Legislature(1993 - 1994)
04/03/1993 10:15 AM Senate FIN
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* first hearing in first committee of referral
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MINUTES
SENATE FINANCE COMMITTEE
April 3, 1993
10:15 a.m.
TAPES
SFC-93, #46, Side 1 (000-end)
SFC-93, #46, Side 2 (end-255)
CALL TO ORDER
Senator Steve Frank, Co-chair, convened the meeting at
approximately 10:15 a.m.
PRESENT
In addition to Co-chairs Frank and Pearce, Senators Jacko,
Kelly, Kerttula, Rieger, and Sharp were present.
ALSO ATTENDING: Senator Jim Duncan, Senator Rick Halford,
Senator Randy Phillips, Senator Suzanne Little, Senator Al
Adams, Attorney General Charlie Cole, Commissioner Darrel J.
Rexwinkel, Department of Revenue; Brian Rogers, Vice
President for Finance, University of Alaska; Mike Greany,
Director, and Nancy Slagle, Jeff Hoover, Joan Kasson, Karen
Rehfeld, Fiscal Analysts, Legislative Finance Division; and
aides to committee members.
SUMMARY INFORMATION
SB 175 - An Act making appropriations for the operating and
loan program expenses of state government and to
capitalize funds; and providing for an effective
date.
Subcommittee budgets were presented for the
following departments:
Department of Education
Department of Revenue
Department of Administration
University of Alaska
Department of Public Safety
Department of Transportation
The committee returned to add letters of intent to
the subcommittee budget for the following
department:
Department of Health & Social Services
SENATE BILL NO. 175:
An Act making appropriations for the operating and loan
program expenses of state government and to capitalize
funds; and providing for an effective date.
(Note: The beginning of the meeting was not taped due to a
malfunction.)
Department of Education
SENATOR TIM KELLY outlined subcommittee decrements to the
corrections of the FY94 operating budget for the Department
of Education (copy of handout on file titled "Department of
Education-Senate Reductions).
SENATOR JAY KERTTULA MOVED for ADOPTION of a letter of
intent that said funds allocated in the client services
component be used for project "walkback," and that the
Division of Vocational Rehabilitation disburse and monitor
the funds for this purpose. No objections being raised, it
was ADOPTED.
Senator Kelly MOVED for ADOPTION of letter of intent #1
which spoke to the Museum Operations reduction (copy on
file). No objections being raised, it was ADOPTED.
Begin SFC-93 #46, Side 1
SENATOR GEORGE JACKO MOVED for ADOPTION of subcommittee
recommendations for the Department of Education budget into
SB 175. Senator Kerttula OBJECTED. Co-chair Frank asked
for a show of hands. The motion CARRIED on a vote of 6 to
1. (Senators Frank, Jacko, Kelly, Pearce, Rieger, and Sharp
were in support. Senator Kerttula was opposed.)
Later in the meeting, Senator Kelly MOVED amendment #2 that
would add $34.0 in general funds and reduce $34.0 in program
receipts to the Teacher Certification Program for the
Department of Education (copy on file). No objections being
raised, it was ADOPTED.
Senator Kelly MOVED an amendment in the form of a memo dated
April 3, 1993, subject: Amendment/Museum Operations be added
to the Department of Education budget (copy on file). This
memo amends letter of intent #1. No objections being
raised, it was ADOPTED.
Senator Kerttula MOVED letter of intent #5 by Senator Kelly
and co-sponsored by Senators Jacko and Kerttula, that speaks
to educational program appropriation (copy on file). No
objections being raised, it was ADOPTED.
Department of Revenue
Senator Jacko outlined subcommittee decrements to the
corrections of the FY94 operating budget for the Department
of Revenue (copy of handout on file titled "Department of
Revenue-Senate Reductions"). Co-chair Frank asked if the
two positions in the Child Support Enforcement field offices
would be eliminated rather than transferred to Fairbanks.
