Legislature(1999 - 2000)
03/01/2000 02:21 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 1, 2000
2:21 P.M.
TAPE HFC 00 - 45, Side 1
TAPE HFC 00 - 45, Side 2
TAPE HFC 00 - 46, Side 1
TAPE HFC 00 - 46, Side 2
CALL TO ORDER
Co-Chair Therriault called the House Finance Committee
meeting to order at 2:21 p.m.
PRESENT
Co-Chair Mulder
Co-Chair Therriault Representative Foster
Vice Chair Bunde Representative Grussendorf
Representative Austerman Representative Moses
Representative J. Davies Representative Phillips
Representative G. Davis Representative Williams
ALSO PRESENT
Nico Bus, Administrative Services Manager, Division of
Support Services, Department of Natural Resources; Alison
Elgee, Deputy Commissioner, Department of Administration;
Karen Rehfeld, Director, Division of Education Support
Services, Department of Education and Early Development;
Janet Clarke, Director, Division of Administrative Services,
Department of Health and Social Services; Barbara Ritchie,
Deputy Attorney General, Department of Law; Larry Persily,
Deputy Commissioner, Department of Revenue; Nancy Slagle,
Director, Division of Administrative Services, Department of
Transportation and Public Facilities; Annalee McConnell,
Director, Office of Management and Budget, Office of the
Governor; Kathryn Daughhetee, Director, Administrative
Services Division, Department of Law; Carl Rose, Executive
Director, Association of School Boards; Mike Tibbles, Staff,
Representative Therriault; Kevin Jardell, Staff,
Representative Green; Geron Bruce, Legislative Liaison,
Department of Fish and Game: Dan Spencer, Director, Division
of Administrative Services, Department of Administration.
SUMMARY
HB 206 "An Act relating to the migratory game bird
conservation tag, to a nonresident combined sport
fishing and hunting license, to the nonresident
military small game and sport fishing license, to
applications for certain licenses, tags, and
permits issued by the Department of Fish and Game,
and to duplicate crewmember licenses."
CSHB 206 (FIN) was REPORTED out of Committee with
a "do pass" recommendation and with two zero
fiscal notes, one by the Department of Public
Safety and one by the Department of Fish and Game,
both dated 2/23/00; and one fiscal impact note by
the Department of Administration.
HB 343 "An Act making and amending capital, supplemental,
and other appropriations and reappropriations;
making a reappropriation under art. IX, sec. 17©,
Constitution of the State of Alaska, from the
constitutional budget reserve fund; making
appropriations to capitalize funds; ratifying
certain expenditures; and providing for an
effective date."
CSHB 343 (FIN) was REPORTED out of Committee with
a "do pass" recommendation.
HOUSE BILL NO. 343
"An Act making and amending capital, supplemental, and
other appropriations and reappropriations; making a
reappropriation under art. IX, sec. 17©, Constitution
of the State of Alaska, from the constitutional budget
reserve fund; making appropriations to capitalize
funds; ratifying certain expenditures; and providing
for an effective date."
DEPARTMENT OF NATURAL RESOURCES
NICO BUS, ADMINSTRATIVE SERVICES MANAGER, DIVISION OF
SUPPORT SERVICES, DEPARTMENT OF NATURAL RESOURCES provided
information regarding section 1.
Natural Resources Fire Suppression 6415.1
Mr. Bus explained that the request is for fire suppression
expenditures to date and FY00 fixed costs. It is a
combination of several fires.
Section 14b Natural Resources 3863.7
Mr. Bus noted that this request would ratify: FY99 Fire
Suppression expenditures.
MILITARY AND VETERANS AFFAIRS
Section 6a Army Guard 24.2
Mr. Bus observed that the appropriation is for the National
Missile Defense Project. He explained that the request would
cover travel for the Alaska National Guard to a conference
regarding the program. Some of the travel has occurred.
There are two trips remaining.
Representative Phillips questioned if the trip to Fort
Greely by legislators would be included. Mr. Bus responded
that the Fort Greely transportation was covered with federal
funds.
Vice Chair Bunde MOVED to ADOPT the proposed committee
substitute 1-GH2041/I, dated 3/1/00. There being NO
OBJECTION, it was so ordered.
