #10 and asked that
the service be contracted out of the Department.
Representative Brown questioned the per prisoner cost. Ms.
Krogseng replied that by using staff from the Department of
Corrections, the cost of the services would increase whereas
contracting the service out would defray that cost.
Commissioner Prewitt remarked that the "in house" cost would
be $15 dollars per day for electronic monitoring. He asked
what type of offender the legislature would expect to be
electronically monitored.
DIANE SCHENKER, SPECIAL ASSISTANT, DEPARTMENT OF
CORRECTIONS, stated that DWI offenders are statutorily
exempt from electronic monitoring.
13
There being NO OBJECTION to Amendment #10, it was adopted.
Co-Chair MacLean MOVED to adopt the Department of
Correction's budget as amended by the House Finance
Committee. There being NO OBJECTION, it was adopted.
Front Section
Co-Chair Larson explained the changes made in work draft #8-
GH2027\E, Utermohle, 4/01/94.
JAY HOGAN, STAFF, REPRESENTATIVE RON LARSON, clarified the
changes made to Section #6. Currently, the State insurance
catastrophe reserve sweeps left over balances at the end of
a fiscal year for a substantial portion of that money. The
concept of back up reserves is currently being considered.
Mr. Hogan said that the Committee is being asked to consider
a budget reserve back up appropriation. Section #6 was HELD
open.
Representative Martin referenced Section #5 and asked if the
shortfall had been appropriated from the general fund for
Title XX of the Social Security Act.
JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, stated that
Section #5 relates to Title XX funds. The action which the
Committee took kept this portion in the front section of the
operating budget. She added that there has been information
available regarding over collection and federal receipts
received over the years. The general funds will be used
within the Division of Family and Youth services budget in
order to qualify for the federal funds which are spread
throughout the budget.
Co-Chair Larson commented on Section #12 stating that
according to the Constitution, the permanent fund earnings
go to the general fund or whatever sources the Legislature
determines. Section #12 would recommend that those funds go
into the dividend fund.
(Tape Change, HFC 94-111, Side 2).
Co-Chair Larson advised that $556 million dollars would then
be available to distribute through the permanent fund.
Co-Chair MacLean MOVED to delete Section #13 which would
remove inflation proofing of the principal of the Alaska
permanent fund.
Representative Martin OBJECTED. Co-Chair MacLean
interjected that the cost for inflation proofing currently
14
is 2.9% of the principle. She recommended that inflation
proofing continue at a cost rate of 1%.
Discussion followed among Committee members regarding
reduction or deletion of inflation proofing of the principal
of the permanent fund. Representative Hanley pointed out
that protection of the principle of the permanent fund
should be closely monitored by the Legislature and that he
would not support the reduction or deletion.
Co-Chair MacLean WITHDREW the MOTION to delete Section #13.
There being NO OBJECTION, it was withdrawn.
Representative Therriault WITHDREW a previous motion to
amend Section #16. There being NO OBJECTION, it was so
ordered.
Co-Chair Larson provided the Committee with an amendment to
Page 4, Section #17 (d). [Copy on file]. The amendment
would appropriate $200 million dollars from the available
unrestricted cash in the general account of the revolving
Alaska Housing Finance Corporation (AHFC) fund to the
general fund.
Co-Chair Larson MOVED the amendment. Representative Brown
OBJECTED.
Representative Brown pointed out that the Executive Director
of AHFC had testified before the LBA Committee that AHFC
would prefer a longer period of time in order to secure bond
market approval that would guarantee a long range financial
plan. She emphasized that the amendment would be a "taking"
from AHFC rather than an appropriation from that
corporation.
A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Hanley, Martin, Parnell,
Therriault, Foster, MacLean, Larson.
OPPOSED: Hoffman, Brown.
Representative Navarre was not present for the vote.
The MOTION PASSED (8-2).
Co-Chair Larson MOVED a change to Section #19 (b), Page 4,
deleting "$5,545,000" and inserting "$2,462,600". He
questioned Section #19 (a) asking if the remainder of the
fund should continue to stay in the oil and hazardous
substance release response fund or if it should be placed in
the general fund. Representative Brown MOVED that the
amount lapse into the general fund.
15
VIRGINIA STONKUS, ANALYST, DIVISION OF LEGISLATIVE FINANCE,
noted that the majority of the funds in the oil and
hazardous substance release response fund resulted from the
Exxon Valdez settlement.
There being NO OBJECTION, the motion was adopted.
Co-Chair Larson MOVED to amend Section #21, deleting
"$25,800,000" and inserting "$25,900,000.
MIKE GREANY, DIRECTOR, DIVISION OF LEGISLATIVE FINANCE,
advised that the Department of Revenue provided the updated
amount as derived from the five cent per barrel surcharge
collected from the general fund to the oil and hazardous
release response fund.
There being NO OBJECTION, Section #21 was amended.
Co-Chair Larson MOVED to amend Section #22 which would
appropriate additional monies for costs relating to legal
proceedings and audit activity involving oil and gas revenue
due to be paid from the constitutional budget reserve.
There being NO OBJECTION to changing the funding source for
Section #22 to the constitutional budget reserve, it was
adopted.
Representative Martin MOVED to insert the full costs
recommended by the Department of Law be deleting
"$13,500,000" and inserting "$27,000,000" dollars and to
delete "$4,500,000" state corporation receipts and insert
"$9,000,000" dollars.
A roll call vote was taken on the MOTION.
IN FAVOR: Hanley, Martin, Parnell, Therriault,
Brown, MacLean.
OPPOSED: Hoffman, Grussendorf, Larson.
Representatives Navarre and Foster were not present for the
vote.
The MOTION PASSED (6-3).
(Tape Change, HFC 94-112, Side 1).