COMMISSIONER DARREL J. REXWINKEL, Department of Revenue,
answered, because the funding would be eliminated, the
offices in Juneau and Fairbanks would be closed, and the
positions would be eliminated.
In answer to Senator Kerttula, Senator Jacko affirmed that
oil and gas auditors were included in the Department of
Revenue budget. Senator Kerttula asked if all the
investigators were eliminated, would the state rely on state
police to investigate internal infractions of regulations
over DEC. Senator Kerttula also asked if the Director had
been retained. Commissioner Rexwinkel stated that the two
remaining investigator positions would be eliminated leaving
an executive director and a few clerical staff that would
report to the Alcohol Beverage Control Board, leaving only a
licensing function. He said the investigation function
could be contracted out.
Senator Kerttula said that he would have an amendment on the
Child Support Enforcement component at a later time.
Senator Kelly MOVED for ADOPTION of subcommittee
recommendations for the Department of Revenue budget into SB
175. No objections being raised, it was ADOPTED.
Department of Administration
CO-CHAIR STEVE FRANK outlined subcommittee increments and
decrements to the corrections of the FY94 operating budget
for the Department of Administration (copy of handout on
file titled "Department of Administration - FY 94").
At Ease 10:47am
Reconvene 10:50am
Senator Kerttula MOVED for adoption of amendment #1 in
regard to the Pioneers Homes (copy on file). Senator Jacko
OBJECTED. Co-chair Frank asked for a show of hands. The
motion FAILED on a vote of 6 to 1. (Senators Frank, Jacko,
Kelly, Pearce, Rieger, and Sharp were opposed. Senator
Kerttula was in support.)
Senator Kerttula MOVED for adoption of amendment #2 in
regard to nutrition and transportation services grants for
the Older Alaskans Commission (copy on file). Co-chair
Frank OBJECTED. Co-chair Frank asked for a show of hands.
The motion FAILED on a vote of 6 to 1. (Senators Frank,
Jacko, Kelly, Pearce, Rieger, and Sharp were opposed.
Senator Kerttula was in support.)
CO-CHAIR DRUE PEARCE MOVED for ADOPTION of subcommittee
recommendations for the Department of Administration budget
into SB 175. Senator Kerttula OBJECTED. Co-chair Frank
asked for a show of hands. The motion CARRIED on a vote of
6 to 1. (Senators Frank, Jacko, Kelly, Pearce, Rieger, and
Sharp were in support. Senator Kerttula was opposed.)
At Ease 11:05am
Reconvene 10:10am
University of Alaska
SENATOR STEVE RIEGER outlined subcommittee increments and
decrements to the corrections of the FY94 operating budget
for the University of Alaska (copy of handout on file titled
"FY94 Senate Finance University of Alaska Budget
Subcommittee Recommendations" and "Summary Sheet").
Senator Rieger stated that the subcommittee submitted three
letters of intent. He explained that the first letter
titled "University of Alaska, Anchorage" spoke to the
instructional funds added in this budget and that these
funds should be used for the best mix in delivering
instruction (copy on file). Senator Kerttula asked if
"instructional funding" is understood to be regional wide.
Senator Rieger confirmed that UAA was meant to include all
the campuses in the UAA system.
Senator Rieger spoke to the second letter of intent titled
"Statewide Programs and Services" (copy on file). He said
the intent of the legislature is that workloads of the
faculty reflect teaching as the primary responsibility. It
also requests that all faculty on all campuses provide a
report of their 1993 workloads.
The third letter of intent titled "University of Alaska,
Anchorage", asks that each main campus pursue opportunities
to receive grants and other sources to help support
University operations (copy on file). Senator Kerttula said
he was in support of out-reach to receive other funding for
the University. However, he warned that often research
grants require peer research and little instruction is
associated with them.