Section 6b National Guard/Air Guard Fac. Maint 212.4
Mr. Bus noted that the request would cover the fire rescue
program for the Air National Guard. Operating costs for Air
Guard facilities maintenance is 100 percent federally
funded.
Section 6c Alaska National Guard/Youth Corps 692.6
Mr. Bus noted that this request includes $582.1 thousand
dollars in federal funds from another state that could not
accept the funding. It would allow a larger class size.
Additional funding of $110.5 thousand dollars was collected
from the Municipality of Anchorage in contract fees.
Representative J. Davies observed that the fiscal year ends
June 30, 2000. Mr. Bus noted that the current class ends
March 24, 2000. The request would allow the next class to
begin.
DEPARTMENT OF ADMINISTRATION
Section 2a Senior/Protection Community Svcs & Admin
118.6
ALISON ELGEE, DEPUTY COMMISSIONER, DEPARTMENT OF
ADMINISTRATION explained that the request would cover a
shortfall in the General Relief Program. The Division of
Senior Services manages the program. Funding is used to
cover care for indigent adults in need of protective
placement, such as an assistive living environment. The
state pays an average of $34 dollars a day for assisted
living homes. This is about half the actual cost of
operation. The department estimates that current funding
would be depleted by April 2000.
Representative Austerman questioned why there is a
shortfall. Ms. Elgee pointed out that it is difficult to
predict the type of clientele and added that there has been
an increase in growth rate.
Section 2b Admin Centralized Admin Svcs/Ret & Bens 100.0
Ms. Elgee observed that the funding is for an unexpected
PERS Board election in March. A member was forced to retire
due to illness. Statutes require a 50 percent majority
election. The first round did not result in a 50 percent
majority. A second round is proceeding. The appropriation
covers the cost of balloting and postage.
Co-Chair Therriault observed that HB 335 would mitigate
future costs. Ms. Elgee was uncertain if it would affect
elected board members.
Vice Chair Bunde questioned the cost of a regular election.
Ms. Elgee stated that a regular election would have similar
cost. She noted that the election was unexpected and
therefore not previously budgeted.
Section 10a Longevity Bonus Grants 0.0
Section 10b Admin Longevity Bonus Grants 1430.0
Ms. Elgee explained that the appropriation is for the
Longevity Bonus Program. There are three payments left.
There is $10.5 million dollars left in the account. Monthly
check runs are between $4.8 and $5.2 million dollars per
month. There could be insufficient funding for the April
run. Statutes require that everyone is paid or no one is
paid. There are not enough funds for the month June. If the
next check run exceeds $5.0 million dollars there would not
be enough funds for the May run.
Vice Chair Bunde questioned the department's ability to
project the amount. Ms. Elgee noted that if an individual is
gone for more than 30 days that they forfeit their check for
the 30-day period. They must be gone for 90 consecutive days
th
to be disqualified from the program. The 15 of the month is
the deadline for verification of in-state status, in order
to receive a check on the regular payment date. If a
thth
recipient returns on the 16 or 17 of the month they would
be eligible but would not receive their check till the
subsequent month. There is ordinarily a seasonal change in
the program during these months.
Vice Chair Bunde stressed that the intent of the funds is to
allow persons to remain in the state. He pointed out that if
there is a $1 million dollar fluctuation that there are a
lot of people leaving the state. Representative J. Davies
observed that there are many clients that are dependent on
the funds and remain in the state all year.
In response to a question by Representative Phillips, Ms.
Elgee reiterated that statutes do not allow the department
to prorate longevity bonus payments.
Section 13 Ratifications
SPENCER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF ADMINISTRATION noted that section 13
authorizes technical adjustments for the Department of
Administration and the Department of Community and Regional
Affairs for accounts that are out of balance. They do not
appropriate funds.
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT
Section 3 Early Development/Day Care Assistance
1500.0 interagency receipts
KAREN REHFELD, DIRECTOR, DIVISION OF EDUCATION SUPPORT
SERVICES, DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT
provided information on section 3. She noted that the
request would pay for childcare assistance grants.