Co-Chair MacLean recommended amending Section #25. Co-Chair
Larson pointed out that half the costs for the Alaska Marine
Highway System are generated from program receipts and half
the cost are provided from the general fund. Ms. Slagle
noted that the Alaska Marine Highway System's receipts
16
currently total $41 million dollars. The $41 million
dollars and the request for $28 million dollars would cover
the needed appropriation for the system. She added that
there would be a fund balance to be accessed in order to
continue operations.
Co-Chair MacLean MOVED to amend Section #25 by deleting
"$28,715,800" and inserting "$20,000,000". Representative
Grussendorf noted that the Legislature has requested that
the Marine Highway System service more communities which
would make it inappropriate to decrease the funding request.
A roll call vote was taken on the MOTION.
IN FAVOR: Therriault, Martin, MacLean.
OPPOSED: Hoffman, Parnell, Brown, Foster,
Grussendorf, Hanley, Larson.
Representative Navarre was not present for the vote.
The MOTION FAILED (3-7).
Co-Chair Larson referenced a letter from George Utermohle,
Legislative Counsel regarding Section #28. The original
language would allow funds from that section to lapse into
the general fund offsetting a supplemental request. [Copy
on file]. Co-Chair Larson MOVED to delete Section #28,
replacing it with the new language.
DON STUDY, OSHA DIRECTOR, DEPARTMENT OF LABOR, stated that
the Safety Advisory Council was started as a private entity
with private functions. Private funds generating $68
thousand dollars were contributed to the State with the
understanding that the State would reappropriate each year
that amount of funds for "seed" money for conference needs.
Mr. Study noted that the group currently meets yearly to
discuss occupational, safety, and health training.
Co-Chair Larson WITHDREW THE MOTION. There being NO
OBJECTION, it was withdrawn.
Representative Hanley MOVED to insert the language as
proposed by Mr. Utermohle as a new Section #28. There being
NO OBJECTION, it was so ordered.
Representative Hanley MOVED the new Section #31 as drafted
by Mr. Utermohle which would reappropriate the roll forward
for the Alaska Public Utilities Commission (APUC).
GUY BELL, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, advised
17
that the Public Utilities Commission is funded with a
regulatory cost charge, a surcharge on every consumer's
electric bill to cover the cost of APUC. The intent of
Section #31 would roll forward any receipts from the
regulatory cost charge which are not spent in FY94, allowing
APUC to reduce the regulatory cost charge in FY95.
Representative Martin OBJECTED to the new language.
Representative Hanley WITHDREW THE MOTION. There being NO
OBJECTION, the motion was withdrawn.
Representative Martin advised that HB 505 would address
concerns indicated in Section #33. Discussion followed
regarding the stipulations of HB 505 and the funding sources
listed using the constitutional budget reserve.
Representative Hanley clarified that the appropriation from
the debt retirement fund to the Department of Education
would not require a three quarters vote.
Representative Martin MOVED to delete Section #33.
Representative Brown OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: Martin, Parnell, Therriault, Foster,
Grussendorf, Hanley, Larson.
OPPOSED: Brown, Grussendorf, Hoffman.
Representatives MacLean and Navarre were not present for the
vote.
The MOTION PASSED (6-3).
Representative Parnell MOVED a change as proposed by
Representative MacLean to Section #34 deleting "deposited"
and inserting "available" in the four dam pool transfer
fund. Representative Brown questioned the effect of the
change.
REMOND HENDERSON, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS,
stated that the change would allow all available funds in
that fund to be appropriated in the 40/40/20 percent split.
He added that HB 372 and SB 243 would also address that
concern. Representative Brown OBJECTED to the change.
A roll call vote was taken on the MOTION.
IN FAVOR: Parnell, Therriault, Foster,
Grussendorf, Hanley, Hoffman, Martin,
Larson.
OPPOSED: Brown.
18
Representatives MacLean and Navarre were not present for the
vote.
The MOTION PASSED (8-1).
Co-Chair Larson MOVED to delete Section #35. Mr. Hogan
remarked that Section #35 had been placed in appropriation
bills in previous years. He added that HB 505 would
appropriate a specific amount from the constitutional budget
reserve fund and therefore thought deleting it would be
appropriate.
Representative Martin OBJECTED indicating this section could
protect the State from decisions made by the Supreme Court.
A roll call vote was taken on the MOTION.
IN FAVOR: Therriault, Brown, Grussendorf, Hanley,
Hoffman, Larson.
OPPOSED: Parnell, Martin.
Representatives Foster, Navarre and MacLean were not present
for the vote.
The MOTION PASSED (6-2).
Co-Chair Larson referenced the new language as provided by
George Utermohle for Section #38. [Copy on file].
Mr. Bell commented that the source of funds would be the
same as the marketing tax and the processor tax as collected
from fishermen. The purpose of the tax would be to cover
the cost of seafood marketing in Alaska. The revenue
expected this year would be close to $1.6 million dollars
and would be carried forward into FY95.
(Tape Change, HFC 94-112, Side 2).
Representative Hoffman MOVED to adopt the language as
proposed by Mr. Utermohle which would clarify the obligated
receipts. Following discussion among the Committee members,
there was NO OBJECTION, and it was adopted.
Representative Brown MOVED to adopt Amendment #10 which
would delete all material and insert a new subsection
addressing previous action taken to the mitigation account
and the storage tank fund. Representative Parnell OBJECTED.
A roll call vote was taken on the MOTION.
19
IN FAVOR: Brown, Foster, Hoffman, Larson.
OPPOSED: Therriault, Grussendorf, Hanley, Martin,
Parnell.
Representatives Navarre and MacLean were not present for the
vote.
The MOTION FAILED (4-5).
HB 370 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting adjourned at 4:45 P.M.
20
| Document Name | Date/Time | Subjects |
|---|