Senator Rieger argued that research grants could allow a
portion of the grant to be allocated against the
administration. He said it was a way to relieve other
dollars from the administration, and those funds could then
go toward teaching. He also said they could help provide a
stipend for graduate students which would be useful in the
university system. He said his concerns were the same as
Senator Kerttula's, and reiterated that the primary role of
teachers is to teach.
Senator Jacko asked how many new employees would be added
because of the addition of instructional funds. Senator
Rieger said that he did not know, however, because of the 36
percent reduction in fixed costs that would have to be
absorbed, administrative positions would be eliminated.
Recess 11:15am
Reconvene 11:17am
Senator Rieger MOVED for ADOPTION of the three letters of
intent for the University of Alaska. No objections being
raised, it was ADOPTED.
Senator Rieger MOVED for ADOPTION of subcommittee
recommendations for the University of Alaska budget into SB
175 and asked the committee to consider a request by the
University to change the format of the number of sheets of
detail from 113 to 39. Senator Kerttula asked if that would
mean less detail would be available for the legislature.
BRIAN ROGERS, Vice President for Finance, University of
Alaska, said the change proposed that instead of separate
allocations for each campus, one allocation per campus would
be shown with project budget forms for each function within
the campus. This format was used from 1982 until 1992 and
was changed to a long form last year.
NANCY SLAGLE, Fiscal Analyst, Legislative Finance Division,
supported this proposal, and even though it would contain
less pages, she felt it would provide adequate detail. She
said that if the legislature agreed with the new proposal, a
decision made today would enable Legislative Finance
Division to take the steps to automate the process. Senator
Jacko asked if this proposal would change the way the money
was expended, and give the University more flexibility. Mr.
Rogers said that it would not. In the event of a transfer,
less paperwork would be needed, but the University would
still have to report the transfer. Mr. Rogers said the
major difference was the preparation of the detail for next
year's budget cycle.
Co-chair Frank said he would like to hold this proposal
until later in the meeting. (See April 3, 1993 afternoon
minutes.) Senator Rieger again MOVED for ADOPTION of
subcommittee recommendations for the University of Alaska
budget into SB 175. No objections being raised, it was
ADOPTED.
Department of Public Safety
Senator Rieger outlined subcommittee increments and
decrements to the corrections of the FY94 operating budget
for the Department of Public Safety (copy of handout on file
titled "FY94 Senate Finance Public Safety Budget
Subcommittee Recommendations").
Senator Rieger presented three letters of intent from the
subcommittee. The first spoke to the Highway Safety
Planning Agency to provide a grant to the EMS system in
DH&SS (copy on file). This would not supplant general funds
but be an increase. The next two letters provided intent
language for Fish and Wildlife, and Detachments to increase
sources from other than general fund receipts, and bring
revised program receipt requests to LB&A for enhanced
protection (copies on file). Senator Kerttula asked how
both would get program receipts. Senator Rieger said he was
not clear if that was possible but that fines and
forfeitures could be an avenue. Senator Rieger explained
that the subcommittee felt in a time of declining revenue,
an increase in the budget was not feasible but did allow for
personal service funding to avoid a decrease in personnel.
Senator Kerttula voiced his concern about the department
taking such action as speed traps in order to provide funds.
Co-chair Frank asked for confirmation that the intent of the
subcommittee was that the department would come before LB&A
to explain the potential sources and have them approved
before any money is expended. Senator Rieger answered
affirmatively, and explained that the original plan would
have put program receipts into the budget. Senator Kerttula
cautioned that this process should be monitored closely.
Senator Rieger MOVED for ADOPTION of the three letters of
intent for the Department of Public Safety. No objections
being raised, they were ADOPTED.
Senator Kerttula MOVED for ADOPTION of amendment #1 in
regard to the Department of Public Safety restoring the
Governor's increment for the Troopers (copy on file).
Senator Frank OBJECTED. Co-chair Frank asked for a show of
hands. The motion FAILED on a vote of 6 to 1. (Senators
Frank, Jacko, Kelly, Pearce, Rieger, and Sharp were opposed.