In response to a question by Representative Austerman, Ms.
Rehfeld explained that they are federal funds from the
Temporary Assistance to Needy Families program in the
Department of Health and Social Services.
Co-Chair Mulder noted that section 4b provides the
Department of Health and Social Service's authorization.
Section 11 Department of Education & Early Development 0.0
Ms. Rehfeld noted that this section reappropriates funding
for the Northwest Arctic Borough Buckland School. This moves
funds within district projects. The department does not
object to the reappropriation.
Co-Chair Mulder explained that it was included in the fast
track to allow the contractor to remain on site for a
savings of approximately $1 million dollars.
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
Section 4a Catastrophic & Chronic Illness Asst 608.6
JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES observed that the
request would cover operating costs for catastrophic and
chronic illness assistance (CAMI). This program replaced the
old General Relief Medicare program. To qualify recipients
most have less than $300 dollars in monthly income and less
than $500 in assets, as well as have serious medical needs.
Half of the funds go to medicine. The rest is split between
hospital and physician visits. The department predicts that
they will run out of money the end of April. Pharmacy costs
go to retail pharmacists and are difficulty to cover.
Co-Chair Mulder asked what the Governor's request for the
program was in FY00. Ms. Clarke noted that the Governor
requested $3,537.5 million dollars in FY00. The request was
reduced by half a million dollars. She noted that the cost
of prescription drugs is increasing.
Co-Chair Mulder asked what would happen if the request was
not approved. Ms. Clarke responded that they would attempt
to first cover pharmacy costs. Physician visits and hospital
care would be considered next.
Representative J. Davies asked if the request would be
sufficient for the rest of the year. Ms. Clarke affirmed
that the addition would be sufficient to provide funding for
the remaining time.
Representative Phillips questioned if there is a significant
number of new clients or an increase in pharmacy costs. Ms.
Clarke replied that pharmacy costs increased by 30 percent.
There were also 114 new cases, which is slightly higher than
the previous year. There was an 8 percent growth in FY99.
There was an 11 percent growth for FY00.
Representative J. Davies pointed out that the request was
underfunded.
Section 4b Public Asst. Admin/Child Care Benefits
1500.0
Ms. Clarke noted that this request is funded from TANF funds
and is available to offset operating costs for the childcare
benefits program.
Section 4c Public Asst./ Energy Asst. Prgm 2361.1
Ms. Clarke stressed that this request is the result of an
unexpected increase in the Low Income Home Energy Assistance
Program (LIHEAP) federal Grant for emergency heating
assistance. Low-income individuals qualify for the program.
Emergency funds were issued nation wide. The formula is
based on the amount of heating fuel spent in the state. The
state will receive the extra federal receipts. This will
allow an increase in the household amount of per grant from
$444 to $611 dollars per grant. The qualifying amount is
$19,380 dollars for a household of two.
Representative Grussendorf pointed out that fuel costs have
increased and questioned why Power Cost Equalization is not
included in the proposed committee substitute. Co-Chair
Mulder responded that PCE would be addressed in an
amendment.
Section 13 Department of Health and Social Services
3271.6
Ms. Clarke discussed section 13; page 5 lines 22 - 23. This
is for ratification of an over expenditure of general funds
for FY99 Medicaid Services. The ratification is for $3,271.6
million dollars. During the last month of FY99 payments were
stopped. She observed that a lack of matching funds resulted
in insufficient general funds to pay the bills. The
department should have stopped making payments in June. She
observed that it is difficult to predict need. In FY97 $4
million dollars were lapsed. In FY98 $721 thousand dollars
were lapsed. There was a shortfall of general funds in FY99
but there was a lapse of federal funds. She pointed out that
there is no buffer account
DEPARTMENT OF LAW
Section 5 Law 0.0
BARBARA RITCHIE, DEPUTY ATTORNEY GENERAL, DEPARTMENT OF LAW
explained that this item would extend the lapse date to June
30 2001 for litigation defending the constitutionality of
legislation, which implemented tort reformed and placed
limits on medical procedures. She gave a brief history of
the issue. The Final judgement was appealed and the briefing
was extensive. The Supreme Court has allowed the parties to
submit additional briefs of up to 90 pages. Completion of
the appeal briefs is not expected until late summer.
Co-Chair Mulder questioned if there would be sufficient
funds to complete litigation. Ms. Ritchie affirmed that the
funds would be sufficient.
KATHRYN DAUGHHETEE, DIRECTOR, ADMINISTRATIVE SERVICES
DIVISION, DEPARTMENT OF LAW provided information on the
appropriation. She noted that funds would assist the
criminal division's cost associated with the two cases
challenging partial birth abortion and parental consent.
Co-Chair Mulder questioned if the extension would provide
sufficient funds. Ms. Daughetee affirmed.
DEPARTMENT OF REVENUE
Section 7 Revenue Child Support Enforcement 150 GFPR
LARRY PERSILY, DEPUTY COMMISSIONER, DEPARTMENT OF REVENUE
reviewed section 7. He observed that there are several
thousand cases waiting for adjustment. He observed that the
request is for a one-time project, with non-permanent
workers, to reduce the backlog of case adjustments (and an
extended lapse date of 6/30/01). He estimated that there
would be an additional $1.4 million dollars in collections
and $470.2 thousand dollars in federal matching funds.
In response to a question by Representative J. Davies, Mr.
Persily explained that the program receipts would come from
collections for individuals on public assistance. He
emphasized that the sooner the funds are collected the
sooner the money would be deposited into the general fund.
In response to a question by Representative Phillips, Mr.
Persily noted that the current administration inherited
problems from former years (1980's). Representative Phillips
noted that there has been intent to resolve the issue for
several years.
Representative Austerman asked for information regarding the
current level of backlog. Mr. Persily promised that the
department would not be back in the next year for another
request to address the backlog.
Representative Austerman stated that he did not object to
the request as long as there are results.
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
Section 8a Marine Vessel Ops/Southeast Vessel Ops 500.0
NANCY SLAGLE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITITES
explained that the request would provide funding to cover
increased fuel costs for FY00. She observed that the average
cost is .82 cents per gallon.
(TAPE CHANGE, HFC 00 - 45, SIDE 2)
Ms. Slagle noted that the department cut back on service in
an attempt to reduce costs. It was too late to make further
adjustments to the services since the schedule had been
released. The department is beyond their authorization
limit.
Representative Austerman questioned the total fuel budget.
Ms. Slagle observed that the department spent $5.3 million
dollars on fuel in FY99. The department expects to spend
between $7.3 or $7.4 million dollars on fuel in FY00. The
department intends to cover the increase through a
combination of reduced services and increased authorization.
Section 8b Statewide Facility Maintenance &
Operations/Northern Region Fac. 25.0
Ms. Slagle noted that the request would cover damage to
housing in St. Marys damaged by high winds in an
unanticipated winter storm. This region was outside the
declared Central Gulf Coast storm disaster area. She
observed that a small technical amendment would be needed.
There was extensive storm damage in the interior of Alaska
that was not within the declared disaster area.
Section 8c AIA/Operations 900.0 Additional operating
costs
Ms. Slagle observed that section 8c provides additional
authorization for International Airport Revenue funds for
temporary baggage handling service while work proceeds at
the airport. She noted that the cost was unanticipated. The
item was not covered as part of the federal construction
work on the roadside. She noted that the request would go
before the Airline Carrier's Association.
8d Northern Region Hwys & Aviation 248.9
Ms. Slagle explained that the request would provide funding
for snow plowing of specified highways. The department did
not submit the request.
Co-Chair Mulder observed that the reductions were based on
the previous year's allocation. Ms. Slagle acknowledged that
reductions were brought forward as part of the department's
austerity measures. The money was added back to the
department because there was not adequate time to inform
communities of the reduction in service. The department has
notified communities of the department's intent to delay
opening for FY01. There were concerns regarding fuel access
to mines in the area. The Alaska Industrial Development and
Export Authority (AIDEA) assisted in placing a tank in the
area.
Representative Austerman referred to a substation closure,
which was moved into Kodiak. Ms. Slagle noted that intent
language in the operating budget specified that maintenance
stations would be closed. Implementation of the closures
were left to the department.