Senator Kerttula was in support.)
Senator Rieger MOVED for ADOPTION of subcommittee
recommendations for the Department of Public Safety budget
into SB 175. No objections being raised, it was ADOPTED.
Department of Health & Social Services
Senator Rieger presented two letters of intent for the
Department of Health & Social Services. The first letter
said that it was the intent of the legislature that the
statewide EMS system apply to the Department of Public
Safety for a $50.0 Highway Safety Planning Agency federal
grant (copy on file). The second letter said that it was
the intent of the legislature that DH&SS aggressively work
toward increasing self sufficiency efforts in order to
transition as many clients as possible into the workforce
(copy on file). Discussion followed between Senators
Kerttula and Rieger regarding department staff working with
welfare applicants.
Senator Rieger MOVED for ADOPTION of the two letters of
intent for the Department of Health & Social Services. No
objections being raised, it was ADOPTED.
Department of Transportation & Public Facilities
SENATOR BERT SHARP outlined subcommittee increments and
decrements to the corrections of the FY94 operating budget
for the Department of Transportation & Public Facilities
(copy of handout on file titled "Department of
Transportation and Public Facilities, FY 94 Budget Senate
Finance Subcommittee Work Draft, 4/2/93 Revised #4").
End SFC-93 #46, Side 1
Begin SFC-93 #46, Side 2
Senator Sharp said the recommended budget was a reduction of
2.6 percent from the Governor's budget, and a reallocation
of $1.2M. He presented letters of intent #3, #4, and #5 for
DOT/PF (copies on file). Co-chair Frank asked the letters
of intent be held until later in the meeting.
Senator Kerttula submitted amendment #1 for DOT/PF to add
$180.0 for maintenance of the Anchorage station, to add
$539.0 for maintenance for the central region, and to add
$40.0 to restore the cut to the contract with the
Municipality of Anchorage (copy on file). He said that last
year DOT/PF had been reduced by $2.5M and that reduction
came out of maintenance. He voiced his concern that lack
highway maintenance funds would eventually cause a disaster
especially on the main highways. Co-chair Frank OBJECTED.
Co-chair Frank asked for a show of hands. The motion FAILED
on a vote of 5 to 1. (Senators Frank, Jacko, Pearce,
Rieger, and Sharp were opposed. Senator Kerttula was in
support. Senator Kelly was absent from the meeting when the
vote was taken.)
Co-chair Sharp said that each region received the same
percentage reduction as any other region. He said the
northern region chose to be more specific when targeting
their reductions, and southeast and central region elected
to take more reductions in unallocated highway maintenance
and operations. Senator Kerttula reiterated that a large
cut of $700-800.0 was being made to an area that has most of
the population of the state and tremendous road problems.
He cited the Brad-Phillips law case and felt the state could
end up in court due to disasters on the road.
Senator Kerttula submitted amendment #2 for DOT/PF for
maintenance and facilities (copy on file). Co-chair Frank
OBJECTED. Co-chair Frank asked for a show of hands. The
motion FAILED on a vote of 6 to 1. (Senators Frank, Jacko,
Kelly, Pearce, Rieger, and Sharp were opposed. Senator
Kerttula was in support.)
Senator Sharp MOVED for ADOPTION of the three letters of
intent for the Department of Transportation & Public
Facilities. No objections being raised, they were ADOPTED.
Senator Sharp MOVED for ADOPTION of subcommittee
recommendations for the Department of Transportation &
Public Facilities budget into SB 175. Senator Kerttula
OBJECTED. Co-chair Frank asked for a show of hands. The
motion CARRIED on a vote of 6 to 1. (Senators Frank, Jacko,
Kelly, Pearce, Rieger, and Sharp were in support. Senator
Kerttula was opposed.)
ADJOURNMENT
The morning meeting was recessed at approximately 12:00 p.m.
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