Co-Chair Mulder noted that a letter was received from the
minister of the Yukon territories and others requesting that
the road remain open.
Representative Foster spoke in support of the request.
Vice Chair Bunde noted that residents on the Taylor Highway
have indicated to him that government should be downsized
and state services returned to the level provided in 1970,
before the oil boom. He stated that he would offer an
amendment to separate the Taylor Highway area and restore it
to the 1970 level of service, when Mother Nature cleared the
road. He noted that the communities have been forewarned and
that they do not wish to pay taxes.
Representative J. Davies argued that road maintenance should
be consistent throughout the state. He stressed that there
are poorly maintained roads in his district.
Representative Phillips confirmed that the road is from Tok
to the customs point. Representative Phillips echoed remarks
by Co-Chair Mulder in regards to the affect of road closures
on the Yukon.
Representative J. Davies referred to a road in Co-Chair
Therriault's district that had been inadequately maintained.
He noted that the road services a hot springs, which
provides attracts tourism.
Representative Austerman stated that it would be difficult
for him to support funding for the department when their
practices are inefficient.
Representative Williams noted that it is a difficult time to
look at reductions in the Alaska Marine Highway System. He
noted that everyone is hurting. He stressed the need for a
good fiscal plan.
UNIVERSITY OF ALASKA
Section 9 Ch 139 SLA 98 pg 87 ln 33 (capital)
1000.0
Representative J. Davies observed that the request
authorizes university and federal receipts that are needed
to continue planning and design for the University museum.
Co-Chair Mulder observed that a museum employee gifted $200
thousand dollars to the museum.
Representative Phillips questioned if this is an addition to
the museum. Representative J. Davies clarified that a
significant addition is planned. A fund raising effort has
raised over $16 million dollars from private and federal
contributors. Sizable personal contributions have been
received.
Representative Phillips stressed that the current facility
needs to be maintained before new projects are begun.
Representative J. Davies stressed his frustration with
deferred maintenance, but emphasized that the university
cannot remain stagnant until the issue is dealt with.
Representative Phillips expressed frustration that deferred
maintenance has not been addressed.
Co-Chair Mulder observed that it is easier to raise money
for new buildings. He acknowledged the need for deferred
maintenance. He pointed out that the University of Alaska
Anchorage has an aggressive maintenance program.
Representative J. Davies assured Co-Chair Mulder that the
University of Alaska, Fairbanks has also been aggressive in
their attempts to address deferred maintenance. He
emphasized that the legislature did not fund their request.
Funding has been diverted from the academic program to
operation and maintenance. He stressed that the university
cannot continue to divert funds from academic programs. He
acknowledged that funding for dorms was received. There are
twenty acres of roofs on the campus. A roof needs to be
replaced on an average of every 20 years.
Representative Williams pointed out that the university has
land available to increase their resources. Co-Chair Mulder
noted that the university has been fairly aggressive in
their land management.
CONSTITUTIONAL BUDGET RESERVE
Section 10c Constitutional Budget Reserve 0.0
Co-Chair Mulder observed that since the Y2K appropriation
required a vote to remove funding from the Constitutional
Budget Reserve (CBR). That a 3/4 CBR vote is needed to
reappropriate the lapse.
Section 12 Legislature Legislative Council 0.0
Co-Chair Mulder explained that this item deals with the
Redistricting Planning Committee. The $190 thousand dollars
remaining from the special election and lapsed money in the
Legislature's budget would be reappropriated. He noted that
the Legislature, Administration and the Court worked
together to formulate the plan.
Representative J. Davies questioned why the funding is going
to the Legislative Council.
KEVIN JARDELL, STAFF, REPRESENTATIVE GREEN explained that
the Redistricting Committee is the result of SB 99. There
are training and data costs. The funds are going to the
Legislative Council since it is a board formed between the
three branches of government there is no other accounting
mechanism. The Legislative Council operates as the
accounting entity.
ANNALEE MCCONNELL, DIRECTOR, OFFICE OF MANAGEMENT AND
BUDGET, OFFICE OF THE GOVERNOR stated that the
Administration supports the request.
Co-Chair Mulder noted that the ratifications are small in
number with the exception of fire suppression.
AMENDMENTS
Co-Chair Mulder provided members with Amendment 1 (copy on
file).
Co-Chair Mulder explained that the Alaska Industrial
Development and Export Authority (AIDEA) has identified a
one-time dividend of $8 million dollars for the state of
Alaska. The Administration requested that the dividend be
used to fund Power Cost Equalization. He explained that ..
Representative Austerman clarified that the amendment funds
FY00.
Co-Chair Mulder MOVED to ADOPT Amendment 1. Amendment 1
noted that there is a one-time $8 million dollar AIDEA
dividend available to the state of Alaska. The amendment
appropriates the dividend to PCE. He reviewed FY00 funding
sources for PCE. There being NO OBJECTION, it was so
ordered.
Co-Chair Mulder MOVED to ADOPT Amendment 2. Amendment 2
appropriates $2,139,700 million dollars for pupil
transportation. The Foundation Program was reduced by the
same amount.
Co-Chair Mulder explained that the amendment funds pupil
transportation. He pointed out that the school year would be
almost over by the time the supplemental has been enacted.
Representative J. Davies pointed out that, while contracts
are negotiated at the local level, the Department of
Education and Early Development must approve them. He
explained that Fairbanks requested a one-year extension in
order to align their contract with other districts. This
resulted in additional costs. He pointed out that by
aligning with other contracts that the option for a
statewide RFP would be possible.
Co-Chair Mulder expressed concern with the lack of a state
policy in regards to pupil transportation.
Representative Phillips stressed that it would be difficult
for her district to address a shortfall this late in the
school year, and acknowledged that there were not additional
school miles to correspond to the increased costs.
Representative J. Davies stressed that the Fairbanks School
District is conservative and drives a hard bargain, but
noted that there is little or no competition in Fairbanks.
There being NO OBJECTION, Amendment 2 was adopted.
Co-Chair Mulder MOVED to ADOPT conceptual Amendment 3 to
delete "for the fiscal year ending June 30, 2000", on page
3, line 14 and 15. This language is handled in section 14
and is unnecessary. There being NO OBJECTION, it was so
ordered.
Co-Chair Mulder MOVED to ADOPT conceptual Amendment 4, add
"constitutional" before "budget reserve fund" on line 5,
page 4. There being NO OBJECTION, it was so ordered.
Vice Chair Bunde MOVED to ADOPT Amendment 5 (copy on file).
The amendment would delete funding for snow plowing of the
Taylor Highway. He maintained that the state of Alaska
should not feel any strong obligations to the Yukon
regarding its tourist industry.
TAPE CHANGE, HFC 00 - 46, SIDE 1
Representative Phillips spoke against the amendment. Co-
Chair Mulder noted that Representative James expressed
concern regarding fuel distribution.
Co-Chair Therriault stated that he was informed that the
cost is reasonable and below an amount that could be done by
the private sector.
Representative J. Davies acknowledged the frustration that
has fueled the amendment, but stressed that maintenance is a
fundamental role of government. He pointed out that
maintenance has been inadequately funded in the past ten
years.
Representative Williams acknowledged that money has been
removed from various portions of the budget to cover this
expense. He maintained the importance of keeping the roads
open.
Vice Chair Bunde pointed out that money is being transferred
from areas that pay to support their roads to areas that do
not pay to support local roads. He stressed that it will
cost more to maintain the road than was collected from the
area in taxes.
A roll call vote was taken on the motion.
IN FAVOR: Bunde, Therriault
OPPOSED: Austerman, Williams, Davies, Foster, Grussendorf,
Moses, Phillips, Mulder
Representative G. Davis was absent from the vote.
The MOTION FAILED (2-7).
Representative Austerman MOVED to adopt Amendment #6. [Copy
on File]. Amendment 6 would add $50.0 thousand dollars for
Kodiak Chiniak/Pashaqsak Road Station. He stated that this
is a policy call to maintain developing areas.
Vice Chair Bunde OBJECTED. He pointed out that it would be
an an increase in spending.
Representative J. Davies MOVED to amend by adding $10
thousand dollars for the Chena Hot Springs road. He WITHDREW
the MOTION. He noted that the amendment would provide
infrastructure to develop and diversify the economy.
Vice Chair Bunde WITHDREW the OBJECTION. There being NO
further OBJECTION, Amendment 6 was adopted.
Ms. McConnell applauded the Committee's early action on the
supplemental. She observed that the Administration has an
additional item to present the Committee. She explained that
the Governor had asked Commissioner Otti to develop a
proposal for avalanche warnings to address avalanche deaths
and the expense of search and rescue. She noted that the
avalanche danger would be extreme over the next couple of
months. Avalanche warning is a statutory responsibility
lodged in the Department of Public Safety, funding was
eliminated in 1986. The Governor has requested that the plan
do as much as possible to provide warning of avalanche
danger and keep people out of those areas. Danger must be
identified. She observed that there is extensive involvement
by volunteers in search and rescue but emphasized that if is
not possible for volunteers to do all the work. There may be
an opportunity to use some Federal Emergency Management
Agency (FEMA) funds for these costs. The proposal that has
been developed calls for work in the areas with the most
predispositions for danger. The Departments of Public Safety
and Military and Veterans Affairs are currently working
together to develop recommendations. The South Central area
and Valdez are among the areas where avalanches threaten
population centers. She recommended that an appropriation
could be made to the Alaska Mountain safety center to
continue the work. The Alaska Mountain safety center
fulfilled this function prior to the suspension of funds in
1980's. They have continued to coordinate mountain rescue.
The dollar amount is not yet available.
In response to a question by Representative Austerman, Ms.
McConnell stressed that the intent would be to address areas
where people are located both through transportation and
recreational use. The road system would be the core. She did
not anticipate avalanche prediction in areas that are not
used. Ski and snow machine clubs would be utilized. The
fundamental work of forecasting is significant.
Representative Austerman voiced reservations regarding
inclusion of recreation areas. Many of those areas have
their own avalanche security. Ms. McConnell emphasized that
major recreational areas would be the focus.
Representative J. Davies spoke in support of providing
avalanche warning, but stressed that a broader look should
be taken in regards to geological hazards.
CARL ROSE, EXECUTIVE DIRECTOR, ASSOCIATION OF SCHOOL BOARDS
testified on funding for the Department of Education and
Early Development. He explained that $26 million dollars was
placed into the Foundation Formula in FY99. This amount will
be reduced in FY01 due to an increase in local contribution.
He pointed out that an outcome-based process of education
has been put in place. Exit and benchmark exams have been
put in place. In FY00, there will be $11 million dollars in
cuts divided by the remaining three months of April, May and
June. He maintained that there is a collision course and
noted that schools have been flat funded for 10 years. He
stressed that it is an urgent issue that should be fast-
tracked.
Representative J. Davies asked for further information.
Mr. Rose explained that the reductions are the result of SB
36. He noted that the strong economy and how it would affect
property value was not predicted. Additional impact aid and
low enrollment were not expected. Schools will lose $19
million dollars in FY01. Additional aid could be replaced
through operations or grant. He acknowledged that additional
funding would go to where the children are located and not
necessarily where the funding was reduced.
Co-Chair Therriault pointed out that state dollars are being
replaced by local contributions and federal impact dollars.
He acknowledged that pupil counts do account for fewer
dollars. Representative Austerman agreed with Co-Chair
Therriault's assessment.
Representative J. Davies pointed out that assessed value
includes property value that is not taxed. The revenue does
not necessarily increase equally to the assessed value.
Mr. Rose observed that some school districts are funded at
their cap and cannot receive more money as state dollars are
reduced.
Co-Chair Mulder referred to a letter by Darroll Hargraves,
Executive Director, Alaska Council of School Administrators
[Copy on file]. Mr. Hargraves did not wish to testify.
Representative Phillips observed that she has a relative in
the Youth Court contained in section 6(c). She clarified
that there is no financial reflection in her family.
Representative Foster MOVED to report CSHB 343 (FIN) out of
Committee with the accompanying fiscal note. There being NO
OBJECTION, it was so ordered.
CSHB 343 (FIN) was REPORTED out of Committee with a "do
pass" recommendation.
HOUSE BILL NO. 206
"An Act relating to the migratory game bird
conservation tag, to a nonresident combined sport
fishing and hunting license, to the nonresident
military small game and sport fishing license, to
applications for certain licenses, tags, and permits
issued by the Department of Fish and Game, and to
duplicate crewmember licenses."
Co-Chair Therriault observed that the House Finance
Committee adopted amendments to HB 206 on 2/29/00, which
would change the fiscal note.
GERON BRUCE, LEGISLATIVE LIAISON, DEPARTMENT OF FISH AND
GAME discussed the department's fiscal note. He provided
members with a spreadsheet (copy on file). The spreadsheet
contains calculations on fishing licenses sold to residents
of the Yukon Territory in 1999 and 1997. There was a drop in
total license purchases after the fee increase. There were
1,589 licenses sold in 1999 and 2,061 sold in 1997. The
department took the number of licenses sold in the highest
year and estimated that if Yukon residents could buy King
Salmon and sport fishing licenses at the same rate as
Alaskans that there would be a reduction in revenues of $25
thousand dollars. The reduction would be in fish and game
funds.
In response to a question by Representative Grussendorf, Mr.
Bruce estimated that the largest use by Yukon fisherman
would be in the Haines/Skagway area.
In response to a question by Co-Chair Therriault, Mr. Bruce
noted that Alaskans cannot fish for free in the Yukon. The
non-resident fishing license rates in Canada are low. He
explained that the Canadian federal government, not the
territorial government, would need to take action to set a
reciprocal agreement in place.
Co-Chair Therriault questioned if there would be a $25
thousand dollar hole in the department's budget. Mr. Bruce
responded that the director of Sport Fish was not concern
with the immediate loss. He acknowledged that the Fish and
Game Fund has been under pressure and that there would be
less revenue into the fund if Canada enacts a reciprocal
agreement.
Representative Grussendorf stressed that there is a
relationship to King Salmon tags and the state's effort to
enhance the stock.
Co-Chair Therriault noted that there was a technical problem
with the adoption of Amendment 1.
MIKE TIBBLES, STAFF, REPRESENTATIVE THERRIAULT spoke to
Amendment 1, passed by the Committee on 2/29/00. He
explained that Amendment 1, as drafted, would require the
Department of Fish and Game to establish a new license. The
intent was that residents of the Yukon would get the
existing license at the same price as an Alaskan resident.
Mr. Tibbles suggested that the amendment be amended by
deleting: "non" before resident, "for the fee charged to
residents under (a) of this section for a resident sport
fishing licenses," and "for the fee charged to residents
under (a) of this section for a resident anadromous king
salmon tag."
Co-Chair Mulder MOVED to rescind the Committee's action in
adopting Amendment 1. There being NO OBJECTION, it was so
ordered.
Co-Chair Mulder MOVED to ADOPT amended Amendment 1:
(h) Residents of Yukon Territory, Canada, may receive
(1) a resident annual sport fishing license; and
(2) a resident anadromous king salmon annual tag.
Co-Chair Therriault OBJECTED. He noted that there is no
reciprocal action with the Yukon. Representative J. Davies
noted that the legislation requires action before taking
affect. Co-Chair Therriault thought that the motivation was
to match the policy of the Yukon.
TAPE CHANGE, HFC 99 - 46, SIDE 2
A roll call vote was taken on the motion to adopt Amendment
1 as amended.
IN FAVOR: Davies, Moses, Phillips, Foster, Mulder
OPPOSED: Bunde, Grussendorf, Williams, Therriault
The MOTION PASSED (5-4).
Representative J. Davies MOVED to report CSHB 206 (FIN) out
of Committee with the accompanying fiscal note. There being
NO OBJECTION, it was so ordered.
CSHB 206 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with two zero fiscal notes, one by
the Department of Public Safety and one by the Department of
Fish and Game, both dated 2/23/00; and one fiscal impact
note by the Department of Administration.
Adjournment
The meeting adjourned at 4:45 p.m.
| Document Name | Date/Time | Subjects |
|---|